Tag Archives: Supreme Court

Holy Week

The Economy: This holiday shortened week has seen few economic releases. The Donald will have the opportunity to appoint a new Fed governor. This may result in a more hawkish Fed stance. In one public appearance, Fed Chair Yellen congratulated herself on a job well done; clearly the age of “Self praise is no praise” is a thing of the past. Increasingly the Fed is indicating that they’re considering “normalizing” their balance sheet. This means shrinking it over time. If and when this occurs, it will have the effect of further tightening in the credit markets. This prudence all sounds well and good. But the Fed has made it crystal clear that they will do whatever it takes to keep the stock market going up. Give Janet and the Boys a 3% market correction and the spigots are opened full blast as the Fed floods markets with free money. To say this will end badly is to sound like Chicken Little screeching about the sky falling. So we won’t bore you with arcane details like market liquidity, counterparty risk or dark pools.

Food for Thought: The Donald suited up as El Cid and smote the Syrians. It was a grand opening to Easter and Passover Week. The aptly named Tomahawks found their mark. Half of those were fired by the USS Porter (DDG-78). The Commanding Officer of Porter is Navy Commander Andria Slough, Naval Academy ’81. Women in every walk of American life should be proud that one of their own proved to be the cream of the crop in a highly competitive, male dominated, uber-macho profession; no glass-ceiling for her. The positive response, to the strike, from both sides of the aisle was deafening. Overnight, Trump-the-simpleton-Russian-spy-and-Putin-Dupe morphed into Trump-The-Decisive-Embodiment-of-American-Leadership. Then he swore Neil Gorsuch in as the newest Supreme Court Justice. Have a great Holiday!

Music of the Week: George Michael’s “Ladies and Gentlemen”

Trump’s Executive Orders

The Economy: The only data of note was that Existing Home Sales surprised to the downside. But all talk of the economy was framed by the new administration. True to his word Trump began working the day of his inauguration with an executive order that formally put Obama Care in the crosshairs. Monday there were executive orders withdrawing from TPP, renegotiating NAFTA, freezing Federal hiring except for the military and freezing all new and pending regulations. Tuesday were executive orders for the Keystone and Dakota Pipelines. Wednesday were executive orders for the wall and to bring “Sanctuary Cities” to heel. All of these are seminal events that will have enormous economic impact. Their final forms are unknown, but with the Republican legislature and SCOTUS appointments you can expect dramatic changes. The military is expecting a windfall; many non-profits are feeling the chill wind of fewer Federal grants.

Food for Thought: China appears to be the centerpiece of a new U.S. foreign policy that openly acknowledges the adversarial relationship between two super powers. Gone is the benign acceptance of Chinese activity in the hope that U.S. companies will benefit. There appears to be a muscular, new U.S. approach that puts American national self-interest first. Expect confrontations as the U.S. reasserts its military and economic hegemony in Asia. “… you don’t need a weatherman to know which way the wind blows.”

Music of the Week: US Military & Patriotic Favorites: “U.S. Navy Classics Vol.1”