President Trump’s game-changing SOTU speech

President Trump delivered an inspired speech last night that even brought the white-clad suffragettes to their feet to applaud his reaching across the aisle.

This speech was a game changer from the partisan politics parlay that has been the present condition in Washington.

Yes he tweaked them on “America will never be a socialist country,” but he celebrated their ability to serve in Congress as showing how great America is.

He spoke of the wall in humanitarian terms. He personalized the horrors that invade our countries across the southern border. Trump told Americans that children were enduring unspeakable hardship through sex trafficking.A topic most Americans probably know little about, but he put a face to the heroes that combat this on a daily basis.

Trump clearly laid out the national emergency on the southern border without using the explosive term. On Feb. 15 he can now make the case for a declaration far more convincingly than prior.

He spoke for many Americans when he said it’s not OK for babies to be aborted hours before birth like New York and Virginia approved recently.

The president laid out his economic successes over the last two years, such as the job booms where more Black, Hispanic, Women and Disabled Americans are working now than ever before. How tax cuts put more money in the hands of the people and not in Washington’s pockets.

Of course this speech will not move the needle in New York, California or Illinois, but it certainly had to make the fence-sitters and marginal RINOs take notice that this State Of The Union was a powerful message that America is Great Again and we should not stop moving forward in that greatness.

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Random thoughts on job numbers, Super Bowl

Here’s some random thoughts on today’s news.

January’s jobs numbers blow away estimates. New jobs at 304K vs. 165K estimate with average hourly earnings rising 3.2% in line with estimates.

Labor Department says unemployment rate ticked up to 4.0% on the government shutdown.

Look for stocks to soar as job growth gains while the Fed is dovish on rate rise.


Why is now a Super Bowl week tradition that news comes out about people being arrested for human sex trafficking at the site of the game? The last four years or so I have seen these stories.

It’s disturbing on so many levels because it’s not limited to just adult women being imported. Disgusting.


Democratic presidential hopeful Sen. Elizabeth Warren called out Sears/Kmart owner Eddie Lampert for what he has done to the once iconic retail chain.

The Massachusetts senator wants the billionaire hedgie to answer eight questions by Feb. 14 about his plan to buy Sears out of bankruptcy.

Now of course Warren is grandstanding, since Lampert is not compelled to answer to Warren about anything. And of course Warren is so out of touch since the federal bankruptcy court in White Plains, NY is likely to decide the fate of the retailer on Feb. 4.

While Warren says she is sticking up for the workers, if Lampert does not take control again of the retailer, then the creditors will liquidate the chain and no one will be working.

But don’t let that business mumbo-jumbo stop Warren from pounding the table for a cheap sound bite.


This is for some of my new readers. Deutsche Bank is teetering on the brink of a huge reorganization in order to wind it down.

Take a look at this award-winning video I did on this long-time troubled financial firm.

Dark forces in the stock market

What we are witnessing in the stock market is unprecedented with moves mostly lower, but with a record-breaking break out to the upside on Wednesday.

The 1,086 point move on the Dow was the highest point move ever. The question Tuesday morning is why will we give back more than 400 points to the downside?

These moves and the huge slide before Christmas feel like a tug of war between two factions.

One with a need to damage the economy along with President Trump’s claims that he is succeeding where his predecessor failed.

The other side is somewhat muted in its response to this highjacking of the markets.

How else do you describe the latest moves?

Fed chief Jay Powell appears to be in with the first camp. How else to categorize four rate rises this year while enjoying full unemployment without finding inflation in the couch cushions.

In all my years of market watching I have no other idea of what we are witnessing in the markets. The moves are unprecedented, so therefore a new thought n the cause is needed.

The dark forces in the market are attempting to take the economy into recession through cratering consumer confidence by taking the wealth effect away from Americans. Next will be to repeal the tax cut in the House in 2019.

With these initiatives the Democrats feel they have a better shot of gaining the White House in 2020. It’s a nefarious plan backed by Democratic money in the markets.

Let’s see who will ultimately will win the war for hearts, minds and wallets.

Fed chief Powell just hiked rates for last time

Federal Reserve chief Jay Powell hiked rates a fourth time this year on Wednesday to 2.5% for the Fed Funds Rate. He also told reporters that the committee is looking at two additional hike in 2019, taking one prospective hike away for next year.

This is the classic overshoot by the Fed. Seeing inflation that’s not there, Seeing bogeyman that will never materialize.

In the face of a global trade slowdown as Europe falls into a rioting mess over socialist policies to curb emissions with higher taxes on fuel consumption and other government intrusions into the people’s lives.

The Asian market has been weakening for all of 2018 as demand for tech goods have cratered. Apple has little market penetration for its new iPhones as consumers say $1,000+ models are too rich. I’ll stick with my older model.

Tariffs — in an attempt to level the trade playing field — have rocked China after decades of favorable trading terms. No longer having advantages against domestic producers is producing a boom for US manufacturers.

So where are Powell & Co. looking for this bogeyman called inflation? Gas is trading below $48 a barrel, however you still see problems here in the US.

Fedex reported troubling results this week in their quarterly results. This in the face of allegedly growing online sales the trucking industry is moving less freight.

This pullback by the US consumer can be put at the feet of Powell & Co. since there jawboning and hikes have taken 401(k)s into the red for the year, which has Americans pulling back. The numbers for this will come out in early 2019.

I’ll put myself on the line today, this is the last rate rise Powell will oversee. It will go so horribly wrong in 2019 that the Fed will actually have to cut rates by September 2019. This will be because of how the global slowdown will affect US growth.


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Trump has every right to be Fed up with Powell

As the Federal Reserve begins its two-day meeting Tuesday, to presumably raise rates to 2.5%, President Trump is out there battling the central bank on its direction and policy.

Trump tweeted Monday:

It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!

Trump is correct in his brief economic assessment on global growth, where America’s say 2.5% rise in GDP looks a lot better than Europe or China. As well as the lack of any meaningful domestic inflation.
The Fed’s concern earlier this year was asset bubbles leading to inflation. What does that mean in layman’s terms: Americans were starting to do well in the stock market and their paychecks with the tax cuts after a decade of economic malaise were bringing them a sense of pride and contentment.
Well we can’t have that, the Fed seem to say. And sure enough with four hikes this year in rates the Fed has wiped out all gains in stocks this year and then some.
So what is the end result for America because of the Fed’s policies?
The rate hikes have muted the economic benefits of the tax cuts, by taking away revenue growth to pay for the tax cuts. Tax revenue is up slightly this year over the last couple, but if the Fed was not slamming on the brakes, then the economy would be moving ahead at closer to 4% GDP.
This tax revenue growth could allow the federal government to actual pay for the runaway entitlement programs and actually be able to cut budget deficit growth.
I don’t anticipate the Fed pausing and not raising rates at Wednesday’s meeting since it was telegraphed to the market for the last three months. Yes, the market would spike if they did pause, but then start asking itself what does the Fed know and probably sell of again.
I do agree with the President on the need for Fed chief Jay Powell to “take the victory” and pause after this hike. Let’s see where the economy sits in June 2019. It takes six months before you get the full meaning of how your economic policies are working.
I’m assuming that’s all that is at work here, a disagreement on economics and not something broader.

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