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I’m a free trade capitalist, but I’m backing the President’s China play

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Im a free trade capitalist but Im backing the Presidents China play

Fiscal conservatives may be prepared to pounce, but they’ll need to hear me out. Fans of President Trump’s “fair trade” tariff policies may be ready to cheer, but they should also read further before jumping up and down. I’ll keep this very short before I change my mind.

I’m a free-trade-loving, fiscal conservative capitalist who thinks tariffs are the work of progressives who want to generate revenues any way they can to help fund their big government ambitions. For the last three years, I’ve written many articles calling on President Trump to back down from his tariff plans and promote stronger incentives for America-First business practices. If you want businesses and jobs to come back to America, cut taxes even more. If you want to promote industries like steel and agriculture, cut taxes and use our technological and logistic advantages to overcome the cheap labor offshore. There are ways to achieve the President’s goals without making Senator Chuck Schumer giddy over the adoption of his Chinese tariff plan by a Republican President.

But here we are. The trade war has been building up with trade skirmishes and economic battles for over a year and we’re now in the early stages of an all-out trade war. It’s not the call I would have made, but now that it’s happening, we have to go all out. Half-measures will fail. If we’re going to get back to the proper path of free trade and dominance of the global market from where we are today, then the fastest path is to ramp up pressure on China using Trump’s (well, technically Schumer’s) tariff technique all the way through.

The reality is this: China will blink first. For political reasons, the President needs them to blink before the 2020 election season, which means putting our economic might up against their economic size. They are already showing signs of weakness, from retail sales growth hitting a 16-year low to a yuan that was showing weakness even before the tariffs started making a real impact.

Some are expecting China to sell off Treasuries. They might. If they do, it won’t be out of retribution even though most mainstream media outlets will report it as such. They’ll sell off Treasuries (which they’ve been doing little by little for a while already) to prop up their currency, not to hit back at President Trump.

“China selling Treasuries is a risk, but it would have less to do with any retaliation they might pursue in response to tariffs and more to do with managing their currency,” said Gene Tannuzzo, deputy global head of fixed income at Columbia Threadneedle Investments. “But if the capital account is leakier than they want it to be and they have to defend the yuan, then they’d need to be selling Treasuries.’’

As Jeffrey Black and Xiaoqing Pi noted over at Bloomberg yesterday, China’s economy is showing weakness at the worst possible moment. This may be why President Trump is confident enough to make this risky play before his reelection.

Faltering credit and consumption at home coupled with a weaker global economy means China is running out of steady growth engines right when it needs them. The soggy data spurred expectations the government will need to boost stimulus to cushion the blow from the escalating trade war, sending Asian stocks mostly higher. The yuan was little changed.

After looking at all the data I could find, I may not like what the President is doing, but now’s not the time to lecture him on the tenets of free trade and global dominance through improved business atmospheres stateside. He’s going with tariffs, which means we go all out. It’s similar to how real war is waged. I may have been against the Iraq War, but once the first troops landed, I knew the fastest way to get them home was to completely annihilate the enemy as quickly as possible.

I posted something similar to this yesterday and felt a need to clarify my position again today. See, Doug. One critical exchange can have an impact. Thank you.

I don’t like trade wars, but if we’re going to have one, let’s do it right. No half-measures. We go in, make China’s economy feel the pain, and bring them to the negotiating table beaten and desperate. Just get it done quickly, please.

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Economy

Why Trump’s rapid release of oil reserves just saved the economy

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Why Trumps rapid release of oil reserves just saved the economy

It wasn’t the type of news that will make many headlines. In fact, the major news networks have barely touched on it, which may actually be a good thing. Shortly after it was realized the Iranian drone attack on a Saudi oil refinery would cripple their production, the White House started getting the balls rolling to release our precious Strategic Petroleum Reserve. The President Tweeted as much today.

Despite the media’s collective yawn, this is an extremely important move to prevent the economy from facing instability. Oil still drives most financial markets around the world. When the flow of oil is considered to be at risk, investors often panic. Today’s move is designed to prevent that panic.

Don’t get me wrong. This wasn’t a hard decision nor a breakthrough in policy. Any President would likely have done the same thing. But it’s important that the White House moved very quickly on this to stifle any Monday oil jitters on Wall Street. Waiting even an extra day, as some Presidents may have done while we wait for details surrounding the attack and Saudi Arabia’s ability to rebound, could have been catastrophic.

