Monthly Archives: February 2018
President Trump Hosts White House Infrastructure Initiative With State and Local Leaders…
Earlier today President Trump hosted a White House discussion meeting to outline an infrastructure initiative with state and local leaders. The initiative is part of a $1.5 trillion proposal to join with federal, state, local and private investment toward rebuilding American critical infrastructure, roads and bridges.
[Via White House] BUILDING AMERICA’S INFRASTRUCTURE: Today, President Donald J. Trump released his legislative goals to rebuild our Nation’s crumbling infrastructure. The six principles include:
- $200 billion in Federal funds to spur at least $1.5 trillion in infrastructure investments with partners at the State, local, Tribal, and private level.
- New investments will be made in rural America, which has been left behind for too long.
- Decision making authority will be returned to State and local governments.
- Regulatory barriers that needlessly get in the way of infrastructure projects will be removed.
- Permitting for infrastructure projects will be streamlined and shortened.
- America’s workforce will be supported and strengthened.
STIMULATE INFRASTRUCTURE INVESTMENT: President Trump’s plan will lead to at least $1.5 trillion in investments to rebuild our failing infrastructure and develop innovative projects.
- $200 billion in Federal funds will spur at least $1.5 trillion in new infrastructure investments.
- Federal infrastructure spending will promote State, local, and private investments and maximize the value of every taxpayer dollar.
- Of the $200 billion, $100 billion will create an Incentives Program to spur additional dedicated funds from States, localities, and the private sector.
- Applications for the Incentives Program will be evaluated on objective criteria, with creating additional infrastructure investment being the largest factor.
- The Incentives Program will promote accountability, making Federal funding conditional on projects meeting agreed upon milestones.
- $20 billion will be dedicated to the Transformative Projects Program.
- This program will provide Federal aid for bold and innovative projects that have the potential to dramatically improve America’s infrastructure.
- The program will focus on projects that could have a significant positive impact on States, cities, and localities but may not attract private sector investment because of the project’s unique characteristics.
- $20 billion will be allocated to expanding infrastructure financing programs.
- Of the $20 billion, $14 billion will go to expanding a number of existing credit programs: TIFIA, WIFIA, RRIF, and rural utility lending.
- $6 billion will go to expanding Private Activity Bonds.
- $10 billion will go to a new Federal Capital Revolving Fund, which will reduce inefficient leasing of Federal real property which would be more cost-effective to purchase.
- A new fund will allow some incremental revenues from energy development on public lands to pay for the capital and maintenance needs of public lands infrastructure.
INVEST IN RURAL AMERICA: Rural America’s infrastructure has been left behind for too long, and President Trump’s plan will make sure it is supported and modernized.
- $50 billion of the $200 billion in direct Federal funding will be devoted to a new Rural Infrastructure Program to rebuild and modernize infrastructure in rural America.
- The bulk of the dollars in the Rural Infrastructure Program will be allocated to State governors, giving States the flexibility to prioritize their communities’ needs.
- The remaining funds will be distributed through rural performance grants to encourage the best use of taxpayer dollars.
INCREASE STATE AND LOCAL AUTHORITY: President Trump’s proposal will return decision-making authority to State and local governments, which know the needs of their communities.
- Funds awarded to State and local authorities, such as through the Incentives Program and the Rural Infrastructure Program, will be allocated to infrastructure projects they prioritize.
- This empowers States and localities to make more infrastructure investment decisions and prioritize projects based on the needs of their communities
- The plan will expand processes that allow environmental review and permitting decisions to be delegated to States.
- The plan will also allow Federal agencies to divest assets that can be better managed by State or local governments or the private sector.
ELIMINATE REGULATORY BARRIERS: The President’s plan would eliminate barriers that prevent virtually all infrastructure projects from being efficiently developed and managed.
- The President’s plan will:
- Provide more flexibility to transportation projects that have minimal Federal funding but are currently required to seek Federal review and approval.
- Incentivize the efficient development and management of water infrastructure, in part, by providing more flexibility to the U.S. Army Corps of Engineers and its partners.
- Give the Department of Veterans Affairs the flexibility to use its existing assets to acquire new facilities by allowing it to retain property sale proceeds and exchange existing facilities for construction of new facilities.
- Expand funding eligibility for land revitalization projects through the Superfund program and establish tools to help manage their legal and financial matters.
STREAMLINE PERMITTING: President Trump’s infrastructure proposal will shorten and simplify the approval process for infrastructure projects.
- Working with Congress, we will:
- Establish a “one agency, one decision” structure for environmental reviews.
