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I am a business economist with interests in international trade worldwide through politics, money, banking and VOIP Communications. The author of RG Richardson City Guides has over 300 guides, including restaurants and finance.

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Canada weighs F-35 and Gripen fleet - Gripen seems obvious

Canada weighs F-35 and Gripen fleet, seeks industrial return Canada delays F-35 decision as Ottawa weighs Gripen option and industrial retur...

You can’t bargain with a compulsive deal breaker

 

You can’t bargain with a compulsive deal breaker

Trump’s loss of credibility and what it costs the U.S.

There is no agreement, pledge, or promise Donald Trump won’t break. His unwillingness to constrain his whims, impulses, and narcissism produces moral outrages and an ongoing threat to our democracy. However, it also creates an insoluble problem in our foreign policy: Who would ever make a deal with him?

Trump has been a world-class deal breaker for his entire adult life:

· He broke deals with contractors and lawyers, cheating them out of payment.

· He cheated students who foolishly gave him money to attend Trump U, resulting in a multi-million-dollar settlement.

· He violated his fiduciary duty (ponder the insanity of “Trump” and “fiduciary” in the same sentence), forcing New York to shut down his foundation and exact other penalties.

· He violated his marriage vows, as Stormy Daniels testified under oath.

· He violated his presidential oath of office in allegedly attempting to extort Ukraine for personal gain and again for leading an insurrection.

· He has comically made serial promises (apparently with no intention of fulfilling them) to produce all sorts of decisions and plans in “two weeks.”

· He tore up the Iran deal.

· He flips and flops on whether he will abide by Art. V, the core provision of our most important treaty, NATO.

· He likely invented a pretext (Iran is on the verge of weaponization) to break the War Powers Resolution (requiring congressional consultation at a bare minimum) and then lied about the results (Iran program “obliterated”!).

Constant reversals, betrayals, lies, and bullying risk isolating us from valuable allies and incentivizing our enemies to resort to hard power. In Iran, Trump’s 2018 decision to tear up the Iran nuclear deal, followed by resorting to brute force, gives Iran an incentive to regard negotiations as useless and to instead race to make a bomb to ensure survival.

Our allies are watching as well. They see a reckless president ready to shred agreements, lie to the public, and resort to force that are more garish displays of strength than effective instruments of U.S. policy. Our European allies have learned the hard way not to trust Trump, so they are now rushing to beef up their own defenses, making them that much less likely to cooperate with the U.S. or, as they did in Afghanistan, to rush to the defense of the U.S.

As Kori Shake wrote, “When it comes to burning bridges... nothing matches the speed and destructiveness of Trump’s policies in the past few months. According to a recent survey conducted by the opinion-research firm Cluster 17 and the journal Le Grand Continent, 51 percent of Europeans ‘consider Trump to be an enemy of Europe.’”

When the U.S. president is so fundamentally untrustworthy, other parties find it challenging (if not impossible) to reach agreements, which rely on good faith. With allies, any deal comes with an asterisk—legitimate doubt as to whether Trump will live up to his end of the bargain. That makes them less likely to compromise on their interests and more wary of ceding their freedom of action. Ukraine, for example, cannot possibly rely on any promise from Trump to enforce the terms of a ceasefire; the only rational choice is to keep fighting.

Trump’s untrustworthiness also sends potential allies into the arms of our enemies. When countries in Africa, for example, see Trump renege on foreign aid, they are that much more likely to ally themselves with China, which has been seeking a toe hold in Africa for decades.

Americans understand what is going on. Even before the Iran war, a Reuters/Ipsos poll showed that 59% of Americans believed that Trump had lost the U.S. credibility on the international stage. They are smart enough to realize, as one academic put it, that “[t]he US under Trump is fast becoming untrustworthy. American reliability must now be broadly questioned, from collective security to the rule of law.” The result of “this widespread loss of trust...will be the neutering of US soft power.”

