Showing posts with label economic policy. Show all posts
Showing posts with label economic policy. Show all posts

Pa. GOP Gathering: Trump, DOGE Dominate as Tariffs Fade into Background

HARRISBURG — While President Donald Trump ’s tariffs sent shockwaves via the stock market and concerns over trade conflicts across the global economy , Republicans at the biggest GOP event in Pennsylvania on Friday remained mostly unworried and were in celebratory spirits.

At the Pennsylvania Leadership Conference, an annual gathering of Republican leaders in Harrisburg, lawmakers and grassroots party members praised Trump’s executive actions and his upheaval of the federal government through billionaire adviser Elon Musk The Department of Government Efficiency led by him has pledged to keep capitalizing on Trump’s momentum, particularly since the Democratic Party continues to be viewed unfavorably. Additionally, they strongly criticized Democratic Governor Josh Shapiro, who is set to run for re-election next year.

"I am thrilled because our party emerges victorious," stated Treasurer Stacy Garrity, who secured the highest number of votes for a statewide candidate in Pennsylvania’s history during the recent election. She is now seen as a frontrunner for the governorship in 2026.

This meeting marked the party's first significant assembly. following its widespread victories in November And demonstrated the willingness of Republican lawmakers in Pennsylvania to back Trump’s idea of significantly shrinking the federal government, even if it means enduring brief spells of market instability.

U.S. Sen. Dave McCormick In a pre-recorded video interview with Washington Examiner columnist Salena Zito, which was scheduled around his U.S. Senate commitments, he discussed how the recent swift changes in administration reflect the sense of urgency that Senator Trump experienced following an alleged assassination attempt in Butler last year. McCormick. was on stage with Trump during the campaign rally At the Butler Farm Show Grounds just seconds prior to when the shooting began.

“What he’s doing…is precisely what he promised,” McCormick stated. “Therefore, nobody in Pennsylvania or anywhere else across the nation should be caught off guard.” He continued, reflecting on the spiritual aspect, "He believes there’s a significant movement underway, and personally, I share that sentiment."

There were also stronger defenses of DOGE presented.

"DOGE represents a significant transformation that extends well past the scope of the New Deal, surpasses former President Bill Clinton’s incremental budget surpluses, and even eclipses Theodore Roosevelt’s initiatives against monopolies," radio host Chris Stigall stated at the beginning of the conference on Friday.

DOGE represents a technologically driven lifeline for a nation teetering on the edge of economic ruin," stated Stigall. "If DOGE manages to succeed, it could mark one of the most significant financial accomplishments since Alexander Hamilton’s foundational idea, and I truly think it has that much importance.

Ned Ryun, a conservative activist and the founder of the candidate development group American Majority, stated that he had no interest in Washington becoming "efficient."

I desire it broken into a billion fragments. That's the sole method we have to emerge victorious," he stated. "Given that waste, fraud, and abuse represent the corrupt outcome of a corrupted system, and this flawed system is essentially an overbearing bureaucracy.

Ryun expressed his hope for DOGE, which has already eliminated 216,000 positions from federal employees continues to reduce the staff.

"Take them out of the federal system permanently so they can’t return. This is only the beginning. Next, eliminate the Department of Education, demolish the structure, and construct a memorial plaza dedicated to our heroes atop the site," he stated.

These favorable sentiments towards DOGE and Musk extended to the audience, with multiple participants stating their backing of Musk’s efforts up until now.

"[Musk] has been a delightful unexpected pleasure," stated Judy Zabel, a resident of Pennsylvania since 2020, residing just outside Scranton.

The conference, ongoing until Saturday, also highlighted several unexpected victors from the GOP, such as State Senator Joe Picozzi, who is the first Republican to win this seat. representing portions of Philadelphia in the state Senate for two decades who participated in a discussion on engaging younger voters.

Picozzi stated, "You must take it directly to the community. You need to present a positive vision of what the future holds specifically within your neighborhood, precisely on your street."

U.S. Rep. Rob Bresnahan, Who removed long-serving Democratic Representative Matt Cartwright? In Northeast Pennsylvania, characterized Washington Republicans as being "united."

I would say that, generally speaking, Republicans are united," he stated. "They are completely aligned with one another. It’s clear that we share a common objective and a task that needs our collective effort.

Waving off tariffs

Many participants at the Friday conference mostly dismissed the tariffs unsettling the market, as companies prepare for uncertainty ahead.