- Shorten the lengthy environmental review process to two years while still protecting the environment.
- Eliminate certain redundant and inefficient provisions in environmental laws.
- Create two new pilot programs to test new ways to improve the environmental review process.
INVEST IN OUR COUNTRY’S MOST IMPORTANT ASSET – ITS PEOPLE: The President is proposing reforms so Americans secure good-paying jobs and meet the needs of our industries.
- The President’s plan would reform Federal education and workforce development programs to better prepare Americans to perform the in-demand jobs of today and the future. This includes:
- Making high-quality, short-term programs that provide students with a certification or credential in an in-demand field eligible for Pell Grants.
- Reforming the Perkins Career and Technical Education Program to ensure more students have access to high-quality technical education to develop the skills required in today’s economy.
- Better targeting Federal Work-Study funds to help more students obtain important workplace experience, including through apprenticeships.
Vanessa Trump Hospitalized – Opened Mail With Unknown White Powder…
NEW YORK – Donald Trump Jr.’s wife, Vanessa Trump, was taken to the hospital Monday after receiving a letter containing white powder that was later deemed to be non-hazardous, New York City police told Fox News.
President Trump‘s daughter-in-law opened the letter addressed to Donald Trump Jr. just after 10 a.m. at the couple’s Manhattan apartment. It’s unclear what the “white powder” was, but authorities tested the substance and found it to be “non-hazardous.”
Vanessa Trump was taken to the hospital as a precaution, police said. Two other people who were also exposed to the powder were taken to the hospital.
A hazmat crew was called to the scene and began decontamination procedures shortly after the incident. Trump Jr. is the eldest son of the president. He married Vanessa in 2005. The couple has five children, though it was not clear if any were home at the time of the incident.
Police and Secret Service are investigating the incident. (read more)
China’s One Belt and One Road
Armstrong Economics Blog/China
Re-Posted Feb 12, 2018 by Martin Armstrong
QUESTION: What is your view of China’s One Belt and One Road policy?
ANSWER: The Silk Road Economic Belt and the 21st-century Maritime Silk Road, also known as the One Belt and One Road Initiative, (OBOR), is a development strategy proposed by Chinese Government that focuses on connectivity and cooperation between Eurasian countries, primarily the People’s Republic of China (PRC), the land-based Silk Road Economic Belt (SREB) and the ocean-going Maritime Silk Road (MSR). It was unveiled by Xi Jinping in September and October 2013. This is really nothing new. Trade between China and the Roman Empire existed. There are even records of Marcus Aurelius (161-180AD) sending a diplomat to China. Even the color purple was the royal color of an emperor who only he was allowed to wear. That was a dye which came from the East as was the case with spices and silk.
This strategy underlines history and China’s push to take a larger role in global affairs with a China-centered trading network is the very aspect that will make China the Financial Capital of the World once again. This project was initially called One Belt and One Road, but in mid-2016 the official English name was changed to the Belt and Road Initiative. China has been focusing on infrastructure investment, construction materials, railway and highway, automobile, real estate, power grid, and iron and steel. This is the largest infrastructure project in history, covering more than 68 countries, equivalent to 65% of the world’s population and 40% of the global GDP as of 2017. China never issued historically gold or silver coins. What has survived are private ingots known as Sycee that is a testament to the level of trade China enjoyed in the past.
All our models are bullish LONG-TERM on China – Post 2032. We have opened offices in China and have been granted our business license in China which took three years to be approved
The Supreme Court Could Destroy the Economy in One Decision
Armstrong Economics Blog/The Hunt for Taxes
Posted Feb 12, 2018 by Martin Armstrong
In a 1992 case, the Supreme Court refused to require that mail-order retailers collect sales taxes from buyers in other states. For a quarter-century, that has given the online retailers a competitive advantage over brick-and-mortar stores. The States are broke and they are pushing to compel everyone online to collect sales taxes for them. We are looking at a complete nightmare. There are sites where people make arts and crafts and sell them. Suddenly, everyone would be legally required to file tax forms every month in all 50 states even notifying them they sold nothing to one of their citizens.
Legally, this will absolutely destroy the internet in one swift decision. Some states are particularly onerous and quite frankly even I would have to consider that people in certain States would have to be blocked from purchasing anything from us.
The only solution for us would be to simply close up shop in the USA and move everything offshore. There would then be no way for individual states to demand we collect their taxes from a foreign country.
