Behind Door #3

(Behind Door #3)

Paging Monty Hall. In his classic gams show Let's Make a Deal, contestants would bid on prizes or "take" what was behind some door. It was a risk because sometimes there was crap that was revealed. That being said, House Republicans reached a deal on proxy voting. Nations affected by Trump tariffs will be needing their own deals if trade equilibrium is being sought.

The House was able to advance two Bills that deal with voter integrity namely limiting those franchised to be American citizens. On the other hand, House and Senate are still far apart when it comes to passing its Budget. That gulf has to be closed if Reconciliation is moving forward. As it stands, the Senate Bill will not pass the House unless it further reduces spending. A deal in this regard is as imperative as ever.

But is with tariff applications that will make the Trump Presidency, China is promising a levy of their own at 34% but Trump is sating he will impose a 50% tariff in just a few days. Also, American trade representees are reporting that some 70 nations have called the President wanting to at least lessen their burden.

But what of China ? Obligations to be imposed on the Peoples' Republic could rise to over 100%. Beijing is promising to fight to the end, whatever that means. The position of Premier Xi Jinping might not be as secure as one would imagine. Nor is the broader Chinese economy. As Beijing depends on Washington much more than the other way around. China does have rare earths. China still has a diminished presence in the Panama Canal Zone.

China has its own situation, but the issue is that seventy other countries are willing to break bread with the Trump Administration. For its part, the European Union has suggested a Zero-Zero trade relationship. Positive news such as this has reversed the selling that has plagued the Markets in recent days, Dow Futures are positive over a thousand points.

So, what is behind Door #3 ?