When it comes to adversaries such as China and Russia, we wind up with a comic metaphysical puzzle: How does an untrustworthy actor who does not intend to honor the deal strike a deal with another untrustworthy partner—when both sides know the other is not going to keep the agreement? Diplomacy becomes a farce. Parties have strong reasons to resort to military power.

Trump’s dishonesty also manifests itself in claiming credit for things in which he played little or no part. “Even India, a country with which Trump has often claimed warm relations, has publicly contradicted his assertion several times that US trade policy played a role in diffusing tensions with Pakistan,” the Economic Times reported. “India’s rebuttal underscores a broader shift: traditional US allies are no longer willing to play along with Trump's tactics. This loss of diplomatic credibility suggests a weakening of America’s global standing under Trump’s renewed leadership.”

Trump’s utter lack of credibility, highlighted in his serial lies about Iran, will have long-term implications for America, far beyond this episode and even beyond the Middle East. “Trump and his team are destroying everything that makes the United States an attractive partner,” Schake points out. “If it stays on the path Trump has started down, the United States risks becoming too brutal to love but too irrelevant to fear”—and too untrustworthy to bargain with.

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Force Republicans to run on the big, ugly bill

Force Republicans to run on the big, ugly bill

Democrats can champion “Do the Opposite”

The cruel, destructive, life-threatening cuts to healthcare, SNAP, and other vital government services are not the only horrors contained in the big, ugly reconciliation bill. The legislation is also a fiscal trainwreck that may prove calamitous to the long-term health of the United States economy.

“This bill will be the most expensive reconciliation bill in history, adding $4.1 trillion to the national debt through 2034. If its temporary provisions are extended permanently, that total would rise to $5.5 trillion. Under the bill as written, the national debt would rise from 100 percent of the economy today to 127 percent by 2034,” explains the conservative Committee for a Responsible Federal Budget. The group’s president warns, “In a massive fiscal capitulation, Congress has passed the single most expensive, dishonest, and reckless budget reconciliation bill ever—and it comes amidst an already alarming fiscal situation.” She adds:

“Never before has a piece of legislation been jammed through with such disregard for our fiscal outlook, the budget process, and the impact it will have on the well-being of the country and future generations.”

Hers is hardly the only voice warning about the bill’s fiscal recklessness. Our debt-to-GDP ratio will worsen considerably, interest rates will climb (as we struggle to sell off mounds of debt), and our entitlement trust funds will slide toward insolvency. “There is no economist anywhere, without a strong political agenda, who is saying that this bill is a positive for the economy. And the overwhelming view is that it is probably going to make the economy worse,” former Treasury Secretary Larry Summers argued on ABC’s “This Week.” Summers explained how the MAGA agenda simultaneously drags down growth and cuts the engine of innovation and productivity necessary for our long-term international economic advantage:

What we can forecast is that when people have to hold government debt instead of being able to invest it in new capital goods, new machinery, new buildings, that makes the economy less productive. What we can forecast is that when we’re investing less in research and development, investing less in our schools, that there is a negative impact on economic growth.

And if that were not ominous enough, Trump’s cruel, reckless, and chaotic immigration scheme will further diminish economic growth. As Federal Reserve Chairman Jerome Powell recently testified, “One is growth in the labor force, more people working, and the other thing is productivity, how much do they produce per hour of work. And when you significantly slow the growth of the labor force, you will slow the growth of the economy.” He added his view, “I think that growth will slow and actually is slowing this year, and that’s one of the reasons.”

Undocumented workers make up nearly 5 percent of the workforce, but a far larger share of workers in specific industries. “Nearly 1 in 5 household workers and landscapers, 16% of crop workers and meat processors, 14% of apparel manufacturing workers and 13% of construction workers were undocumented immigrants,” CBS News reports, citing a recent Pew study. We’re already seeing empty construction sites and farms where workers are afraid to show up. Ensuing labor shortages will drive up the cost of everything from housing to food to healthcare; U.S. companies will have fewer domestic customers for goods and services.

