Armstrong Economics Blog/BRITAIN
Posted Jul 18, 2019 by Martin Armstrong
Nigel Farage’s new Brexit Party is now the second largest in Britain. The Conservatives still topped the YouGov poll with 24% of the vote, but they were boosted by the prospect of Boris Johnson, who is a Brexit believer, as the next Tory leader. The prospects for Europe remain up in the air as Brussels still refuses to reform and is looking to punish Switzerland as an example for Britain. But trying to exclude the London markets as a place Europeans can invest will cause a major economic decline for Europe rather than London.
Excellent interview by Charles Payne as White House Manufacturing Policy Advisor Peter Navarro outlines how the strategic road map of MAGAnomics is converging. If you want to see the future, listen to how Navarro outlines what’s coming.
The six MAGAnomic components to pay attention to include: ♦changes to the Universal Postal Union (UPU); ♦HUD Opportunity Zones; ♦America First raw material policy for infrastructure; ♦retail sales strength; ♦the current status of the U.S-China negotiations; and ♦the USMCA ratification.
♦The UPU was one of those archaic policy issues set-up with good intentions, and then maintained by ‘stupid’ politicians well after it should have been renegotiated. It’s good to hear that mess is coming to an end in October.
♦The Opportunity Zones is a huge internal growth program. President Trump has positioned a federal tax abatement program for money used to invest in revitalizing urban zones. Corporations can now bring back money into the U.S. and position themselves to gain from domestic investment.
The opportunity zone private investment means municipal money to improve infrastructure without the need for federal dollars. Additionally, those areas then get the benefit of new development and building. This is one of the reasons why people living in urban areas are seeing massive increases in the value of their homes and property. Hundreds of billions in tax incentives pouring into areas where some of the most previously disenfranchised voting groups live. This program is transformative.
♦The intransigent state of U.S-China trade discussions is favorable to the position of America First. Investment into China is frozen because no-one knows the outcome. Meanwhile President Trump is presenting multiple domestic alternatives for those investment dollars (see Opportunity Zones).
However, China has caught on to what President Trump is doing; and as outlined in a recent article from South China Morning Post, they now see President Trump playing the ‘panda mask game’ and Beijing is angered about their own strategy being used against them. Panda has sad:
“The current situation is very fluid and complicated with a lot of internal deliberations. Things will only be clearer after the negotiations resume,” said the expert, who spoke on condition of anonymity because of the sensitivity of the matter in China. (link)
♦House Speaker Nancy Pelosi appears to want to delay any passage of the USMCA. However, as soon as democrat candidates start being questioned about their position the pressure will mount toward ratification. That’s likely the reason why the U.S. media are not asking the candidates anything about trade policy.
The USMCA is structured to the benefit of U.S. workers; the Democrat candidates will likely all align in favor. The U.S. media are protecting Pelosi et al by keeping the USMCA out of the headlines, but that cannot last too much longer. It’s only a few ‘tweets’ away from surfacing… like, maybe, tweets around the next debate?
::nudge, nudge:: – ::wink, wink:: – ::say no more, say no more::
An article from Reuters discussing the position of the International Monetary Fund (IMF) is interesting. Essentially the IMF is warning that “global economies” will contract by $455 billion next year due to the ongoing trade conflict between the U.S., China, the EU and to a lesser extent, Japan. Yes Alice, there are hundreds of billions at stake.
There’s really no reason to doubt the amount estimated, though I think it’s on the short side, but the yearly value seems in line. I have no doubt President Trump will cost the “Global Economy” $455 billion…. because that money will be transferring back to the America First economy. That’s what happens as MAGAnomics reverses the IMF trade (wealth distribution) model.
The IMF is correct in part (the effect), incorrect in part (the cause), and mostly hypocritical. The Euro-minded IMF rails against the high value of the U.S. dollar, but simultaneously ignores the motives behind the intentional devaluation of currencies that are pegged against the dollar.
WASHINGTON (Reuters) – The International Monetary Fund said on Wednesday the U.S. dollar was overvalued by 6% to 12%, based on near-term economic fundamentals, while the euro, the Japanese yen and China’s yuan were seen as broadly in line with fundamentals.
The IMF has been at odds with U.S. President Donald Trump over his use of tariffs to resolve trade imbalances, but its assessment that the dollar is overvalued is likely to give Trump more fodder for his frequent complaints that dollar strength is hampering U.S. exports.
Trump has railed against European and Chinese policies that lead to what he calls a devaluation of the euro and other currencies against the dollar.
[…] The Fund – which has warned that the U.S.-China trade war could cost the global economy about $455 billion next year – said recent trade policy actions were weighing on global trade flows, eroding confidence, and disrupting investment. But they had done nothing to reverse external imbalances thus far. (read more)
China and the EU have devalued their currency in an effort to block the impacts from President Trump and the ‘America First’ trade policy. Because those currencies are pegged against the dollar, the resulting effect is a rising dollar value. In essence, the globalist IMF is now blaming President Trump for having a strong economy that forces international competition to devalue their currency.
That’s the stupid hypocrisy of global banking outlooks. They make a decision to devalue their currency, which causes the dollar value to rise, and then turn around and blame the U.S. dollar for being overvalued.
The root cause of the devaluation is unaddressed in their argument. The EU and China are trying to retain their global manufacturing position and offset the impact of President Trump’s tariffs by lowering the end value of their exports.
In the bigger picture this is why President Trump is the most transformative economic President in the last 75 years. The post-WWII Marshall Plan was set up to allow Europe and Asia to place tariffs on exported American industrial products. Those tariffs were used by the EU and Japan to rebuild their infrastructure after a devastating war. However, there was never a built in mechanism to end the tariffs…. until President Trump came along and said: “it’s over”!
After about 20 years (+/-), say 1970 to be fair, the EU and Japan received enough money to rebuild. But instead of ending the one-way payment system, Asia and the EU sought to keep going and build their economies larger than the U.S. Additionally, the U.S. was carrying the cost of protecting the EU (via NATO) and Japan with our military. The EU and Japan didn’t need to spend a dime on defense because the U.S. essentially took over that role. But that military role, just like the tariffs, never ended. Again, until Trump.
The U.S. economy was the host for around 50 years of parasitic wealth exfiltration, or as most would say “distribution”. [Note I use the term *exfiltration* because it better highlights that American citizens paid higher prices for stuff, and paid higher taxes within the overall economic scheme, than was needed.]
President Trump is the first and only president who said: “enough”, and prior politicians who didn’t stop the process were “stupid” etc. etc. Obviously, he is 100% correct.
For the past 30 years the U.S. was a sucker to keep letting the process remain in place while we lost our manufacturing base to overseas incentives. The investment process from Wall Street (removal of Glass-Stegal) only made the process much more severe and faster. Wall Street was now investing in companies whose best bet (higher profit return) was to pour money overseas. This process created the “Rust Belt”, and damn near destroyed the aggregate manufacturing industry.
Fast forward to 2017 through today, and President Trump is now engaged in a massive and multidimensional effort to re-balance the entire global wealth dynamic. By putting tariffs on foreign imports he has counterbalanced the never-ending Marshal Plan trade program and demanded renegotiation(s). Trump’s goal is reciprocity; however, the EU and Asia, specifically China, don’t want to give up a decades-long multi-generational advantage. This is part of the fight.
One could argue that China’s rise happened inside this period, and as a consequence they have no comprehension of an economic history without the institutional advantages. They’ve never competed with the U.S. under any terms of equivelence or fairness; they’ve only ever known the advantages. Combine that with the Chinese communist mindset and you get the extreme severity of their position.
So yeah, there’s going to be pain – for them; massive economic pain – as the process of reestablishing a fair trading system is rebuilt. This dynamic is the essence of reciprocity that benefits Main Street USA. Unfortunately, putting ‘America First’ is now also against the interests of the multinationals on Wall Street; so President Trump has to fight adverse economic opponents on multiple fronts…. and their purchased mercenary army we know as DC politicians.
No-one, ever, could take on all these interests. Think about it… The EU, Asia, World Bank, International Monetary Fund, China, Russia, U.S. Chamber of Commerce, Iran, U.S. Congress, Democrats, U.S. Senate, Wall Street, the Big Club, Lobbyists, Hollywood, Corporate Media (foreign and domestic), and the ankle-biters in Never Trump…. All of these financial interests are aligned against Main Street USA and against President Trump.
Name one individual who could take them on simultaneously and still be winning, bigly.
They say he’s one man. They say they have him outnumbered. Yet somehow, as unreal as it seems, he’s the one who appears to have them surrounded.
Lord knows we can’t spare this man.
This is one of my favorite changes in executive governance since a ‘People’s President’ won the 2016 election. President Trump is the FIRST U.S. President to allow the American people to see the workings of an administrative cabinet. President Trump has done this so frequently people have stopped recognizing the incredible level of transparency.
President Trump uses these cabinet meetings to inform the electorate what is happening and also work around the manipulative presentations by DC media:
…”And if the press wants to stay, you can. If you’d like to leave — it’s like I said the other day: I don’t mind. If you want to leave, that’s your option. You can leave anytime you want, okay?”…
[Transcript] THE PRESIDENT: Thank you very much. Our Cabinet meeting. And we’ll start with a prayer, please. Rick Perry.
SECRETARY PERRY: Yes, sir. Mr. President, thank you. Just as a — to put this all in perspective: On the 4th of July, I had a prayer that came true, which is a good thing — to pray and for the good Lord to agree that your prayer is a good one.
