National Economic Council Director Larry Kudlow on trade negotiations with China, and how the EU is positioning to off-set global economic contraction. Additionally, Kudlow discusses the aspects of the July jobs report overlooked by Wall Street pundits.
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Do not overlook or underestimate the importance of the bigger picture behind the global economic forecasts and the collective alignment against U.S. President Donald Trump. The ‘America First’ program is against their interests. There are trillions at stake.
Asia, primarily China, and the EU rely on common alignment with the multinationals who control Wall Street and have influenced U.S. trade and economic policy for 35 years.
The June figures show surpluses, in billions of dollars, with South and Central America ($4.8), Hong Kong ($2.3), Brazil ($1.3), and United Kingdom ($0.1).
Deficits were recorded, in billions of dollars, with China ($30.2), European Union ($15.9), Mexico ($9.2), Japan ($6.2), Germany ($5.2), Canada ($3.3), Italy ($2.6), France ($1.9), Taiwan ($1.7), India ($1.6), South Korea ($1.4), OPEC ($0.3), Saudi Arabia ($0.3), and Singapore ($0.1). (BEA Release)
The IMF is now upgrading their forecast of U.S. economic growth; and admitting -in essence- that President Trump’s America-First agenda is relocating global wealth back to the primary host nation known as the U.S.A. The increase in their forecast isn’t a small increase, it is essentially adding .3 percent (from 2.3% to 2.6%) or $60 billion more.
In the bigger picture this is why President Trump is the most transformative economic President in the last 75 years. The post-WWII Marshall Plan was set up to allow Europe and Asia to place tariffs on exported American industrial products. Those tariffs were used by the EU and Japan to rebuild their infrastructure after a devastating war. However, there was never a built in mechanism to end the tariffs…. until President Trump came along and said: “it’s over”!
After about 20 years (+/-), say 1970 to be fair, the EU and Japan received enough money to rebuild. But instead of ending the one-way payment system, Asia and the EU sought to keep going and build their economies larger than the U.S. Additionally, the U.S. was carrying the cost of protecting the EU (via NATO) and Japan with our military. The EU and Japan didn’t need to spend a dime on defense because the U.S. essentially took over that role. But that military role, just like the tariffs, never ended. Again, until Trump.
The U.S. economy was the host for around 50 years of parasitic wealth exfiltration, or as most would say “distribution”. [Note I use the term *exfiltration* because it better highlights that American citizens paid higher prices for stuff, and paid higher taxes within the overall economic scheme, than was needed.]
President Trump is the first and only president who said: “enough”, and prior politicians who didn’t stop the process were “stupid” etc. etc. Obviously, he is 100% correct.
For the past 30 years the U.S. was a sucker to keep letting the process remain in place while we lost our manufacturing base to overseas incentives. The investment process from Wall Street (removal of Glass-Stegal) only made the process much more severe and faster. Wall Street was now investing in companies whose best bet (higher profit return) was to pour money overseas. This process created the “Rust Belt”, and damn near destroyed the aggregate manufacturing industry.
Fast forward to 2017 through today, and President Trump is now engaged in a massive and multidimensional effort to re-balance the entire global wealth dynamic. By putting tariffs on foreign imports he has counterbalanced the never-ending Marshal Plan trade program and demanded renegotiation(s). Trump’s goal is reciprocity; however, the EU and Asia, specifically China, don’t want to give up a decades-long multi-generational advantage. This is part of the fight.
One could argue that China’s rise happened inside this period, and as a consequence they have no comprehension of an economic history without the institutional advantages. They’ve never competed with the U.S. under any terms of equivelence or fairness; they’ve only ever known the advantages. Combine that with the Chinese communist mindset and you get the extreme severity of their position.
So yeah, there’s going to be pain – for them; massive economic pain – as the process of reestablishing a fair trading system is rebuilt. This dynamic is the essence of reciprocity that benefits Main Street USA. Unfortunately, putting ‘America First’ is now also against the interests of the multinationals on Wall Street; so President Trump has to fight adverse economic opponents on multiple fronts…. and their purchased mercenary army we know as DC politicians.
No-one, ever, could take on all these interests. Think about it… The EU, Asia, World Bank, International Monetary Fund, China, Russia, U.S. Chamber of Commerce, Iran, U.S. Congress, Democrats, U.S. Senate, Wall Street, the Big Club, Lobbyists, Hollywood, Corporate Media (foreign and domestic), and the ankle-biters in Never Trump…. All of these financial interests are aligned against Main Street USA and against President Trump.
