Thus, President Trump is relatively well situated to meet the impending collapse of the financial bubble in the stock and bond markets. There is only one way to save the western economies from this inevitable break down — a process which has a precedent in the policies of Franklin Roosevelt’s in the 1930s, which saved the U.S. from the depression and saved the world from fascism. The fictitious capital must be eliminated, through a Glass-Steagall reform of the banking system, so that the federal government can use the power vested in it by the U.S. Constitution to establish a national bank, to issue credit directed into the real economy, and unleash a massive scientific research and development process to shape an optimistic future for mankind.
A Note To Readers
Remember last week our report that the new estimated cost for the repair of Oroville Dam is now $870 million? And it was expected that FEMA would pick up 75% of that. Well, this week FEMA is saying that that may not happen. And with California’s revenues heavily dependent upon capital gains receipts from the, at last until now, rising stock market, the budget surplus the governor likes to brag about can disappear just as quickly as 1200 points on the Dow.
Speaking of the Dow, here is a headline from today: “Dow closes more than 1,000 points down for second time this week.” Is the bubble now popping? That still remains to be seen. But, as our Feature this week highlights, it is not money or markets that are the economy, but real physical production, science and infrastructure.
It really is time for some serious changes, in addition to the ongoing ripping apart of the DOJ/FBI structure that ran the attempted coup against the President.
That change of policy is summarized in the quote that leads this week’s report.
This Week’s Report
Drought is the word of the day as the Sun shines brightly, and warmly, all over the state and no precipitation is expected for the next 10 days, or more. The U.S. Drought Monitor makes clear that this new drought has an intensity that is rapidly increasing.
So, there are lots of stories on the snowpack, the drought, the temperature records being broken, and mostly the anxiety, if not felt by the population, at least the reporters express it.
The Oroville Dam update leads with noting that this week is the one year anniversary of the disintegration of the main spillway and the panicked evacuation of about 180,000 people as fear that the auxiliary spillway would collapse.
We have covered over recent weeks the findings of the special investigation by the independent committee, and this week that is elaborated on in one article.
One thing that has been consistent over the course of the year is that the cost of the near catastrophe has steadily risen. The initial estimate by the Department of Water Resources was $200 million. Then it went to $400 million and then to over $500 million. Last week the new estimate hit $870 million. But as pointed out in an editorial in the Chico Record, it will easily go over $1 billion. And now, FEMA which was suppose to pay 75 percent of this cost is likely to pay nothing.
As expected, Governor Brown and his administration has succumbed to the inevitable. The Tunnel Project through the Delta has now been officially reduced from two tunnels to one, at least for now. The likelihood that even that will fly is probably something you would not want to bet on.
As mentioned above, the Feature this week provides a variety of items on the President’s infrastructure plans, the state of the infrastructure in the country, the financial environment, and an interesting report on U.S. companies effectively joining China’s Belt and Road Initiative, despite that officially the U.S. government is still holding back.