Democrats Again Boycott Committee Vote, Blocking Confirmation Of Trump EPA Nominee

They are at it again.

For the second day in a row, after Senate Democrats boycotted the committee votes for Steven Mnuchin and Tom Price yesterday only for republicans to implement a loophole, allowing the vote to take place as described earlier, on Wednesday morning Senate Democrats again boycotted a committee vote on a President Trump  pick, this time focusing on his choice to lead the Environmental Protection Agency, preventing the GOP from moving his confirmation forward.

None of the Democrats on the Environment and Public Works panel, led by Sen. Tom Carper went into the meeting room, depriving the committee of the two minority party members it requires for a quorum to vote on Scott Pruitt. The Finance Committee’s Republicans bypassed the boycott Wednesday by voting to change the panel’s rules and allow a vote without Democrats, something the Environment panel could do to get Pruitt approved. 

The Wednesday move by Democrats was to protest committee Chairman John Barrasso’s (R-Wyo.) refusal to delay the vote until Pruitt gave more substantive answers to numerous questions that they had for him. “The committee Democrats are deeply concerned about the lack of thoroughness of Mr. Pruitt’s responses to our questions for the record,” Carper wrote to Barrasso

“I ask you to direct Mr. Pruitt to disclose information requested by Democratic members with the same level of transparency that this committee has required of past nominees.” The Democrats’ top complaints centered on documents they requested about litigation Pruitt led as Oklahoma’s attorney general and his positions on major EPA regulations, among other concerns.

Barrasso quickly shot down the request, saying Pruitt has met all of the requirements for a committee vote. “The committee’s review of Attorney General Pruitt’s nomination has been unparalleled in its scrutiny, thoroughness, and respect for minority rights,” he wrote.  “Attorney General Pruitt has answered more questions than any past EPA administrator nominee. He has been comprehensively vetted and has demonstrated his qualifications to lead the EPA.”

The boycott is unlikely to have a lasting effect: now that Republicans have shown how to override it, we expect the same outcome as in the now failed “block” of the Mnuchin, Price vote, in which republican committee members simply changed the rules, allowing the vote to proceed without the required Democrat quorum.

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Trump’s Supreme Court Pick: “The Best The Left Could Have Hoped For”

Submitted by Mike Shedlock via MishTalk.com,

Donald Trump named Neil Gorsuch to succeed Antonin Scalia on the Supreme Court.

The leading candidates for the job all had strong conservative credentials.

 

Gorsuch, 49, joined an opinion in 2013 saying that owners of private companies could object on religious grounds to a provision of the Obamacare health insurance law requiring employers to provide coverage for birth control for women.

 

Hardiman, 51, has embraced a broad interpretation of the constitutional guarantee of the right to bear arms and has backed the right of schools to restrict student speech.

 

Pryor, 54, has been an outspoken critic of the court's 1973 landmark Roe v. Wade ruling legalizing abortion, calling it "the worst abomination of constitutional law in our history."

Is “Dilbert Persuasion Theory” in play?

I use that name in reference to Scott Adams the creator of the “Dilbert” comic strip. Adams proposed that Trump says and does things so extreme, and so many extreme things at once, that all Trump has to do is move a bit the other way to have his critics on the run.

Let’s put that theory to the test today starting with The Hill article Trump Taps Neil Gorsuch for Supreme Court.

Trump named Gorsuch, a well-respected conservative who sits on the Colorado-based 10th Circuit U.S. Court of Appeals, after a drama-packed day that resembled the president’s former reality show “The Apprentice.”

 

After narrowing his list of 21 picks to Gorsuch and Judge Thomas Hardiman of the Third Circuit U.S. Court of Appeals, both men came to Washington, D.C., giving the appearance that either could be picked.

 

Gorsuch is likely to face a tough confirmation battle, though he was seen as a less provocative choice for the court than Bill Pryor, the circuit judge for the U.S. Court of Appeals for the Eleventh Circuit.

