Bill Blain: “Macron Will Prove A Disappointment As Nothing Is Actually Fixed In Europe”


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From Bill Blain’s latest Morning Porridge edition

“To summarise the summary: anyone who is capable of getting themselves made President should on no account be allowed to do the job..”

The best thing about the French Election is I’ve just won a case of very fine French wine on the result!

The papers and financial blogosphere are full of positivity – France is fixed, therefore the Euro is safe and its all great news. Put yer buying boots on.. And on the back of Friday’s very strong US numbers.. don’t worry that bonds continue to rally in the face of a likely Fed Hike..

Please.. the only thing good about the French vote is the least bad candidate won.

I question the grand expressions of upside the market is calling for. France has dodged a bullet, perhaps, but they aint solved the crisis – which boils to down to being the wrong economy using the wrong currency and absolutely no control of monetary or fiscal policy to fix it.

Macron has a head full of supply side policy cliches about sorting the labour market, and some catchy soundbites on Franco-German European hegemony – including the sacrifice of a fraction of the bloated state payroll. For all the hype, he’s a compromise of compromise candidates.

Lets not forget that fully 12% of the votes were spoilt – meaning a significant minority of Frenchmen made a conscious choice that neither candidate was any good!

I’ll make a grand prediction: Macron will prove a disappointment. His lack of power base from which to actually effect long term change across France means we’ll get one or other of the Le Pens in 5 years time.

Although he will no doubt trade on his youth and popularity – don’t be surprised if the lustre quickly fades. A number of blogs say he’ll quickly build a coalition of the willing.. I doubt it. He’s going to struggle to form any kind of working government in the face of the established parties, and hostility from right and left.

There is also the likelihood the electorate will come to realise the gifted young game-changer is actually as establishment as they come. Don’t forget he is the protégé of Jacques Attali –  those of us of a certain vintage will remember Attali as the archetypal enarch – squandering billions on titivating the Glistening Bank (The EBRD) with marble lifts and ego-building offices rather than actually lending. Macron’s paid up membership of the discredited French upper class is something a better organised Front Nationale will play to in coming years.

On the upside, the numbers are moving in Macron’s direction. The state isn’t in the same perilous debt position pre ECB intervention. A wee bit inflation will massage the numbers nicely. There are no immediate risks on the horizon. Unemployment is trending down (slowly), and is likely to boost his popularity. Merkel looks a shoe in for the German Election (very strong showing at the weekend in Danish Germany).

But, but and but again..

When Europe looks calm and sorted, its not. Nothing is actually fixed.. For all the happy posts this morning about Euro strength, which stocks to buy on the basis of French recovery, and the rest… I doubt it.

Although there is apparently nothing to worry about in Euroland anymore – we’ve still got the festering pustule that is Italy, episode 47 of the Greek Crisis on our doorsteps, and the who knows what coming from the Brexit negotiations. Europe will continue to amuse, fascinate and frustrate..

I don’t normally spend my Sundays watching the TV wallpaper paste that passes as “political comment” but as I supped my coffee, one soundbite caught my ear: “the aim of Europe is to ensure the economic collapse of the UK to make clear leaving the EU is never an option.”

Oh dear….

Is there a danger the now pointless UKIP decides to establish some convoluted relevance as the force of anti-Europeanism? Sure enough, someone later suggested we should mount a European boycott. If we stop buying French plonk, German cars, Spanish holidays, etc, then that’ll teach ’em.

It so happens an American chum of mine was in Yoorp over the weekend and he popped down for dinner last night. As he is an economist of some renown, and a former Scotsman before he went all Yankee on us, I asked his opinion on Brexit and what America thinks. He was succinct: “We don’t give a fig. As long as you all play nice and don’t break the global economy meaning we’ll have to bail it out, we really don’t care about Europe and the UK.” Nice.. but to the point..

A trade war with Europe and the nihilistic post UKIP politics of aggression would be a very bad idea… If I can’t get good European wine, it will inevitably mean drinking more Argentine Malbec.. Not a bad wine, but it’s impossible to function properly afterward!

