Treasury Secretary Steven Mnuchin appears on Fox News to discuss the latest developments in the battle against COVID-19 and how the coronavirus economic relief package will roll out. Unfortunately the always insufferable Wallace wants to waste time discussing the politics of the administration effort and not communicate important details to American businesses/individuals about what financial relief efforts are available.

Smartly Secretary Mnuchin outlines the process. The Treasury Department has stood up a system inside the Small Business Administration that cuts through much of the bureaucracy. By using FDIC lenders (local banks) as the point of contact for small businesses and S-corps Treasury can backstop the process. [SEE BELOW]

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The local business (or S-corp) takes their payroll and yearly expense documents to their local bank where they already have a relationship. As long as the bank is in the FDIC network; and because the emergency funds are distributed based on a good faith relationship; the bank gives the business or individual immediate access to funds; the bank deposits in the business account. The FDIC guarantees the lender against any risk.

If the business does not continue payroll for the employees, the funds are considered a loan that must be repaid. However, if the business retains their employees (continues to keep current payroll); or -if needed- rehires any recent lay-offs using the funds provided; then the emergency loan becomes a grant the business will not have to repay. The system should be in place by this Friday.

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Oh, this is almost too much winning.  Almost…  President Trump has appointed White House Manufacturing Advisor Peter Navarro to lead all U.S. coordination of the Defense Production Act.   Just like that… presto… Navarro becomes a bazillion times more powerful than CoC President Tom Donohue.   Delicious.

WASHNGTON – President Trump announced Friday he is appointing his trade adviser Peter Navarro to serve as his national Defense Production Act policy coordinator after using the act to force General Motors to begin making ventilators to treat coronavirus patients.

“He’s a tremendous guy and he will do a fantastic job,” the president said during a press briefing with his coronavirus taskforce at the White House. He said Navarro will serve as the national Defense Production Act coordinator for the federal government. (link)

Peter Navarro has been a long-term China hawk warning about the risk of U.S. multinationals doing critical supply-chain manufacturing overseas.  Navarro, working closely with U.S. Trade Representative Robert Lighthizer, has been the tip of the spear in the execution of America First policy and jobs.

This appointment, and these additional responsibilities, is a recognition for his efforts.

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Earlier today President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in the oval office.  [Video and Transcript Below]

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[Transcript] – THE PRESIDENT: Well, thank you all very much. This is a very important day. I’ll sign the single-biggest economic relief package in American history and, I must say, or any other package, by the way. It’s twice as large as any relief ever signed. It’s $2.2 billion, but it actually goes up to 6.2 — potentially — billion dollars — trillion dollars. So you’re talking about 6.2 trillion-dollar bill. Nothing like that. And this will deliver urgently needed relief to our nation’s families, workers, and businesses. And that’s what this is all about.

And it got a 96 to nothing. And, I don’t know, what was the number in Congress?

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President Donald Trump sent the following letter [pdf here] to our nations’ governors in response to the national COVID-19 crisis:

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You knew it was going to happen… The U.S. Chamber of Commerce (President Tom Donohue) begins having apoplectic fits at the thought of even stronger Trump administration policies that might undercut their Chinese manufacturing investments.

The U.S. CoC is the biggest stakeholder of U.S. multinational companies doing business in China.  The Trump administration has been warning them for years to put America First in their business plans; and now with the Chinese Pandemic showing just how dangerous it is for critical manufacturing to be made in the U.S.A, chamber President Tom Donohue is pleading to keep the U.S. dependent on China.

Keep in mind, this is the EXACT SAME group who said the steel and aluminum tariffs were going to cause massive inflation driving up the price of all consumer goods and cars by thousands of dollars… It never happened; because the CoC are manipulative liars.

WASHINGTON (Reuters) – White House plans to expand “Buy America” mandates to the medical equipment and pharmaceutical sectors could worsen shortages of urgently needed medicines and delay discovery of a vaccine for the new coronavirus, over 80 business groups warned.

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On the heels of more than three million new unemployment claims, Treasury Secretary Steven Mnuchin calls in to CNBC for a phone interview to discuss the coronavirus relief bill that passed last night.

Mnuchin was asked about his reaction to seeing the 3.28 million new unemployment claims reported for the past week during the interview. Mnuchin said, “To be honest, I think these numbers right now aren’t relevant whether they’re bigger or shorter in the short term.”  WATCH:

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Yikes, the text of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) has been released (full pdf below).  The Senate took H.R.748 stripped it out, and replaced the text with this bill.   The full 50 page senate record of the activity is available here.

Digging in now.  However, at first blush the size of the spending seems to be a considerable state budget deficit bailout [similar to how Obamacare removed the healthcare pension liabilities from unions].  Here’s the BILL:

[scribd id=453273118 key=key-drggn4Vhb6WkXv99UjQv mode=scroll]

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Share your thoughts in the comment section….

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Think about this… How weak and tenuous does a corporate financial position need to be such that being closed for one week means informing all nationwide landlords of your inability to pay the rent next week?   Consider this example:

CALIFORNIA – The Cheesecake Factory, one of the most popular sit-down restaurant chains in the country, says it will not be able to make upcoming rent payments for any of its storefronts on April 1 because of significant loss of income due to the coronavirus crisis.

[…]  Company chairman and CEO David Overton writes, “Due to these extraordinary events, I am asking for your patience, and frankly, your help.” He continues, “we appreciate our landlords’ understanding given the exigency of the current situation.” The letter says that the company hopes to resume paying rent as soon as possible.

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Washington DC Mayor Muriel Bowser closes the nation’s capital until April 25th, effectively closing all public gatherings for one month. [Order pdf Here]

There is a certain aspect to dèjá-vu showing up on the horizon… Welcome to an economic civil war. But first, the latest details.

WASHINGTON DC –  The intent of the Order is to temporarily cease all non-essential business activities, including tour guides and touring services; gyms, health clubs, spas, and massage establishments; theaters, auditoriums, and other places of large gatherings; nightclubs; hair, nail, and tanning salons and barbershops; tattoo parlors; sales not involved in essential services; retail clothing stores; and professional services not devoted to assisting essential business operations.

The Order goes into effect on March 25, 2020, at 10 pm, through April 24, 2020 (link)

On the horizon it appears the state and regional shutdowns are going to mirror the shutdowns from Obama’s infamous sequester-fiasco from the spring of 2013.  That looks like the road-map that will be followed as the coronavirus issue starts to level-off.

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With caution applied, Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer announced around 2:00am ET a deal had been reached for the nearly $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) bill.

The final language for “HR.748” (stripped and newly assembled) will take place today.  Looks like the senate is using an old bill, previously passed by the House, so the House can deem and pass, without formally reconvening. There are ten republican amendments. Speaking from the floor, both McConnell and Schumer made remarks describing the bill.

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