"I'm tuned into what President Trump has to say, and I see no cause for doubt that he would be honest with us," stated Joe Phillips from Berks County, adding that the tariffs imposed by Trump are a reaction to how other nations handle goods coming in from America.

Philadelphia companies gear up for a new chapter in international commerce: 'Everything is uncertain'

He said, 'Do you want to impose tariffs on us? Well, we’ll hit you with tariffs too,' " Phillips commented. "What’s incorrect about that? I fully support it.

The speakers generally steered clear of the subject, but whenever they addressed it, they echoed Trump's viewpoint that a phase of adaptation would result in substantial long-term benefits.

I understand there are reasonable discussions around tariffs," stated Stigall, the conservative radio show host. "However, when we adjust for trade imbalances, this will lead to some market fluctuations and may cause temporary difficulties. Nonetheless, the reality is that our nation requires additional job opportunities as AI is rapidly advancing towards us.

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Treasury Chief Bessent Warns: White House Averts a Certainty of Financial Crisis

Treasury Secretary Scott Bessent stated on Sunday that the Trump administration is concentrating on averting a potential financial crisis triggered by substantial governmental expenditures accumulated over recent years.

I can assure you that we were heading towards a financial crisis. Having researched this topic extensively and having taught about it as well, maintaining our current level of expenditures was simply not viable," Bessent stated on NBC’s “Meet the Press.” "Now, we are readjusting and placing ourselves onto a sustainable trajectory.

President Donald Trump Since assuming office, he has prioritized putting the government's financial affairs in order. He established what is known as the Department of Government Efficiency, which is headed by Elon Musk , to lead initiatives for employee layoffs and early retirement benefits across several federal organizations.

Nevertheless, the issue of U.S. debt and deficits has become more severe. In President Trump's initial month in office, the budget deficit for February surpassed the $1 trillion threshold.

Bessent pointed out that there are "no guarantees" against the possibility of a recession.

Recently, the market has experienced a wild fluctuation due to actions taken by Trump. widespread tariffs expressed worries regarding inflation and an economic downturn. On Thursday, the S&P 500 dropped into a 10% correction from its peak in February amid increased market turbulence.

Bessent considers current market retracements as harmless, and he thinks that President Trump’s business-friendly policies will ultimately strengthen both the market and the overall economy in the long term.

"I’ve spent 35 years in the investment industry, and I can assure you that market corrections are beneficial; they’re natural,” he stated. “What isn’t good is when we experience overly optimistic market conditions. This leads to financial crises. It would have been far better if measures were taken back in ‘06 or ‘07 to slow things down. Then, we might not have faced the issues in ‘08.”

"I’m not concerned about the markets. In the long run, implementing sound tax policies, reducing regulations, and ensuring energy security will lead to strong performance in the markets,” Bessent noted additionally. “Remember, one week doesn’t define the market.”

Trump Voters Express Disappointment: Economy Under His Watch Causes Concern

President Donald Trump secured his second term primarily by persuading a significant portion of undecided voters in key states that he would handle the economy more effectively than the Democratic candidates. Nonetheless, some of these supporters are beginning to doubt their choice as inflation persists and financial markets struggle.

The Washington Post is reporting That Trump's credentials as an economist have come under scrutiny following his comments about a possible trade war, which has alarmed investors and led to a decline in stock values, raising concerns about a potential recession. North Carolina resident Alexis Arney, who cast her vote for Trump in 2024, expressed feeling misled as she notices costs for essentials like groceries and gasoline increasing. She shared this sentiment with the media. Post She’s thinking about enrolling her four-month-old in daycare so she can earn additional funds to meet essential requirements, such as specialized baby formula for infants with acid reflux like hers.

It costs $44 per can, and she goes through seven cans each month," Arney stated. "I'm concerned about feeding my baby.

READ MORE: 'Won’t Have a Job After This’: Revealed Thoughts of Social Security Chief on Trump

Even though some supporters of Donald Trump recognize that the current economic situation has worsened compared to when Joe Biden was president, they remain hesitant to fully reject him. Tom Kristunas, a 65-year-old Trump backer from Pennsylvania, stated that he feels the country is heading in the right direction, even with increased food costs. He shared this sentiment with the media. Post He thought that Trump's strategy for the economy might "take some time" before the outcomes become evident.

In the end, it remains uncertain if the economy will deteriorate and if voters will hold Republicans accountable for a possible recession. However, as seasoned Republican strategist Whit Ayres suggests, the Trump administration should not assume its base in 2024 is guaranteed.