The Dollar Remains King


QUESTION:  Hi, I’ve read your blog for a couple of months now and it clearly opened my eyes. But I’m wondering if I’m getting crazy now.. I can see a pattern between rising Chinese yields (despite weaker growth), parked Chinese money in the Canadian & Australian housing bubble, plunging commodities (very bad for Australian and Canadian people who have to pay of their massive mortgages) and why all this will lead to a rising dollar. Am I looking in the right direction?

A.S.

ANSWER: Yes. The only way to reach the economic crisis that forces political change is to put on the maximum amount of pressure. It does not even require that what people BELIEVE will happen, happens. Human nature is such that we all act in anticipation of events. Sure the Euro has bounced on belief that BREXIT is a passing phase. But the election of Macron was the worst possible outcome as it should have been for it now seals the fate of Europe. The Euro that will crumble as Brussels now tries to federalize everything to secure its own survival against the people of Europe to defeat this populist movement by political decree.

The dollar rose between 1980 and 1985 on the fears that the USA would default creating a two-tier monetary system with red dollars externally and green dollars internally. The US national debt hit $907.7 billion in 1980 and the Eurodollar market was about the same. The Europeans were convinced that the US would default by adopting a two-tier dollar. Consequently, between 1980 and 1985, Eurodollar deposits fell by about 50% and the Europeans moved their accounts to the USA where they thought they would get green dollars. That was the number one question I would get at seminars and conferences in Europe between 1980 and 1985. It never happened. Yet the “belief” it might moved capital to USA and that sent even the British pound to $1.03 in 1985.

Only the dollar moving to all time record highs in 1985 sparked the Plaza Accord. However, that is where the whole idea of the Euro was born. Jim Baker saw THE PROBLEM AS THERE WAS NO CURRENCY TO COMPLETE AGAINST THE DOLLAR. Baker urged Europe to create a single currency to prevent the dollar from rising, which then reduced US exports.

The national debt continued to rise reaching $2.125 trillion by 1986 and $3.2 trillion by 1990 and now we are at $20 trillion by 2017. The Dow Jones Industrial average was 1,000 in 1980. So exactly how is 21,000 on the Dow today out of like from just the expansion in debt?

You can see the correlation below. Our number remains 23,000 on the Dow where things begin to get interesting. So far, it is just keeping pace with international value. The first opportunity for a major dollar high is 2018 and after that comes 2020/2021.

1980-1990

Why Central Banks & Buying Equities


QUESTION: Mr. Armstrong; Why is the Swiss Central Bank buying American equities? On the one hand you would think it is manipulation, but on the other, why manipulate the US share market?

Any clue since you have met with them directly?

LW

ANSWER: I wrote about that explaining that the central banks have been buying equities since 2014. The Swiss National Bank posted its latest 13-F holdings showing it has been buying equities at a stepped up pace during the first quarter 2017. Their total equity holdings have now reached $80.4 billion, up $17 billion from the $63.4 billion at the end of 2016.

The central banks are trapped. Lowering interest rates to virtually zero reduced their yield on reserves and they cannot sell off government securities. The only viable hedge is US treasuries in the bond world against the chaos of the Eurozone. That offers no diversification just more government debt. The ECB owns 40% of European government debt. The Swiss are buying US equities as a hedge against the Euro and political unrest. This is not manipulation. They lost a fortune trying to maintain the peg the franc with the Euro. They cannot use pegs, so the only alternative to just buying US Treasuries is private equities.

The central bankers understand what our model is warning about. As confidence continues to decline in governments, the central banks can go bankrupt UNLESS they too diversify out of government bonds.

Granted, nobody wants to talk about this yet in public. This is NOT manipulation – this is cover your ass time. We have been recommending this trade to institutions for the past 5 years

Trade Fool – Canadian Prime Minister Trudeau Threatens Ban on U.S. Coal, Oregon: Wine, Plywood Imports…


Canadian Prime Minister Justin Trudeau appears to be cowering to the demands of British Columbia Provincial Premier Christy Clark who asked for retaliatory trade action against Oregon and the Pacific Northwest after Commerce Secretary Wilbur Ross announced a tariff on Canadian soft-wood imports.

