Democratic Party civil war upends Biden’s Build Back Better timetable

Losing political capital has consequences. The inability to pass legislation is the biggest consequence of all in the Beltway.

The moment that the Afghanistan decision was falling apart in real-time under
the global media’s scrutiny, that was the end of Joe Biden’s political capital. We noted in April that the Reconciliation bill would have trouble passing and the desperate attempt of Democrats to tie the Budget and Infrastructure bills to it should have waved red flags to
analysts against its passage. Creating political vacuums does not only cause conflict in geopolitics, but also domestic politics, which is precisely what has materialized between the progressives lead by Jayapal and the old guard represented by Pelosi.

Jayapal and her
progressive block have 95 voters in the House and 11 in the Senate. They are a force to be reckoned with because of the razor thin majorities and the total absence of Joe Biden in the process. Remember, vacuums get filled. For Jayapal, this is a simple political calculation:
Act now while Biden and Pelosi are weak and assume future leadership of the Democratic House caucus. The calculations are made easier by the fact that all projections have the GOP taking House majority in 2022 and this is the best chance progressives have had in the past decade
to pass meaningful legislation to their core voters. Progressives are tying all bills together to force it to a vote but the Reconciliation bill has yet to go through committees, which delay it for at least a month.

What the Beltway is seeing is what is the norm in Europe,
bickering political parties with weakened leadership. To look at vote counts for the next 12 months, you must now assume there are 3 parties instead of just 2. This means stalled, if not failed, legislation and increased grandstanding going into midterms, as all sides look to
shore up their seats but also claim power grabs within their own party.

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More from @amlivemon

20 Sep
- 3 bills are in question, Infrastructure(passed by Senate), Reconciliation($3.5 trillion package), and Budget
- Reconciliation bill is where the Dems have loaded up social issues(voting, Immigration, etc) to appease their base, which requires 60 votes under the rules.
- Progressives in the House number 95 votes and have said they will not vote for infrastructure if this doesn’t pass, tying virtually all 3 together
- Senate Parliamentarian upheld the limits of that reconciliation process so Dems could not use 51 majority rule to pass it where
Manchin and Sinema(in reality 4 others also) were roadblocks to avoid filibuster
- To get around this, Dems are attempting to combine Budget and Reconciliation to force the GOP and moderate Dems to vote on it using blackmail/pressure from market turbulence
Read 6 tweets
17 Aug
Being a superpower has its responsibilities but first and foremost it is it’s own long term self interest.

I’m not going to bother reiterating why the US was in Afghanistan but rather focus on why we should have maintained a force there.

The US under previous administrations
had lost significant influence and any real footprint in Central Asia. After being booted out of Uzbekistan, the reality in keeping forces in Afghanistan became much more evident if the Pentagons long term lily pad strategy was to be properly implemented across the region. Since
Obama had destroyed US influence in Turkey, that option to stress Iran’s defenses for any possible future conflict was logically now going to fall onto Afghanistan forward operating positions rather Turkey where we likely would get no permission from Ankara.
Read 5 tweets
17 Aug
Taper Tantrum Notes of mine for this:

⁃Taper assumptions are based on the Fed rhetoric and public comments, but that is more about market signals and paying lip service to the bond market for the near term.

@Halsrethink @nglinsman
⁃The likelihood of tapering is low based on multiple political and economic realities. First, we have midterms in 2022 and Yellen nor Powell can ill afford a market crash that close to midterms. Secondly, in the near term, we have a fiscal problem brewing where the GOP is
totally unwilling to give the Dems a free pass and raise the debt ceiling. Because of this Yellen and Powell have prepared $3 trillion in new QE to unleash after this Jackson Hole taper tantrum head fake plays out.
Read 9 tweets
24 Mar
Range Bound Dollar

Bullish US$ capped at 93-95 DXY
·         US vaccine distribution has surpassed every modernized nation (except the UK)
·         US Fed/Treasury actions would want to limit the perception of failing dollar
US Fed/Treasury actions to improve its purchasing power in order to combat commodity inflation 
·         EU banking sector insolvency issues
·         EU manufactures lockdown/political upheaval to lower euro
·         Fed distraction with bonds/rates to worry about rising dollar
·         Weaponization of the dollar to politically stress adversaries (Turkey, Russia, China, etc)
·         Dollar shortage within the EU and China, forcing sales of USTs to raise reserves
Read 7 tweets
20 Mar
Haha thanks Britain for this...
The hero knight!
Not a wench...
Read 4 tweets
6 Nov 20
Overview:

For Trump: Neutral. Losing in a manner that is extremely questionable in peoples eyes will only make him a martyr. He will use this to grow a new media and political org for the future.

For Dems: Absolute disaster. Trading Trump for the next 2 maybe 3 election cycles
will without a doubt cause significant changes within the party. A bluewave never materialized & it cost Senate & House races as I expected.

For GOP: Could not have worked out better. They seemingly push Trump out in a manner that benefited the Congressional makeup.
For Europe: Short term victory. 2021 will be rough economically and will likely find no support from a Biden presidency with Russia &
China looking to advance its geopolitical positions that were held in check for past 4 years.
Read 4 tweets

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