National Economic Council Director Larry Kudlow argues the worst of the coronavirus pandemic is over and the U.S. economy is getting ready to reopen. Kudlow outlines the scale of the current economic relief package how any further discussion should focus on policies to launch the economic recovery.
The Bureau of Economic Analysis (BEA) released the first quarter Gross Domestic Product (GDP) advanced estimate and the result is a 4.8% decline in economic activity. [BEA Here]
The revised fourth quarter GDP shows the economy was growing at 2.1 percent prior to the COVID-19 shutdown. The severity of the change in GDP reflects a severe drop in consumer spending, essentially bringing the economy to a halt in March as the entire nation went into lock-down. As the BEA explains:
The decline in first quarter GDP was, in part, due to the response to the spread of COVID-19, as governments issued “stay-at-home” orders in March. This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending.
The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the first quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified. (more)
Digging down into the details the data shows what we all have seen. There is some specific data that is noteworthy in the tables.
Sometimes a special message needs a special messenger. Today, amid the anxiety and stress created by the coronavirus pandemic, a very special messenger named Michael visited the White House and delivered a very important message to everyone:
…”At Bitty and Beaus we like to use the phrase ‘not broken’. That means me and all my important co-workers are not broken, and we have lots to offer. I know the great country of the United States isn’t broken either.”… ~ Michael
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Indeed, this too shall pass.
Thank you Michael; thank you.
With congress saying they will not be returning to work next week, it appears Kentucky representative Thomas Massie has decided to use the opportunity to expose Washington DC’s biggest secret. Something 99% of American voters do not understand:
Oh dear, he’s telling secrets. You see, congress doesn’t actually write legislation. The last item of legislation written by congress was sometime around the mid 1990’s. Modern legislation is sub-contracted to K-Street. Lobbyists write the laws; congress sells the laws; lobbyists then pay congress commissions for passing their laws. That’s the modern legislative business in DC.
CTH often describes the background DC motives with the phrase: “There are Trillions at Stake.” The process of creating legislation is behind that phrase. DC politics is not quite based on the ideas that frame most voter’s reference points.
With people taking notice of DC politics for the first time; and with people not as familiar with the purpose of DC politics; perhaps it is valuable to provide clarity.
Earlier this evening Fox Business News host Lou Dobbs interviewed Michael Flynn’s defense attorney Sidney Powell about the status of the case. Great Interview:
There is a tremendous amount of information and misinformation surrounding the current status of protein processing within the meat industry. Most of the misinformation comes from many people not understanding the total food supply-chain and how it works.
First, there is no shortage of meat protein products: beef, pork and chicken at the farm level. However, the problems arise within processing, manufacturing and more importantly binding legal contracts and liabilities within the supply-chain. Additionally, there are national and multinational aspects to the protein food supply.
Today President Trump remarked the White House and Dept of Agriculture are drawing up a plan for the president to invoke the defense production act as a tool to cut through some of the liabilities present within the supply-chain dynamic. Let’s use cattle to explain.
Because beef is a “graded” commodity, there are contracts for purchase within the supply chain. USDA Prime, USDA Choice and USDA Select are three well known grades of beef. However, there are eight grades total: prime, choice, select, standard, commercial, utility, cutter and canner.
Within the total food supply there are contracts for exclusive product purchasing in both the commercial and consumer side of the food supply. Additionally, the commercial side breaks down into ‘food-away-from-home’ (ie. restaurants), and manufactured food.
President Donald Trump delivers remarks from the East Room of the White House on the Paycheck Protection Program, part of coronavirus relief package known as the CARES Act, that is set up to help small businesses continue to operate and pay employees during the economic downturn caused by the COVID-19 pandemic.
UPDATE: Video and Transcript Added
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[Transcript] – THE PRESIDENT: Well, thank you very much everyone. This is a great honor. And I see you have social distance on your mind and that’s a very good thing. Jovita, congratulations. Tremendous job you’re doing.
I want to thank everyone for being at the White House — a very special house, a very special place. No matter where you go in the world, they love the White House. And being here in the East Room of the White House in particular, where so many important functions have taken place over the years.
Earlier today President Trump and members of the COVID-19 task force met with Florida Governor Ron DeSantis at the White House. DeSantis spoke about the actions Florida has taken to help and support the state’s nursing home population.
The approach to protect the vulnerable population by Florida Governor DeSantis contrasts against the approaches taken in New York and New Jersey which were not so effective. Additionally, DeSantis highlights the use of the national guard to assist in testing and mitigation. [Video Below – Transcript to Follow]
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NOTE: The rude journalist in the oval office is Hunter Walker from Yahoo News who constantly brags to his peers about his resistance efforts.
Holy cow, Illinois is asking for a $40 billion bailout with $10 billion targeted to fund their pension liabilities? These blue spenders are nuts.
Treasury Secretary Steven Mnuchin appears on Fox Business to discuss the ongoing financial programs intended to support U.S. workers and small business. About mid-way through the interview Mnuchin sounds quite serious when he says anyone who falsely filed the borrowers certification on the PPP program will be held criminally liable. WATCH:
Fox News host Tucker Carlson provided some additional insight into the Flynn documents that were filed with the court last Friday noting the potential for the documents to be unsealed tomorrow. According to an earlier report by Maria Bartiromo the documents relate to notes taken by former FBI legal counsel James Baker; and surround the events that encompassed the FBI interview of General Flynn in January 2017. WATCH:
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In a supplement to the defense motion to dismiss [pdf here] we discover some of the evidence of prosecutorial misconduct turned over by the DOJ to the Flynn defense. Specifically Lt. General Michael Flynn’s plea was based on: (1) a framing by the FBI; and (2) a threat against Michael Flynn Jr. if his father didn’t sign the plea.
If the reports are accurate it is very likely Judge Sullivan will allow the plea to be removed. If the documents are as strong as outlined the entire case could be dismissed.