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ISSUE #2
WHY ARE SUPPLY TRUMP LAUNCHING CHAINS BLOCKED? “TRUTH SOCIAL” When forecasts are not specific enough to be actionable, the supply response cannot adjust in a timely or efficient manner. And because there is relatively little slack built into global supply chains, large deviations from normal patterns produce delayed responses, shortages, backlogs, and bottlenecks, like those today. MILAN – Supply-chain disruptions are severely hampering the global economic recovery. It is a strange situation in many ways. The types of products and services affected by delays and shortages – including a wide range of intermediate goods, from commodities to semiconductors, and the final products that depend on them – resemble what one would see in a wartime economy. And the disruptions took us largely by surprise. In fact, in the first quarter of this year, growth was overwhelmingly projected to accelerate, and experts were not exactly sounding the alarm that supply would fail to keep up. Yes, in-
your
fluential macroeconomists did warn that the combination of highly accommodative monetary policy, elevated household-savings balances, pent-up demand, and massive fiscal spending significantly increased the risk of inflation. And, yes, those forecasts – which appear increasingly prescient – implied that a surge in aggregate demand, fueled by a wall of liquidity and frothy asset prices, could outpace supply. But the likely duration of the imbalance remained unknown, and many argued that inflation – and, by extension, supply disruptions – would be “transitory.” Many observers remain convinced that this is the case. But participants in global supply chains increasingly predict that the shortages, backlogs, and imbalances between supply and demand will persist well into 2022, and perhaps longer. It seems clear that, for some significant period, global economic growth will be constrained by supply – a sharp contrast from the years after the 2008 global financial crisis. Although the surge in demand may be larger than mid-pandemic forecasts indicated, it was the basis for the high growth projections in the pandemic recovery period. That makes it all the more important
▶ SEE SUPPLY, PAGE 15
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Trump Media & Technology Group (TMTG) Will Create A Twitter And Netflix Competitor; News Programming Seems Possible. The Company Is Publically Traded Under The Symbol “DWAC” And Has Risen By Over 400%
PALM BEACH, FL -- Trump Media & Technology Group and Digital World Acquisition Corp. (NASDAQ: DWAC) have entered into a definitive merger agreement, providing for a business combination that will result in Trump Media & Technology Group becoming a publicly listed company, subject to regulatory and stockholder approval. The transaction values Trump Media & Technology Group at an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for
a cumulative valuation of up to $1.7 Billion depending on the performance of the stock price post-business combination. Trump Media & Technology Group’s growth plans initially will be funded by DWAC’s cash in trust of $293 Million (assuming no redemptions). Trump Media & Technology Group’s mission is to create a rival to the liberal media consortium and fight back against the “Big Tech” companies of Silicon Valley, which
The Pandora
There is nothing new about the practices the ICIJ’s investigation uncovered. True, the sheer scale, sophistication, and legal fire power deployed to allow today’s ultra-rich and powerful to game the law may be newsworthy. But the only truly shocking revelation is that it took more than 600 journalists from around the world to expose these practices, often risking their own safety and professional futures. The difficulty of that task attests to how well lawyers, legislatures, and courts have tilted the law in favor of elites. To hide their wealth, today’s rich and powerful have availed themselves of centuries-old legal coding strategies. In 1535, King Henry VIII of England cracked down on a legal device known as “the use,” because it threatened to undermine existing (feudal) property relations and served as a tax-avoidance vehicle. But thanks to clever legal arbitrage, it was soon replaced by an even more powerful device: “the trust.” Legally encoded by solicitors and recognized by courts of equity, the trust re-
Papers and the Threat to
Democracy In demonstrating how some of the world’s most powerful people hide their wealth, the Pandora Papers have exposed the details of a global system whose basic contours were already well known. Property laws have long been written by and for the wealthy, giving the public ample reason to suspect that the system is rigged. NEW YORK – The “Pandora Papers,” an investigation led by the International Consortium of Investigative Journalists, has fueled outrage around the world. Politicians, businesspeople, sports stars, and cultural icons have been caught in the act of hiding their wealth and lying about it. But how likely is a reckoning for the lawyers and accountants who helped them?
▶ SEE TRUMP MEDIA, PAGE 14
▶ SEE PANDORA, PAGE 10