Name one individual who could take them on simultaneously and still be winning, bigly.
They say he’s one man. They say they have him outnumbered. Yet somehow, as unreal as it seems, he’s the one who appears to have them surrounded.
Incredible.
Lord knows we can’t spare this man.
He fights!
▬▬▬▬▬▬▬▬▬▬ஜ۩☆۩ஜ▬▬▬▬▬▬▬▬▬▬
★☆★☆ B A L L S★ of S T E E L ★T R U M P ★☆★☆
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The last part of Sundances article reminds me of the song “Big John”.
And, it reminds me of late in the Campaign when Candidate Trump said
“I am the ONLY one who can do it”, and they LAUGHED and DERIDED him for Hubris and EGO.
Well, WHO’s laughing NOW, Biotches?
Who is looking so full of hubris and over inflated ego that they can’t stand up without falling over, huh?
When it comes to international economic competition (“Trade War”) DJT and ‘we’, America have NO ‘allies’.
It is in NO countries best interests (EXCEPT the US) to have recprocal Trade with resulting -0- tariffs.
NONE, as in NOT ONE.
So, England, France, Germany, Japan, Australia, …etc. our ‘Traditional’ allies are NOT our ‘friends’on this. They are our COMPETITORS.
Thats the beauty of a ‘Trade War’ as opposed to a hot war. No shooting.
But, also means no ‘allies’.
Still, nothing PERSONAL, its just BUSINESS!
And may the best country prevail.
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Even without Donald rocking their once cozy globalist boat, the very serious weaknesses of the EU still remaining from the global financial crisis (GFC) and the new weakness of the hugely indebted China whose massive debt-based spending “saved the world” last time, but WON’T be able to next time, MAJOR cracks were already showing in the EU and China. Whereas central banks cooperated after the GFC, we have now entered a 1930s style beggar thy neighbor phase where central banks battle it out. The US has the upper hand for a number of reasons.
An exmple of the desperation in the EU:
Negative-Yielding JUNK BONDS Have Arrived in Europe
Jul 9, 2019
https://wolfstreet.com/2019/07/09/negative-yielding-junk-bonds-have-arrived-in-europe/
Amid rampant market expectations of another and even bigger and grander round of QE by the ECB, which would also be buying corporate bonds and old bicycles, the total amount of bonds with negative yields has risen to nearly $13 trillion, according to Bank of America Merrill Lynch.
The perversion of negative interest rates imposed by central banks such as the ECB, the Bank of Japan, the Swiss National Bank and a slew of others, and the even bigger perversion of negative-yielding corporate debt apparently does a job on investors’ minds.
In a negative-yield environment, you can no longer buy bonds to hold them to maturity because you’d be guaranteed a loss. You’d have to buy them solely on the hopes of even more deeply negative yields in the near future that would allow you to slough off these critters to the next guy before they eat you up.
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Found in the bin…. 😦
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Without a healthy consumer society, the production of goods and services dies on the vine. “Mine is mine and yours is mine as well” is a suicide pact. Converting labor costs to earnings per share as capital issues takes over is self-cannibalism.
“In the bigger picture this is why President Trump is the most transformative economic President in the last 75 years.”
If there is no customer, eventually there is nothing. Common sense guy, that PDJT.
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Graph: EU banks crushed, crushed, and crushed
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Couldn’t happen to a nicer entity than the EU, in my humble opinion.
As pointed out in posts above, it is a very shaky proposition, and hss been from the outset.
It is Conmunism lite, and has only been able to function with a steady inflo of Other Peoples Money; OURS.
Force them to meet their NATO obligations, and open their markets (like PDJT has just done with beef) so they are no longer exfiltrating our wealth and jobs, and they can not possibly maintain their generous social programs.
Conmunism collapses when it runs out of Other People Money.
Our inner cities in decay, infrastructure collapsing from lack of maintenance, our military depleted and exhausted, our factories, and whole towns shuttered, and staggering deficit, a social safety net system technically bankrupt, and all our money and jobs going to EU, CHINA and our other so-called “allies”.
Like the guy in the dark alley that says:
“Lets see what you got in your wallet, FRIEND” these countries are NOT our “friends”.