When we moved to Florida, there was a mistake made in shifting our taxes on employees. The amount we failed to pay was $74. The penalty was $125 and then there was a late fee of $33. The tax owed with penalties and interest came to $236 on $74. Can you imagine simple mistakes by retailers can wipe them out! If the Supreme Court rules in favor of the States, all they care about is money. To hell with the economy. This is how the governments will destroy Western Civilization. There is never any consideration of reform. It is always scheming new ways to get more. They never solve the problem, so they constantly hunt for new ways to rob the people to pay their own salaries and pensions.
Counter Party Risk – The Truth
Armstrong Economics Blog/Gov’t Incompetence
Re-Posted Feb 12, 2018 by Martin Armstrong
Counter-Party Risk
Last week (2nd of February, 2018) ESMA (European Securities and Markets Authority) published the results of its second EU wide stress test for CCP’s (Central “Clearing” Counterparties). These tests are conducted under EMIR (European Markets Infrastructure Regulations) and were first published back in April 2016. There are sixteen CCP’s currently under this structure with around 900 clearing members, which includes multiple entries belonging to one group.
The result of this second test, under greater regulatory risk measures, found that using the test samples at different stages throughout 2017, two of the 16 would have problems under the credit stress test. Market volatility always acts as a platform for this kind of scenario so if they failed in 2017, what will they do in 2018! The volatility we forecast for this year should already be making you nervous.
Having years of actual trading experience, it is the fear that just one counterparty is experiencing problems occurs way before the clearing houses are even aware is what will drive volatility! The overnight repo market, collateral management triparty flow, and individual share price action are the early indicators of risk. Once these start to move you can forget about the end of day obligations to clearing counterparties, the money has already gone. There are always going to be problems when the derivative market sizes become multiples of the underlying.
This is how the credit risk is just pushed up the food chain. Initially, a brokerage is pushed up to the bank/exchange members, the exchange to other clearers and the bank pushed up to the central bank, the central bank is the currency. A collection of central banks (possibly the EU and the ECB) and exchanges results in global demand for the reserve currency. What could possibly go wrong!
GOP Senators to Introduce Immigration, Border Security and DACA Framework Tomorrow…
Apparently a group of GOP Senators are proposing an outline (pdf below) for the Republican senatorial legislation for immigration reform. A first review of the seven senators outlined in the group shows a majority-minded tilt toward the CoC position(s), with a dose of Chuck Grassley sprinkled in to make their GOPe mix palatable.
With the 1000mg bitter pill of a massive budget bill still blocking our trachea, upon first glance we note an ideological similarity here to the failed Obamacare repeal construct (amid the big picture analysis). The backdrop is a faux-deadline of March 5th where POTUS asked congress to solve the DACA issue. Here’s the press release:
WASHINGTON D.C. -A group of U.S. Senators tomorrow will introduce a common-sense proposal aimed at providing legal certainty for undocumented children brought to the United States by their parents and preventing others from falling into the same legal limbo in the future.
Their proposal, which mirrors the White House framework announced by President Trump, provides a generous opportunity for approximately 1.8 million DACA or DACA-eligible immigrants to earn citizenship while strengthening our nation’s border security and enforcement measures to reduce illegal immigration.
The Secure and Succeed Act, sponsored by Senators Cotton, Grassley, Cornyn, Tillis, Perdue, Lankford, and Ernst, appropriates $25 billion for real border security such as physical and virtual fencing, radar and other technologies. It also provides for additional personnel for border control and ends key loopholes in current law that allow dangerous criminals to enter our country.
The legislation prospectively limits family-based immigration to the nuclear family and reallocates the Diversity Visa lottery. Their proposal generously grandfathers all pending family-based visa applications in order to reward those who chose to follow the law and immigrate legally. The allotment for the Diversity Visa lottery will be reallocated to reduce this backlog and the employment-based visa backlog.
“This is the only bill that has a chance of becoming law, and that’s because it’s the only bill that will truly solve the underlying problem. It will protect those eligible for DACA but also make sure we don’t end up back here five years from now. By addressing our border security needs and limiting family sponsorship to the nuclear family, it goes far beyond the other half measures that have been proposed. This bill is generous, humane, and responsible, and now we should send it to the president’s desk,” Tom Cotton said.
“This legislation is a reasonable approach to shielding children illegally brought to our country through no fault of their own while also taking the meaningful steps to ensure nobody finds themselves in the same situation in the future. This is a rare opportunity to fix a real problem and protect the country in a thoughtful and compassionate way. We simply have to correct the loopholes in current law that allow dangerous criminals to enter and remain at large in our country. Our proposal is supported by the President, who’s come a long way to reach a compromise. This is the only Senate proposal that has any chance of passing the House and being signed into law. If my colleagues are serious about actually finding a real and permanent solution to the DACA crisis, they should be ready and willing to support this compromise,” Chuck Grassley said.