"It’s quite evident that voters chose him to boost the economy, reduce inflation, halt illegal immigration, and move away from wokeness," Ayres stated. Post If you observe what's currently making headlines, it often revolves around significant reductions in government jobs, developments related to Ukraine, and a declining stock market.

“When individuals anticipate certain actions based on their votes, but the prevailing news coverage focuses on an entirely different set of issues, this often results in significant letdown,” he said.

READ MORE: "Public anger is rising": American goods "not as readily embraced" abroad as Europeans add to the boycott

Click here to read the Post's the complete article (a subscription is needed).

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China Unveils Plan to Supercharge Consumption as Economic Lifeline

  • On Sunday, China unveiled a "Special Action Plan to Boost Consumption" aimed at supporting domestic spending within the globe's second-largest economy.
  • The extensive rollout also detailed additional actions, including implementing "various strategies" to steady the equity markets and crafting more bond offerings tailored for retail investors.
  • Currently, China is experiencing a slow consumer market, as evidenced by the sharpest decline in the latest CPI for February in more than a year, along with the PPI remaining in negative territory since September 2022.

China announced a " Special Strategy Initiative to Increase Consumer Spending on Sunday as an attempt to bolster domestic spending in the globe’s second biggest economic market.

The General Office of the Central Committee, an office directly under China's ruling party, said the plan was to vigorously boost consumption, expand domestic demand, and "enhance consumption capacity by increasing income and reducing burdens," according to a Google translation of the report.

The extensive rollout also detailed additional actions, including implementing "various strategies" to steady the equity market and crafting more bond offerings tailored for retail investors.

China's CSI 300 index and Hong Kong's Hang Seng index saw modest increases on Monday, showing gains of approximately 0.1%.

This follows one week after Chinese Premier Li Qiang presented his yearly address on governmental activities, where he highlighted the increase in consumer spending as the primary objective for the coming year.

Back then, Chinese officials have progressively recognized the importance of addressing this issue. to combat domestic deflationary pressures.

Currently, China is experiencing a slow-moving consumer market, as evidenced by the sharpest decline in the latest consumer price index for February in more than twelve months, along with a continuing decrease in the producer price index since October 2022.

The proposal unveiled on Sunday included measures to boost both incoming international and local travel. It aimed at assisting icy and snowy areas to transform themselves into internationally renowned spots for wintertime activities. Additionally, unilateral visa exemptions would be increased, and regional entrance regulations would undergo improvements.

Although the strategy doesn’t appear to include “any major innovations,” presenting it as an actionable plan indicates that specific measures at regional levels will ensue, according to Lynn Song, ING’s lead economist for Greater China, who stated this observation.

She emphasized that the plan demonstrates China's dedication to tackling long-term structural problems like wage stagnation, the adverse impact on household wealth due to the real estate and stock market conditions, and inadequate social welfare systems.

The proposal aims to boost the earnings of people living in both cities and countryside areas, including farmers. This would be achieved through measures like providing job assistance programs and maintaining the current unemployment benefits policies.

Song highlighted that "these issues probably require strategies spanning multiple years instead of solutions that can be implemented within a few months. It’s reassuring that policymakers are approaching these topics with a clear-headed perspective, which ought to facilitate the long-term shift towards an economy more reliant on consumer spending."

I would prefer to go with the saying "Rome wasn't built in a day." What do you make of that?

As the saying goes, Rome wasn’t constructed overnight—and neither was BYD’s rise or China's leadership in electric vehicles. Many significant Chinese policies require considerable time to yield results, and this document lays down foundations for the future growth of the consumer sector,” Song commented.

In March, Shen Danyang, who leads both the drafting team for the Government Work Report and serves as the director of the State Council Research Office, stated that due to potential new disruptions to international trade, China needs to concentrate more on stimulating internal consumption. According to him, this shift was recommended by Chinese policy makers.

At their yearly parliamentary session in January, Chinese officials committed to issuing an extra 300 billion yuan (approximately $41.45 billion) in ultra-long special government bonds aimed at bolstering consumer subsidies.

Richard Harris, who leads Port Shelter Investment Management as CEO, spoke with 's "". Squawk Box Asia that Chinese authorities truly need to concentrate on resolving issues within their domestic economy.

"The authorities are committed to boosting the economy, steadfast in keeping it running, and despite potential problems on the export front, they remain resolute in reviving the domestic market. They have no choice but to do so," Harris stated.

— Anniek Bao contributed to this report.

