Commerce Secretary Wilbur Ross discusses the ongoing trade initiatives with China ahead of the U.S. delegation departing later tonight. Secretary Ross, Treasury Secretary Mnuchin, U.S. Trade Representative/Ambassador Robert Lighthizer, Economic Council Chairman Larry Kudlow and White House Trade Adviser Peter Navarro are all heading to Beijing to meet with their Chinese counterparts.
Secretary Ross is like the Babe Ruth of trade-baseball. Wilburine has a way of taking complex issues pitched to him, and knocking them out of the ballpark with an extremely fast common sense bat. He makes it look effortless. Watch:
Two quick thoughts. First, I think this is the first time every member of Team America (Ross, Mnuchin, Lighthizer, Kudlow, Navarro) has unified into one specific set of trade negotiations. That helps understand the scale of importance of the China trade relationship.
Second, there’s no traveling parallel contingent consisting of outside government members/advisers from of the U.S. Chamber of Commerce. This is a significant change from the past 30 years of Wall Street policy manipulation by the CoC. Many people may not be aware but until President Trump the U.S. government didn’t actually write the trade agreements.
For all prior administrations the actual negotiations and agreements were willingly sub-contracted out to U.S. Chamber of Commerce delegations. This is how the multinationals took control of trade policy and eventually the U.S. economy. CoC President Tom Donohue must be apoplectic now that he is facing an administration actually writing the trade agreements.
I cannot emphasize enough how much of a paradigm shift the President Trump trade approach is. When you understand what was taking place before, you can see why those interests are frothing-at-the-mouth angry about team Trump.
There are trillions at stake.
Previous administrations allowed BIG LABOR and BIG BUSINESS to write all the agreements and rules. In their backrooms they worked out the details. Policy was willingly handed over to corrupt Wall Street interests and corrupt Labor Union leadership.
A recent point of reference was within the Obama administration. The U.S. Chamber of Commerce wrote the actual verbiage of the Trans-Pacific Partnership, or TPP agreement. Obviously the beneficiaries were those who the U.S. CoC supported; ie. Wall Street multinational corporations. In return those multinationals give the U.S. CoC hundreds of millions in contributions (payoffs for policy).
In exchange for control over the trade policy, the U.S. CoC pay the politicians. This is why the U.S. CoC is the biggest lobbyist (by far) in Washington DC. In essence, for three decades all prior administrations were allowing Wall Street to write the trade agreements.
Now think about that.
In essence, by giving up control over our nation’s trade agreements, all previous administrations were giving away control over the U.S. economy to multinational corporations.
Understanding this former dynamic, is it a surprise why the middle-class was destroyed and Wall Street benefited?
Remember, there are TRILLIONS at stake.
President Trump took the atomic sledgehammer to this process and said NO MORE!
President Trump put the U.S. trade team together that actually makes the deals now. And those deals are independent of consideration for the corporate needs of any individual players, or groups of players, on Wall Street.
Ross, Mnuchin and Lighthizer et al, are only looking out for the U.S. best interests. The U.S. Chamber of Commerce has been cut out completely; and as a direct consequence Wall Street -and by extension their multinational corporations- no longer has any influence on U.S. trade agreements.
This is a massive economic paradigm shift that most people don’t comprehend.
Understand this dynamic and you understand the opposition to Trump.
Remember, all U.S. media are multinational corporations.