So Griffin James Perry came into the world on the 4th of July, at about 8:10 in the morning. So I have a grandson.
THE PRESIDENT: Good.
SECRETARY PERRY: And we had prayed about that for many years. And I think the reminder for all of us is that prayer is an incredible and powerful thing. It’s a great tonic. And as we interact with each other, to keep all of us — our friends, our families, this country — in our prayers.
Every Wednesday morning, there’s a Cabinet member Bible study, and it’s been one of the great privileges for me, in this administration, to pray with the Cabinet members. So this is an extension of that.
So if you would bow your heads and join with me in asking the Lord to continue to bless this country:
Father, thank you for this table of men and women, of individuals who selflessly serve this country. And, Lord, we ask you to continue to give them courage, to give them wisdom, to be with this President as he deals with the challenges of the day; to continue to comfort him in the knowledge that you are in charge and in control.
We thank you for your blessings both in the personal way and the larger issues of this world that we live in, that we’ve been given the privilege to serve. We ask you to continue to keep our young men and women who defend our freedom safe and to bring them home soon.
And, Father, we ask you again to keep this President safe and to give him wisdom.
In your most holy name, we pray. Amen.
THE PRESIDENT: That was very good. Thank you very much, Rick. Well done. Well done.
Thank you all for being here in the Cabinet meeting. We have them quite often, and they really produce results. We’re producing results I don’t think any administration ever, in two and a half years — the first two and a half years certainly — has produced the results that we’ve produced. We have the strongest stock market in the history of our country. By the way, just in walking in, we just set a new record. Just went up today. We had — a new record was set. The Dow Jones went over 27,000 for the first time ever. It went over 26,000 for the first time ever, and 25,000 for the first time ever. So, we’ve set it. I think we’re over 100 since election. We’re over 100 times that we’ve set a new stock market record. And, to me, that’s not just a record; that means jobs. It’s all about jobs. It’s jobs for this country.
We’re bringing in many, many countries. They’re coming in. They’re coming in at a level that we haven’t seen for decades. Car companies are coming in — Japanese car companies, in particular. Although, Germany called to say that they’re going to be announcing some very big movement with respect to a certain company that I’ve demanded has to come, because they sell us a lot of cars but they make them in other places. We want them making them in the United States.
But Japan has 12 different companies building plants in Michigan, in Ohio, in North Carolina, in Pennsylvania. One is going to be announced in Florida. We are doing things that nobody thought were possible. I wouldn’t have even said them, frankly, during the campaign because nobody would’ve been able to believe them. Nobody would’ve believed them.
Our unemployment numbers are historic, in the sense that we’ve never had better numbers. African American have the best numbers in the history of our country. Hispanic American — the best unemployment numbers in the history of our country. Women — 75 years. Asian Americans — best in the history of our country. We have the best overall unemployment, the best in 51 years. And, very soon, that will be historic — meaning the history of our country — if we keep going the way we’re going, and it should be fairly soon.
So things are happening that we wouldn’t have believed happening, or could happen.
The border: We’re working very hard, with everybody — the Attorney General. We’re doing everything we can do without getting Congress to act because the Democrats refuse to act. They refuse to do what they have to do and what they should do, and that’s loopholes. We have loopholes that are so bad, you could drive a truck through them. They could be solved in 15 minutes; would have those loopholes taken care. Literally — everyone knows what they are; they’re very simple. You know what they are. You know what they are better than the people in Congress.
But the Democrats, we need their votes. Not that we need them; we need their votes — because we have a very, very small margins both ways. The Senate is 53-47. The House is very tight. It’s a very tight House, too. Very small number. We need Democrat votes to get up to what we need. That’s why we didn’t do it last time — first two years — because we only had — we needed 9 to 10 Democrat votes, and we were never able to get them for certain things. But we were — but wherever we could use the majority, we ended doing a fantastic job, including two Supreme Court judges. We got two Supreme Court justices put on, and many other things.
But we need Democrat votes to get the border fully secured, fully taken care of. We’re getting close. Mexico has been fantastic. We had a meeting with Mexico. For 45 years, people have been trying to get Mexico to do what they’re doing now, and they weren’t able to get it. And we got it in one day — everything. Mexico now has approximately 21,000 soldiers on their land. They have very powerful immigration laws. They can do what they have to do.
We have the worst laws in the entire world. There’s no law like this, where we catch them and release them. We catch them and we say, “Come back to court in five years.” And nobody comes back. Two percent, to be accurate. I want to be accurate because I don’t want the press to say I was inaccurate. Two percent come back. And those people, we wonder why — why they’re coming back. They’re the only ones. So we can straighten that out.
We are getting rid of thousands of people who are criminals. We’re taking them out of the country — MS-13 — by the thousands. And they’re going out quickly. We do it very professionally. We have papers on everybody we take out. All documented, all very legal. They come in illegally and they go out legally. So we’ve done a job.
On Sunday, there was a lot of activity, but you didn’t even see it because it went very smoothly. The ICE folks and the people from Border Patrol, the job they do, is — they’re heroes in so many ways. We have Border Patrol, though, being nurses and doctors and janitors.
And I very much want to thank Vice President Pence for taking a whole delegation of people down to see the things that one of our very radical-left Democrats call “concentration camps.” They’re not concentration camps. They’re really well run. They’re very crowded, in many cases. Actually, in the case of the children, they weren’t crowded at all. People came back and they — even some of the news — which is shocking, frankly — said they were very well run, very clean, very nice for the children.
We had an adult center of males. Many of these people were criminals. We’re not letting them out. We can’t let them out. And it was crowded; very crowded. And the best way they can solve that is don’t come up. If you don’t come up, you’re not going to be crowded. We want to take people in legally, and we want to take them in, frankly, through merit. We want our companies to be helped. All these companies that are pouring into the United States because we’re the hottest country in the world right now. Every time I meet a leader — a president, a prime minister, a king, a queen — they all say, “Thank you, and nice to meet you. It’s wonderful. By the way, congratulations on your economy. What you’ve done is incredible.”
You read yesterday where China is down very substantially. They’re having the worst year they’ve had in 27 years. I don’t want to have them have bad years. But we made a deal and they broke the deal on me. The deal was done. It was practically done. It was just like a very short period of time, we would’ve had it finished. And they broke the deal. They decided they didn’t want to do the things that they had agreed to. So I said, “That’s all right.” We put tariffs on. Twenty-five percent on $250 billion. It’s obviously having a very negative — I don’t want it to have a negative impact. Not having any impact on us other than positive, because China devalues their currency, and they’re pumping money into their system. Our people aren’t paying for that. There’s been no inflation. There’s been no nothing. Frankly, if we ever got interest rates down where they should be, and if they weren’t raised so fast, you would see another, probably, 10,000 points on the Dow. We’re setting
I don’t want to act like — it’s like somebody gets a 99 on a test and they’re complaining. I don’t like that. But I’m going to complain — (laughter) — because, frankly, we would’ve done even better had we had a Federal Reserve that didn’t raise interest rates so quickly. And had we had a Federal Reserve — and there are many people on the Federal Reserve. You know, we have votes. It’s called votes.
But if we had a Federal Reserve that didn’t do quantitative tightening — they did quantitative tightening — $50 billion a month. That’s a lot of money. Now they’re doing $25 billion a month. Whereas, in Europe, they are pumping money into their system and they’re lowering rates. In China, they are pumping money into their system and they’re lowering rates very substantially. In Europe, the rates almost zero. And, in China, the rates are whatever President Xi wants. He’s his own Fed. He’s the Federal Reserve. He’s — one man. He’s the Federal Reserve. He’s the President. He’s everything else.
But, unfortunately, what they did was not appropriate. They are supposed to be buying farm products. Let’s see whether or not they do — our ag, our great farmers. But out of the tariffs, I took $16 billion to make up for the shortfall. I went to Secretary Sonny Perdue. He’s a fantastic gentleman. By the way, is he here?
DEPUTY SECRETARY CENSKY: He’s in California today.
THE PRESIDENT: What happened? He’s working on — he’s working with the farmers. They have a big meeting in California. Good. I’m glad he’s there. He can do more help there. He’s done a fantastic job.
I said, “What was the amount at its highest that China pumped into the farmers in the form of purchase?” “Sixteen billion dollars.” I said, “That’s all right, we’re taking in many, many times that in tariffs. We’re going to help the farmers out.” And I did that with $16 billion. It cost us nothing. Same thing as if they bought. And yet, the farmers don’t even want that. They really just want to make the product and sell it. But it was just a small percentage of the tariffs that we’re taking in.
And we have a long way to go as far as tariffs, where China is concerned, if we want. We have another $325 billion that we can put a tariff on if we want.
So we’re talking to China about a deal. But I wish they didn’t break the deal that we had. We had a deal where China opened up. We had a deal where there’d be — intellectual property theft would be taken care of because it’s estimated that they steal $300 billion worth of intellectual property a deal. Who knows. Who knows. That’s what they tell me. Three hundred billion. That’s a big number. How they get to that number, I’ll accept it — they’re experts. That’s what they do. But that’s a big number.
You add that to the fact that, during the Obama administration, $500 billion a year was being lost to China. Five hundred billion. They did nothing. And, in all fairness, whether you go back to Bush, you go back to Clinton — you can go back a long way — the WTO. Once the World Trade Organization was formed, China became like a rocket ship.
