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“So Far Apart on Covid Deal That We Don’t Really Care”

Summary:
In a failed game plan we have seen before, Republicans put up another obvious bluff on reaching a Covid stimulus deal.Trump says he is No Hurry for Coronavirus Deal.“We’re so far apart we don’t care. We really don’t care,” Trump told reporters as he departed the White House for a trip to Texas, blaming Democrats.“We want to take care of the people, the Democrats aren’t taking care of the people,” the Republican president said.Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows were due to resume negotiations with the two top Democrats in Congress: House of Representatives Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer. An hour-long meeting of the four broke up late on Tuesday afternoon amid no sign of progress. “As of now, we’re very far apart,”

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In a failed game plan we have seen before, Republicans put up another obvious bluff on reaching a Covid stimulus deal.

Trump says he is No Hurry for Coronavirus Deal.

“We’re so far apart we don’t care. We really don’t care,” Trump told reporters as he departed the White House for a trip to Texas, blaming Democrats.

“We want to take care of the people, the Democrats aren’t taking care of the people,” the Republican president said.

Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows were due to resume negotiations with the two top Democrats in Congress: House of Representatives Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer.

An hour-long meeting of the four broke up late on Tuesday afternoon amid no sign of progress. “As of now, we’re very far apart,” Mnuchin told reporters.

Money for an FBI Building

Trump wants any legislation to include $1.8 billion to build a new FBI headquarters in Washington. 

As he left the White House, Trump scoffed at members of his party who do not back his FBI plan. “(They) should go back to school,” he said.

In a multi-trillion dollar deal, $1.8 billion is meaningless. But if it adds even a few hours of bickering, it doesn't belong there. 

Trump Seeks to Protect His Hotel

Here's the kicker to the story. Trump's Washington hotel is across the street from the FBI. 

Even Republicans raise eyebrows at this "schooling" effort.

Huge Gap Between the GOP and the Democrat Stimulus Plans

The key problem is the Huge Gap Between the GOP and the Democrat Stimulus Plans.

  1. Republicans want to spend about $1 trillion with strong internal divisions.  The Democrats are united behind Pelosi. They propose $3 trillion.
  2. Republicans want to eliminate the $600 weekly benefit and replace that with a means test to rejigger benefits so that they replace roughly 70% of a worker’s former wages. 
  3. The Republican bill would make it harder to successfully sue businesses, schools and health-care providers in coronavirus-related cases. The Democrats are united against that idea.

Clock Runs Out

As noted on Sunday the Clock Just Ran Out on $600 in Weekly Unemployment Benefits.

Point number 2 is important in two ways: The pricetag and the delivery time.

The Republican proposal could take many states several weeks or longer to address.

What are the unemployed supposed to do in the meantime? 

More Than Half of Business Closures are Permanent

Note that More Than Half of Business Closures are Permanent.

Where are the go back to work jobs supposed to come from?

Same Mistakes Over and Over

Republicans have a propensity for making the same mistakes over and over. 

Please recall a Trump said he would not sign any bill that did not include funding for a wall. Trump was totally and thoroughly humiliated by House Speaker Nancy Pelosi.

Here are some amusing details from my January 26, 2019 post Trump Signs Spending Bill ending Longest Gov't Shutdown in History

One of the most remarkable moments during the Senate luncheon came when McConnell told Pence that shuttering the government to try to secure funding for a border wall was not a smart approach.

“I think that a government shutdown is not a good option. That’s my view. The American people don’t like it,” the GOP leader told reporters on Dec. 18, four days before funding lapsed. “You remember my favorite country saying, ‘There’s no education in the second kick of a mule.’ We’ve been down this path before.” 

Biggest Wimp Ever

Following the cave-in, Trump Mocked From Both Sides After Caving In, Coulter Claims "Biggest Wimp Ever"

No Education in the Second Kick of a Mule

McConnell blasted Trump in 2018 over an ill-advised budget square-off. 

And here we go again. 

This time both Trump and McConnell are about to get another kick in the head from a mule.

The mule's name is "Nancy".

Philosophically Speaking

Philosophically, people should not make more being unemployed than employed.

Politically speaking, the Republicans are about to get kicked by a mule. 

Moreover, it would be better for Trump to have the most stimulus possible to help his election chances. But once again, Trump is hell bent on appeasing the base. 

It is not the base that Trump needs to win.

Mish 

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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