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Kudos to Bill Clinton for selling out our nation economically – by giving China MFN trading status (essentially giving China permission to economically rape us mercilessly), allowing his biggest campaign contributor – the Loral corporation authorization to help China solve their space launch failures (now their ICBMs have a much better chance of hitting us!), and standing by fecklessly while various Chinese operatives stole our defense technology – including the plans for our stealth aircraft, but best of all – the plans for most of our nuclear weapons. Oh – and his opposition to missile defense was a real winner (for our enemies) too! The illegal campaign contributions China made to him was possibly THE most effective and profitable ROI in the history of man.
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Sell out started before then, got faster under Reagan (who trusted his subordinates) and took off with Poppy Bush. Everyone else has slept through it, or in the Clintons’ case, made $$$$ off of it.
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I’m having some difficulty understanding the European bank’s lowering of savings rates to negative territory ( lose money saving). Why wouldn’t Germans buy US issued CD’s at 2.8% instead? Is capital movement restricted between countries? Isn’t some German bank able to sell US savings instruments? I think savings is a good bet now. Too many “multinationals” on the Dow and Nasdaq have exposure to the world economy. Buy American!
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They are buying US bonds like crazy right now. That is why bond returns are dropping right now. 5 year bond is at 1.66% as of now and they were over 2% a few days ago. Money is flowing into the US because we are still paying positive interest and is a safe investment.
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Investment is definitely coming to US. Foreigners can borrow at negative rates and invest in US treasuries (bank accounts) and make a good return. That means much lower borrowing rates for US consumers, which means higher overall consumption.
The second half of this year and next year will see big growth because not only are borrowing costs going down, the stronger dollar is bringing down the cost of energy and consumers are seeing wages rise.
Trump will win in a landslide next year as this higher consumption leads to even lower unemployment rates! MAGA!!
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If anyone cannot see how Trump is benefitting the average American is very mentally challenged and blinded by strictly by their emotions. They have zero logic or are incapable of logic.
I can see whereby the crooked, corrupt Globalist and Multi-National establishment elites would fight Trump, but not the “Joe Blutts” of America.
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Emotion-driven political beliefs are defended to the death by ego-driven champions.
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We need to start a Gofund Me campaign or something. Like all these former Presidents have their libraries. We need a Presidential Library Of Shame. Americans can come here and see and understand how all these former Presidents sold us out.Sundance has already written the guided tour narration. Get somebody with a Rod Serling voice to do the narration as people walk from shameful episode to the next beginning with end of WWII.
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The biggest mistake that we consistently make is: “there is manufacturing, damned lies, and statistics – pick one.” Only one of the three is real.
“Globalism’s” singular lie is that “it doesn’t matter where it is made.” The lie is: “yes, it does matter … to you.” If you’re the one making the thing and selling it, you’re the only one who’s really making money. Very little money is made from moving stuff around or putting it onto shelves. Almost nothing is made from any “service economy.” Globalism searches for the cheapest sources of material and labor to make the cheapest goods possible, to sell to the people who aren’t making those things anymore. But it doesn’t actually work – anywhere.
Under DT, America’s re-discovering “We Can Make It!” Under the EU, Europe forgot that. That’s why they’re rummaging their fingers through imaginary pieces of paper instead of running their own machines. Clue ‘ya: the mere fact that it’s got a currency symbol in front of it, don’t make it nothin’ more than a number in a computer.
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It’s August in the EU. Time for another economic melt-down. Someone get Madame Lagarde on the phone. Oh, she’s en vacances! C’est domage!
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Tant pis! 😉
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Deep State in full effect………….
Trump’s DNI Pick Withdraws, President Blasts “Unfair Treatment By LameStream Media”
https://www.zerohedge.com/news/2019-08-02/trumps-dni-pick-withdraws-president-blasts-unfair-treatment-lamestream-media
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dammit
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Close down DNI – it’s useless as burnt toast. Just another DS kink to be ironed out anytime something of importance needs dealt with by POTUS.
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WTF?!!! 😡
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As someone who cut the cable years ago these posts that show PDJT economic team in interviews are greatly appreciated. I’m certainly happy that his team and I seem to be in agreement on all the important issues and are seeing the same big picture.
Thank You Sundance !!!
👏👏👏👏
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Still waiting on all that inflation on consumer products. Orange Man bad, tariffs bad, yada, yada, yada. Americans have been sold and believed a bill of goods that was devoid of truth for decades and decades. Thank God for PDT and his band of patriot savages.
