The Trump Administration is reportedly considering a substantial reduction of U.S. military personnel on German soil, which would decrease American force levels by 9,500 (28 percent of the current force) and cap the number at 25,000. Reports indicate that the Administration wants this to occur within the next 90 days. President Trump has personally asked U.S. Secretary of Defense Mark Esper to effectuate the plan, and the National Security Council has outlined a plan; nevertheless, the President has not yet signed a formal order to carry out the reductions.
Read MoreThe Chinese Parliament formally adopted a new national-security law for Hong Kong, meant to hasten the demise of Hong Kong’s independent legal and economic system. Hong Kong currently has an independent judiciary and its citizens enjoy Western-style freedom of speech, press, and assembly — rights that are guaranteed through 2047 under the Sino-British declaration. Thus the new Chinese law, in a sense, amounts to an premature annexation of Hong Kong, reminiscent of Russia’s annexation of Crimea in 2014. The United States released a joint statement with the United Kingdom, Canada, and Australia, expressing deep concern and accusing China of violating the terms of the Sino-British declaration. The U.S. Department of State has also certified that the United States no longer views Hong Kong as politically autonomous from China.
Read MoreEven as restrictions are being loosened in all 50 states (not including the District of Columbia), the American economy continues to undergo unprecedented trauma. Almost a quarter of the American labor force (36 million people) have filed for unemployment benefits in the last two months. Retail sales declined massively in April (16.4 percent from March, exceeding projections). Retail sales accounts for half of all consumer spending, which in turn accounts for 70 percent of the U.S. economy. The chief economic advisor at Allianz called it the “worst retail sale collapse on record.” Germany’s Chamber of Commerce reported that the collapse in demand for German imports in the United States (Germany’s biggest customer) is much more dramatic than in other countries, “in part because the social safety net is relatively weak.”
Read MorePresident Trump and other Administration officials are expressing increasing hostility to China, suggesting that China is at fault for the pandemic sweeping the United States. President Trump this week called it an “attack” that is worse than Pearl Harbor or 9/11. At least one U.S. intelligence agency has concluded with moderate confidence that China concealed the extent and danger of Covid-19 from the international community, and Administration officials describe China as “culpable” for the damage.
Read MorePresident Trump will imminently sign the Paycheck Protection Program and Healthcare Enhancement Act — an economic rescue package worth $484 billion. The bill, which moved quickly through Congress this week, is called “Phase 3.5” because it replenishes existing programs, rather than creating new programs as contemplated in a “Phase 4” rescue in the coming weeks.
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