 

Pryor was a favorite of outside conservative groups, but his controversial views might have made it difficult for Democrats to avoid filibustering him. He has argued that gay people should be prosecuted for having sex, and that abortion should be outlawed including in cases of rape.

Although Pryor did not make it to the final two, he is in the on deck circle. Pryor’s views on abortion are extreme. Here is an article that came up just today William Pryor & Abortion: 5 Fast Facts You Need to Know.

Positions of Hardiman and Gorsuch

Please consider Politico excerpts on Thomas Hardiman.

While Hardiman has backed First Amendment rights in the context of political donations, he took a narrower view in a 2010 suit over an arrest for videotaping a police officer during a traffic stop, holding that there was no clearly established First Amendment right to record such an event.

Hardiman won favor with gun rights advocates for a 2013 dissent that said New Jersey was violating the Second Amendment to the Constitution by requiring those seeking to carry a handgun to demonstrate a “justifiable need” for such a permit.

Wikipedia notes that Neil Gorsuch “has never had the opportunity to write an opinion on Roe v. Wade. However, based on the opinions expressed in his book opposing euthanasia and assisted suicide, some speculate that he may tend to rule in favor of pro-life stances in abortion-related cases.”

Hill Continues

Sen. Jeff Merkley (D-Ore.) has promised to raise procedural objections to any Supreme Court nominee from Trump, meaning Gorsuch will likely need 60 votes.

 

But it is unclear whether Democrats at large will back a filibuster. Republicans have 52 seats in the Senate, meaning they need eight Democratic votes to break a filibuster. Ten Democrats are up for reelection in 2018 in states won by Trump in the presidential race. It may be difficult for them to filibuster a nominee such as Gorsuch — though they will be under tremendous pressure from liberal groups to do so.

Neither Gorsuch nor Hardiman will be the lightning rod that Pryor would have been.

Although Pryor did not make it to the final two, he was in the final 21.

Silver Lining?

The Wall Street Journal points out Judge Neil Gorsuch Is Critic of Legal Doctrine That Bolsters Executive Authority.

Judge Neil Gorsuch, President Donald Trump’s nominee to the U.S. Supreme Court, is seen by the right as a credible heir to the late Justice Antonin Scalia. But in one respect, his judicial record could offer Democrats something of a silver lining.

 

As a member of the 10th U.S. Circuit Court of Appeals in Denver, Judge Gorsuch has emerged as a leading critic of a Reagan-era judicial doctrine that has helped to bolster the power of the executive branch.

Persuasion Theory

For more on persuasion theory and why it may apply here, please see Trump Ban: Inept Policy or Purposeful Action? WW III?

Persuasion play or not, we can all (except the homophobic radical right nut cases) be thankful that someone who believes that gay people should be prosecuted for having sex, did not make it to the Supreme Court.

We can also be grateful Gorsuch is not in favor of expanding the executive branch.

From the point of view of the Left, Gorsuch may very well be the best they could have hoped for. The Left would be foolish to block this pick.

I suspect relatively smooth sailing if Gorsuch handles himself well in senate hearings.

*  *  *

But then again, there's Elizabeth Warren… The Massachusetts Democrat writes on Facebook that she'll vote against Gorsuch. Her full post is below:

President Trump had the chance to select a consensus nominee to the Supreme Court. To the surprise of absolutely nobody, he failed that test.

 

Instead, he carried out his public promise to select a nominee from a list drawn up by far right activist groups that were financed by big business interests.

 

Judge Neil Gorsuch has been on this list for four months. His public record, which I have reviewed in detail, paints a clear picture. Before even joining the bench, he advocated to make it easier for public companies to defraud investors. As a judge, he has twisted himself into a pretzel to make sure the rules favor giant companies over workers and individual Americans. He has sided with employers who deny wages, improperly fire workers, or retaliate against whistleblowers for misconduct. He has ruled against workers in all manner of discrimination cases. And he has demonstrated hostility toward women's access to basic health care.

