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.

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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.

JPM hits profit margin out of the park

Despite it being Friday the 13th, JPMorgan chief Jamie Dimon has no superstitions about reporting record profits for second quarter as bank reporting season kicks off.

The globe’s largest bank by assets locked in a profit of $8.3 billion on higher trading and investment banking revenue as compared to year earlier results. Overall the bank beat on both the top line of $28.39 billion, beating estimates of $27.34 billion and bottom line of EPS of $2.29, vs expectations of a $2.22.

The 18% profit number nearly doubled the street estimate of 9.4%.

JPMorgan’s income rose to $8.32 billion, or $2.29 per share, in the second quarter ended June 30, from $7.03 billion, or $1.82 per share, a year earlier.

Analysts expected the bank to earn $2.22 per share.

 

 

Will we get a clue on June’s jobs number?

On Friday we get the monthly employment report from the government for June and be able to access the first six months of 2018.

Last month well before the 8:30am release time President Trump tweeted “Look forward to seeing the employment numbers at 8:30 this morning.” The tweet moved the market leading many to say he should not have done so.

Wall Street is expecting gains of 191,000 jobs for June, with the unemployment rate to remain at 3.8 percent. In May the jobs number was 223,000, which resulted in Trump’s tweet.

So if there is no tweet on Friday morning, then the Street may sell of prior to the release. This is the reason for not breaking the embargo by hinting a good number is about to come out.

Tariffs and the Art of the deal German-style

As I wrote last week this is more of a tariff tiff than a war.

You announce a number — $50B, $200B in tariffs — it doesn’t matter. It’s just a number to begin negotiations.

Wednesday morning news broke that the German ambassador was about to announce that the EU would abandon all import tariffs for cars between the European Union and the US provided the Trump Administration drop its 25% border tax on all EU car imports.

See its all negotiations and never really gets implemented. It’s the Art of the Deal so to speak. Finally, America has someone who does not bow to pressure from other countries that have enjoyed decades of favorable treatment selling into the US market.

This has everything and nothing to do with President Trump. Presidents Obama, Bush, Clinton, Bush could have done this. They couldn’t because they took the money of the multi-national corporations and the globalist free traders who demanded that the US come out on the losing end of most trade deals as a way to pay back for our other sins.

Enter Trump. No ties that bind to these factions. Knows a thing or two about negotiations and plays hardball with them. As I wrote earlier, do you think any country would forgo its ability to sell into the US over tariffs or import taxes?

Of course not. I think I hear China working the abacus to figure out its new proposal right now.