Yesterday (Friday) Prime Weasel Trudeau threatened to ban shipments of U.S. thermal coal from Pacific ports and suggesting sanctions against additional trade products from Oregon due to the support for the soft-wood tariff by Democrat Senator Ron Wyden.

ENERGY ECON […] Trudeau said Ottawa would study whether to stop U.S. firms from shipping thermal coal via the Pacific province of British Columbia. Provincial Premier Christy Clark asked for the ban in response to the U.S. tariffs.

Canada is also considering duties on exports from Oregon such as wine, flooring and plywood, said a source close to the matter, citing Oregon Democratic Senator Ron Wyden’s prominent role in pressing for the lumber tariffs.

Analysts said Cloud Peak Energy Inc would be the biggest coal producer affected by a British Columbia ban or levy. Coal is railed to those ports by Burlington Northern Santa Fe Corp, owned by Berkshire Hathaway Inc.  (read more)

I wonder if Prime Weasel Trudeau is aware most of the Cloud Peak transported U.S. Coal only flows to British Columbia as an outcome of using the BC port for export to Asia.  Economic analysts don’t even measure how much coal actually stays Canada, so the threat of a Canadian ban on U.S. coal is political gnat-banter for domestic chest-thumping purposes.  {{{eyeroll}}}

And you can bet it would only take one tweet from President Trump and a nation of U.S. patriotic consumers could easily cover for any Oregon wine export losses.  I know tens-of-thousands of patriots not generally predisposed to support the insufferable Wyden but would rally to fill Oregon’s economic trade void if needed –  HINT: “America First“, eh?

The U.S is the worlds biggest consumer of stuff.  We are the worlds biggest market. One of the advantages of being the biggest customer, is the leverage our status provides in negotiations with suppliers.  That leverage has gone unused for decades, if President Trump calls upon it – it’s there.

$18-20 trillion worth of bigly leverage, the best most magnificent of all leverages, available with a tweet.  Believe it.

However, as an outcome of his public statements, Prime Weasel Trudeau has also put himself back on the trade radar of Wilburine Ross.

U.S. Commerce Secretary Wilbur Ross said on Saturday that threats of retaliatory trade actions from Canadian officials “are inappropriate” and will not influence final U.S. import duty determinations on Canadian softwood lumber.

“We continue to believe that a negotiated settlement is in the best interests of all parties and we are prepared to work toward that end,” Ross said in a statement issued by the Commerce Department.

[…]  Ross said in his statement on Saturday that the Commerce Department’s decision “was based on the facts presented, not on political considerations.”

“Threats of retaliatory action are inappropriate and will not influence any final determinations,” Ross added. (link)

There’s been a global trade war against America’s best interests for three decades; Americans’ just haven’t been positioned to fight in it…. until now, eh.

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Dr. Sebastian Gorka Discusses New Geo-Political Alliances with Brian Kilmeade…


Are people beginning to catch on? Are people beginning to identify the long-ball strategy of a non-traditional approach toward geo-political alliances?

Apparently, some are – because North Korea is not happy with the heavy pressure coming from Big Panda, China.  As identified within this radio interview between Dr. Gorka and Brian Kilmeade…

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I don’t want to say, I told you so but:

Perhaps it’s because the complexity is difficult to distill; maybe it’s because some just can’t give President Trump any credit; or perhaps it’s because the scope is too challenging to comprehend against the constant belittlement meme du jour. Regardless of reason, President Trump is fundamentally realigning international geo-political alliances and almost no-one is connecting the dots.

President Trump obviously held a long-ball strategy with the Chinese; he’s described the approach in his books and lived the approach in his business life:

At the outset, position yourself at the furthest oppositional point when it costs you nothing; then leverage inward toward your opponent as they expend their resources to meet your stance.

