Hi everyone, this is Dr. Nitin Chhoda
and welcome to my show.
I'll give you the latest status
of the stimulus negotiations and some
surprising information about statistics
that came out in July about personal
income and about the status
of the economy, which could
be potentially misleading.
And I'll tell you why.
Once again, this is Dr. Nitin Chhoda.
Welcome to my show.
If you do learn something new.
Please consider clicking like please
subscribe, please enable notifications
because it really helps
out me and my channel.
It helps out my team that works behind
the scenes to bring you this
content on a regular basis.
Let's jump right in.
There was a call today that involved
US Treasury Secretary Steven Mnuchin and
White House Chief of Staff Mark Meadows.
Remember, these are the two lead
negotiators on the part of the White House
from the President side,
from the administration side.
And they were negotiating with House
Speaker Nancy Pelosi and Chuck Schumer.
And unfortunately, those talks
have all but broken down.
In fact, there was a 25 minute phone call
yesterday between Mark Meadows and
Speaker Pelosi, and that went nowhere.
And since then, both sides have
been taking shots at each other.
Well, what happened today was
that the White House lead negotiators held
one of their conference calls
with Senate Republicans.
And what they said was and this is what
the White House chief of staff Mark Meadows said,
he told the senators that his call
with House Speaker Nancy Pelosi
yesterday was I quote, "a waste of time."
Yes, he said a waste of time.
And Steven Mnuchin said that he believes
that Speaker Pelosi is
not in a dealmaking mode.
So that's where things stand right now.
That is the perspective
of the administration.
Now, in addition,
Senate Majority Leader Mitch McConnell
said that the Senate will not likely
come back into session next week.
They will not likely come
back into session next week.
They will instead come
back after Labor Day,
most likely. That is what
Senate majority leader said.
There was some part, keep in mind,
of coming back next week to get some work
done, potentially in the hopes
of some consensus in the stimulus.
So, I mean, if the call yesterday had
gone well in an alternate world,
then, you know, then the Senate would
have come back into session
next week to work on something.
But clearly, they are not going to come
back to session next week because they
believe that nothing's happening.
And so they are not going to come
back until after Labor Day.
So here's where things stand right now.
After the Labor Day holiday,
the Senate's going to be back in session.
Presumably the two sides will start
talking about the upcoming
shutdown because the government
does need to be funded.
I don't believe we'll see
a shutdown of the government.
That would be inconceivable, although
we live in a world where pretty
much anything is conceivable.
But the assuming that they come
to a consensus about continuing to fund
the government, hopefully they can also
come to a consensus about federal
unemployment benefits extension
and the stimulus check.
But right now,
the way it looks is that there is going
to be zero, zero talk of stimulus checks
and federal unemployment benefits
until after the Labor Day holiday.
That's where things stand right now.
And again, I wish I was giving you
good news, but unfortunately,
things seem to be escalating.
Speaking of escalations,
our House panel is actually initiating
contempt proceedings against Mike Pompeo,
against Secretary of State Mike Pompeo.
That's a big deal.
So the House Foreign Affairs Committee is
launching contempt proceedings against
Secretary of State Mike Powell for what
they say is his repeated refusal
to cooperate with the
committee's investigation.
So the escalations between
the administration and the House,
specifically the Democrats,
just seem to continue.
I'm going to try and stay
focused on the data.
And speaking of data, July personal
income was nine hundred billion dollars
more than it was in February.
Now, think about this.
How is it possible that overall personal
income would be higher
in July relative to February?
Now, in case you're thinking, well,
these numbers are actually the math.
Now, let me give you the Martorell quick.
The economy is down by a trillion dollars.
OK, but but with the Keres Act
and with federal unemployment benefits,
one point eight trillion dollars
was injected into the system.
This was in March and April.
Now, keep in mind that whenever money is
injected into the system,
there's sort of a lagging effect.
There's a lagging indicator.
So the money that was injected
into the system in March, April,
in May basically propped up
the economy in June, July and August.