But now we’re doing something about it. Now we’re doing something about it. And — we’re doing a lot about it. We picked up close to $20 trillion in wealth during my administration, from election. And, I have to say “from election.” Because when I got elected, the stock market — the day after, the stock market went wild. If I would not have gotten elected, you would have had a crash. So I can’t give Obama credit — President Obama — credit for the tremendous gain from the day I won until January 20th, was when I took office. Because that was all attributed to the enthusiasm that we’ve caused and that we’ve had as a country. From the election until now, it’s been extraordinary. We’ve picked up $20 trillion. China has lost $20 trillion.
If my opponent had won, China would right now be number one in the world. Right now, we’re number one in the world, by far. We’re going to keep it that way. And if you have smart people sitting in this chair, in this position, you’re not going to lose.
So we’ve got an extraordinary country. We’re doing numbers that have never been done before. I think a number that makes me the happiest is that, proportionately, the biggest gainer in this entire stock market — when you hear about how much has gone up — blue-collar workers, the biggest proportionate gainer. They’ve had a tremendous gain. The workers have had a tremendous gain. People without a diploma — high school diploma — have had a tremendous gain. Our country is doing really, really well.
Just to finish: 401(k)s. People have 401(k)s. Many of you have 401(k)s. Your 401(k)s are up 50 percent, 60 percent — somebody told me 78 percent. People that were losing money all their lives are now doubling their income and doubling their — the money that they had in the bank is being doubled up. Their 401(k)s are going through the roof.
And they’re getting a lot of credit from their wives or husband, whichever one. Because the one that’s doing it is saying, “You’re a financial genius.” (Laughter.) “Darling, I love you very much. First time in your life, I think you’re a financial genius.” (Laughter.) And it would have been just the opposite had the opponent — this country was set for a big fall had we not come in and cut regulations immediately and let our country breathe. Whether it’s the pipelines that we approved on almost day one, or LNG plants.
I just left Louisiana; we cut a ribbon for a $10 billion LNG plant that’s so incredible. People wouldn’t believe it. It was many, many years trying to get permits; they couldn’t get the permits. But we got the permits and we got them very rapidly. And that was a great thing. Great thing. You know the plant I’m talking about, Rick. And we have about six of them now under consideration. We hadn’t built one in 40 years. Forty years. We didn’t build plants like that.
So, our country is doing things that nobody thought would even be possible. We’re doing incredibly well.
I’d like to start off — and if you’d like to stay for this, you can. Ben Carson is going to say a few words about HUD. And then I think Jared is going to talk a little bit about immigration and some of our plans for immigration. And then we’re going to go around the table.
And if the press wants to stay, you can. If you’d like to leave — it’s like I said the other day: I don’t mind. If you want to leave, that’s your option. You can leave anytime you want, okay?
SECRETARY CARSON: Thank you, Mr. President. And just before I talk a little bit about what’s going on at HUD, I just want to thank you for your incredible courage —
THE PRESIDENT: Thank you.
SECRETARY CARSON: — and stamina and resilience with unwithering criticism, unfair criticism, all the time.
And I would just, sort of, sum it up by saying: Would you rather have a non-politician whose speech is unfiltered, who gets a lot of stuff done? Or somebody with a silver tongue who gets nothing done?
THE PRESIDENT: But I thought I had a silver tongue. (Laughter.) I heard that so often. I always thought I had a silver tongue. (Laughter.) But I agree with you.
SECRETARY CARSON: But, you know, as I told you before, I think God is using you.
THE PRESIDENT: Thank you very much.
SECRETARY CARSON: I really appreciate that.
THE PRESIDENT: And you have said that, and I appreciate it. Thank you, Ben.
SECRETARY CARSON: Now, once again, you know, promises made are promises kept. You said in the inaugural address that the forgotten men and women of this country would be forgotten no longer.
And last December, you took the extraordinary act of establishing a White House Opportunity and Revitalization Council. And I’m privileged to chair that. We have, with us, Scott Turner, who is serving as our executive director, also.
And thanks in part to the work of the Revitalization Council, Opportunity Zones are delivering an incredible dose of energy and optimism and investment into some of our nation’s most economically distressed neighborhoods. And we’re proud to report a great success — this council’s prescription for prosperity. I have to throw in a medical thing there.
Now, Opportunity Zones are home to approximately 35 million Americans — about 10 percent of our population. One in three of them live in poverty. And this prescription indeed requires the coordinated efforts of all the councilmembers, all the agencies. And I want to thank all of my fellow agency heads for the tremendous help that they’ve provided in getting this done.
With unemployment, Opportunity Zones sitting near twice the national average — unemployment Opportunity Zones — forgotten families are just the people that you’ve been targeting.
And over the past year, property sale prices in Opportunity Zones have increased by 20 percent, which is about double the appreciation rate for eligible non-selected areas. So what does that mean? That obviously means that those people who live there and who own that property are benefitting significantly even though a lot of people said, “You’re not getting any benefits.” They are getting benefits. And a massive pool of capital is preparing to revitalize these areas with community and business development.
Now, less than two years ago, Secretary Mnuchin predicted that these Opportunity Zones would draw about $100 billion, and a lot of the pundits said that was way too optimistic.
But today, like so many other milestones this administration has surpassed, you know, we’re already approaching extraordinary figures. For example, last month, the National Council of State Housing Agencies announced that its Opportunity Zone Fund Directory has expanded to nearly $29 billion in anticipated investment.
THE PRESIDENT: And — but I might add that Opportunity Zones, for the media, is one of the hottest things anyone has ever done with respect to inner cities and with respect to minorities. It is working out far beyond anybody’s expectation.
SECRETARY CARSON: Absolutely.
THE PRESIDENT: I don’t think it’s been written about very much, but I’m not that surprised at that. But the Opportunity Zones are an incredible thing. And if you want to do something, you should write about them. Because what’s happened, the employment, the investment — people are investing that would have never invested in these locations in a million years, and they’re investing a lot of money. It has absolutely been — you can talk about the number of sites, the number of cities.
SECRETARY CARSON: Absolutely.
THE PRESIDENT: What’s happened with Opportunity Zones is somewhat of a miracle. Nobody in their wildest imagination thought this could happen.
SECRETARY CARSON: That’s right. And to add onto that, you know, we’ve gotten a lot of positive reports, you know, from government officials across the country about the investors in Opportunity Zones and how it’s un- — stoking unprecedented interest in these underserved communities.
And, in fact, last week I was in Salt Lake City, and a big multi-family dwelling is going up with a concentration of people with autism and a center for helping autistic people to get back into the workforce. They were able to do that because of the completion of the gap funding through an Opportunity Zone fund.
And, you know, public officials from both sides of the political aisle are united in trying to maximize the impact of the program.
The Governor of Maryland, Hogan, is spending $56.6 million for training programs to supercharge the Opportunity Zones.
In Mississippi, Governor Phil Bryant has approved a special Opportunity Zones cycle as part of the low-income housing tax credit program offered through the Mississippi Home Corporation.
In Michigan, the Governor, Gretchen Whitmer, has issued an executive directive that focuses state procurement practices on businesses located within Opportunity Zones. And, you know, the list goes on and on.
The Revitalization Council has played a key role in convening community stakeholders as well as championing the support of public officials and communicating a green light for businesses and investors.
And, as you know, the council consists of members across 17 federal agencies and federal state partnerships with a core mission to prioritize Opportunity Zones, including deregulation, grant funding, loan guarantees, infrastructure spending, and, importantly, crime prevention.
To date, the council has identified more than 160 federal programs that can increase targeting to Opportunity Zones through grant preference points, loan qualifications, reduced fees, and alterations in eligibility criteria. And we’ve already implemented more than 120 of these actions across the agencies.
The Revitalization Council has also been conducting a nationwide listening tour of Opportunity Zones to incorporate the input from community leaders, entrepreneurs, and investors. And to ensure local leaders are doing all that they can to help their constituents in these communities, I personally, in the last several weeks, have visited a lot of communities like Miami, Chicago, St. Louis, Salt Lake City, Birmingham, Las Vegas, and more at the end of this week, more next week.
Speaking in traveling, we are — speaking of traveling, we are blessed to have with us Scott Turner, who is the executive director of the council. And he has been all over the place. He’s — every place I go, they say, “Scott was here, and he just told us all this stuff.” (Laughter.) He fertilizes the ground and it’s great.
And through the work of the Revitalization Council, we’re not only remembering Americans’ [sic] forgotten men and women, we’re helping to elevate them back into a path of pride and self-sufficiency.
And what really is opportunity? Opportunity has no color, but it colors everything. Opportunity has no creed, but it gives people strength to believe. Opportunity has no religion, yet it gives us each faith. And I want to thank you for the faith that you’ve shown to the Revitalization Council as we have championed this incredible initiative across the country. This is a game changer. Major game changer in this country. And we look forward to building on this exciting momentum.
You know, I’m very excited. I may not look excited; this is about as excited as I ever look. (Laughter.) But I am very excited about being able to participate in something that’s going to have such a positive effect on so many people in our country. And I want to thank you for pushing this.
And I’d like to hear just a bit from our council’s executive director, Scott Turner.
MR. TURNER: Good morning. Or good afternoon. Thank you, Dr. Carson, and thank you, Mr. President, for allowing me to serve in this role. And then, Cabinet members, it’s good to see you all again.