This demonstrates a proper understanding of how the markets work. Foreign affairs, particularly as they pertain to oil, can have swift and dramatic effects on the national and world economies. It’s normally best to be patient and wait for events to unfold before acting, but when it comes to oil, quick reassurances are necessary.

Between tariffs and instability in the Middle East, the economy is always on the verge of being a roller coaster ride. It’s important for the White House to be responsive and engaged. This move should alleviate market fears just in time for Monday.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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Economy

U.S. poverty falls to lowest level since 2007 and media’s response is downright comical

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US poverty falls to lowest level since 2007 and medias response is downright comical

Did you hear that the poverty level fell below where it was prior to the economic collapse twelve years ago? Probably not, because legacy media doesn’t want you to hear about that. They don’t want you to realize the economy is in better shape than it’s been in decades. They don’t want you to look at your paycheck and bank account and realize you’re doing better now than you’ve done in a long time, perhaps ever.

They don’t want you to know this because if you realize you’re doing better, you’re more likely to acknowledge much of this is due to President Trump’s first term in the White House. If you reach the conclusion that your personal prosperity and the prosperity of those around you is better than it was before, you will be more inclined to vote for President Trump and other Republicans in the 2020 election. The media and their cronies in the Democratic Party can’t have that, so they bury stories like these.

But even when they report it, they do so in a way that is so biased, so hilariously tilted, one might read a story about how poverty is now low and come out of it thinking the economy is tanking as we speak. That’s how radically unhinged the reports have been, taking reality and attempting to morph it into their own version that paints a much grimmer picture.

This article from NPR starts off basically saying things are bad even though they’re good. It’s pure doublethink as part of their (attempted) Orwellian control over the collective consciousness of this nation.

U.S. Census Bureau Reports Poverty Rate Down, But Millions Still Poor

The U.S. poverty rate declined slightly last year, but finally fell below the 2007 level, right before the Great Recession pushed millions of Americans out of work and into financial distress.

The improving economy was a key factor in the decline. The U.S. Census Bureau noted in its annual report on income and poverty that there were 2.3 million more full-time, year-round workers last year and that median earnings for all such workers rose by more than three percent.

Amid these positive signs, the bureau reported separately that the number of people in the U.S. who did not have health insurance rose from 25.6 million people in 2017 to 27.5 million in 2018. That included 4.3 million children. Health advocacy groups called the increase extremely troubling and blamed declines in Medicaid coverage, especially for Hispanic children and children under the age of six.

Even when reporting great news for Americans, mainstream media does everything in its power to convince people it’s all just awful. “You’re not really prospering,” they’ll tell you. They torture the numbers until they say what they want them to say.

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Democrats

California, the birthplace of the gig economy, passes bill to kill it

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California the birthplace of the gig economy passes bill to kill it

There was a dream that sparked the formation of companies like Uber, Lyft, GrubHub, and other early adopters of the “gig economy.” The dream was simple and elegant: Connect consumers with people willing to serve. Apps were created. Lifestyles were adjusted. The convergence of digital and mobile technologies had given birth to a way of doing business that hadn’t been possible before.

Today, California legislature moved to taint the basic premise of the gig economy by taking the “gig” out of the mix. They moved to force companies like Uber to accept those taking advantage of their service from the provider end as employees.

Bill to limit gig economy now heads to Gov. Newsom’s desk

California lawmakers have sent the governor a bill that would give new wage and benefit protections to workers at so-called gig economy companies such as Uber and Lyft.

The 56-15 Assembly vote Wednesday marked a victory for labor unions and a defeat for tech companies that vehemently oppose the proposal.

Democratic Gov. Gavin Newsom has already said he supports it.

This flies in the face of why and how the gig economy was built in the first place. It treats gig workers as victims, as if they were forced to embrace the lifestyle and somehow need protections like indentured servants. And while many of these workers are celebrating the move, many will very likely find out the repercussions were not what they were promised by Democratic lawmakers.

There is no way companies like Lyft and GrubHub can continue to do business the way they’re currently doing it, nor at the costs they currently offer, thanks to this asinine legislation. It will force artificial raises in “wages” that were agreed upon by the workers in the first place. This will drive up prices to consumers, which will limit their usage. As fewer people call for an Uber, drivers will find their win was a great big loser for them.

But it’s a win-win for labor unions. It’s a win-win for Democrats. It’s a win-win for everyone other than anyone who uses the services or is employed by them.

In other words, the vast majority of Californians will lose as a result of this labor union victory.

This flies in the face of what the gig economy means to America. By inserting more government control, there will be repercussions felt by the companies, their users, and the workers who were supposed to benefit from this move.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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