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Wall Street Is Furious At The Trump Tax Plan – Here’s Why

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(Via ZeroHedge)

Back in October 2016, the “millionaire, billionaire, private jet owners” of America’s elitist, liberal mega-cities (A.K.A. New York and San Francisco) celebrated the tax hikes that a Hillary Clinton presidency would have undoubtedly jammed down their throats proclaiming them to be a ‘patriotic duty’. Unfortunately, now that Trump has given them exactly what they apparently wanted…an amazing opportunity to ‘spread their wealth around”…they’re suddenly feeling a lot less patriotic.

Of course, as we’ve noted numerous times, while most people across the country and across the income spectrum will benefit from the Republican tax reform package, the folks who stand to lose are those living in high-tax states with expensive real estate as their SALT, mortgage interest and property tax deductions will suddenly be capped. And, as Bloomberg points out today, that has a lot of Wall Street Traders in New York drowning their sorrows in expensive vodka and considering a move to Florida.

One trader, sipping a Bloody Mary on a morning flight to somewhere more tropical, said he’s going to stop registering as a Republican. En route, he sent more than a dozen text messages ripping the tax bill.

A pair of hedge fund managers said the tax bill is too tilted toward corporations, rather than individuals who should get more relief.

“My clients are hard-working young professionals on Wall Street. I don’t have a lot of good news for them,” said Douglas Boneparth, a financial adviser in lower Manhattan who counsels people throughout the industry. Most are coming to terms with it. “I don’t think anyone is going to be surprised by the economic reality.”

“This provides a clear incentive for financial advisers to go independent,” said Louis Diamond of Diamond Consultants. “We’re hearing from a lot of clients on this; it’s just another reason why it makes a ton of sense, economically, to become self-employed.”

Of course, as we pointed out recently (see: Here’s An Interactive Map Of Which Housing Markets Get Hit The Most By The GOP Tax Bill), tax reform will likely be a double-whammy for wealthy bankers in New York and tech titans in San Francisco as their fancy McMansions may also take a pricing hit.

But, not everyone is furious. Afterall, there are still some tax goodies for New Yorkers such as a higher threshold for the alternative minimum tax, and a drop in the top marginal rate to 37% from 39.6%.

As an example, Mike Dean, a broker in New York for TP ICAP Plc, is keeping a positive attitude saying “It’s going to hurt, obviously” but he sees the higher taxes as tantamount to “making an investment in the future of the economy.”

Still others are considering a move to lower-taxed states like Florida and Texas which, as Todd Morgan, chairman of Bel Air Investment Advisors in Los Angeles notes, sounds like a great idea right to the point that you realize that actually entails uprooting your entire family and starting a whole new life in a different part of the country…something that generally doesn’t go over well with teenage kids…”If you’re already rich why would you move to another state and live a different life just to save some money on taxes? What are you going to do with the money? Buy more clothes? Eat more food?”

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President Trump Secures Iowa Largest Steel Plant in U.S. History

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WASHINGTON — President Donald Trump announced Monday that Mesabi Metallics will build a roughly $15 billion steel mill in southeast Iowa — a project the White House calls the largest steel plant ever constructed in the United States.

Speaking in the Oval Office alongside company executives and administration officials, Trump framed the deal as proof that American manufacturing is coming back.

“Today, we’re thrilled to announce that Mesabi Metallics will be building the largest steel plant in American history in the great state of Iowa,” Trump said. “It’s the largest plant, one of the largest plants in the world, but it’s the largest plant in America by far.”

“In other words, this steel will be mined, melted and made right here in the USA,” he added. The project is expected to create up to 6,000 construction jobs, nearly 2,000 manufacturing and mining jobs, and $95 billion in economic activity, according to the White House.

The mill is planned for Lee County in southeast Iowa, near the Mississippi River, which the company intends to use to move iron ore from Minnesota. Rep. Mariannette Miller-Meeks, whose district includes the county, confirmed the location and said she joined the Oval Office announcement. Iowa lawmakers have discussed a possible special session to consider tax incentives before the November midterms.

Mine to mill, all in America

Mesabi Metallics, based in Nashwauk, Minnesota, and owned by India’s Essar Group, will feed the Iowa plant with iron ore from its new mine on Minnesota’s Mesabi Iron Range — the first new U.S. iron ore mine in about 50 years. The mine represents more than $2.5 billion in investment and is expected to produce about 7.5 million tons of direct-reduction-grade pellets a year and support roughly 350 jobs. Combined with the Iowa mill, the two projects total nearly $18 billion.