I looked up that term, “revitalize.” And to revitalize means to imbue with new life. It means to reinvigorate and to reenergize. And that’s exactly what we’ve seen over these last 12 weeks. We were here 12 weeks ago tomorrow, and when the President appointed me to be the shepherd of this council.
In the last 12 weeks, we’ve been to 21 cities. And we have a map that we’re going to put up for you just for your visualization. These are the cities that we’ve been to, and these are the cities that we will go to. And you can look at it after a while.
But I say that because we have gone around the country spreading the message of revitalization and true transformation. We have conducted over 65 roundtables. And per the President’s executive order, we’ve convened faithfully those education leaders, business leaders, entrepreneurs, investors, and, most importantly, community people — the people that sit in the neighborhoods on the front porch, that have seen the neighborhood, that know the pain and know the potential of these neighborhoods. Because, historically, these conversations have not happened.
So we convened these roundtables to have the hard conversations, to ask the hard questions, to create a sense of unity and understanding. You have investors sitting across from grandmothers from the community. You have new business owners sitting across from congressmen and senators and elected officials to talk about, “This community has not seen X, but it needs to see Z.” And that’s how it’s going to transform.
We talk about the spirit of the council. We talk about the spirit of the legislation. Yes, it’s economic development, but it’s also community development. It’s social impact. So the people inside the community can thrive and remain and benefit from the revitalization that’s going on in the community. We’ve seen tremendous result already because of Opportunity Zones.
And the President said it: This is unprecedented. Our country has not seen this in times before — from an investment standpoint, from an incentive standpoint, but also from a unity standpoint, where people who don’t talk, who don’t work together, who don’t convene together, come together for the first time. That’s America. And that’s what we’re seeing. And I’m so blessed and humbled.
Colorado Springs only has six Opportunity Zones, but they have one of the best prospectuses that I’ve seen. They have two hotels going up in downtown inside of an Opportunity Zone: a Marriot, and I think it’s a Springhill Suites. That’s not only going to spread economic development but supporting operating businesses. Jobs are being created.
On the west side of Atlanta — that’s one of the roughest parts, if you will, of Atlanta — we were taking a tour. The police don’t even go on the west side of Atlanta most times. Investment has not been on this side for many, many years. Drug deals, prostitution right on the corner. But across the street: new housing, affordable housing, going up. A private school operating out of church is being rehabbed right across the street, going up. City officials are moving the west side of Atlanta because of Opportunity Zones, and new life is being reinvigorated in this city. I’ve seen it.
And Cleveland, Ohio: new entrepreneurs, new business, workforce training, workforce housing, right across the street from each other because of the Opportunity Zones. It’s bringing new life; it’s reenergizing areas. And we’ve seen it with our own eyes.
In Mesa, Arizona, and Phoenix, Arizona, it’s a — it’s a great case of best practice. Arizona State University, which is a major research institution and an anchor institution, has partnered with Mesa and Phoenix city officials and a local developer to develop Opportunity Zones inside of the downtown corridors. Incubator businesses, operating businesses, multi-family housing, mixed-use development going up; jobs being created; economy being spurred; hope being restored.
Dr. Carson, down in Miami a couple weeks ago, and we were sitting across the table in Liberty Square, and two young men from that neighborhood looked at us and said, “We didn’t think this would ever happen where we live. This is Liberty Square. It’s a tough part of town.” But one of these young men worked on the project with the company that built the doors and the windows. And he says that all of his, quote-unquote, “homeboys” are now asking, “When is this going to be done? How can we get involved?” It’s bringing new life. It’s restoring dignity and hope.
And as we sat here that first meeting, that was our prayer: that dignity and hope would be restored. Long after we’re gone, this will have a generational impact. And that’s the goal. That’s the spirit. And so I say that to all of you. Thank you for your work. Many of your agencies are doing a tremendous job on this council. It’s a great, humbling experience for me to be the shepherd of this council.
And it’s my prayer that when history tells this story — what did we do with the opportunity that the Lord gave us in Opportunities Zones to bring a blessing to those that come after us? And I believe that will be the story when history tells it.
So thank you, Mr. President. God bless you. (Applause.)
THE PRESIDENT: So — so as most of the people in the room know, Scott was a great football player — not a good player; a great player. (Laughter.) Well known for being a great player. Scott, you may be better at this. (Laughter.) I don’t know if that’s an insult or not. You may be better at this, okay?
MR. TURNER: Thank you, sir.
THE PRESIDENT: Thank you.
MR. TURNER: Yes, sir.
THE PRESIDENT: Really a great job. Thank you very much.
I’m going to ask — Ben, would you like to finish up? It’s a tough act to follow, Ben, right? (Laughter.)
SECRETARY CARSON: No, I just want to reemphasize how important it is that everybody continue to make sure that their sub-Secretaries work with us. We’re getting an incredible amount done.
And one of the things that really encourages me about this is, you know, I go to places, and the governor is a Republican, the mayor is Democrat, the congressman is a Dem, and they’re all working together. We can tamp down all this hatred that exists in our country —
THE PRESIDENT: Right.
SECRETARY CARSON: — because our country is extraordinarily strong. Nobody can bring us down from the outside. We can only do it from the inside. And Jesus said it: “A house divided against itself cannot stand.” These are the kind of efforts that I hope will be able to bring people together.
So thank you for this.
THE PRESIDENT: Fantastic job. Beautiful words. We appreciate it. Thank you, Ben. Really good job.
I’d like to ask Jared Kushner to talk about the immigration policy — the plans — what we have short-term and long-term. Thank you very much.
MR. KUSHNER: Thank you, Mr. President. And this actually fits very well with what we’ve spoken about. You were talking before about all the great trade deals and all the jobs that are coming to America. And then Dr. Carson and Director Turner — what they’ve been talking about with the Opportunity Zone Revitalization Council, really raising wages and lifting people up.
Now it’s time to go figuring out how to modernize our immigration system. When the President asked me to get involved in this last year, the President asked me to work with him to take the ideas that he had for a modern immigration system and figure out how to turn that into a very detailed proposal.
In May, the President presented the principles, and we got a very, very warm reception on the principles. And now we’re doing — as we finish the legislation, it’s about 620 pages. The group has been working very hard, again, at the President’s direction.
In Washington, I find a lot of people are very quick to say what they’re against. But it’s very important for us to articulate as an administration what we’re for, but to do it in detail. We’re not afraid to put out details because we think that this proposal is a very, very good proposal that really is great for America.
The Trump administration, despite what some people say, believes in safe, legal immigration and is against illegal and random migration. America is by far the greatest country in the world, and the greatest honor that somebody can have is to become an American citizen. This is something that we value, and this is something that everyone in the country should value.
America deserves to have the best immigration system in the world. We’ve studied a lot of the other countries — what they’ve done and what they have. With the economy, with where our history is at, we think we can have an immigration system that really is the envy of the world and also a border security system that keeps all of our citizens safe.
This bill will create a modern, merit-based immigration system that allows the best and the brightest from throughout the world to compete based on objective criteria to become American citizens.
This bill also — it creates the gold standard for border security. It was not designed by the politicians. We have a lot of input from politicians, but we went and spent a lot of time with the border security professionals and they told us what they need to fully secure the border.
But the border is not just about illegal immigration, it’s also about keeping drugs out of the country, making sure that we’re scanning all the different vehicles and packages that come to the country, and also expediting the commerce.
As our economy continues to grow and we have more and more packages that are exported and imported through our borders — our infrastructure is woefully out of date, and we want to make sure that we’re able to facilitate this trade in a very, very secure but expedited fashion.
I spoke to all of you last time about the objectives that the President has for his immigration plan. We obviously want to make sure that we fully secure our borders, that we protect American wages. For the first time in almost 20 years, because of the President’s policies, Americans’ wages are rising and they’re rising the fastest for the people who are most vulnerable and in the lowest wage categories.
We have — for the first time, we have more jobs available than people who are searching for jobs. And we’re bringing more and more people who aren’t in the workforce into the workforce.
We want an immigration system — the current system imports a lot of low-wage labor. We want to ensure we’re bringing in people who will grow GDP, create jobs, and do this in a way where we’re not putting downward pressure on wages at the lower levels. We want to attract the best and brightest and we want to welcome people to this country.
We want to prioritize the unification of immediate families from an immigration point of view. We want to make sure that we have labor in critical industries that we have in our country. We have so much growth in so many areas, but we need — we have a lot of labor shortages in different industries. We want to make sure that we’re bringing people in who are filling those gaps. And then we also have to make sure that we reserve our humanitarian values.
Right now, a lot of people take advantage of the largesse of America. We’re the number-one contributor to resettling refugees throughout the world. We’ve taken in a tremendous amount of refugees, but we have a lot of people who are abusing the system and using it as a way to get — to cut the line and to go in front of a system that was designed to really favor illegal immigration.
So, basically, the two pillars of what we put together — and it’s a very, very detailed proposal — is going to be the merit-based system, which I’ll go into more later, and then also the border security. And we have — I think these are both systems that we both be very — that we could all be very proud of.
So the infrastructure at the border is very important. What this does is it fully secures our border. It completes the wall. Right now we have over 400 miles of wall that has either been built or is going to be built. And that does a lot of the job. This would finish the job.
We want to make sure that all the ports of entry are fully modernized. We want to target that 100 percent of the people and goods in the vehicles that cross the border are fully scanned. We have the technology to do this, but just have not appropriated the resources to do that.
