Led by McConnell, Republicans Are Bailing Out on Donald Trump; Money, It’s a Gas
October 21, 2020
CONGRESSIONAL REPUBLICANS CONSIDER DONALD TRUMP an albatross; for years they would not acknowledge this in public, but now they’re bailing out. Mitch McConnell is leading the retreat.
A McCONNELL-TRUMP FEUD IS NOW PUBLIC, as the Senate Majority Leader bluntly declared yesterday that a pandemic relief bill shouldn’t pass before the election; most of his troops want nothing to do with a measure that could cost over $2 trillion.
McCONNELL HAS TWO OBJECTIVES: First, to get Amy Coney Barrett confirmed, probably on Monday. He wants no distractions, such as the pandemic bill, to get in the way. Her confirmation will cement McConnell’s legacy as the dominant force in moving the U.S. judiciary far to the right for the next two decades.
SECOND, McCONNELL STILL THINKS THERE’S A CHANCE that Republicans could retain control of the Senate on Nov. 3 — but that’s a tough task when even GOP Senate seats in Kansas and Iowa appear to be in jeopardy. The only way to keep the Senate, he believes, is to bail out on Trump.
THE PRESIDENT NEEDS A MASSIVE STIMULUS BILL, which would please the stock market and instantly boost prospects for a decent economy this winter. But McConnell doesn’t need a massive stimulus bill — and the irony is that congressional Republicans no longer have loyalty to this erratic president, and they will kill any deal.
* * * * *
MONEY, IT’S A GAS: Pink Floyd got it right, and what a surprise it is to see Republicans badly trailing in fundraising — and running out of money to fund TV ads in key states like Michigan and Pennsylvania. The GOP is bogged down in a money trap in Florida, where a huge influx of cash from Michael Bloomberg is making the Sunshine State competitive.
AN ARTICLE IN THIS MORNING’S POLITICO details the Republicans’ funding woes, which have allowed the cash-rich Democrats to saturate TV. Joe Biden ads are running more frequently by 2-to-1 in most of the country.
THIS GOT US THINKING ABOUT GOOGLE AND THE TECH SECTOR, which contributes lavishly to candidates, mostly Democrats. There are several excellent articles this morning about Google’s dominance and possible antitrust remedies, but what strikes us is that Silicon Valley is a cash cow for Democrats.
AS THE JUSTICE DEPARTMENT takes years and years to resolve this complex case, the campaign contributions will continue. Should Biden win, Kamala Harris obviously would be a major player, and it’s worth noting that she has close ties to the major players in Silicon Valley, many of whom have contributed to her campaigns.
WE ALWAYS SAY THAT MONEY is the mother’s milk of politics — an adage coined by a legendary California politician, Jesse Unruh. The Democrats and Bloomberg get it, and the Republicans may pay a price.
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
©2020 AGF Management Limited. All rights reserved.