 

For years, powerful interests have executed a full-scale assault on the integrity of our federal judiciary, trying to turn the Supreme Court into one more rigged game that works only for the rich and the powerful. They spent millions to keep this seat open, and Judge Gorsuch is their reward.

 

Every day, our new President finds more ways to demonstrate his hostility for our independent judiciary, our civil society, and the rule of law.

 

Now more than ever, America needs Supreme Court justices with a proven record of standing up for the rights of all Americans – civil rights, women's rights, LGBT rights, and all other protections guaranteed by our laws. We don't need another justice who spends his time looking out for those with money and influence.

 

Based on the long and well-established record of Judge Gorsuch, I will oppose his nomination.

And Democratic Senator Jeff Merkley has vowed to pursue a procedural hurdle called a filibuster for Trump's nominee, meaning 60 votes would be needed in the 100-seat Senate unless its long-standing rules are changed. Trump's fellow Republicans hold a 52-48 majority, meaning some Democratic votes would be needed to confirm his pick.

"We need to fight this Constitution-shredding gambit with everything we've got," Merkley said in a statement.

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WTI, RBOB Dump’n’Pump Despite Biggest Crude Build Since October, Record Gasoline Inventory

Update: WTI and RBOB are now higher, because nothing but algos matter…

 

Now where have we seen this idiocy before…LAST WEEK!

And here's what happened next…

*  *  *

As we detailer earlier, DOE confirms API's major builds in Crude, Gasoline, and Distillates sending WTI and RBOB prices tumbling. US crude production declined in the last week but remain on an upward trajectory with rig counts as East Coast gasoline inventories hit an new all-time record high.

API

  • Crude +5.83mm (+3mm exp)
  • Cushing -906k (-700k exp)
  • Gasoline +2.86mm
  • Distillates+2.27mm

DOE

  • Crude +6.46mm (+3mm exp)
  • Cushing -1.25mm (-200k exp)
  • Gasoline +3.866mm (+1.5mm exp)
  • Distillates +1.4568mm (-500k exp)

The 5th weekly build in gasoline and the biggest build in crude since October…

  • *EAST COAST GASOLINE STOCKPILES RISE TO RECORD 73.54M BBL

 

Puttin the gasoline rise in context, we are again above the all time high range:

OPEC's good work in boosting the price through output restraint is being undone by surging inventories. Crude stockpile up more than twice as much as expected in Bloomberg's survey.

Production fell in the last week but the trend is clear…

 

and the reaction is a drop in both WTI and RBOB…

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Los Angeles Moves to Decriminalize Sidewalk Vending

I’ll say one thing for Donald Trump’s executive orders on immigration: They’ve spurred some welcome reactions at the more local levels of government. Los Angeles has a history of hitting unlicensed sidewalk vendors with criminal charges. But yesterday, not wanting the proprietors of tamale carts or T-shirt stands to be deported for their misdemeanors, the city council voted to draft an ordinance to decriminalize such enterprises.

Emily Alpert Reyes explains in the Los Angeles Times:

City attorneys will now draw up new rules that would strip those criminal penalties and authorize the city to eventually issue vending permits, a first step toward legalization….In the meantime, vendors who ply their trade on city sidewalks could still be cited and fined for violating the municipal code, but they would not face criminal convictions.

Lawyers are also supposed to report back on whether the city can offer amnesty to vendors already facing criminal charges. Though lesser citations are much more common, city prosecutors filed misdemeanor charges for sidewalk vending in more than two dozen cases between October 2015 and October 2016, according to the city attorney’s office.

Obviously, that’s good news if you’re facing such charges, especially if you’re running the risk of deportation. But it’s also good news for any Angelenos who want to launch one of these micro-businesses, regardless of their immigration status. And it’s good news for consumers, who will have more and cheaper choices. It may not be the taco truck on every corner that we were promised, but I’ll take it.