This will allow us to really stop all the drugs and counterfeit goods that are going through our ports of entry. And we want to make sure also for business that the trade is much more — goes through quicker and is facilitated properly. And we also want to make sure that there’s a self-sustaining revenue fund so that we’re not in a position where we allow this critical infrastructure to atrophy like we’ve allowed it to happen over time.
And then, finally, we want to make sure that we fully enforce the law. We have to fix some of the laws, which this bill does. It eliminates the magnates. But we want to make sure that it’s fully enforced. And the Border Patrol professionals — who really are amazing people, and I’ve had the real privilege to work with — they do an incredible job to keep us all safe, that they have all the resources they need to be successful.
So this was the slide that has the biggest impact on me and why this is such a critical thing to securing America’s future. Whereas if you look at the top of the slide, you’ll see that America’s system is a very outdated system compared to some of the peer countries that we compete with. We compete with these countries on trade, and we’re also competing with these countries for talent.
Right now, just 12 percent of people become legal immigrants. Last year we had 1.1 million people become citizens. That’s a great thing. We are keeping the number the same. And — but we want to change the composition of what’s that made up of. Twelve percent of the people who are coming in are filling economic needs that we have. Compare that to some of our peer countries like Canada; they’re at 53 percent. New Zealand at 59 percent. Australia, 63 percent. And Japan at 52 percent.
Under President Trump’s proposal, we’ll go to 57 percent, which puts right in the range and it will make us competitive. And again, the way we came up with this is we studied what other people in the world were doing, and we took their best practices and we figured out how to build a system that is able to really be the best of everything in the world.
So to really sum up: What this bill will do is it will lead to a fully secure border and it will solve the humanitarian crisis, and it will make we have a secure border both now and then long into the future. It will protect American wages.
The things that we’ve done in this country — whether it’s tax reform; whether it’s deregulation; whether it’s energy independence; all the work you’re doing on workforce training and Opportunity Zones and trying to lift people up — that’s been having a tremendous effect, but we want to make sure that the immigration system isn’t just importing low-wage labor to then keep wages down. We want to make sure that it’s growing America’s economy. And this will do that.
It enhances social diversity. It will bring in a wide range of countries. People will come in, and we’ve figured out how to make sure that we follow the practice that Australia does with diversity pooling to make sure that it gives us a good cross-section of people coming in to maintain what’s great about this country.
And then it also leads to growing the U.S. economy. It will create over $500 billion in tax revenues over 10 years, which is tremendous. And this happens because it will create a lot of jobs. It brings in a lot of people who are — that are paying into the social safety nets, not people who are coming in and then immediately taking from the social safety nets, which right now have to support Americans who are currently citizens.
So this will be a very tremendous thing, and it will make a lot of money for the country.
And then, finally, we’ll simplify a very complicated system. And then this is one of the amazing things: If you try to become an American citizen today and you go on our website — we have some very smart people in this room — you probably could figure it out, but it would take you a long time. If you go to a country like Canada and you go on their website, you could probably figure it out in about 10 minutes what qualifications you need, what visa you would apply for, and how it would happen. Our system, over time, it’s like a coat of paint on top of a coat of paint, on top of a coat of paint.
What we want to do here is really sand it down to the base and then have a new system that’s representative of the times, it’s representative of our values, and something we could all be proud of.
So thanks to the President’s leadership, we’ve worked very, very hard over the last seven months to put this together, really at your direction. This is your plan. We’ve met now with over 25 Senate offices. We’ve gotten extensive feedback from them. They’ve made a lot of good suggestions. We’ve tightened it up. And we’ll be ready to release it very soon.
We’re meeting today with the leadership in the House and the Senate, and hopefully what we can do is have a unified Republican plan for what it is that we’re for. And I think that these plans will keep Americans safer, will keep Americans more prosperous, and continue to make sure that the American Dream is available and America continues to be the Promised Land for people throughout the world who want to earn their way to become a citizen.
So thank you for your leadership. And you have information in your binders, and we have a 22-page summary that we’ll be submitting to all your offices. And again, immigration doesn’t just touch Homeland Security or Justice or State. It really touches all of your agencies. And so if we can get this right, it will really be something that will be great for our country both in the short-term, medium-term, and the long-term.
So thank you very much.
THE PRESIDENT: Fantastic job. Thank you, Jared. This is a commonsense plan. It’s a plan where we’ve studied almost every country. Some good. Some bad. Some tremendously successful. Some not successful at all. And this is the best of everything. And it gives incentive to people.
It also — we have a problem. I’m called constantly by people; they want to have really smart people working in their companies. We have companies where you need very smart people, and we don’t have a provision for smart people. You can graduate from a college, you can be number one in your class in the best college in the country and be thrown out of the country the following day. And we want to be able to keep people in that have this kind of genius.
Silicon Valley is constantly complaining. They’re building places in Canada. They’re building places elsewhere because our immigration plans don’t allow this. Well, we have to have this. Whether we like it or not, we have to have this. And we’ll be able to get it.
But I’ve met with many people that have very good intentions, but have to have smart people and they have to have smart people stay in our country and be able to stay here for a period of time — not just for a short period of time, where they can’t even buy a house. They don’t know if their family should move. So we’re doing a lot of things to help people.
I think as you saw it — as Jared really put it very well — our country has tremendous immigration gap. These are plan after plan after plan, and each plan is very simple. Overly simple. When you put them together, they’re indistinguishable. You can’t — it becomes a maze of complexity that nobody even knows the answer to. You have people studying, where — you’re going to have a really beautiful system of immigration. People are going to be able to come into our country, be proud of our country, and help our country. We want them to help us. You know, it’s a two-way street; they have to help us also. And it’s met with great popularity.
Now, if it doesn’t get passed, because we do have the Democrats — because they’re against almost everything. We’d love to do it in a bipartisan way. We’ll make changes. We’ll do what we have to do.
But if it doesn’t get passed, it’s a campaign issue because we’ll pass it if and when we win the Congress. We’ll win the House and we should be able to keep the Senate, win the Senate, and maybe pick up some seats. And hopefully we’re going to keep the presidency. That, I feel very comfortable — I feel very confident about. But I feel also very confident we have a very good chance at winning back the House. And it may very well be an election issue, because this plan is a plan like no other. This is the best of everything all over the world. And it’s a very fair plan. We have to say that and stress it. Very, very fair plan. Very compassionate plan.
So it could very well be something that gets done where everybody puts politics aside and they get it voted on. Or if it isn’t — you know, the election is 15 months away. Very close. Who would have thought that? But it’s very close.
And we will put this as a major election issue. This is what people want. They want this kind of a plan. They want the compassion but they also want a merit-based plan where people come in and can help our country. So I appreciate you seeing that.
I think what I’d like to do, if I could — ask our Secretary of State, who is doing a terrific job — Mike Pompeo — to give you a little update on Iran.
I could possibly say a couple of things about North Korea. When I took over — when I became President, North Korea was ready to go to war. We were, I think, headed to a war. It would have been very quickly, too. It would have been a very bad war, a very rough war. But I believe we were headed in that one direction. There was no communication. There was no talk. There were nuclear weapons being — and nuclear everything being tested. Constantly, we’d be hearing about earthquakes. It wasn’t earthquakes; it was nuclear testing. And we were heading in a bad direction.
And you saw what happened a few weeks ago when we were in South Korea, and I said, the day before — there was no planning, no nothing — the day before, I said, “Hey, we’re here. Let’s say hello to Kim Jong Un.”
And nobody actually knew how to get in touch. Tough people to get in touch with. But I have a very good relationship with him. And I put it out on Twitter. “Hey, I’m in South Korea. You want to meet?” And we had a great meeting. It was pretty wild. Very good communication. We’ll see what happens.
But, in the meantime, as I say, we got our hostages back. We got the remains back, and they continue to come. We have the sanctions on in full. We’re working with China. We’re working with Russia on the border.
And at some point — I’m in absolutely no hurry — but at some point, I think we can probably do something that would be very good for them and very good everybody and for the world.
So we’ve met tremendous progress. People don’t like saying that. The progress is great communication. Before, we had no communication. There was zero — zero communication. Nobody spoke to anybody. They wouldn’t know who. I do believe they tried. I do believe it never happened. I think we tried very hard to speak to them, but they weren’t interested in speaking. But now they’re interested in speaking, and the relationship is very good. I think we’ve made tremendous progress on North Korea.
And, again, time is not of the essence, but I think good things will ultimately happen.
I’d like to ask Mike to say a few words about Iran and what that situation is. Please.
SECRETARY POMPEO: Thank you, Mr. President. If I may just to — I’ll try and do it briefly, but I might just take a minute. In the same way that — when this administration came in, broadly in the Middle East, you had ISIS with an enormous caliphate, Iran as the world’s largest state sponsor of terror, with lots of wealth and the capacity to grow their terror campaign.
What we’ve done in these two and a half years is we’ve built out a coalition of Gulf States, the Israelis. Each of them has been focused on taking these activities on. And we’ve taken down the caliphate nearly in its entirety.
And, second, with respect to Iran, we’ve done three things. We’ve supported the Iranian people. The Iranian leadership is not doing what the Iranian people want it to do. We’ve made clear that we support the Iranian people.
Second, we’ve continued to work with this coalition that all understands that the largest threat to Middle East security is, in fact, the Islamic Republic of Iran.