Almost no-one is noting the scope of what President Trump has accomplished simply by positioning himself at the furthest extreme from the best interests of China, and then working his leverage back toward dual-interests as the Chinese expend capital to meet the point of mutual benefit.

President Trump has expended nothing other than his sheer will, and yet he has leveraged gains that are jaw-droppingly consequential.

♦ What’s the goal of identifying China as a currency manipulator? To stop China from manipulating currency, right? Well, arm-chair opposition says President Trump has reversed his position simply by ‘not doing something’. However, that opposition doesn’t seem to acknowledge the end-goal of the labeling has been achieved without expending an effort. The doing is unnecessary when merely the threat of the doing changes the behavior of the doer.

In two days, April 6th and April 7th, President Trump met with Chinese President Xi Jinping. What actions has President Trump taken, other than ‘not’ doing something, and what actions has President Xi Jinping taken?

At the outset, position yourself at the furthest oppositional point when it costs you nothing, and leverage inward toward your opponent as they expend their resources to meet your stance.

Think about this when considering the consequences:

♦ China agrees to the framework of a 100 day outline to assemble the trade way-points for renegotiated bi-lateral trade deals.

What did that action cost Trump?

♦ For the first time ever, China did not support Russia in a U.N. Security Council veto vote surrounding Syria. China abstained.

What did that action cost Trump?

♦ China turned around 12 fully loaded cargo ships laden with imported coal from North Korea. 400,000 metric tonnes refused unloading. China begins an embargo against North Korean coal. China begins importing coking coal for steel-making from the U.S. coal mines.

What did that action cost Trump?

♦ Additionally, in furtherance of economic sanctions – China halts oil exports to North Korea.

What did that action cost Trump?

♦ Additionally, in furtherance of political isolation – China halts direct flights between Beijing, China and Pyongyang, North Korea.

What did that action cost Trump?

♦ And in the most stunning seismic shift of geo-political alliances, China says it is now open to discussions of a denuclearized North Korea, meaning getting rid of N-Korean nukes, WITHOUT N-Korea being included in the talks. Hello? China, the United States, Japan, Russia and South Korea discussing how to de-nuke North Korea. (A new Marshal Plan of sorts)

What did that action cost Trump?

See how this works? What affirmative action did President Trump have to take in order to get China to move toward the position of mutual benefit?

Answer: None!

Foolish people think President Trump doesn’t know what he’s doing. Again:

…Position yourself at the furthest oppositional point when it costs you nothing, and leverage inward toward your opponent as they expend their resources to meet the position of mutual benefit…

To gain all of the aforementioned action, massive benefits in U.S. interests, President Trump has done what?

“Not” labeling China as a currency manipulator is not affirmative action. It is actually the absence of action; POTUS Trump is not doing something. President Trump positioned himself at the furthest oppositional point during the election, and immediately thereafter.

He staked out this position with an intention to leverage action toward his needs.

The affirmative action President Trump is doing, very publicly, is complimenting the friendship he has begun with Xi Jinping; and praising President Xi for his character, warmth and leadership.

To build upon that mutually beneficial friendship – President Trump seeded the background by appointing Ambassador Terry Branstad, a 30-year personal friend of President Xi Jinping.

To enhance and amplify the friendship and personal respect – U.S. President Trump used Mar-a-Lago as the venue for their visit, not the White House. And President Trump’s beautiful granddaughter, Arabella, sweetly serenaded the Chinese First Family in Mandarin Chinese song showing the utmost respect for the honored guests.

Unfortunately most people are unfamiliar with the severity of Chinese tradition as it relates to family and respect. However, these gestures are intensely well received. Russia’s Vladimir Putin can deliver nothing even remotely comparable to the charm of the granddaughter of the U.S. President singing for President Xi and his wife in their native tongue.

Do not underestimate the value of these gestures and how it was perceived by the recipients as personal respect – far above the level of traditional political respect which would be customary during such encounters. President Trump made this visit personal, and his words after the meeting were all personal, not positional.

Whether or not people want to give President Trump credit for the approach, no-one should be able to challenge the outcomes all listed above.