Trump's Bitcoin Hoard: A 'Digital Fort Knox'

The establishment of a "Strategic Bitcoin Reserve" in the U.S. serves as additional evidence of President Donald Trump’s backing for the crypto industry.

Earlier this month, Trump signed an executive order to create the reserve, which White House cryptocurrency czar David Sacks compared to "a digital Fort Knox." He drew parallels to storing gold bullion at the U.S. military installation.

Countries around the globe keep gold in their reserves because this precious metal is considered a sanctuary asset, shielding them from economic turmoil like soaring inflation.

On Friday, the price of gold exceeded $3,000 per ounce for the first time, driven up by an unstable economic forecast due to Trump's tariffs.

Gold reserves may also assist in stabilizing a nation's currency, whereas bullion serves as security for loans and exchanges.

What would the U.S. Bitcoin reserves function like?

The project will be financed with approximately 200,000 bitcoins, which have an estimated value of roughly $17 billion altogether. These coins were confiscated in the U.S. through various civil and criminal proceedings.

The reservation will be virtually protected for an unspecified period.

Extra bitcoins can be included in the reserve provided that this move remains "budget-neutral," hence not burdening the taxpayers.

Announcement fails to impress

Initially, the price of Bitcoin dropped following Trump’s signing of the executive order; however, it has since stabilized.

Experts have attributed the insufficient backing to not promptly purchasing additional Bitcoin.

Dessislava Aubert, an analyst at crypto data provider Kaiko, told AFP that "legally" the US government must return bitcoin to all victims identified as suffering from a hack.

As per Aubert, "a significant portion" of the bitcoins possessed by the United States -- believed to be approximately 198,000 coins -- would need to be handed back to the individuals affected by a hacking incident at the cryptocurrency exchange Bitfinex in 2016.

Sectors observers are likewise anticipating whether additional digital tokens might join the reserves, as this possibility was highlighted in the executive order.

Trump has said that bitcoin's nearest rival, ether, along with three other tokens -- XRP, Solana and Cardano -- could be added.

What is the reason for copying the gold reserves?

Critics of the US bitcoin reserve argue that, unlike gold, cryptocurrencies are considered high-risk investments and lack inherent worth.

Nevertheless, Sacks thinks that by holding onto bitcoins for an extended period, the government could safeguard itself against the significant short-term fluctuations of the cryptocurrency.

Meanwhile, Stephane Ifrah, an investment director at crypto platform Coinhouse, said that bitcoin, like gold, can profit from its rarity thanks to a limited 21 million tokens.

A benefit of the Bitcoin reserves lies in their transparency, as the number of tokens can always be tracked — which contrasts with the undisclosed quantity of gold stored in Fort Knox.

Moreover, with the bitcoin reserve, "we're handling a scarce asset that aligns better with the modern era," Ifrah stated to AFP.

Molly White, a well-known detractor of cryptocurrencies, argues that the actual purpose of the reserve is "to stimulate interest within the crypto sector," potentially leading to financial gains for investors.

Some have accused Trump of facing a potential conflict of interest after he pledged before his election to turn the United States into the "bitcoin and cryptocurrency capital of the world."

According to The Financial Times, Trump generated $350 million by introducing a meme coin named $TRUMP in conjunction with his presidential inauguration.

According to The Wall Street Journal, the Trump family considered potentially obtaining a share in the Binance platform; however, this was refuted by the cryptocurrency exchange’s founder.

Other country plans

Brazil is mulling over the establishment of a cryptocurrency reserve, a concept that was recently dismissed by the Swiss central bank.

Governments across the globe are engaging in activities related to cryptocurrencies, particularly through the sale of digital assets confiscated during legal proceedings. For instance, this occurred in Germany where they auctioned off 50,000 bitcoins that were seized previously.

El Salvador adopted Bitcoin as an official currency but reversed this decision this year due to low adoption rates among its residents.

The Kingdom of Bhutan possesses approximately $900 million in Bitcoin, which constitutes around 30 percent of the nation's gross domestic product.

Parliament Kicks Off 2025 Post-Budget Workshop in Accra: An International English Edition

By Elsie Appiah-Osei

On Saturday, the Ghana News Agency reported from Accra that Parliament initiated a three-day post-budget workshop at the Parliamentary Complex in Accra. The objective was to arm MPs with essential skills and understanding needed for thorough scrutiny and analysis of the 2025 Budget Statement and Economic Policy.

