Dow Tops 20,000
The Dow Jones Industrial Index finally broke through the psychological barrier of 20,000 and is making new all-time highs. The broader S&P 500 Index has also made a new all-time high price. It is hard to find direct reasons for the bullishness but some analysts suspect that it is caused by an impression of the new President being very serious about reflating domestic demand and production.
President Donald Trump yesterday signed further executive orders for the commencement of the building of an “impassable physical structure” on America’s border with Mexico, reiterating in a public statement that the cost of the wall will be paid for by Mexico. The building of this wall will be an immense undertaking and will provide a certain degree of jobs and contracts for American construction companies. Trump’s order also provided for the hiring of 10,000 new immigration officers.
The President of Mexico, Mr. Pena Nieto, replied “…Mexico won’t pay for any wall. I regret and condemn the decision of the United States…” It seems clear that President Trump will now have to work with congress to secure funding for the project, but must devise a political method for plausibly claiming that Mexico ultimately paid for the barrier’s construction. Most analysts agree a fee levied at the border for non-citizens to cross into the United States is the most plausible option. There are approximately 1 million legal crossings of the border every day.
President Trump went on to sign an executive order that threatens to cut federal funding to any “sanctuary cities” which continue to refuse to implement federal laws mandating apprehension of illegal immigrants. Non-Americans might be surprised to learn that there are several American cities that refuse to act against people in the country illegally, including New York and San Francisco.
The other major American political development of the day was President Trump announcing that a “major investigation” will be held into allegations of voter fraud in the U.S.A.
Sea of Change in America
It seems clear that President Trump is entirely serious about implementing his campaign promises, instead of rowing back on much of his agenda as winning candidates typically do. This promises to deliver a high level of political friction and change that is rarely seen in the U.S.A.