Moreover, inflicting harm on tens of millions of Americans and on the economy writ large, unsurprisingly, is not a political winner. Polling during the House and Senate debates showed the measure to be deeply unpopular with Americans. Now, a survey from the University of Maryland tells us that a majority of both Republicans and Democrats want a budget that does not keep the Trump tax cuts for those making $500,000; does not cut SNAP; does not increase the defense budget; and does not lard up spending on immigration enforcement. Over half would not cut Medicaid; even Republicans favor only a tiny reduction (1.3%), not a trillion-dollar cut.

Standard fare among Beltway pundits is to declare that Democrats in 2026 must run on a positive agenda, not merely opposition to MAGA. Balderdash. The party out of power rarely needs a specific agenda to rack up big wins in a midterm. The incumbent party suffered big losses in 2006, 2010, and 2018 when the opposition ran simply on, well, opposition.

Moreover, when the incumbent party manages to get just about everything wrong, the positive agenda becomes “Do the opposite.” Looking ahead to 2026, Democrats agenda writes itself:

  • Roll back the Trump tax cuts for the super-rich.

  • Repair Medicaid and SNAP. Restore subsidies/credits for the Affordable Care Act exchanges.

  • Take back the tariff power, then eliminate across-the-board consumer taxes (tariffs).

  • Restore funding for research and green energy.

  • Restore funding for life-saving services (e.g. FEMA, NOAA).

Meanwhile, Democrats can champion an effort to right-size immigration enforcement; prioritize deportation of criminals; and defund Marines and/National Guard occupation of cities absent a majority vote from Congress. In addition, Democrats can vow to defund deportation to places like El Salvador, Sudan, and other non-home countries, and, likewise, discontinue funding any facility that does not afford lawmakers unannounced access and meet basic health and safety requirements. They can also propose substantially increasing the number of immigration judges to expedite deportations.

The benefits of the “Do the Opposite” agenda is two-fold. First, it will reverse atrocious MAGA policies. Second, it will find bipartisan reception among voters. Let Republican incumbents defend their fiscal recklessness, vicious attack on our safety nets, tax cuts for millionaires and billionaires, and elimination of life-saving services. If they are so proud of their handiwork, they should be happy to run on it.

Socialism + Corruption

 

Socialism + Corruption

Here is another thing that doesn’t seem to matter: Democrats are freaked out because their nominee for mayor in New York City wants to run a pilot program with five municipal-owned grocery stores, which is “socialism” or something.

Meanwhile, last week the U.S. government became the largest shareholder in the mining company MP Materials. Which is, you know, kind of like socialism?

Now maybe in the case of rare-earth materials this is a wise move. I’m open to that idea. If you wanted to make the case, you’d say something like:

The rare-earth magnets that MP Materials mines are a vital strategic resource for America and the U.S. government had to ensure some measure of control over the supply. Buying a $400 million stake in the company achieves that goal while still keeping the operational aspects of in private hands.

Maybe that’s true? I want the government to nationalize SpaceX, so I’m not opposed to the Pentagon buying MP Materials in principle. But the level of corruption here seems kind of nuts.

Have a look at the MP Materials stock price over the last six months:

On May 27, MP began a sudden climb. After months of sitting around $25 a share, it moved consistently upward for a month, to almost $40. On June 20 a selloff started and the share price lost a quarter of its value over three weeks. The government announced its purchase on the morning of July 10 and MP went to the moon.

Any of this look to you like someone knew the score?

But that’s just the first layer of corruption.


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This morning, Apple announced that it would also contribute invest $500 million in MP stock.

That’s right: Apple, which is currently negotiating with Trump on the 25 percent tariffs the president wants to put on iPhones made in China, decided to do the government a solid and throw some cash behind Uncle Sam’s MP position, thus driving the price higher and forming a shareholder bloc that will, along with the government, be enough to control MP.

And since Apple’s business now depends on what the U.S. government allows it to do, I suspect Apple’s share will be a pure proxy for whatever the Trump administration’s wishes are.

Essentially, the government spent $400 million, but now controls $900 million-worth of MP because Apple has agreed to become its junior partner in the venture.