Right.
But the problem is because the federal
unemployment benefits,
the enhanced unemployment benefit,
the six hundred all week ended in July
will now start to see the effects in terms
of overall personal income spending,
the overall state of the economy
in September, October, November,
potentially into December,
which from a political standpoint, I mean,
when the numbers come out in October
and November, it's pretty clear those
numbers are not going to be good.
And, you know, it's so, gosh,
what a world, what a situation.
So because of fiscal support has.
Sort of, you know, falling apart,
if you will, the three hundred dollar
a week measure from the president's
executive actions, whether you agree
politically with the president or not.
The fact is there's a lot of inequality
in terms of these benefits.
Many states have not started being
in fact, a majority of states have
not started paying out the benefits.
A majority of states will not be the four
hundred dollars a week
benefit at the time.
Regarding this,
only a small handful of states,
four or five states, are paying the full
four hundred dollar a week benefit.
And some states are saying that they will
not start being on the
benefit until October.
Alaska is one of them and some states
already started being benefits
two weeks ago, Arizona.
So there's a lot of fundamental inequality
because the three hundred dollar
unemployment lost wages assistance
program, the enhanced unemployment benefit
from the president's executive order is
nothing more than a stopgap measure.
It's possible that that was a way
for the administration to buy time
until they worked out
a deal with Speaker Pelosi.
But guess what?
Speaker Pelosi is not budging.
That's clear from the call yesterday,
from her statement yesterday,
which I analyzed on my channel.
In a statement,
she basically said that the administration
does not care for the American
people and the administration.
You can see the administration,
the administration's position.
But the numbers,
the numbers suggest that without
additional support,
which comes through Congress,
because that's the significant we're
talking hundreds of billions
of dollars of support.
What the president did with the forty four
billion dollars in the grand scheme
of things is just a drop in the bucket
compared to the amount of money that's
needed to continuously support,
at least for the short term,
those who needed the most.
And you know exactly
what I'm talking about.
So we will start to see damage
from the loss of jobs and the loss
of income in the next couple of months.
And the extra six hundred dollars a week
booster was five percent of disposable
income in the month of July,
and now it's gone.
So basically, people now think about it.
If people spend five to 10 percent less,
that's going to be a significant
drag on the economy.
That's it, everybody.
By the way, I have new glasses,
my prescription glasses.
Let me know if you want me
to switch the glasses out.
I use prescription glasses.
I spend so much time on a computer that I
had to get and big glasses
and you know these.
So let me know what you think of these new
glasses or whether you think I
should just stick to the others.
And that's where we are.
Thank you so much for watching.
My name is Dr.
Nitin Chhoda with Ignition Time.
Thank you so much for watching.
If you learn something new,
please click like please click subscribe,
please enable notifications so you get
instant updates from us going forward.
I really, really, really appreciate you
watching Vitale's videos at two
p.m. East Coast time mostly.
So make sure you enable notifications
so you get those notifications.
Sometimes YouTube doesn't send
notifications, so you may want to just
bookmark our channel, YouTube,
dot com forward,
slash Ignition Time and then visit
the channel maybe once or twice a day
so you can see all the latest videos.
You can also get a lot from us.
Get your cell phone out,
send a text message with the word
Ignition Time or with the word tame.
Do seventy thousand.
That's seven zero zero zero zero.
And then you'll get instant alerts from us
whenever we have breaking news
that we want to report to you.
You can also get on our email list and you
can opt out of the emails at any time.
Once again, please click like please click
subscribe, please enable notifications.
I would really, really,
really appreciate that.
And so would my team and have
said the YouTube algorithm.
It supports us in our efforts as we
continue to work hard
behind the scenes for you.
Thank you so much for watching.
I'm looking forward to seeing you
in the next episode of Ignition Time.
Thanks.
Let's see here the glasses,
the quick contrast again for you.
And there you go.
Let me know.
Thanks.
I'll see you soon.
Bye.