“This proposal provides a common-sense, permanent solution for nearly two million people who find themselves in limbo. The Secure and Succeed Act gives us the opportunity to help these individuals and build the trust of the American people by securing our borders and enforcing our immigration laws,” John Cornyn said.
“This is a common-sense compromise that accomplishes a number of goals that both parties have long supported. It offers a fair and compassionate solution for DACA youth to earn naturalization, and it effectively secures our borders to help prevent future illegal immigration and stop drug and human trafficking. It also provides a path forward for modernizing our broken immigration system so it can be more merit-based and reflective of the changing economic and labor needs of our nation. This legislation is the only proposal that the President supports, and the open amendment process will give Senators the opportunity to improve the baseline proposal and get it signed into law,” Tom Tillis said.
“President Trump has been very clear on what he will sign into law, and this is it. This is a great deal and the only solution that fully addresses the four pillars in the President’s framework. Now it is up to Republicans and Democrats in both chambers. If people really want to solve the DACA situation, secure our border, and fix the flaws in our current system that incentivize illegal immigration, they should be eager to support this plan,” David Perdue said.
“We have a unique opportunity to finally get something done on the four immigration areas that leaders in Congress and the President agreed must get done – DACA, border security, the visa lottery, and family sponsorship reform. It’s important to do this in a way that prevents repeating this conversation again ten years from now. I call on my colleagues to put aside partisanship and posturing to have an honest debate about decades-long immigration issues and practical solutions that can pass both Houses of Congress and be signed into law. There are many immigration proposals being floated in the Senate that the House will not pass and the President won’t sign. Too many families are counting on us to do the right thing. Now is the time to get this done,” Jim Lankford said.
“We must ensure a path forward for those who were brought here through no fault of their own as children, while also enforcing our laws, putting an end to illegal immigration, and strengthening our border security. This framework is a step toward addressing the legal, economic, and security concerns that are present in the current debate and the unique challenges that the DACA-eligible population faces, and I urge my colleagues to support this proposal,” Jodi Ernst said.
The Secure and Succeed Act includes the four reform pillars agreed to during a bipartisan meeting with congressional leaders and President Trump in January: legal status for DACA recipients; increased border security; an end chain to migration; and an end to the diversity visa lottery. (link)
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…”with a moat, and turrets, and sharks with lasers”… “and out of NAFTA”. Please.
~Sundance
2017: State Department Spox: “The Steele Dossier Was Never Used for FISA Application”…
It’s always an interesting exercise to take new and confirmed information and go back to see the claims from the key stakeholders when the initial trail of the information was discovered. This is one such example from July 2017.
Now that Chairman Devin Nunes, Chuck Grassley and the key players themselves, have discovered and admitted the U.S. State Department was heavily involved in passing along Clinton opposition research to Chris Steele to create the “Clinton-Steele Dossier”, it’s interesting to look at how the former State Department spokesperson -in place during all the events- responded last year when the Clinton-Steele Dossier was thought to be part of the underlying evidence for the DOJ/FBI FISA application.
Former State Department spokesperson Marie Harf, a person in direct and continuous contact with all the principle agents during the 2016 information flow, was confronted in July 2017 and adamantly denied the dossier was part of the FISA application. WATCH:
Looking beyond the transparent lying and subsequent collapse of credibility, the key takeaway here is how State Department officials knew what was going on in 2016, recognized the risk presented by that action in 2017, and were willing to walk the plank because they were certain none of it would ever come to light.
Jonathan Winer – […] In 2013, I returned to the State Department at the request of Secretary of State John F. Kerry, whom I had previously served as Senate counsel. Over the years, Steele and I had discussed many matters relating to Russia. He asked me whether the State Department would like copies of new information as he developed it.
I contacted Victoria Nuland, a career diplomat who was then assistant secretary of state for European and Eurasian affairs, and shared with her several of Steele’s reports. She told me they were useful and asked me to continue to send them. Over the next two years, I shared more than 100 of Steele’s reports with the Russia experts at the State Department, who continued to find them useful. None of the reports related to U.S. politics or domestic U.S. matters, and the reports constituted a very small portion of the data set reviewed by State Department experts trying to make sense of events in Russia. (read more)
Mr Winer – WaPo: […] In September 2016, Steele and I met in Washington and discussed the information now known as the “dossier.” Steele’s sources suggested that the Kremlin not only had been behind the hacking of the Democratic National Committee and the Hillary Clinton campaign but also had compromised Trump and developed ties with his associates and campaign.
