Where are all the CEOs going and why?

After 12 years on the job Pepsi’s Indra Nooyi is stepping down from her post.

While this is notable for her accomplishments of keeping the company profitable in the face of sagging soda sales, Nooyi is only the latest company chief to step down.

There has been much turmoil in the C-Suites of corporations worldwide. And while this does not pertain to Nooyi directly over the last 12 months there have been more than 3,900 executives who have resigned their positions.

While comparable numbers are not readily available from the usual sources since then do not break out cause for exit, the 3,900 figure seems large for just resignations, not including retirement or moving to a new job.

Most of the resignations have to do with criminal allegations where charges may or have been filed. The #MeToo movement has claimed a minority of these resignations, but a vast majority have been over mismanagement of money either by the CEO or staff.

Not sure what to make of the 3,900 number, but I thought it worth noting it as we go forward. To keep an eye on the magnitude of the changes going on with corporations and possible ramifications down the road.

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Trump’s new capital gains tax cut spurs Dems again

President Trump and Treasury Secretary Steven Mnuchin floated the idea of a $100B tax cut for Americans through a new capital gains tax change.

The administration is looking at indexing capital gains to inflation. Meaning if you bought an asset for $200,000 in 2001 and sold it in 2018 for $2 million the tax owed would be $1.8 million. When you account for inflation the $200K is $600K so the taxable profit would be  $1.4 million versus $2 million.

While the New York Times says this is targeted to the wealthy, this is true however capital gains taxes do reach down to what’s left of the middle class setting up their retirement.

Given the run up in the stock markets over the last 20 years, there are many in the middle class that could fall into this category.

But of course the Times went with a class-warfare angle to the story, suggesting that its a give back exclusively for the rich. Just like the prior middle-class tax cut, this move, which may attempt to bypass the need for Congressional action, are parts of Trump’s campaign pledge to put more of the people’s resources back in their hands.

Of course the Anti-Trump forces are already out in force screaming about growing deficits as if they have nothing to do with record US debt levels.

“At a time when the deficit is out of control, wages are flat and the wealthiest are doing better than ever, to give the top 1 percent another advantage is an outrage and shows the Republicans’ true colors,” said Senator Chuck Schumer of New York, the Democratic leader. “Furthermore, Mr. Mnuchin thinks he can do it on his own, but everyone knows this must be done by legislation.”

The rollback of the economic philosophy that the few will pay for the many of the last administration, along with the changing of trade policies to put Americans first will be two of Trump’s major milestones.

Trump’s trade talks are simple, if you want a strong US

As I wrote in the late spring when the tariff war talk started, this is truly the art of the deal for President Trump.

By the actions of numerous previous administrations, the world and China particularly, took on the task of being our manufacturing base for better or worse.

So Trump said if they have to sell to us, which they do, then we need to get better terms. A business mentality, not a pie-in-the-sky globalist view of trade.

Look no further than the deal Trump has worked out with the EU. Trump told EC president Jean-Claude Juncker, if you want Mercedes and BMWs in our driveways, then you have to give us this and this. Leveling the playing field had to win the day, the Germans had too much riding on staying competitive with their cars.

Look at China as the perfect example. Since the initial $50 billion in tariffs was floated, its stock market has tanked and its currency, the yuan, has cratered to a 13-month low. This despite the yuan being pegged to the US dollar, which has not moved that much over the same time frame.

China has far too much invested in migrating its people from the countryside to the cities to create its nascent middle class of manufacturing workers to walk away from US trade.

Is Foxconn going to sell knockoff iPhones to Nokia?

To be honest it’s not even a fair negotiation on these tariff talks. Oh, sure China and the EU can be boastful and full of bluster about Trump’s tactics, but at the end of the day these products need to be here or else those widgets have no other natural market on the scale of the US.

Anyone of the last five presidents could have done this deal if they wanted to, but that’s the problem, they didn’t. They were beholden to globalist espousing one world government and currency.

So if you come at trade from an America First point of view, you get the best terms possible, like the EU paying us to ship their cars to the US, which is essentially what this new deal is because they took tariffs off our exports to the continent.

It’s really easy to get your terms when you acknowledge that there are borders to countries and they are there for a reason and we will defend ours both economically and militarily.

China has seen that and right after Labor Day it will capitulate to our terms in order to feed their people over the winter. Trust me on this, as Trump  says.

US can’t afford peace with Russia

With hundreds of trillions of dollars on the line, the US media is beating the drum on the 70-year-old plus Russia is bad narrative.

The entire military-industrial complex was built on that premise that we had to go toe-to-toe with Russia on every aircraft, tank and nuclear missile — even if the East did not have that weapon.

What will happen if the Bogey Man is not so bad after all.

Now along comes President Trump to stick a pin in that idea and it unleashes forces from the left and right beholden to escalating defense budgets and growing military bases in their districts.

Peace is too costly to break out across the US visa vis Russia. We need that 70-year-old premise that NATO and containment are what the world needs.

Of course Trump will survive the onslaught of criticism, however threatening to take the milk and honey away from the defense contractors and intelligence agencies is quite another matter.

It was JFK who threatened to break up the intelligence agencies –most notably the CIA — into pieces in 1963 that may have played a part in his assassination.

Let’s hope nothing untoward happens again.

The Russians love their people too

I fail to see the downside for the US with President Trump meeting with Russia’s President Putin.

The left’s hysteria over Russian involvement in the 2016 election will turn out in the end to be a ruse brought to them by President Obama/Clinton team with no connections to the Trump campaign.

The ultimate proof for this is the inability of a federal judge to even sentence Gen. Flynn for a rigged confession of speaking with the Russians. If there was any truth to the charge and the alleged commission by Flynn, then he should have been sentenced to the “crime”.

In the meantime, how can the left denigrate the idea of meeting with the Russians — thinking it is 1950 at the beginning of the Cold War. Open dialog between Russia, China and America can and will result in hug savings for the US in military spending going forward, since the fear and loathing of Russia and China will be diminished.

We will see in the next two months additional revelations coming out of the Department of Justice’s 2106 election investigation how the FBI fabricated reports to tie the Trump campaign to Russia.

Gen. Flynn will more than likely be able to pull his guilty plea over these fabricated reports, since it will now not cost him the millions of dollars it would have to clear his name.

No the real fear of the Democrats to Trump meeting with Putin is that they will be found out to have been crying wolf over these charges.