Grandfather President Trump has highlighted Grandfather President Xi as a person, not a political figure. Trump sets the relationship as personal, and with mutual human benefit.

One thing is certain, North Korea will NOT make any hostile action toward the U.S. because President Trump has elevated President Xi to a role beyond politics in the words highlighted within Chinese media. The panda fur has not only been stroked perfectly, it has been elevated in its own magnanimity without even so much as a bow.

As a consequence it would now be a matter of personal disrespect for North Korea’s Kim Jung-un to take hostile action toward the U.S. President who has exhibited such personal respect to the regional Goliath.

Three things appear odd:

  • #1) How no-one amid almost all media can see how effective this approach by President Trump has been; and
  • #2) Nothing has been expended in order to achieve these remarkable results; and
  • #3) Accepting all of the above, Donald Trump has planned this out for a long, long time.

Oh, Ha

Disturbing OIG Report: 100 Vets Die Awaiting Care at Los Angeles VA…


No doubt VA Secretary David Shulkin will utilize the newest legislation passed in March which makes it easier to fire VA employees found to be deficient in their responsibility to provide veterans healthcare.  President Trump has also enhanced the accountability within the VA system with whistleblower protections and a specific office of accountability.

(Via Washington Free Beacon)  More than 100 veterans died while waiting for care at a Veterans Affairs hospital in Los Angeles, Calif., over a nine-month span ending in August 2015, according to a new government report.

The VA Office of Inspector General found in a recent healthcare inspection that 225 veterans at the VA Greater Los Angeles Healthcare System facility died with open or pending consults between Oct. 1, 2015 and Aug. 9, 2015. Nearly half—117—of those patients died while experiencing delays in receiving care.

The inspector general reported that 43 percent of the 371 consults scheduled for patients who ended up dying were not timely because of a failure by VA employees to follow proper procedure. The report was unable to substantiate claims that patients died as a result of the delayed consults. (read more)

California Wants to Tax Space Flights Per Mile They Travel


California Taxing Rockets

Believe it or not, the California Politicians & Regulators just spend all their time trying to figure out how to tax something new for they will never reform, it’s always give me more. California wants to collect taxes from space transportation companies based upon, get this, a formula of how frequent a company launches spacecrafts out of the state, and most absurdly, how far a commercial spacecraft travels from California soil. They want to tax space travel per mile and claim 62 miles above California belongs to the State. Sooner or later, they will want a tax from all satellites that just pass by their state once a day.The space launches are taking place from Vandenberg Air Force Base, in Santa Barbara.

The California Politicians are a special breed. They must have brain damage or they are just so corrupt it is no longer funny. They have claimed that taxing space travel from California “will lead to increased activity in the industry and will foster an atmosphere of growth and prosperity once present during the golden age of California’s aviation industry, thereby creating jobs as the industry thrives in this state.”

Any company should look for prosperity in Texas or Florida and forget California. The State is beyond help at this stage.

This should be the new theme song for California

President Trump Signs HR 244 – The Continuing Spending Resolution – Into Law…


Earlier today President Donald Trump signed HR244 into law.  The provisional spending bill that funds government through September 30th, the end of fiscal year 2017.

There has been a great deal of anxiety amid punditry about the spending outline itself, and the spending priorities as determined by both houses of congress.  Some of the criticism is warranted, most is not.

The basic principle the entire professional political class seem to overlook is the reasoning for the CR itself.  Congress has been unable to fulfill its budgetary obligation since 2007.

In fact, the last federal budget (fiscal year ’08) was signed into law in September of 2007.  By the conclusion of this CR it will have been an entire decade without a federal budget.

Perspective: ♦ Over half of all elected federal politicians have never held elected office in any year with a federal budget in place.  ♦ Almost two-thirds of Republicans in congress have never known a federal budget for a single day in office.

THAT FACT should be the target of the ire from all Americans, particularly conservatives.  However, hypocritically, it is not.