And, third, we’ve imposed a series of sanctions on the Iranian regime. I remember, Mr. President, when we began, a lot of folks said that it wouldn’t work; if it was just America alone, it wouldn’t have any impact. We — as of June, we’d taken down 90 percent, maybe 95 percent, of all the crude oil that was being exported from Iran around the world is no longer shipping. You can see it. The Iranian regime is struggling to figure out what they’re going to do with their economy because we have been terribly effective.
And the result is that — is that, frankly, I think it was yesterday or maybe the day before — for the first time, the Iranians have said that they’re prepared to negotiate about their missile program. So we will have this opportunity, I hope. If we continue to execute our strategy appropriately, we’ll have this opportunity to negotiate a deal that will actually prevent Iran from getting a nuclear weapon in the same way that the previous agreement had no chance of actually doing.
THE PRESIDENT: Well, thank you very much. You know, a lot of progress has been made. And if they’d like to talk, then we’ll see what happens. But a lot of progress has been made.
Remember one thing: An agreement was made with Secretary Kerry, at the time, and with President Obama. That agreement was a disaster. They spent $150 billion; $1.8 billion was given in cash — cash like cash from your pocket. $1.8 billion given in cash. And we had an agreement that, number one, didn’t give us good inspection rights. We were — the places we most would want to inspect we weren’t allowed to inspect. We were allowed to inspect places that didn’t mean anything. Number one.
And I think, very importantly, and maybe most importantly, the agreement was short term. You know, for a country, 10 years and 15 years is short term. If you sign a lease, you can a sign a 10-year lease. But for a country, that’s a speck of time. And there’s only a few years left now. Very short number of years left. And you’re not going to go up and make a deal. This was a path for Iran to have a nuclear weapon. They can’t have a nuclear weapon.
We want to help them. We’ll be good to them. We’ll work with them. We’ll help them in any way we can, but they can’t have a nuclear weapon. We’re not looking, by the way, for regime change, because some people say we’re looking for regime change. We’re not looking for regime change.
I’ve watched President Obama and many other Presidents try that. It doesn’t work out too well. We’re not looking for that at all. They can’t have a nuclear weapon. They can’t be testing ballistic missiles, which, right now, under that agreement, if they had the agreement — which we are out of — they’d be able to do. They can’t do that.
And we want them to get out of Yemen. I asked Secretary Kerry, through people, “Why didn’t you get them out of Yemen when you gave them $150 billion?” He said it was too complicated. Oh, great. So we want them to get out of Yemen. Syria is a different kind of a situation, but it’s all working out.
We did a great job. As Mike said, we did a great job with the caliphate. We have 100 percent of the caliphate, and we’re rapidly pulling out of Syria. We’ll be out of there pretty soon. And let them handle their own problems. Syria can handle their own problems — along with Iran, along with Russia, along with Iraq, along with Turkey. We’re 7,000 miles away.
But we did a hell of a job with the caliphate. Nobody thought that was possible. When I came in, my own generals told me it would take two years. And I said, “Really?” But then I met another general. He said, “Sir, we can do it in a month.” I said, “I like you. I like you. I like you much better than some other people.” And he did an unbelievable job. They were incredible, the job they did. And we got 100 percent of the caliphate.
We now have 2,000 prisoners — ISIS prisoners. And we’re telling Europe, “Look, they were going to Europe.” They weren’t coming here; they were going to Europe. “You’ve got to take them.” Europe doesn’t want to take them because, you know, why should they? They — American patsies. We were patsies for so many years, but they don’t want to take them. You got to take them. They were going to you. We helped you out. We did a big thing. We can’t be responsible for these people for 50 years or whatever it may be, or more.
And so we’re negotiating with Europe, and we’re negotiating with Iraq and lots of other peoples. Somebody has got to do — we have a lot of war; bad people, in many cases. Bad people, possibly in all cases. But we have about 2,000 of them, and we’re negotiating right now with Europe. We say, “We don’t want them.” “Oh, you don’t want them? You would’ve had them if we didn’t come along. You would’ve had them in a way that you don’t want to have them.” And everyone knows what I mean.
So, we weren’t treated very fairly by the world for the last 20, 25 years, whether it’s trade or the military. We protect so many countries. Some countries are unbelievably rich. They don’t pay us. They never paid us. Now they’re starting to pay and they’re paying. Importantly, they’re paying a lot, and they’re appreciative of us. I actually think they like us better now than they did before because they have respect for us again.
So, I want to thank Jared. And I want to thank Ben. And I want to thank Scott, Mike, everybody. You’ve been doing a fantastic job.
I think I’m going to finish just by asking Alex to say a few word about — words about what we’re doing with prescription drug prices because it’s really exciting. I’d also like you to discuss — because most people have no idea that we’re so close — what’s happening with respect to the eradication of AIDS, which nobody would’ve thought of two years ago. And now we’re really at a point where we can eradicate AIDS from the United States within 10 years. So, if you could discuss those two subjects, I would appreciate it.
SECRETARY AZAR: Yeah. Thank you, Mr. President. Absolutely.
So, new data in for June that shows that, again, prescription drug prices are going down. The Department of Labor’s inflation measure for prescription drug prices, it continues to go down this time for the first time in 50 years. The biggest decrease in over 50 years.
So we’re getting prices down by increasing competition. Historic levels of approving generic drugs. Historic levels of approving new branded drugs that can compete with other branded drugs. And the President has made it really clear that we’re open for business for an importation regime to let cheaper drugs come into this country as long as it can be done safely, and as long as it can be done in a way that brings savings to the American people. And so we’re working on that very aggressively.
He’s also made it very clear that America is tired of subsidizing the socialist healthcare systems in the rest of the world. America’s seniors have been overpaying for their drugs, propping up socialist systems abroad, and that’s going to end. And he’s working on that with us right now.
In terms of HIV/AIDS epidemic, you know, we have 40,000 new cases of HIV every year in this country, and that’s plateaued over the last decade. We have the tools. We have the tools now to keep people from getting infected and to treat those who are infected. We can identify people who are at risk. We can put them on treatment if they’re at risk. It’s called “PrEP.”
The President secured a historic deal to get 200,000 courses of treatment per year for the next 11 years of free drug for our program to be able to treat people that keeps them from being able to get HIV, even if they have at-risk behaviors.
We have the treatments — the antiretroviral treatments that can get people who have HIV to not have it still in their body to be transmissible to other people. So what is called the viral load — viral suppression — we can keep them from being able to spread it to other people. We just have to attack the 48 counties, the District of Columbia, and San Juan where over 50 percent of new cases are happening.
We have to address stigma. We have to get people in the system. We have to care for them. We got to get Congress to appropriate the money to support us in this. We’re making huge progress working with the activist community, with the African American community, the Latino, the Native community here in the United States that are disproportionally impacted by this.
We have the chance to, within 10 years, stop HIV from being an epidemic in this country. I mean, it’s really — it’s going to be one of President Trump’s great legacies for history, is the eradication of HIV as an epidemic here in the United States.
And then, we just did something last week the President announced on kidney care. You know, we spend one out of five dollars on kidney care and the complications from kidney care. And last week just blew the paradigm up to help patients. Everything puts people into this — going to centers for dialysis. Everything puts you towards that dialysis. And instead, we’re changing how we’re paying for kidney care now in the United States to create incentives where we’re going to keep people from progressing in their kidney disease. We’re going to get them transplanted faster, doubling the number of kidneys available for transplantation. And we’re going to switch it so that people can get their dialysis at home instead of at centers, if they have to be on dialysis.
I’ve got to tell you, Mr. President, the reaction has been just bipartisan across the board, nationwide, and it’s been unbelievable. You see in the media, people say, “You know, I’m not a big fan of President Trump, but I’ve got to tell you what — you know what he did? He just delivered for America’s people who have cancer and who have kidney disease.” He just delivered for everybody who has kidney disease, or a loved one with kidney disease. This is the first transformation in 50 years. Just like on HIV, tackling a problem that other Presidents have not been willing to tackle.
So, thank you.
THE PRESIDENT: Well, that was an amazing meeting we had last week on kidney disease, which I didn’t know too much about. I knew it was a very big problem. Nobody knew the cost. When you say one in five, that’s incredible. But I learned, and I met so many people that had the problem. And we spent a long time with you, last week, at that conference, and then we made a speech.
And one of the things I learned is that people with kidney disease, oftentimes, they die of hard work. They literally die like — we all work hard. We work hard. I don’t know, we seem to be able to handle it. But their work is much harder. And it is so hard to go through this dialysis program, that they die of exhaustion. It is an unbelievably horrible situation. And we’re working on transplants. And we’re actually working on something — and there’s some pretty positive news: artificial kidney, which would be the ultimate answer. We think there’s going to be some good news on that —
SECRETARY AZAR: Absolutely.
THE PRESIDENT: — long before people thought.
I would like you to mention, because a certain, very large pharmaceutical company — you know, you hear very bad things about pharmaceutical companies, and I agree with that.
SECRETARY AZAR: Deservedly so.
THE PRESIDENT: And — deservedly so. But I would like you to mention the name of the company because they’re giving hundreds of millions of dollars for the HIV/AIDS, and you might mention the name.