Share


There’s your actual, real-deal socialism.¹

The government invests in a private company—and then uses its gangster approach to force/persuade/entice another private company to amplify its position.

Meaning that the American government now has its hooks into not only MP but Apple, too.

And not only is this naked corruption so routine as to no longer even be worth noticing, but the people who have the vapors about Zohran Mamdani’s five grocery stores are silent as the grave.


It’s not true that nothing matters.

My thesis for some time has been that we live in an unserious country filled with unserious people. If true, then we would expect our fellow citizens not to care about the government semi-nationalizing a private company, making insiders rich, and then coercing the world’s most valuable company into being its stooge—but to be utterly transfixed by the Jeffrey Epstein story.

Good luck, America.

Texas Officials Blame Agency Gutted by Trump for Results of Deadly Storm

 

Texas Officials Blame Agency Gutted by Trump for Results of Deadly Storm

Experts warned for months about cuts to NWS and NOAA

As the best and the brightest were being fired at the National Weather Service and the National Oceanic and Atmospheric Administration by senseless and draconian ‘DOGE’ cuts earlier this year under Trump, with no reason given except for the need to cut a paltry amount of the government’s budget, experts warned repeatedly that the cuts would have deadly consequences during the storm season. And they have.

Dozens and dozens of stories have been written in the media citing hundreds of experts which said that weather forecasting was never going to be the same, and that inaccurate forecasts were going to lead to fewer evacuations, impaired preparedness of first responders, and deadly consequences. I quoted many of them in my daily Bulletins and wrote about this issue nearly 20 different times.

And the chickens have come home to roost. Hundreds of people have already been killed across the US in a variety of storms including deadly tornadoes - many of which were inaccurately forecasted. And we are just entering peak hurricane season. Meteorologist Chris Vagasky posted earlier this spring on social media: “The world’s example for weather services is being destroyed.”

Now, after severe flooding in non-evacuated areas in Texas has left at least 24 dead with dozens more missing, including several young girls at a summer camp, Texas officials are blaming their failure to act on a faulty forecast by Donald Trump’s new National Weather Service gutted by cuts to their operating budget and most experienced personnel.

At a press conference last night, one official said: “The original forecast we received on Wednesday from the National Weather Service predicted 3-6” of rain in the Concho Valley and 4-8” of rain in the hill country. The amount of rain that fell in these locations was never in any of their forecasts. Everybody got the forecast from the National Weather Service. They did not predict the amount of rain that we saw.”

Reuters published a story just a few days ago, one of many warning about this problem: “In May, every living former director of the NWS signed on to an open letter with a warning that, if continued, Trump’s cuts to federal weather forecasting would create ‘needless loss of life’. Despite bipartisan congressional pushback for a restoration in staffing and funding to the NWS, sharp budget cuts remain on pace in projections for the 2026 budget for the NOAA, the parent organization of the NWS.”

But Commerce Secretary Howard Lutnick, whose agency oversees NOAA, testified before Congress on June 5 that the cuts wouldn’t be a problem because “we are transforming how we track storms and forecast weather with cutting-edge technology. Under no circumstances am I going to let public safety or public forecasting be touched.” Apparently the “cutting edge technology” hasn’t arrived yet.

And now presumably FEMA will be called upon to help pick up the pieces of shattered lives in Texas - an agency that Trump said repeatedly that he wants to abolish. In fact, Trump’s first FEMA director Cameron Hamilton was fired one day after he testified before Congress that FEMA should not be abolished.

The voters of Texas decided that they wanted Donald Trump and Greg Abbott to be in charge of the government services they received. That is exactly what they are getting. And as of this writing on Saturday morning, Trump still hasn’t said a word about the storm and the little girls who were killed at the camp.

However, Trump was seen dancing on the balcony of the White House last night celebrating the latest round of cuts in his budget bill that just became law so billionaires and corporations can have huge tax cuts. People are dying and more will die because of their recklessness, just like we saw during covid. And now millions won’t even have health insurance to deal with the consequences.