For some reason ankle-biters, antagonists, and crony constitutional punditry amid the various CONservative outlets, choose instead to focus their criticism toward the first president in our lifetime to actually deliver on conservative policy, conservative values and expressed policy objectives/outcomes that benefit all common sense Americans.

A pox belongs on the hypocritical houses, columns, shows, radio broadcasts and panel segments of current critics who watched it all unfold.  My cold anger does not provide room for me to give any f**ks toward such inane and disingenuously hypocritical positions.  Sorry for cussing, but sheeesh.

In short, stuff it – there’s actual work to be done.

Having said that, My President rightly qualifies his signature today and delivers congressional notification of how the 2,000 page omnibus spending bill will be interpreted:

Today I have signed into law H.R. 244, the Consolidated Appropriations Act, 2017, which authorizes appropriations that fund the operation of the Federal Government through September 30, 2017.

Certain provisions of this bill (e.g., Division C, sections 8049, 8058, 8077, 8081, and 8116; Division J, under the heading “Contribution for International Peacekeeping Activities”) would, in certain circumstances, unconstitutionally limit my ability to modify the command and control of military personnel and materiel or unconstitutionally vest final decision-making authority in my military advisers.  Further, Division B, section 527; Division C, section 8101; and Division F, section 517 each restrict the transfer of Guantanamo detainees to the United States; Division C, section 8103 restricts the transfer of Guantanamo detainees to foreign countries and does not include an exception for when a court might order the release of a detainee to certain countries.  I will treat these, and similar provisions, consistently with my constitutional authority as Commander in Chief.

Certain provisions (e.g., Division C, sections 8040, 8075, 8114, 9005, 9011, 9014, and under the headings “Operation and Maintenance, Defense-Wide,” “Afghanistan Security Forces Fund,” “Counter-ISIL Train and Equip Fund,” and “Joint Improvised Threat Defeat Fund”) require advance notice to the Congress before the President may direct certain military actions or provide certain forms of military assistance.  In approving this bill, I wish to reiterate the longstanding understanding of the executive branch that these types of provisions encompass only military actions for which providing advance notice is feasible and consistent with my constitutional authority and duty as Commander in Chief to protect national security.

Numerous provisions could, in certain circumstances, interfere with the exercise of my constitutional authorities to negotiate international agreements (e.g., Division B, sections 509, 519, 530; Division J, sections 7010(c), 7013(a), 7025(c), 7029, 7031(e)(2), 7037, 7042, 7043, 7044, 7045, 7048, 7060, 7070, and 7071), to receive ambassadors (e.g., Division J, section 7031(c)), and to recognize foreign governments (e.g., Division J, section 7070(b)(2)(A)).  My Administration will treat each of these provisions consistently with my constitutional authorities in the area of foreign relations.

Division E, section 622 prohibits the use of funds to pay the salaries and expenses for several advisory positions in the White House.  The President has well-established authority to supervise and oversee the executive branch and to obtain advice in furtherance of this supervisory authority.  The President also has the prerogative to obtain advice that will assist him in carrying out his constitutional responsibilities, not only from executive branch officials and employees outside the White House, but also from advisers within it.  Legislation that significantly impedes my ability to supervise or obtain the views of appropriate senior advisers violates the separation of powers by undermining my ability to exercise my constitutional responsibilities, including to take care that the laws be faithfully executed.  My Administration will, therefore, construe section 622 consistently with these Presidential prerogatives.

Division B, section 537 provides that the Department of Justice may not use any funds to prevent implementation of medical marijuana laws by various States and territories.  I will treat this provision consistently with my constitutional responsibility to take care that the laws be faithfully executed.

Several provisions (e.g., Division C, section 10006(b); Division D, section 401; Division J, section 7041(b)(3); Division N, sections 310, 311, 402, 502(d), and 503) mandate or regulate the submission of certain executive branch information to the Congress.  I will treat these provisions in a manner consistent with my constitutional authority to withhold information that could impair foreign relations, national security, the deliberative processes of the executive branch, or the performance of my constitutional duties.  In particular, Division E, section 713(1) and (2) prohibits the use of appropriations to pay the salary of any Federal officer or employee who interferes with or prohibits certain official communications between Federal employees and Members of Congress or who takes adverse action against an officer or employee because of such communications.  I will construe these provisions not to apply to any circumstances that would detract from my authority to supervise, control, and correct employees’ communications with the Congress related to their official duties, including in cases where such communications would be unlawful or could reveal confidential information protected by executive privilege.