SECRETARY AZAR: So we secured — we secured this deal with Gilead. So Gilead is the company that invent- — that has drug PrEP. PrEP is the medicine that if a patient takes it regularly, as prescribed, they reduce by 97 percent the chances that they can contract HIV/AIDS. We have patent issues between us and Gilead. Without sacrificing any of the rights that we have, we were able to secure a donation by Gilead of 200,000 courses of treatment per year of PrEP, for use in our ending the HIV/AIDS epidemic program — of PrEP or any successor product developed — up until 2030. It’s really a historic agreement.
THE PRESIDENT: The dollar value of that?
SECRETARY AZAR: Billions and billions and billions of dollars.
THE PRESIDENT: It’s billions of dollars they’re contributing.
SECRETARY AZAR: Billions. Huge.
THE PRESIDENT: It’s something, right? That’s really something. I want to thank you very much.
I also want to thank a man who has been really an outstanding Secretary of Labor, Alex Acosta. This is your last meeting in the Cabinet Room.
SECRETARY ACOSTA: It is.
THE PRESIDENT: And I just want to say, “Job well done.” You really were — you were absolutely terrific. Never once a problem. Always in advance of everything else, whether it was on 401(k)s or all of the other things we worked on. You really did an outstanding job as Secretary of Labor. We — everyone in this room, I think, we can say we’re going to miss you. But we’ll see you. But, congratulations. And a job well done. (Applause.)
SECRETARY ACOSTA: So, first, let me say thank you. The opportunity to work with you, to work with everyone in this room, has been truly special. As we look back, I think one of the unwritten stories — we talk a lot about the economy. But we are a safer nation in the workplace. I mentioned it before, but last year we had fewer workplace fatalities. We had 45,000 fewer workplace injuries. We had the safest year ever in mining. We returned more than $300 million in back-wages to American workers — the highest amount of back-wages ever returned by the Department of Labor.
And I mention this because I think this is a story that isn’t written, that needs to be written, that that’s part of your legacy, that’s part of our legacy.
And you see similar work, whether it’s been with Opportunity Zones, whether it’s at the Small Business Administration, and how, after hurricanes and other natural disasters, the bureaucracy has been cut and reduced. All of us could point to these unwritten stories. And they’re transformative, and they’re impactful, and they need to be told. And so thank you for the opportunity and thank you for the honor.
THE PRESIDENT: Thank you. Great job. Thank you very much everybody. I appreciate it. Thank you.
Q Mr. President, when you say that the Democratic congresswomen should leave if they’re not happy, where should they go?
THE PRESIDENT: It’s up to them. They can go wherever they want or they can stay. But they should love our country. They shouldn’t hate our country. You look at what they’ve said. I — I have clips right here. The most vile, horrible statements about our country, about Israel, about others. It’s up to them. They can do what they want. They can leave. They can stay. But they should love our country and they should work for the good of our country.
All right, thank you very much everybody.
Q Mr. President, what about Turkey and sanctions? Turkey and sanctions?
THE PRESIDENT: We’re talking to Turkey. We’re speaking to Turkey.
Q What are you saying to them, sir?
THE PRESIDENT: I’ve had a very good relationship. And, frankly, it’s a very complex situation. The Obama administration would not sell them the Patriot missiles. They need the Patriot missiles for defense. They would not sell them, under any circumstance.
And Turkey tried very hard to buy them, and they wouldn’t sell them, and this went on for a long period of time. And it was as soon as they found out that they were going to have to buy the missiles — a comparable missile — not as good a missile, but a comparable, almost, missile from Russia, all of a sudden everybody started rushing and saying to Turkey, “Okay, we’ll sell you the Patriot missile.” It was only when they found out they couldn’t get it, then, they say, “Let’s go, we’ll sell you the Patriot missile.”
But, by that time, Turkey had already signed and paid a lot of money to Russia for the missile system that they were not allowed to buy here, foolishly — because Turkey is a NATO member.
Turkey has also ordered over a hundred F-35 planes — substantially over a hundred — and they have plans to order more. But because they have a system of missiles that’s made in Russia, they’re now prohibited from buying over a hundred planes. I would say that Lockheed isn’t exactly happy. That’s a lot of jobs.
And, frankly, I’ve always had a very good relationship. We have Pastor Brunson — came back, at my request, when I called up. Pastor Brunson was going to be in jail for 25 years. And I called President Erdogan, and I said, “Listen, he’s an innocent man. He’s a pastor. He’s a religious man. He’s not a spy. He’s not the things they said.” And we had a couple of conversations, and I was able to get him back. Along with many other people, I was able to get back. The press doesn’t want to write about it.
Our ambassador for hostage negotiations said, “Trump is the greatest of all time.” I only tell you that because you’ll never say it. But I guess we have 21 back. I got 21 back. I don’t pay, either — unlike the $1.8 billion that was paid by the Obama administration to get hostages back. I don’t pay because, once you pay, it doesn’t work out.
So what happens is we have a situation where Turkey is very good with us. Very good. And we are now telling Turkey that, because you have really been forced to buy another missile system, we’re not going to sell you the F-35 fighter jets. It’s a very tough situation that they’re in. And it’s a very tough situation that we’ve been placed in — the United States.
With all of that being said, we’re working through it. We’ll see what happens. But it’s not really fair. They wanted to buy — I don’t stick up for countries. I don’t stick up for Turkey. I don’t stick up — other than I’ve had a good relationship with President Erdogan.
He wanted to buy our Patriot missile. We wouldn’t sell it. And then, when he made a — and he really wanted to buy it. And then, when he made a deal with another country — Russia — to buy their system that he didn’t even want, then, all of the sudden, we say, “Oh, okay. We’ll now sell you the Patriot.” And because of the fact he bought a Russian missile, we’re not allowed to sell him billions of dollars’ worth of aircraft. It’s not a fair situation.
Do you have something to add to that, Mike?
SECRETARY POMPEO: No, sir. I think you explained it well.
THE PRESIDENT: I think so. Good. You said the right thing. (Laughter.)
Q Google and China? Google and China? You tweeted about it.
THE PRESIDENT: Well, what we’re doing with China, first of all — you know, Thiel is a friend of mine. He’s a tremendous contributor. He’s a big — he’s a big — he spoke at our convention — at the Republican National Convention. Peter is a brilliant young man — one of the most successful people in Silicon Valley. I guess he was an original investor in some of these biggest — biggest companies, including Facebook, I understand.
Yeah, he made a very strong charge. He’s one of the top — maybe the top expert on all of those things. And he made a very big statement about Google. And I would like to recommend to the various agencies, including perhaps our Attorney General, who is with us, to maybe take a look. It’s a big statement, when you say that, you know, Google is involved with China in not a very positive way for our country.
So I think we’ll all look at that. I know that our other agencies will be looking at it. And we’ll see if there’s any truth to it. But that’s a very big statement, made by somebody who’s highly respected. So we’ll certainly take a look at that.
Q And at least two Central American countries have said they’re not going to play ball with your new asylum plans. What are you going to do?
THE PRESIDENT: We’ll see what happens. We were sending hundreds of millions of dollars to — are you talking about Guatemala and Honduras?
THE PRESIDENT: We were sending hundreds of millions of dollars to Guatemala and Honduras. We’re not going to send it anymore. We haven’t been sending it for the last year because they weren’t doing anything for us. They were forming caravans and they were sending them up. And in those caravans, you had some very bad actors. You had some people that were not people that we want in our country.
So I realized that, when they — in the middle of their city or towns — when you form a caravan, if a government is at all a government, they don’t have to allow that caravan to come up. So if they’re not going to play ball, that’s okay with me. We’re not going to play ball with them. We don’t give them any more money. They’ve been ripping us off for years. I’m not a fan.
So until they shape up — now, all of the sudden, they came down, supposedly, with a Supreme Court ruling that they’re not allowed to do a Safe Third Agreement with us. Well, I sort of wonder — did it come down because they wanted that ruling to come down?
But we were giving them hundreds of millions of dollars, like fools, for years, and all they did is send us up — a lot of people caused a lot of problems, and a lot of the people in those caravans were criminals — hardened criminals, dangerous people.
And why not? Why would Honduras or Guatemala or El Salvador, why would they keep their criminals when you can put them into the caravan, lose them in a caravan, and send them up to the United States. We take everybody because the Democrats don’t allow immigration laws that mean anything. It’s horrible. It’s horrible.
How they aren’t — how they aren’t taking care of just that one situation, which could be taken care of very easily — how they won’t even give us a vote on that. We’ve had many interviews of the people in those caravans. Some of them are very bad players.
You had interviews — one of the folks that was, perhaps, in this room — I think might be in this room — said, “What was your crime?” And the man said, “Murder.” And the reporter looks at — “Murder?” That’s a very famous clip. She said, “Well, what was your crime?” You know, they were interviewing to show how wonderful the people are in the caravan. “And you, sir, what was your crime?” “Murder.” The young woman goes, “Whoa.” I was surprised they didn’t cut it. It must have been live, otherwise you would have cut it. It must have been a live shot. But a pretty famous shot. But you have a lot of that.
And so, as far as those countries, we were supposed to have a safe third. We didn’t. Now, Mexico — because of tariffs, but that doesn’t matter because they’ve really been doing a job. They’ve only had one week in June, and June was down 28 percent. One week. Two thousand soldiers, they started with. Now they have 6,000 soldiers on their southern border.