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Republicans Change Confirmation Rules To Overcome Democrat Boycott

In an unexpected move on Tuesday, Senate Democrats announced they would boycott the votes of Steven Mnuchin and Tim Price, effectively blocking the confirmation process which requires the presence of at least one Democrat. However, on Wednesday, Senate Republicans found a loophole to push through Trump’s two Cabinet nominees Wednesday, by upending standard committee rules to circumvent a Democratic boycott.

As Bloomberg reports, the Senate Finance Committee – with only Republican members present – advanced Steven Mnuchin to head the Treasury Department, and Rep. Tom Price (R-Ga.) as secretary of Health and Human Services. They did so when the Republicans gathered in the hearing room and unanimously agreed to change the committee’s standing rules, which normally require at least one member of each party to be in attendance for committee work to proceed.

“It’s just another way of roughing up the president’s nominees,” said committee Chairman Orrin Hatch (R-Utah). “They have been treated fairly. We have not been treated fairly.”

Republicans made the unusual move after Democrats refused to attend a vote on the nominees for two days running, arguing the pair had made misleading statements to lawmakers that needed to be rectified. The nominees now head to the Senate floor, as partisan tensions over filling out Trump’s White House continued to intensify.

The reason for the Democrat boycott is that allegedly questions continue to swirl for weeks around Price’s investment activity, including whether his political actions benefitted his personal portfolio. “Both nominees have yet to answer important questions that impact the American people,” committee Democrats wrote in a letter sent to Hatch Wednesday. 

“Further, we have significant concern that both Mr. Mnuchin and Mr. Price gave inaccurate and misleading testimony and responses to questions to the Committee. These cabinet nominees should answer basic questions that the American people deserve answers to before moving forward.”

Hatch was dismissive of that argument Wednesday. “Oh, come on. Come on,” he said. “They don’t have one argument that’s worthwhile. Not one. And if they had, they should have shown up.”

The latest Democratic blockade was the latest example of the party’s efforts to slow the consideration of Trump’s nominees to a crawl, as the party and its base hardens in opposition to the new president; however, for now it appears to have its work cut out. That said, with animosity between the two parties already at nosebleed levels, it is unlikely that any laws demanding a bipartisan effort – such as the replacement of Obamacare – will be implemented.

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Stagflation Shock: ISM Shows Input Costs Soaring At Fastest Since 2011

Input cost inflation is soaring at its highest since September 2014 according to Markit's US Manufacturing PMI survey (which surged in January to 55.0 – slightly less than the 55.1 prelim print – the highest since March 2015). New orders accelerated but employment slipped and despite the surge in costs, factory gate charges increased only modestly. Despite disappointing 'hard' data from durable goods, ISM survey data confirms the bounce (highest since 2014) but Prices Paid spiked to its highest since 2011 (and export orders dropped).

Hard vs Soft data… ISM CEO Holcomb summed it all up perfectly: ISM GAIN DRIVEN BY HOPES, EXPECTATIONS UNDER TRUMP

 

Prices Paid are soaring… (and export orders dropping)

ISM notes that…

  • Commodities Down in Price: None.
  • Commodities in Short Supply: None.

So, to be clear, everything is up in price, but there is no shortage of anything.

New Orders were stagnant…

 

And the full breakdown…

 

Almost every ISM respondent is exuberant…

  • “Demand very steady to start the year.” (Chemical Products)

  • “January revenue target slightly lower following a big December shipment month.” (Computer & Electronic Products)

  • “Strong start to the new year. Production is increasing and we are adding capacity.” (Plastics & Rubber Products)

  • “Business looks stronger moving into the first quarter of 2017.” (Primary Metals)

  • “Economic outlook remains stable and no current effects of geopolitical changes appear to be penetrating market conditions.” (Food, Beverage & Tobacco Products)

  • “Sales bookings are exceeding expectations. We are starting to see supply shortages in hot rolled steel due to the curtailment of imports.” (Machinery)