The company describes the supply chain as “100% American steel: mined, melted and poured in Minnesota and Iowa.” The U.S. Export-Import Bank has provided major financing for the Minnesota expansion.

The Iowa plant’s first phase is designed for 7.5 million tons of steel a year, with capacity later rising to 10 million tons — more than any other U.S. mill, according to the White House. First steel is targeted for 2030. Officials say it will use modern direct-reduced iron (DRI) and electric-arc furnace technology and can supply high-grade steel for defense, vehicles, shipbuilding, energy, and infrastructure.

Mesabi CEO Joe Broking called it “a major moment for U.S. made steel, combining the highest quality direct-reduction grade iron ore pellet from Minnesota’s Iron Range with the most advanced DRI to EAF steelmaking technology in Iowa.”

Permanent employment at the Iowa mill is projected at least 1,750 jobs. Some local reports put pay above $49 an hour. Construction is expected to begin soon.

Political and industrial context

The announcement comes weeks before the Nov. 3 midterm elections and after the administration raised steel tariffs to 50%. The White House is presenting the project as the first “mega” steel plant built in the United States since the 1960s and as evidence that tariffs and an America-first industrial policy are drawing capital back home.

White House spokeswoman Taylor Rogers said: “President Trump is delivering on his promise to rebuild American industry, reshore manufacturing, and create new jobs. Today’s announcement underscores the President’s historic efforts to revitalize the U.S. steel industry — supporting local communities, strengthening supply chains, and protecting our national security.”

Iowa Gov. Kim Reynolds welcomed the news: “American steel is BACK! … We’re proud to be the future home of the largest steel investment in US history—creating thousands of quality jobs, strengthening our economic trajectory, and ensuring strategic goods are Made in America.”

Commerce Secretary Howard Lutnick, EXIM Bank Chairman John Jovanovic, Mesabi Chairman Rewant Ruia, and Iowa officials including Sen. Joni Ernst attended the event.

U.S. raw steel output was about 82 million tons in 2025. A 10-million-ton Iowa mill would represent a significant share of national capacity and shift more production toward the Midwest.

The project still faces the usual hurdles of a multi-year industrial build: permitting, infrastructure, power supply, and state incentives. Production is four years away. But the administration and the company presented Monday’s announcement as a completed deal and the start of construction, not a concept.

For Iowa’s southeast corner and for a steel industry that has spent decades watching mills close, the numbers are large: billions in private capital, thousands of jobs, and a fully domestic mine-to-mill chain the White House says will not rely on foreign ore or foreign mills.

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Enjoy Your Tasty Wheat: How AI Corporate Greed is Killing Humanity

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Why the elite have decided it’s better to feed machines than humans.

We have a lower class of CEOs. And AI is making it worse.

In the past, these titans of industry would invest in their communities: libraries, public works projects, parks, or actual philanthropy.

Today’s C-suite “geniuses” engage in fake activism, bribery disguised as donations, and a complete nihilism from the communities they proclaim to serve at the safety of their gated communities.

It used to be a source of great pride for an owner to discuss how many employees they have. They would boast about how they put food on the table for families. They would talks about benefits, and how well they take care of their workers. Hell, they used to even describe them as “family.”

Now, they can’t wait to tell shareholders how they automate everything themselves, outsource to foreign countries for pennies on the dollar, and utilize AI to cut their entire labor force (we will get to this soon.)

The common thread is that those at the top are completely divorced from their workforce, the very people that happen to also be their consumers.

This was the situation largely even before AI. It’s gotten worse. They are absolutely foaming at the mouth to displace workers.

The only way to describe it is a race to the bottom. Investing millions into replacing humans with AI. This is already happening, and the reward has been big short-term gains from cutting jobs that look like more profitability to investors.

What’s more is that these AI data centers need billions of gallons of water, insane amounts of electricity, and tons of facilities to expand growth. It’s so astronomical they’re talking about moving it into space.

Think about it for a minute: companies would rather provide “drinking” water, “feed” electricity, and pay to “house” MACHINES instead of paying a living wage to people.

In fact, it might even be cheaper to pay a living wage. That isn’t stopping industry leaders from chasing their human-less dreams, despite it taking less energy and resources for humans. Yet they’re still choosing machines.