You know, they used to have like three soldiers; they had nobody. They wouldn’t do it. For 45 years, 50 years, people have tried. In the State Department, one of Mike’s people said — the woman that we respect, who’s been in charge of Mexico for 20 years — she laughed when we said we were going to ask for these things. She said, “They’ve been trying to get” — she was there for 20 years. But they’ve been trying to get it for 45 or 50 years, the things that I asked for.
And they all laughed. I got it done in one day. Because I said, “If you don’t do it, we’re going to put tariffs on.” And every car that comes through, that used to be made in the United States, now Mexico has 30 percent of our car business. But that’s not going to happen anymore. No more — no more companies are going to leave because we have reasons that they can’t leave anymore. There’s just no reason for them to leave anymore. In fact, just the opposite: They’re all coming back.
But now we have 21,000 soldiers — 6,000 on the Guatemala border, and — which is, you know — obviously, that makes the safe third, John, much less important. You understand. It’s very hard to get from Guatemala to the United States. And we’ll have about 16,000 or so — maybe more — on our southern border.
And we’re using the Mexican immigration laws, because that’s Mexico. And those laws say you can actually tell a person, “I’m sorry. You can’t come in. Get out.” Or they can take them back to a point of origin.
So we’re doing very well, but we have no help whatsoever from the Democrats — just the opposite. They want open borders. They obviously don’t mind crime and drugs and human trafficking, which is a tremendous problem. And it’s human trafficking mostly in women. And, you know, Democrats, with their big, wonderful hearts — human trafficking with women — where three, four, five women are put in the back of a van or the back of a car, and they go through areas where there will soon be wall, but there’s no wall right now. Because you can’t, obviously, come through ports of entry.
But we’re really doing well on the border, considering we have absolutely no help from the Democrats. And not only no help; it’s just the opposite.
Now, we won a big lawsuit against Nancy Pelosi and Congress, having to do with the wall. You saw that two weeks ago. But we also have one that we’re appealing to the Supreme Court. I think it was just put into the Supreme Court. And I hope we’re going to be successful on that.
But we’re building a lot of wall right now. But it’s being met with force. There’s no question about it. The Democrats are fighting us on a wall so people can come through.
But now, what’s happening with Mexico — 21,000 soldiers — we’re hearing that even the cartels are saying, “Wow. This is hard to get through.” Because the cartels were bringing tremendous numbers of people into our country, through diversion and other tactics, and money.
So we’re doing well on the border, considering we have no help. I think we’re doing well, even if we did have help. And I want to thank Mexico, because they really have gone above and beyond — I think beyond, Mike, what we thought. We didn’t ever expect 21,000 soldiers. We expected a smaller number than that.
And, at the same time, they’re helping themselves a lot because they were having a lot of crime. And the border was really — the borders were run by the cartels. And Mexico is taking back its country. And I give the President a tremendous amount of credit for that because that’s been going on for a long time.
Thank you all very much. Thank you.
Q Update on China trade? China trade?
THE PRESIDENT: We’re doing well with China, but you will see whether or not we have a — we’re talking to China about a deal. We’ll see what happens. But we’re doing very well economically because they’re paying us billions and billions and billions of dollars.
Q Mr. Trump, would you be willing to not use the phrase, “Go back to your country” to citizens and women of color who are either citizens or have been born in this country? Would you be willing to not use that specific phrase?
THE PRESIDENT: I think it’s terrible when people speak so badly about our country, when people speak so horribly. I have a list of things here. I’m not going to bore you with it because you would be bored. You wouldn’t write it anyway. But I have a list of things here said by the congresswomen that is so bad, so horrible, that I almost don’t want to read it. It’s so bad. I think what you do is you have the same list that I do. You should repeat some of that.
When the Democrats didn’t want to mention the name of the congresswoman, not so long ago — and what they did and the way they’re treating Israel is a disgrace. But not only Israel; it’s what they say about our country. It’s my opinion they hate our country. And that’s not good. It’s not acceptable.
Thank you very much everybody.
Q Mr. President, (inaudible) core values to be able to criticize this country, isn’t that a core American value?
THE PRESIDENT: Thank you very much. Thank you.
What an absolute hot mess today in congress. A review begins with a reminder of the manufactured OrangeManBad outrage du jour. Obviously a cartoon is needed:
As typical in an era where outrage is generally promoted to the level of Moonbat crazy, the circle of stupid was fueled by the media, who fired-up the politicians… who fired-up the outrage protestations… who fueled the media… and thus the circle of stupid continued.
All the way to Nancy Pelosi dropping all Speaker pretense of actual legislation, and instead choosing to bring a resolution to the House floor to advance Muh “racist” OrangeManBad.
The debt ceiling needs to be raised.
Spending appropriations bills need to be resolved.
Immigration laws need to be fixed.
The border is in crisis.
Infrastructure spending needs to be resolved.
The USMCA needs to be ratified.
Forget all those issues that matter…. what does House Speaker Nancy Pelosi do?
Why, stop everything so she can advance a resolution to prove her squad doesn’t like President Trump.
That didn’t work out too well:
The Commerce Department has released the first advanced estimate of retail sales and consumer spending for June. Core retail sales increased 0.7 percent last month (very strong), and 3.8 percent year-over-year; very strong retail sales.
Retail sales is an important component to the U.S. economy as more than two-thirds of our GDP is based from retail sales. In essence, one of the unique attributes to the U.S. economy is that we buy lots of stuff. Actually, the U.S. consumer buys almost three-quarters of everything produced. We are -for the most part- self-sustaining; we do not necessarily need to depend on exports. When the U.S. consumer is buying stuff the internal economy is strong.
WASHINGTON (Reuters) – U.S. retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the drag on the economy from weak business investment.
[…] Economists polled by Reuters had forecast retail sales edging up 0.1% in June. Compared to June last year, retail sales advanced 3.4%.
Excluding automobiles, gasoline, building materials and food services, retail sales jumped 0.7% last month after an upwardly revised 0.6% increase in May. These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have increased 0.4% in May.
June’s strong gain in core retail sales followed solid increases in April and May, suggesting consumer spending accelerated in the second quarter after rising at its slowest pace in a year in the January-March period. (read more)
The data is a reflection of Main Street strength. The job market is hot; wages are rising much faster than inflation; the middle class has more disposable income. Hence, retail sales are strong.
President Trump is continuing to emphasize and incentivize corporate manufacturers to return to producing products inside the U.S. The American market is the gold-standard for consumer goods. Companies that make stuff need access to their best customer, that’s the U.S. market.
For 30+ years, U.S. policy was driven by Wall Street influence who wanted to exploit the purchasing power of the U.S. economy by manufacturing for lower production costs overseas, thereby increasing overall profit. However, that process meant the U.S. lost the manufacturing jobs as the stuff we buy was no longer made domestically.
President Trump has put incentives in place to make moving production back into the U.S. the best bet (carrot), and is simultaneously putting pressure on the backside of the import equation through tariffs (the stick). This is the essential fight between Wall Street (multinational corps) and Main Street (Trump).
The Wall Street multinationals want unfettered access to the U.S. market, but they don’t want their products made in the U.S. because -according to them- it will cost more and lower their profits. To try and avoid Trump’s dynamic, China is actually dropping the priceof their products even further through subsides, incentives and currency devaluing.
As all the multinationals fight to try and keep their manufacturing overseas, the prices of their imported products continue to drop (.09 percent in June) massively. In essence, in a very weird dynamic, we are importing deflation.
We are importing lower prices, U.S. consumers are seeing lower prices, because the corporations are trying to keep making stuff overseas. Ironically, this means despite Trump smacking tariffs on China the U.S. consumer is getting a better price on imported finished goods. Ergo, retail sales strong etc.
However, in the longer term, the Total Cost of Production (TCP) is constantly being re-evaluated. Low energy prices in the U.S, access to raw materials, shipping costs and rising wages overseas means the TCP gap has massively narrowed.
Trump’s Main Street USA policies have lowered the cost of manufacturing in the United States; there are no longer huge production saving overseas; it just doesn’t make as big a difference as it used to. This TCP narrowing now means when President Trump applies tariffs the impact carries more weight…. That’s why Trump enjoys being “Tariff Man”.
As more companies return and make their stuff here, the GDP of the U.S.A. expands massively [imports are deductions from GDP]. This is why President Trump see’s no upper limit to the amount of potential GDP growth.
If the multinationals return production to the U.S. and the American consumer is purchasing the product, all of the economic value -the entire dynamic- stays inside the U.S.A.
Trump policies mean we are not dividing a limited pie, we are creating more pies.
Ultimately, this dynamic is why the USMCA trade agreement is so important. On the geopolitical side we STOP giving money to our economic enemy, China; and while some companies will look to Mexico first -before the U.S.- we at least make North America the best bet for manufacturing investment and get that money out of China.
Mexico isn’t stupid, they can see the North American economic opportunity in the big picture. That’s why Mexican trade negotiator Jesus Seade was so engaged with U.S. Trade Rep. Robert Lighthizer. When President Trump warned Mexican President AMLO of tariffs on Mexican goods if he didn’t stop the migration issue, that threat carried much more weight than it would have a few years prior.
If the USMCA is ratified, it will crush the position of China and we can expect to see Trump completely disengage from trade negotiations with Chinese Chairman Xi Jinping.
However, China knows this massive problem exists… there are multi-trillions at stake… China is now aligned with Nancy Pelosi to remove President Trump (watch Dem bank accounts)…. that’s why Speaker Pelosi is dragging her feet on the USMCA.