  • “Year starting on pace with Q4 2016.” (Transportation Equipment)

  • “Business conditions are good, demand is generally increasing.” (Miscellaneous Manufacturing)

  • “Conditions and outlook remain positive. Raw material prices are stable resulting in stable margins. Asset utilization remains high.” (Petroleum & Coal Products)

  • “Steady demand from automotive.” (Fabricated Metal Products)

Commenting on the final PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

The US manufacturing sector has started 2017 with strong momentum. Despite exports being subdued by the strong dollar, order books are growing at the fastest pace for over two years on the back of improved domestic demand.

 

“With optimism about the year ahead at the highest since last March, the outlook has also brightened.

 

“Production is consequently growing at the strongest rate for almost two years and inventories are rising at a rate not seen for nearly a decade as firms respond to higher demand, suggesting the goods-producing sector will make a decent contribution to first quarter GDP.

 

“With input costs also rising at the steepest rate for over two years, and hiring sustained at an encouragingly solid pace as firms expand capacity, all of the survey indicators point to the Fed hiking interest rates again soon.”

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Trump’s Travel Ban Forces Elderly Green Card-Holder to Stay in Iraq. She Died the Next Day

Getting real now.Mike Hager—an Iraqi-born U.S. citizen who fled his birth country during the first Gulf War, lived in a refugee camp for four years, and finally settled with his family in the U.S. in 1995—says his mother died in Iraq over the weekend after being denied entry back to the States, despite possessing a green card.

Hager told Fox2 Detroit that he, his 75-year-old mother, Naimma, and several other green card-holding relatives had been visiting family in Iraq, but were prevented from boarding a U.S.-bound plane at the airport, as a direct result of President Trump’s executive order banning all visitors from seven countries—including Iraq. Trump’s ban is set to last for 90 days, ostensibly to allow the U.S. government to ferret out “individuals with terrorist ties and stopping them from entering the United States.”

Among his family only Hager, a U.S. citizen, was allowed to travel.

“I was just shocked,” Hager said to Fox2, “I had to put my mom back on the wheelchair and take her back and call the ambulance and she was very very upset. She knew right there if we send her back to the hospital she’s going to pass away – she’s not going to make it.”

By all appearances, Hager is the complete opposite of the secret jihadist embedded with refugees that exists in Trump’s fantasies. Hager fled a war zone, became a U.S. citizen and business owner, and volunteered to work with the U.S. military during the Iraq War as a contractor and interpreter—even surviving getting shot in the back. He and his family appear to be a model of refugees, striving for and attaining the American Dream.

Hager believes his mother would have survived had she made it back to the States and received better medical care than was available to her in Iraq. In his grief, Hager is now is left to worry about if and when his nieces and nephews—also green card holders—will be permitted back into the U.S.

“This is our home. We’ve been here for too long, we’ve been here since we were kids,” Hager told Fox2.

My Reason colleague Eric Boehm profiled an Iranian-American family—specifically an Iranian-born green card holder and his 66-year-old mother—who are left wondering if they’ll ever be able to visit each other again thanks to the confused language and blunt implementation of Trump’s executive order. Boehm writes:

Trump’s immigration policy deems a 66-year-old grandmother to be such a threat to the safety of the United States that she doesn’t even have the chance to look immigration officials in the eye and assure them that she’s not a terrorist. It’s a policy that will keep her from being able to visit her son and daughter-in-law, and may even keep her from ever looking at her grandchild.

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U.S. Steel Sees Optimistic Future: ‘Trump is Remaining True to His Promises’

During this morning’s U.S. Steel earming conference call,  CEO Mario Longhi said he was optimistic that tubular steel had bottomed and that  trade issues were improving thanks to tighter controls by US regulators to make sure Chinese companies weren’t circumventing the law and dumping government subsidized steel on American shores.