They are even willing to operate at a loss simply for the idea that they can save the cost of paying a wage.

There are a few outcomes that are possible:

Best case: AI hype is exposed as overblown and companies understand that it’s simply a tool and they need actual operators behind the steering wheel. AI starts creating more jobs. It seems unlikely, but given that AI in actuality produces more slop than creative, it’s possible.

Worst Case: The arms race of displacing workers continues. Their greed hasn’t ever really showed signs of waning. To supplement the slop it creates, they will use freelance labor from countries like India to extinguish the fires it creates and justify not needing a full time employee. They will stop at nothing to chase their goal of a technocracy to increase profits. (Note: They think they don’t need you to even buy their products with the top 1% buying 50% of the goods.)

They trained AI on your work, fired you to save money, flooded the world with soulless garbage, empty warehouses, and call it innovation.

To them I say: enjoy your tasty wheat.

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Business

MAGA: From Shopping Mall to Manufacturing Hub 2.0

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Title: America’s Transition: From Shopping Mall to Manufacturing Hub 2.0

In the past few decades, America has often been described metaphorically as a giant shopping mall or auction house, where consumption and commercialism have dominated the landscape. However, with the rise of the Trump administration and the ambition to “Make America Great Again,” a new vision is emerging—one that aims to transform the nation into the world’s greatest manufacturing hub ever seen, leveraging AI, blue-collar labor, and a combination of innovative technologies.

The shift from a consumer-driven economy to a production powerhouse signifies a strategic move towards self-sufficiency, economic resilience, and global competitiveness. This transformation is not merely about revitalizing industries of the past but embracing cutting-edge technologies and sustainable practices to redefine the future of manufacturing.

At the heart of this evolution lies the integration of artificial intelligence (AI) into manufacturing processes. AI-driven automation streamlines production, enhances efficiency, and reduces costs, enabling American manufacturers to compete on a global scale. By harnessing the power of machine learning and predictive analytics, businesses can optimize supply chains, minimize waste, and customize products to meet diverse consumer demands.

However, the vision for America’s manufacturing renaissance extends beyond technological innovation. It embraces a diverse workforce, blending the traditional blue-collar skillset with the expertise of engineers, data scientists, and software developers. This fusion of talent creates a dynamic ecosystem where creativity, problem-solving, and collaboration drive continuous improvement and sustainable growth.

Moreover, the resurgence of American manufacturing is not confined to a single sector but encompasses a broad spectrum of industries, from automotive and aerospace to electronics and renewable energy. By leveraging cross-disciplinary expertise and fostering strategic partnerships, the United States can position itself as a global leader in advanced manufacturing, setting new standards for quality, innovation, and sustainability.

One of the key strengths of this manufacturing transformation is its adaptability and resilience. In contrast to the volatility of global markets and supply chains, a robust domestic manufacturing base provides stability and security, mitigating risks associated with geopolitical tensions, trade disputes, and natural disasters. By decentralizing production and embracing local sourcing, America can reduce its dependence on foreign imports and safeguard its economic sovereignty.

Furthermore, the transition towards a manufacturing-centric economy aligns with broader societal goals, such as job creation, workforce development, and regional revitalization. By investing in vocational training programs, apprenticeships, and re-skilling initiatives, the United States can empower individuals from diverse backgrounds to thrive in the digital age and secure meaningful employment opportunities in the manufacturing sector.

As America embarks on this journey towards manufacturing excellence, it must also prioritize sustainability and environmental stewardship. By embracing eco-friendly practices, renewable energy sources, and circular economy principles, manufacturers can minimize their carbon footprint, reduce waste generation, and preserve natural resources for future generations.

In essence, the vision of America as the world’s greatest manufacturing hub represents a paradigm shift—one that transcends partisan politics and embraces a collective aspiration for progress, prosperity, and shared prosperity. By harnessing the transformative power of AI, blue-collar ingenuity, and interdisciplinary collaboration, the United States can reclaim its status as an industrial powerhouse and pioneer a new era of manufacturing innovation on the global stage.

As the nation embarks on this ambitious journey, it must remain steadfast in its commitment to inclusivity, sustainability, and technological leadership, ensuring that the benefits of the manufacturing renaissance are felt by all Americans and resonate across borders, shaping a brighter and more prosperous future for generations to come.

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