Mr. Trump has his mobster hands full now that his plan to strong-arm Ukraine’s president is out in the open. Trump wants to discredit Joe Biden. Biden’s son worked for a Ukraine gas company. Hunter Biden had a board position with the gas company and that position paid him more than $50,000 a month. Mr. Trump said Biden used his position as vice president to force Ukraine to fire a prosecutor who wanted to prosecute the CEO of the gas company.
Trump’s penquinesque lawyer Rudy Giuliani tried to force Ukraine to open another Biden investigation by telling the president to withhold a $400 million aid payment until Ukraine gave Trump the dirt he wanted on Biden. Mr. Trump told the press he withheld payment until other countries contribute more to help Ukraine. But a whistleblower’s report claims Mr. Trump intentionally withheld payment.
The $1 trillion repo market is in trouble. The repo market is the instrument banks use to borrow money from each other. According to Fortune, there are more than $1 trillion worth of daily repo market transactions and the repurchase rates just increased the same way they did before the 2008 meltdown. Instead of the normal 2.0 to 2.5 percent repurchase rates, rates hit 2.46 percent on Monday and then jumped to 5.25 percent a day later.
An exceptional large demand for cash sucked financial markets dry due this year. The Feds will have to buy $400 billion worth of Treasury notes to maintain the proper level of reserves, according to Fortune. The Federal Reserve will have to continue to buy U.S. Treasury notes and there’s no relief in sight.
The Feds cut interest rates by 25 basis points in September, but that’s not enough to stop the economic nightmare Trump’s tariffs created. Mr. Trump wants the Feds to cut interest rates to zero or below zero, but most Fed members think that’s a stupid idea. Those members claim interest rate cuts won’t stimulate the economy. They believe the central bank and the government have to work together to avoid a recession in 2020, according to Bloomberg.
The Homeland Security spending bill is front and center. The House version of the bill didn’t include any wall funding. But the Republican Senate voted to include Trump’s $5 billion wall project in the budget. Unless the Democrats and Republicans can find common ground on border wall funding, another government shutdown could happen before the end of the year, according to The Hill.