Additionally, he praised Donald Trump for remaining true to his campaign promises to encourage people to buy American and hire American — citing The Donald as being very open and curious — which he viewed as rightly optimistic for the state of his business.
 

Trade issues? It’s one of the areas where opportunity remains real. We continue to remain engaged, good work is being done. Commerce Dept is now issuing more details on what is being shipped and from where, this should help with enforcement.
 
Trump administration has openly declared they will do everything they can to enforce the trade laws. One area that remains a concern is circumvention. But co feels optimistic about trade issues. Co does not like to use the word protectionism, we are not asking for a favor. Rule of law needs to prevail everywhere and US Steel will remain vigilant, otherwise conditions will quickly return.
 
Can you break down $1 bln headwind forecast for raw materials in 2017? Coal prices are much higher in Europe, that’s really what’s driving it more than in the US.
 
What is Trump asking from you? Trump is remaining true to his promises, buy America, hire America. He has been very open and is paying attention. We think this is all very positive. He’s very curious and once cabinet in place, conversation will continue and action will follow which will be positive for the steel industry.

 
For the quarter, $X crushed earnings and guided up FY17 earnings to an astounding $3.08 v previously expected $1.67.

Reports Q4 (Dec) earnings of $0.27 per share, excluding non-recurring items, $0.29 better than the Capital IQ Consensus of ($0.02); revenues rose 3.0% year/year to $2.65 bln vs the $2.67 bln Capital IQ Consensus.
 
Co issues upside guidance for FY17, sees EPS of $3.08 vs. $1.67 Capital IQ Consensus and EBITDA of ~$1.3 billion; Results for our Flat-Rolled, European, and Tubular segments to be higher than 2016; To be cash positive for the year, primarily due to improved cash from operations; and Other Businesses to be comparable to 2016 and ~$50 million of postretirement benefit expense.

 
IMG_6306

Over the past three months, shares of X have scorched higher by 69% — based off the hopes of a robust Trumponion fiscal stimulus budget. Any wall, bridge, tunnel or pipeline would likely require lots of American steel — which is the core thesis behind the shares of X.
 

 

Content originally generated at iBankCoin.com

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Dakota Access Pipeline Set For Completion After Army Approval

With environmentalists already furious at Donald Trump for his recent executive orders to reincarnate the Keystone XL and Dakota Access Pipelines, their anger is set to overflow following news that the completion of the latter may be just a matter of months, if not weeks.

As Reuters reports, while the 1,172-mile Dakota Access Pipeline is nearly complete, just one “hotly contested” section under North Dakota’s Lake Oahe that’s been the topic of massive protests, remains unbuilt. The tribe has been concerned that digging the pipeline under a section of the Missouri River would affect the area’s drinking water as well as the supply for 17 million Americans living downstream. A final easement is required for Dakota Access to cross beneath Lake Oahe.

But on Tuesday evening, the Army has allowed the final section to also be completed. 

Acting Secretary of the Army Robert Speer “has directed the Army Corps of Engineers to proceed with the easement needed to complete the Dakota Access Pipeline,” Sen. John Hoeven said in a statement Tuesday cited by CNN. The North Dakota Republican said he spoke with VP Mike Pense and Robert Speer on Tuesday. “The secretary said it will be approved in days, not weeks,” Hoeven spokesman Don Canton said in a separate e- mail.

While the official easement from the Army Corps has not been released, Hoeven and Rep. Kevin Cramer praised Speer’s decision, which will pave the way for the final phase of the controversial $3.7 billion project. Then, moments ago Bloomberg reported that the Army said it has begun steps to review the Dakota Pipeline request.

The Standing Rock Sioux tribe, which has vocally opposed the project, responded that Hoeven’s announcement is premature and maintains that further environmental review is needed for the pipeline. Cramer, also a North Dakota Republican, said he received word that the US Army Corps will grant final approval and that congressional notification of the decision was “imminent.” Cramer praised President Donald Trump as a “man of action” after Trump signed executive actions last week to advance approval of the Dakota Access and Keystone XL pipelines. The Obama administration blocked both projects amid vociferous opposition.

