YOUR DAILY BRIEFING
The news you need for September 22, 2022.
THE STORIES
NY AG OPENS INVESTIGATION INTO TRUMP BUSINESS
FED’s THIRD STRAIGHT RATE HIKE
SENATE APPROVES TREATY TO COMBAT CLIMATE CRISIS
AG JAMES OPENS INVESTIGATION INTO TRUMP BUSINESS PRACTICES
THE STORY
Attorney General Letitia James filed a lawsuit on Wednesday, accusing Trump, his business, and his children of fraud
The goal of the AG is to prevent the Trump family from operating in NY in the future
The lawsuit portrays a long standing history of lies surrounding Trump’s financial statements
These lies extend to the estimated value of the all of the family company’s assets and liabilities
These assets include famed real estate properties such as Mar-a-Lago and Trump Tower.
The AG claims that Trump and his family lied in order “to obtain beneficial financial terms” when borrowing money from banks and independent investors
This process also helped them evade certain taxes.
Alina Habba, an attorney for the Trump team, stated “It is abundantly clear that the Attorney General’s Office has exceeded its statutory authority by prying into transactions where absolutely no wrongdoing has taken place”
THE TAKES
LEFT: AG James is continuing her legacy of being a strong and honest AG. Her pursuit of Trump is brave, given the obvious political and general blowback she will get for pursuing it. Yet Trump deserves to be investigated. Anyone who has filed for bankruptcy four times almost certainly does not have good business practices, and after the multiple anecdotes we have heard about him scamming and stiffing people, it should come as no surprise that there are grounds for an investigation. It is likely he will run again, and the American people should know the truth about their candidates.
MIDDLE: James’s investigation is vital in ensuring accountability and ensuring that the super-rich or the very powerful are not seen as above the law. However, James needs to be careful that she does not overly politicize this case. Her attitude, tone, and language will be very important in ensuring the investigation's legitimacy does not come under fire, as it already has. James needs to show the country that this investigation is not about her as a Democrat bashing Trump but about her as a judicial official holding a civilian and business owner accountable.
RIGHT: James’s investigation is yet another political ploy to bash Trump and his family. While, yes, Trump’s business may have its flaws, so do plenty of businesses, yet none come under as intense of scrutiny as Trump’s. The fact that James announced this investigation during the midterms madness is also curious; if, in fact, she had been sitting on so much evidence, why could she not announce this pre or post-midterms? She will remain in her office beyond the midterms and should have recognized the obvious politicization this timing would bring.
FED RAISES RATES 75 BASIS POINTS
THE STORY
At today’s meetings, the Fed approved a third 75-basis point rate hike after inflation ticked up by .1% from July to August.
Interest rates are now between 3% — 3.25%
This is the highest rate since the financial crisis of 2008
The Fed's Summary of Economic Projections was also revealed today.
Expected 2023 unemployment rate: 4.4%
Higher than 3.9% expected in June’s report & higher than today’s 3.7%
GDP to be down only 0.2% not the expected 1.7% from June.
Rates into 2023 & 2024 are also expected to be higher than was initially thought in June’s report.
THE TAKES
LEFT: We must find other means by which we can calm down rampant inflation. It should not be the default solution that when inflation is high, people are forced to lose jobs and leave their homes due to the chain reaction caused by the Federal Reserve on mortgage rates and other rates on corporate and consumer loans. That being said, it seems that interest rate hikes should not be the go-to solution in this unique inflationary scenario. Originally, high inflation appeared to have been due to the oil crisis caused by the war in Ukraine and the supply chain issues the global economy is still facing coming off of a global pandemic. We must recalibrate what we consider the normal solution to inflation and consider more carefully the causes of inflation entirely.
MIDDLE: Inflation has been hurting Americans. There is no getting around that fact, rate hikes have been the traditional way to force prices to a lower point. Yes, jobs, small businesses, and families may be at risk because of this. However, this is a fact of reality, and unless there is a serious proposal by a politician as to how we can control unreasonable prices for everyday Americans, it is in our best interest to not continue to villainize the government officials who are tasked with making these difficult decisions. Yes, it is painful; unfortunately, this is how economies work.
RIGHT: This is a necessary step to take to bring this country’s economy back to where it once was. Yes, it may be true that the majority of early inflation was caused by the war in Ukraine and supply chain complications. However, had the Biden administration properly reinvested in the U.S. energy sector by revitalizing the American oil and gas industry, then it is probable this crisis would be much calmer than it is now. Furthermore, continued spending is to blame for the inflation and cost of living crisis we see today. Rate hikes have worked in the past, and hopefully they will work now.
SENATE APPROVES CLIMATE TREATY
THE STORY
6 years after countries around the world agreed to phase out hydrofluorocarbons (HFCs), industrial chemicals that contribute to trapping 1,000 times more heat than CO2, the US Senate has ratified the Kigali Amendment (69-27 vote) which will formally phase down its usage.
Tennessee Sen. Bill Hagerty, a Republican member of the Senate Foreign Relations Committee, told CNN that the treaty gives “China an advantage that they don’t deserve.”
“We need to stand up and start addressing China in these multilateral forums,” Hagerty said.
Not only will this step towards combating climate change result in lowering global temperatures (1 degree fahrenheit by the end of the century), it will also create tens of thousands of American jobs. It’s expected to increase US manufacturing jobs by 33,000 by 2027, increase exports by $5 billion dollars, and reduce imports by around $7 billion.
However, experts say that the ratification of this treaty is going to lead to higher consumer prices in manufacturing industries like air conditioning and refrigeration. It directly impacts not only the average homeowner, but businesses like convenience stores, grocery stores, and others that require cooling equipment.
THE TAKES
LEFT: In recent weeks, Biden has been showing his strength as not only a domestic leader but as a world leader as well. The ratification of this bill is a huge step forward in regard to climate change, which is an issue that is getting exponentially worse as time goes on. This bill reduces greenhouse gas emissions, strengthens our manufacturing industry, creates more jobs for workers at home, and boosts U.S exports: what more can one ask for from legislation?
MIDDLE: Climate change is undoubtedly an issue that has gotten significantly worse in recent years, and the ratification of this bill puts America on display as a global leader in regard to this issue. While it does exempt China due to its classification as a developing nation, the pros of this bill largely outweigh the cons. The ratification of this bill is not only necessary to combat climate change but it also provides the United States with a multitude of direct benefits.
RIGHT: The Republican party is split on this issue: some say it will strengthen the American industry and economy while others say that it benefits China. While it does create jobs for Americans, increase exports while decreasing exports, and puts America in a position to increase manufacturing dominance in this industry, this gives China an advantage they do not deserve. China has been granted absurd exemptions due to its incorrect classification as a developing nation. Although it is agreed upon that China needs to be addressed, the argument presents itself when it comes to how: through direct action or through these multilateral forums.
NOTE FROM THE TEAM
We apologize for today’s late publication, account difficulties led to a late publishing time. Those have since been rectified and following letters will be sent at 7 AM every morning.