Division C, section 8009 prohibits the use of funds to initiate a special access program unless the congressional defense committees receive 30 days’ advance notice.  The President’s authority to classify and control access to information bearing on the national security flows from the Constitution and does not depend upon a legislative grant of authority.  Although I expect to be able to provide the advance notice contemplated by section 8009 in most situations as a matter of comity, situations may arise in which I must act promptly while protecting certain extraordinarily sensitive national security information.  In these situations, I will treat these sections in a manner consistent with my constitutional authorities, including as Commander in Chief.

Several provisions (e.g., Division C, section 8134; Division J, section 7063; and Division K, section 418) prohibit the use of funds to deny an Inspector General access to agency records or documents.  I will construe these, and similar provisions, consistently with my authority to control the dissemination of information protected by executive privilege.

Several provisions prohibit the use of funds to recommend legislation to the Congress (e.g., Division A, section 716; Division C, sections 8005, 8014, 8070(a)(2), 8076; and Division H, section 210), or require recommendations of legislation to the Congress (e.g., Division C, section 8012(b), 8035(b); Division F, section 532; Division G, sections 101, 102, and a proviso under the heading “Administrative Provisions—Forest Service”; Division N, sections 605(c) and 610).  Because the Constitution gives the President the authority to recommend “such Measures as he shall judge necessary and expedient” (Article II, section 3), my Administration will continue to treat these, and similar provisions, as advisory and non-binding.

Numerous provisions authorize congressional committees to veto a particular use of appropriated funds (e.g., Division C, section 8058), or condition the authority of officers to spend or reallocate funds on the approval of congressional committees (e.g., Division A, sections 702, 706, and 717; Division D, sections 101(a) and 201(a); Division G, sections 403 and 409; Division K, sections 188, 222, 405 and 406).  These are impermissible forms of congressional aggrandizement in the execution of the laws other than by enactment of statutes.  My Administration will notify the relevant committees before taking the specified actions and will accord the recommendations of such committees all appropriate and serious consideration, but it will not treat spending decisions as dependent on the approval of congressional committees.

My Administration shall treat provisions that allocate benefits on the basis of race, ethnicity, and gender (e.g., Division B, under the heading “Minority Business Development”; Division C, sections 8016, 8021, 8038, and 8042; Division H, under the headings “Departmental Management Salaries and Expenses,” “School Improvement Programs,” and “Historically Black College and University Capital Financing Program Account”; Division K, under the heading “Native American Housing Block Grants”; and Division K, section 213) in a manner consistent with the requirement to afford equal protection of the laws under the Due Process Clause of the Constitution’s Fifth Amendment.

DONALD J. TRUMP –  THE WHITE HOUSE,  May 5, 2017.

Allow me to clarify for the annoying gnats with an apt methaphor.

President Trump arrived at the White House as it was burning down from the prior 15 years of inherently corrupt, and in many cases absent, fiscal policy.

The national debt doubled in one single administration as hoards of special interests raided the national treasury.  Congress did squat to prevent the theft; and in many cases a solid argument can be made that they actually participated in the raiding.

Simultaneous to this arrival, the most dangerous nuclear military threat since the Cuban missile crisis was laid directly at the feet of the incoming administration, North Korea.

Through the prior four administrations (Bush, Clinton, Clinton, Bush, Bush, Obama, Obama) no concrete policy to stop the nuclear threat from growing was at the forefront of national security policy.

However, worse than not doing anything to stop it, the prior administrations’ did nothing to prepare the nation for the possibility of the worst case scenario: their inability to stop it.

The reality of this landscape is what President Trump addressed upon arrival.