Alban Sumana Kingsford Bagbin, Speaker of Parliament, underscored the significance of the national budget, noting that "It stands as the paramount policy tool for any administration since it delineates governmental priority areas and charts the course for nationwide progress."

He pointed out that the budget is a highly technical and intricate document, which makes it difficult for both ordinary citizens and members of parliament to completely grasp its ramifications.

The Speaker emphasized that the workshop was designed to equip MPs with the skills needed to effectively evaluate the 2025 budget statement. This included formulating pertinent queries, analyzing trade-offs, and grasping the possible enduring impacts of various policy decisions.

He encouraged members of parliament to engage proactively, pose inquiries, and voice their opinions.

Mr. Ebenezer Ahumah Djietror, the Clerk to Parliament, stated: "The Budget Statement and Economic Policy presented by the government is among the most crucial policy documents in the administration of the country."

He stated: "This document serves as a roadmap encompassing financial strategies that embody our shared objectives, key focuses, and ambitions."

He stressed the significance of critical engagement, evidence-based analysis, and productive dialogue when assessing fiscal policies and revenue forecasts.

Majority Leader Mahama Ayariga highlighted the importance of the workshop in enabling MPs to understand both policy declarations and fiscal projections within the budget.

He emphasized that Members of Parliament were duty-bound to either endorse or oppose the budget, depending on how well it aligned with the nation's developmental goals.

"We all recognize that it is our duty to examine, comprehend, discuss, and determine whether we should endorse or decline the budget. This procedure is essential for guaranteeing that government policies uphold the promises made to Ghanaians," stated Mr. Ayariga.

Nevertheless, he encouraged the Majority Caucus to make sure that the budget was consistent with the government’s 'Reset Ghana' initiative, which seeks to revitalize the economy.

The Minority Leader, Alexander Kwamena Afenyo-Markin, highlighted the significance of ongoing education in parliamentary administration.

He highlighted that Members of Parliament have varied professional experiences, which makes building their capacities crucial for meaningful involvement in discussions about budgets.

"Grasping the complexities of the budget enables us to have productive conversations. Take for instance when the Finance Minister assigns $1.5 billion to agriculture, yet only $924 million actually gets spent, with much of this sum going towards compensations. In these cases, MPs should be prepared to spot and challenge such inconsistencies," he explained.

Mr. Afenyo-Markin praised the Speaker of Parliament for their guidance in arranging the workshop and recognized the efforts of parliamentary employees who managed the schedule. He urged members of parliament, especially newcomers, to engage enthusiastically in the training sessions instead of treating them like ordinary gatherings.

"Refrain from entering and leaving sessions frequently. Instead, remain present, participate actively, and develop your skills. This will boost your self-assurance during discussions and improve your capability to advocate for your constituents effectively," he recommended.

From his perspective, Finance Minister Dr. Cassiel Ato Baah Forson characterized the workshop as a crucial forum for evaluating the budget before it gains approval.

He emphasized that the 2025 budget aimed to "restructure the Ghanaian economy for the benefit of Ghanaians."

The main objective of the yearly post-budget workshop was to provide MPs and senior officers from the Parliamentary Service with the necessary skills to review and analyze the budget and economic policy proposed by the executive branch for the 2025 financial year.

The aim was also to equip Members of Parliament with insights into the budget, enabling them to ask detailed questions so as to effectively oversee the government’s policies and programs.

The main anticipated results include thorough discussions of the motion presented in the House during the following day’s legislative session concerning pertinent bills and culminating in the passage of the Appropriation Act for the fiscal year 2025.

The event included plenary sessions along with breakout sessions that addressed various subjects like the overarching economic structure, industry-specific nuances, and tactics for tax collection and income generation.

Specialists headed conversations covering crucial topics such as the IMF Program, managing public sector debt, and setting policy goals and metrics.

This enhancement bolstered parliamentary review of the 2025 Budget Statement and Economic Policy, underscoring Ghana’s dedication to transparent and conscientious governance.

Even as he recognized the nation's financial difficulties, Dr. Forson told the Members of Parliament that the administration had implemented creative approaches to tackle these issues.

He stated: "While acknowledging that our economy faces a crisis, we emphasize that we've implemented creative approaches and measures to address these issues."

On Tuesday, March 11, 2025, Dr. Forson, who serves as the Minister of Finance, delivered the 2025 Budget Statement and Economic Policy to Parliament. The presentation centered around the theme "Reconfiguring Ghana for Our Desired Economy."

GNA

BM

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