As the vulture pundits in the mainstream media pick apart hollow political scandals, the essential bankruptcy of the federal government looms just ahead. The national debt is creeping toward 20 trillion dollars, and the United State’s largest problem is once again staring the world in the face.
Leftists proclaim that many states within the Trump heartland are what many might call "moocher states" because the residents there - taken overall - receive more in federal spending than in is paid in federal taxes. However, it's important to understand why some states are more prone to being net recipients of federal spending than others.
It appears that the "animal spirits" unleashed by President Trump are not contained to the stock market: according to the BLS, one of the most notable observations to emerge from the February (and January) jobs reports is that the number of Americans no longer in the labor force plunged since December, declining by 736,000 in January and a further 176,000 in February. The combined two-month addition of 912,000 was the biggest drop in the "not in labor force" series on record.
European and Asian shares rise along with a jump in S&P futures which are pointing to a solidly green open on US payrolls day. The dollar, trading somewhat weaker against the euro was stronger against the yen, and was on track for its firth week of gains, while the rout in global Treasuries continued following a Mario Draghi conference that was interpreted as more hawkish than expected.
As discussed earlier, the Obamacare repeal and replace effort, derisively called by some either "Obamacare Lite", "RyanCare", "ObamaCare 2.0", and even Trumpcare". is running into major hurdles as prominent consevative groups threaten to derail Trump's broader economic agenda.
"The entirety of the world has been put on the knife edge of existence by the arrogance, stupidity, and hubris of the neoconservative pursuit of American world hegemony. The neoconservative ideology is perfect cover for the material interest of the military/security Deep State that is driving the world to destruction."
Tuesday’s speech established Trump as the man in charge. But how loyal to him and his program will be the “deep state,” which dominates this city that gave Trump only 4 percent of its votes and, paranoically, believes him to be an agent of Vladimir Putin?The Trump-Beltway wars have only just begun.
Until yesterday, the prevailing Wall Street consensus was that in the absence of specifics from President Trump on his economic and fiscal plans, the market would be disappointed, and proceed to slide. It did not, in fact quite the opposite. As a result, the world's best paid strategist have once again revised the Trump-related narrative.
In every annual budget debate since the 1980s, one side figures out that the way to get what it wants – which is higher spending – is to frame the request in a particular, ingenious way: We have to borrow and spend way more now if we want to borrow and spend way less later.
In a note by Evercore ISI's Terry Haines and Ernie Tedeschi, the analyst duo pours cold water on Trumps' budget proposal before it has been even formalized and confidently predicts that "Trump budget not happening" adding that the most likely outcome is that "Congress will modestly hike defense and nondefense spending."