Earlier I released an article of the F.T.W.S… genre. However, I hadn’t hit the “publish” button when another item crossed my desk where at first I was not just surprised, but as I read (and tried to decipher its implications) I wanted to make sure I was interpreting correctly what I was reading. I’m sorry to say it seems like my earlier piece, I was.
In my Sunday article “Does The Reality…” (yes the information seems to be coming faster and more furious than I can type) I made the following statement. To wit:
“As of right now the “hopium” trade that is a direct result of the Trump “reflation” trade is still self-propelling – but it’s quickly running out of fuel as evidenced by not only none of the campaign promises being passed (i.e., Obamacare repeal and others) but a 1 week resolution was needed as to not shut the government down.
And the “markets” closed where?
Hint: Right back to where they were before when I stated “You are here.” And things have not gotten better, as a matter of fact, they are worse – far worse. (e.g., Unless you are one of those who like to buy-the-potential-nuclear-war-dip that is. And if so, take solace in your decisions, because the President keeps suggesting the idea is closer by the day.)”
As of this morning (being Monday) what was thought to be a negotiating tactic (or at least that’s how many in the media were parsing it) of a 1 week budget resolution to avoid a shutdown before the Trump agenda, or what is commonly referred to as “The reflation trade” legislation metrics could begin to be argued in earnest. That “resolution” has now turned into another resolution very few thought possible. i.e., As of this moment: All the “meat and potatoes” that were to make the reflation trade possible are officially D.O.A. Period.
A resolution was passed that now funds the government through September until the next budget resolution is needed on October first. This means in effect (e.g., de facto) that all negotiations and hopes for tax reform, Obamacare, building a wall and more are gone. There is now no need (or reason) for any negotiations to even begin for another full 5 months.
Think I’m off base? Fair point, so square this circle for yourself. Ready?
How do you apply negotiating leverage to the opposing party when they have taken to the airwaves delighted with this now resolution? Hint: You don’t. And thinking anything otherwise is not only disingenuous – it’s delusional.
To reiterate a point I made back in March (which both the political, as well as business media pointed me out as being “off base” or “doesn’t understand the nature of this movement and its furor”) from my article, “When the Art of the Deal Meets The Empire Strikes Back”, again, to wit:
“The danger now shaping up is all that political relativism is going to meet a myriad of stone cold, fervent opposition from both sides of the political aisle, with establishment politicians (again from both sides of the aisle) whether by coincidence or concerted effort directly opposing the President and his agenda with the new-found argument “We can’t afford it.”
And that will be the go-to argument because the now growing chorus is that “debt matters.” When for 8 years “debt matters” was only relative term.
Are you beginning to see how the “legs” for any further Trump inspired legislation has been swiftly taken off at the “knees?” Or said differently: The “Empire” regains all control – once again. And the new administration will be left holding any and all “bags.” And the repercussions, once fully understood, will be swift if my assessment is anything close to being correct.”
As of right now – “You Are Here” means precisely what I implied over these last few months. e.g., It is no longer a matter of insinuation, speculation, or assumptions…
It’s now here.
© 2017 Mark St.Cyr