Update: echoing comments made by Senator Lindsey Graham, a South Carolina Republican who serves on the Senate Foreign Relations Committee, the top House Democrat said that the Trump budget proposal is “dead on arrival.“
Today at 7am, Trump released his “skinny budget”, his administration’s first federal budget blueprint revealing the President’s plan to dramatically reduce the size of the government. As previewed last night, the document calls for deep cuts at departments and agencies that would eliminate entire programs and slash the size of the federal workforce. It also proposes a $54 billion increase in defense spending, which the White House says will be offset by the other cuts.
“This is the ‘America First’ budget,” said White House budget director Mick Mulvaney, a former South Carolina congressman who made a name for himself as a spending hawk before Trump plucked him for his Cabinet, adding that “if he said it in the campaign, it’s in the budget.”
In a proposal with many losers, the Environmental Protection Agency and State Department stand out as targets for the biggest spending reductions. Funding would disappear altogether for 19 independent bodies that count on federal money for public broadcasting, the arts and regional issues from Alaska to Appalachia. Trump’s budget outline is a bare-bones plan covering just “discretionary” spending for the 2018 fiscal year starting on Oct. 1. It is the first volley in what is expected to be an intense battle over spending in coming months in Congress, which holds the federal purse strings and seldom approves presidents’ budget plans.
Trump wants to spend $54 billion more on defense, put a down payment on his border wall, and breathe life into a few other campaign promises. His initial budget outline does not incorporate his promise to pour $1 trillion into roads, bridges, airports and other infrastructure projects. The budget directs several agencies to shift resources toward fighting terrorism and cybercrime, enforcing sanctions, cracking down on illegal immigration and preventing government waste.
The White House has said the infrastructure plan is still to come.
The US dollar remained under pressure in Asia following the disappointment that the FOMC did not signal a more aggressive stance, even though its delivered the nearly universally expected 25 bp rate hike. News that the populist-nationalist Freedom Party did worse than expected in the Dutch elections also helped underpin the euro, which rose to nearly $1.0750 from a low close to $1.06 yesterday. European activity has seen the dollar recover a little, but the tone still seems fragile, even though US interest rates have stabilized and the 10-year Treasury yield is back above the 2.50% level.
The US premium over Germany on two-year money peaked a week ago near 2.23. After the US yield fell in response to the Fed’s move, the spread finished near 2.12%, from which it has not moved far. Initial euro support has been found a little above $1.07. The first retracement target of the run-up is a little below there at $1.0690. The other retracement targets are seen near $1.0675 and $1.0655.
Few expected the Wilders in the Netherlands to have a say in the next Dutch government. He drew about 13% of the vote and will hold about 20 seats, which is five more than currently. Prime Minister Rutte’s party appears to have received the most votes and 33 seats, down from 41. The other coalition partners did worse. In particular, the disastrous showing of Labor means that Dijsselbloem, the current finance minister and head of the Eurogroup of finance ministers is unlikely to hold his post. Labor may have less than 10 seats in the new parliament, down from 38. The other coalition partner, Liberals, lost eight seats.
One person has been injured in a suspected letter bomb attack at the International Monetary Fund’s office in Paris.
A spokesperson for the police said an envelope sent to the building exploded and injured one person on Thursday. Several people were also evacuated from the building as a precaution.
It comes a day after an explosive package was found at the offices of Germany’s finance minister, Wolfgang Schäuble. Berlin police said on Wednesday the package contained an “explosive mix” that was designed to cause “severe injuries”. A Greek militant group claimed responsibility for the parcel bomb.
Responding to the Paris attack, IMF managing director Christine Lagarde said:
I have been informed about the explosion in the IMF’s Paris office, which caused injuries to one of our staff.
I have been in touch with the office, and my compassion goes to the colleagues there. I condemn this cowardly act of violence and reaffirm the IMF’s resolve to continue our work in line with our mandate.
We are working closely with the French authorities to investigate this incident and ensure the safety of our staff.
France is already on high alert after a series of terror attacks in recent years, including the November 2015 assaults that left 130 people dead and a truck attack in Nice in July that killed more than 80 people.
On Wednesday, March 15, 2017 the U.S. government once again hit its debt ceiling. In short, this means that until Congress raises the ceiling, the government will be unable to borrow more money. If you remember the last time this happened, there were weeks of posturing by Republicans and Democrats while some government services started shutting down. After much deliberation and negotiation the debt ceiling was eventually raised and collapse was avoided.
But this time around we may see a very different set of events play out. If it isn’t clear to you just yet, President Trump is under attack from all sides. Democrats, the media and even members of his own Party want to see him fail. But perhaps more importantly, it is the shadow operators known as “The Deep State” who may take this opportunity to lay the blame for decades of machinations at Trump’s feet.
These shadow forces have been at work manipulating everything from the global economy to the political affairs of sovereign nations.
While March 15th is the day we hit our debt ceiling, June 1st, 2017 is the real date to watch. That’s the day the Deep State may finally pull the trigger:
And what better way to do that then to collapse the economy?
Establishment Republicans and Democrats hate trump… many want to see him fail… even if it means a real systematic crisis for the nation.. in fact, many will even see this as a crisis to get rid of the President… to blame him for the last 30 years of mismanaging the country’s finances and be able to rebuke the voters who elected the President with a national mess… Trump and his supporters will be blamed and take the fall… this is the secret plan