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Koala Kudlow kills it, with kindness. 😊
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As I translate Kudlow
And in case you didn’t hear
Oh by golly have a holly jolly Christmas
This year
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The comment of the alignment of Europe, China, & the Multinational Corporation is spot on.
The Multinational Corporation came to rise at the end of WWI and it was how the nobility of Europe reestablished themselves. Recall from 1914 to 1919 the Hapsburg’s were ousted from Austria, the German houses, Spanish, & French houses were also stripped of assets and power. Contemporaneously the Czar of Russia was exiled and the Bolshevik revolution took place.
It was the British West Indies and Dutch East Indies that laid the foundation for the Multinational Corporation. The formation of family trusts have concealed the actual ownership of most major Multinational Corporations.
Just recently the German House of Kaiser Wilhelm has filed a complaint to have their assets returned to them.
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What the Chicom fatcats fear most – a mainland revolt, Tiananmen Square v2.0. 1.4 BILLION Chinese versus a few thousand Chicom fatcats = an alternative use for lamp posts (see “Benito Mussolini”):
https://www.zerohedge.com/news/2019-08-02/chinas-un-envoy-says-if-us-wants-fight-we-will-fight-warns-beijing-will-no-longer
And in the latest warning to the defiant financial capital of the Pacific Rim, Jun virtually warned that a Chinese incursion is now just a matter of time, he said that Hong Kong protests are “really turning out to be chaotic and violent and we should no longer allow them to continue this reprehensible behavior.”
And so the die has been cast: Hong Kong’s protesting youth has been given its official warning, and with PLA forces now piling on the border, all that will take for Chinese troops to enter is a provocation.
And to show just how serious China is about all this spontaneous “rioting” nonsense, Reuters reported that Refinitiv (which Reuters owned), has removed from its Eikon terminals in China a Reuters story detailing how an official with Beijing’s Liaison Office in Hong Kong had urged residents of a rural area to drive away anti-government protesters days before a violent clash nearby.
The story, which was published late last week, was not visible on the Eikon terminal’s scrolling news feed in China on Friday. Eikon users outside China said they could still see the story. Reuters was unable to determine precisely when the story had been removed from Eikon’s scrolling news feed for clients in China or whether other stories had been blocked.
Refinitiv has a license to provide financial information in China, and a person familiar with the matter said Refinitiv’s regulator there, the Cyberspace Administration of China, or CAC, had said it would shut down the service unless it removed or blocked certain political stories.
“As a global business, we comply with all our local regulatory obligations, including the requirements of our license to operate in China,” Refinitiv said in a written statement to Reuters.
And that is all anyone needs to know about just how nervous China is over the ever growing protest movement in Hong Kong, and how terrified it is that it can eventually spread to the mainland.
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Please stop printing out the entire article….you alreay left us the link. SMH….
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Larry was determined to report the good news despite Varney’s jovial insistence (I wasn’t laughing) on first highlighting all the negatives. Good on Larry. He’s still a great interviewee for supporting MAGAnomics.
This is but one of many reasons why I dropped cable tv and turned in all the equipment, They refuse to carry OANN but include all of the MSM Propaganda channels in every package lineup except the most basic (which is no better selection than sticking a digital “rabbit ears” out the window).
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What does this mean? Good or bad interference?
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Harlan County Deplorables are delighted that GOP, and let’s be clear about that, President Trump have a winning formula for 2020…. landslide:
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“A coal company that wrote cold checks to several hundred Kentucky miners had not posted a bond to cover the cost of paying its workers, as required by state law.”
If Blackjewel had complied with state law, there could have been money in place to cover the miners’ last two paychecks, said Sam Petsonk, a West Virginia attorney representing former Blackjewel miners in an effort to get them paid.
State law — KRS 337.200 — says every Kentucky employer that is engaged in construction work or the severance, preparation or transportation of minerals, and has been in business less than five consecutive years, shall furnish a performance bond to the Labor Cabinet “to assure the payment of all wages due from the employer.
Blackjewel incorporated in July 2017, so it had been in business about two years when it shut down.The law says the surety for the bond must be enough to cover the company’s gross payroll operating at full capacity for four weeks.”
https://www.kentucky.com/news/state/kentucky/article233335167.html
Meanwhile, the President is spending time, energy, and government resources on bailing thugs from Swedish prisons, while KY Gov. Matt Bevin posts videos asking people to donate to two non-profits, With Love From Harlan and and the Harlan County Community Action Agency.
Make 2016 Promises Great Again, right?
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