As reported here on various occasions in late 2016, the Standing Rock tribe and its various environmental allies protested in North Dakota for months, standing in the path of the pipeline during peaceful demonstrations and clashes that turned violent. In December, protesters celebrated a temporary victory when the Army said it would not — for the time being — allow the pipeline to cross under the lake, calling for an official environmental impact statement, a months-long process that would allow the public to weigh in.

The tribe vowed to “vigorously pursue legal action” if the Trump administration cuts off the environmental review and grants the easement.

“To abandon the (environmental impact statement) would amount to a wholly unexplained and arbitrary change based on the President’s personal views and, potentially, personal investments,” the tribe said in a statement Tuesday.

The Indigenous Environmental Network, a leading tribal organization dedicated to blocking further construction of the project, said Tuesday: “Make no mistake: we are prepared to mobilize and resist this brazen power grab.”

Meanwhile, as the climax over DAPL approaches, there is also the fate of the “other” controversial pipeline. Like Dakota Access, the Keystone XL Pipeline had been the subject of environmental concern from activists, residents and indigenous tribes who worried that the pipeline would pollute as many as 2,500 aquifers. But pipeline supporters touted the jobs it would create and other economic benefits.

The $8 billion Keystone XL Pipeline was proposed to stretch nearly 1,200 miles across six states, shuttling carbon-heavy petroleum from Canada to the Gulf Coast. In November 2015, Obama nixed the proposed pipeline, virtually ending the fight over the project that had gone on for much of his presidency. But Trump’s executive actions on both pipelines signal how his administration will take a drastically different approach to energy and environmental issues.

The environmental push back to both pipeline is expected to be furious. As we reported last week, “greens” have already threatened Trump with substantial pushback: “Donald Trump has been in office for four days, and he’s already proving to be the dangerous threat to our climate we feared he would be,” said Michael Brune, the executive director of the Sierra Club. He added that “President Trump will live to regret his actions this morning,” said Michael Brune of the Sierra Club, promising “a wall of resistance the likes of which he never imagined.”

The standoff between Trump and his environmental critics will likely soon become one of the major challenges in the early days of his presidency.

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The Next Economic Trend Has Hit the US: STAGFLATION

While the mainstream media is losing its mind about Trump policies, the US economy just flashed yet another major warning sign of recession.

Scratch that, this was worse than recession; this was a recession with inflation or stagflation.

Yesterday, the Chicago PMI scored a reading of 50.3.

A 50= stagnation or the beginning of a recession.

PMI in of itself is bad news. But the new orders component (the component that shows growth) came in at 49.1.

This is WELL into recession territory.

Now let’s add the worst part… Price Paid (what manufacturers are having to pay for items) SOARED to 61.4.

So you’ve got growth collapsing… and prices soaring.

This. Is. Stagflation.

Those who are ignoring these warning signs are walking into a market bloodbath. Stocks are acting like an economic renaissance has just started… but the REAL data is showing us a recession and even worse, a recession coupled with higher inflation.

Indeed, 2016 GDP growth was the worst since 2011… while inflation expectations have shot higher. Looking at a chart of the two, it’s easy to see which direction each is heading.

The reality is that the Trump administration is inheriting an inflationary recession. The markets have yet to fully discount this fact, which is why stocks are holding up for now.

This will not continue much longer. And anyone who is investing based on expected GDP growth of 5% this year and next is going to get taken to the cleaners.

If you’re looking to profit from the REAL impact Trump’s Presidency will have on the market (and the massive opportunities this situation presents), we’ve put together a Special Investment Report outlining three investment strategies that will produce major returns as a result of Trump’s economic policies.

It’s titled How to Profit From the Trump Trade and we are giving away just 1,000 copies for free.

To pick up your copy, swing by

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Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

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