Hey Influence Traders,
We knew this would be a chaotic week in DC, and the start has not been disappointing.
Between Infrastructure, spending, the Debt Ceiling and some bad math … the Hill is coming out of the gate HOT.
And that’s even before Mark Sebastian’s event tonight at 8 p.m. EST where he’ll reveal how to make Big Money’s biggest weakness profitable for you. Register now!
Speaker Pelosi has pushed the vote on the infrastructure bill from Monday until Thursday.
She said that she would not take any bills to vote if she did not have the votes, which apparently she doesn’t … something the progressive wing of her party has been telling her for weeks.
And the controversy continues to swirl around the $3.5 trillion boondoggle bill.
President Biden acknowledged on Monday that the government was unlikely to get his bills passed this week.
But challenging all known theories of math, Biden announced that his $3.5 trillion boondoggle bill should be passed because it “costs nothing.”
Many who are not mathematically challenged would disagree.
Not only will it cost money … it will cost much more than advertised.
Many are arguing that the $3.5 trillion spending figure and the $2.1 trillion revenue amount were reached through accounting gimmicks and tricks.
For example, the 5.5% increase in the corporate tax rate that will be paid by workers in lower wages, consumers in higher prices and investors in lower returns.
And the $3.5 trillion spending “compromise" includes entitlement phaseouts and phase-ins, which will cause the true cost to be at least $5 trillion.
On Monday, Senate Republicans refused to allow Democrats to lift the limit on federal borrowing, moving the country closer to a government shutdown and a federal debt default.
The forced stalemate by Republicans is an attempt to stymie Democrats attempts to keep the government running and enact Biden’s ambitious domestic agenda.
The blocked package would have kept all government agencies funded through Dec. 3 and increased the debt ceiling through the end of 2022. But it needed 60 votes to move forward in the Senate, and 48 to 50 didn’t do it (in a procedural move, Majority Leader Schumer also voted “no” to permit reconsideration of the bill at a later date).
The Bipartisan Policy Center estimates that without a suspension or raising of the ceiling there will be a risk of default between Oct. 15 and Nov. 4.
Some Good News
One positive piece of news, Democratic lawmakers announced that they plan to raise the $600 threshold proposed by Joe Biden for bank transaction reporting to the IRS. They did not indicate what the new level would be, but word is it could land on or near the current $10,000 level.
With the approval of vaccine boosters, Pfizer (Ticker: PFE) stands to make $26 billion on the jabs.
Ford (Ticker: F) announced that it plans to spend $7 billion on its first US assembly plant in decades, as well as on three battery plants to push heavily into the EV game.
Regardless of what’s happening in DC or elsewhere, trading guru Andrew Giovinazzi has been making #Powermoves in the Capitol Gains portfolio.
Cutting Through the Noise for You.