I was allowed to review, but not to keep, a copy of these reports to enable me to alert the State Department. I prepared a two-page summary and shared it with Nuland, who indicated that, like me, she felt that the secretary of state needed to be made aware of this material.
[…] In late September, I spoke with an old friend, Sidney Blumenthal … While talking about that hacking, Blumenthal and I discussed Steele’s reports. He showed me notes gathered by a journalist I did not know, Cody Shearer, that alleged the Russians had compromising information on Trump of a sexual and financial nature. … On my own, I shared a copy of these notes with Steele, to ask for his professional reaction. … I agreed to let him keep a copy of the Shearer notes. … I did not expect them to be shared with anyone in the U.S. government. … But I learned later that Steele did share them — with the FBI (link)
The bigger story behind the 2017 interview with Marie Harf, when contrast against 2018 reality, is recognition of how vast the network of people were within the entire effort to launder political campaign opposition research -provided by Hillary Clinton- to create surveillance upon the Trump campaign.
Officials at the top of the FBI and Department of Justice; officials in the intelligence apparatus of the ODNI, CIA and NSA; and officials at the top of the U.S. Department of State – to include Secretary John Kerry; were all working in common political cause.
Beyond the political talking points, when you simply point out the provable facts the Director of the FBI, Attorney General of the United States and the Secretary of State, were all deeply within the information loop there’s no way possible to extract President Obama from the network. This is how the collapsing house of cards eventually brings down the office of the presidency.
What would be the fall-back, or alternative, narrative?
The talking points are still a few weeks away, but there’s only one possible angle: The President was unaware of the action of his Attorney General, FBI Director, Director of National Intelligence, CIA Director and Secretary of State?
Absurd.
Sunday Talks – Representative Adam Schiff Interviewed by Major Garrett…
There are many people who wonder why any Democrat, particularly Adam Schiff, would continue clinging to a narrative despite all contrary evidence that disproves it. The answer is really quite simple; there’s nothing to lose. Much like the bank robber killing a police officer, once that initial capital felony is committed there is no greater punishment for all subsequent actions.
The foundational lies are of such significance there is no punitive, or political, down-side to dissuade further lying built upon the originating falsehood. Twice in this interview Major Garrett asks the ranking member of the HPSCI if he is certain the DOJ and FBI followed proper procedures, and presented proper evidence, in gaining a FISA court “Title-1” surveillance warrant over Carter Page. WATCH:
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Note how Adam Schiff is in California (Friday night appearing on Bill Mahr), and maximizing the political benefit of his narrative construction; instead of actually working to clear up his memo construct and release it. It’s not the memo that is important to him, it’s the political narrative he’s created.
Also, don’t be naive not to accept that Major Garrett doesn’t know what Schiff is up to, he does. Garrett is simply falling back upon the increasingly overused use of the ‘Mamet Principle’, pretending not to know some things (ie. motives and intents).
Garrett’s emotional tribal credibility is in conflict with his intellectual professional responsibility; Garrett knows exactly what decisions he’s making, and so should we.
Ultimately this is one of the saddest outcomes of this entire fiasco. Much like Joe Manchin inherently wanting to applaud during the State of the Union, but then catching himself mentally as he weighed the pro’s-and con’s, Garrett knows he could deconstruct this Shiff presentation with minimal effort – yet he makes a conscious decision to give up part of his own intellectual honesty in order to remain in the tribe.
It’s pathetic really.
Sunday Talks – Extensive Devin Nunes Interview With Maria Bartiromo…
House Intelligence Committee Chairman Devin Nunes appears on Sunday Morning Futures with Maria Bartiromo for an extensive interview discussing the ongoing investigation into the DOJ, FBI and State Department; and their collaboration with the Hillary Clinton campaign to weaponize political opposition research in the 2016 election.
Chairman Nunes describes how the Democrats on the HPSCI put classified information into their memo intentionally in an effort to create political benefit; and now refuse to redact and release their own work product.
Chairman Devin Nunes keeps a big picture focus while also describing how corrupt officials within the DOJ and FBI continued to use the “Title-1” surveillance warrant in 2017 to monitor and track all of the communication between Carter Page and congress. In essence, the ‘small group’ within the DOJ and FBI were likely spying on the congressional investigation into their own unlawful activity. WATCH:


