With this North Korea crisis stark and looming, the first priority of President Trump has been to immediately build-up a military force so that we at least have a preventative option in the event diplomacy fails, and a worst case scenario evidences itself.

As a direct and real consequence, the military spending WAS/IS the top short-term budgetary priority for a long-term survival need.   President Trump let everyone know  national security via the military investment need was priority number one; because the reality is: the threat from North Korea is national security issue number one.

That urgent financial objective, to fund the restoration of a strong military, was met.

The rest, all other priorities, can and will be addressed in an actual budget for fiscal year 2018 that has been put forth by President Trump.

And, I’m sure, our president will go to the mattresses if needed to fight for the next level priorities to complete the policy objectives of his administration.

Remember these words: “either we have a country or we don’t”…

….Everything else, as important as each “else” might be, is details.

UK Conservative Election Lead Growing Stronger Post Brexit…


In the run-up to the June 8th national election called for by British Prime Minister Theresa May, the local elections are providing strong indicators for a historic level of support.

This outcome is exactly what Prime Minister May wanted as she heads into tough negotiations with the European Union on terms of exit.

Having won the historic Brexit vote and gained victory for the UK to pull out of the Union, most of UKip party supporters are melding back into the traditional Conservative party ranks.

REUTERS – British Prime Minster Theresa May’s Conservative Party is still a strong 16 points ahead of the main opposition Labour Party ahead of a national election on June 8, according to a poll by Opinium on Saturday.

The Conservatives polled 46 percent in an online survey of 2,005 adults, down one point from the last Opinium survey on April 25, while Labour were unchanged on 30 percent.

The survey, carried out before this week’s big Conservative victory in local elections, put the Liberal democrats on 9 percent and the anti-EU UKIP on 7 percent.  (link)

More on the local election results from Daily Mail – Prime Minister May is on course for a general election landslide after pummelling Labour and crushing Ukip at the local polls.

The Tories recorded a stunning series of results yesterday, picking up 560 seats in every part of the country – including Labour marginals in the North, the Welsh valleys and even Scotland.  (read more)

‘Bilateral Trade’ has a nice ring to it, don’t ya think?

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Hunting Tourists in Europe for Fines


Milan Bus

COMMENT:

Hi Marty,

The hunt for taxes is really getting out of control.

I enjoyed a week of vacation in Italy and on my way back home I had a few hours to kill in Milan.
So i decided to spend some time in the City center of Milan before leaving from Linate airport.

I bought 3 bus tickets Linate – Milan, enjoyed my stay and on my way back I bought again 3 tickets.
On my way back to the airport the bus way half full, many of them tourists like me on their way to the airport.

Halfway 2 public officers got on the bus and started to check for valid bus tickets.
Although I nicely bought my tickets (6 in total) I did get fined because I did not validated my tickets in a machine that was nowhere in site.

Tickets where completely in Italian language, not even the bus driver pointed out to stamp the tickets.
No excuse was taken seriously. The fine had to be payed.

What stroke me was that only the non local persons on the bus got checked (easily identified by caring luggage).
All locals/native Italian where left alone.

After discussing this with Italian friends at the airport, I understood this was just common practice.
The Italian public officers are worse than mafia.
RVL

REPLY: Italy is becoming notorious for extorting tourists. If you rent a car, after one year they will start sending you traffic tickets and never identify where or when you committed some offense. One friend paid the first ticket, then the second, and stopped paying. When they sent me tickets from Rome, I refused to even pay anything. They then turned it over to a collection agency and I blew them off the phone so aggressively they never called again. They cannot legally turn it over to a collection agency with no validation of anything and they can never put it on your credit report. It’s just one giant fraud. The collection agency cannot prove you owe anything.

Use taxis and make sure they turn on the meter. They like to talk and pretend to be friendly to distract you from noticing they never turned on the meter. They then try to get you to pay twice or three time what the trip would have been.

Ah – the pleasures of tourism in Europe these days. France is no better. You have a red target on your forehead and it says sucker.