President Trump Highlights Fed Disconnect: Main Street USA -vs- The Multinationals…

It is hard to believe but it’s been three years since we first outlined what would happen if candidate Donald Trump’s “America First” policy was implemented.  Specifically how the Federal Reserve would essentially become disconnected and functionally obsolescent for a few years.  As a result of the evidence visible, we are in a unique position to explain.

Staying in the big picture, a disconnected Fed was very predictable.  In the past 35 years the Wall Street multinationals gained as cheap money flowed overseas to start global manufacturing operations; Main Street USA suffered.  When you reverse this process by punishing the multinationals (tariffs), shifting the global supply chain, and changing the best location for investment dollars, Main Street USA benefits.  President Trump August 7th tweets statement:

Notice the “we are competing against other countries” part of the statement.  This is key to understanding what is in the future.  The Wall Street ‘multinationals’, corporations making and selling goods, are invested in production within other countries.

On one hand, Wall Street loves cheap money (low fed rates). However, on the other hand Wall Street multinationals are invested in overseas manufacturing; and those corporations don’t want to see the retention efforts of China and the EU undermined with a lower dollar value (lower fed rate).  So Wall Street is schizophrenic (check the stock market).

U.S. tariffs hurt the Wall Street multinationals because they want to keep making cheap goods overseas and they have invested in this process.  To retain the multinationals, the EU and China are devaluing their currency in an attempt to lower the price of goods they produce.

Lowered currency means their stuff costs less when exported to the U.S. market.  They need the U.S. market for their products; AND they don’t want to move their supply chain, or manufacturing into the United States.

Devaluing currency is what competing countries are doing to offset tariffs and try to block Trump’s America-First policies.  China also directly subsidizes their industries with free electricity, free domestic raw materials, and zero cost loans from their central bank.

As the EU and China devalue their currency, the value of the dollar increases.  President Trump responds to this in a Twitter thread today:

One way for the U.S. to respond is for the federal reserve to cut interest rates, which should lower our dollar value and make it easier to export products; but can also raise the price of things we import.  That is why President Trump notes “(there is no inflation)”.

[However, I doubt any action from the Fed will change anything.  All the data looks to me like the Fed is disconnected in this process.]

We are currently importing deflation as the devalued cost of goods from China and the EU is lower than the tariff rate upon them.   The goal is to move those manufacturing jobs out of China.  Thus the incentive is for President Trump to raise the tariff rate on China even higher.  This looks like the most predictable outcome.

Three variables:

(1) The USMCA ratification.  If/when the USMCA is ratified, this will give multinational manufacturers an established and cemented option to evaluate for supply chain moves.  (Watch Canada election; Trudeau loses and the U.S. stock market will bump.)

(2) The Fed’s rate cut.   If/when the Fed cuts the lending rate again; it will only modestly benefit domestic investment.  The rate cut is against the interest of multinational corporations because it undercuts the defensive efforts of China and the EU; though the cheaper money could help offset relocation costs.  [I strongly doubt much impact.]

(3) Timing.  The Chinese delegation is scheduled to visit in September.  There is almost zero possibility for a deal, unless the Chinese economy is in collapse.

President Trump has a quiver filled with deadly arrows; and after labeling China a currency manipulator, he’s now more likely to raise the tariff rate, perhaps as high as 25% across all sectors.  When this happens U.S. multinational corporations with heavy investment in China will see their supply chain and business model completely changed.

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This entry was posted in Auto Sector, Big Government, China, Donald Trump, Economy, European Union, Hong Kong, media bias, Mexico, NAFTA, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA, USMCA. Bookmark the permalink.

143 Responses to President Trump Highlights Fed Disconnect: Main Street USA -vs- The Multinationals…

  1. joshuamayes5487 says:

    This is what it’s all about. Antifa, muh Russia, presstitutes, Chinese intransigence, insufferable European arrogance and condescension, Iranian provocations, open borders and so on…

    I have to express my gratitude to Sundance. I never would have never seen it otherwise.

    There are trillions at stake.

    Liked by 42 people

    • gunrunner03 says:

      Could not agree more. I was lost in the wilderness of ignorance until a relative steered me to this site, and Sundance. Not trying to equate this to a religious experience (but it’s pretty close).

      Liked by 14 people

      • Marygrace Powers says:

        Second your comment. I knew we were in deep s**t,
        but sundance clarified HOW DEEP/GOD BLESS PDJT.

        Liked by 7 people

        • flyboy46 says:

          Now we need to figure out how to protect OUR FARMERS from the blow back. They have expanded to feed the world, and now their biggest market is going bye bye. Tough times ahead for them. Dairy is already in a Depression with milk prices from the 1970’s with others to follow. Drink More milk, and eat more Ice Cream!

          Liked by 3 people

          • gunrunner03 says:

            I like to think that the China market is not the ‘be-all, end-all.’ Current buyers outside of China may increase their purchases and other markets may develop. China may end up buying through third parties. China has a lot of people to feed so not buying US agriculture is not a long-term option. I would counsel patience. This will work out favorably for US farmers.

            Liked by 6 people

          • Matthew LeBlanc says:

            Not that I needed another reason to eat more ice cream but as you mention it is my patriotic duty to keep dairy farmers in business. More ice cream will be consumed.

            Liked by 5 people

          • Aeyrie says:

            It may not end up being that bad for our farmers. They may indeed need to feed the world! Global Warming is B.S. Our planet is going into a Grand Solar Minimum. That will, and is already, changing our climate worldwide. These solar characteristics are also activating volanoes, further cooling our planet. (So stop with the Geoengineering already. hat is compounding the problem!) Earthquake activity has ticked up as well. Fluctuations in Earth’s weather patterns are causing floods and droughts where they have not been in many centuries.

            Russia knows and has already started building greenhouses to grow their food under shelter. We should be preparing too, and I hope we are. Our government has not seen fit to inform everyone and get them preparing like they have been doing in Russia. (So what else is new?) With all the craziness that is already going on, maybe it is best to get things calmed down first?

            Our fertile valleys in the Midwest took forever to dry out this year, which has caused a lot of problems for our farmers. Not only is Nature doing this, I have watched in real time the geoengineers deliberately exacerbating the problem. No, I do not wear a tinfoil hat. This is real. I and others are watching it. (https://www.youtube.com/user/1PacificRedwood) The technology exists, is being used and is becoming more sophisticated every day. I believe the President knows about it and is working that issue. He has dropped hints about it here and there.

            There are similar conditions going on all over the growing areas of the world. We will need to help supply food for those living elsewhere as well as ourselves. It is looking like food will become a very valuable commodity. That will be a bonus for those who have it to sell. It will put those who do not have it in a very vulnerable position. Thank God our President is not the kind of person to take unfair advantage of people in need.

            P.S. I do drink lots of milk and eat too much ice cream!

            Liked by 1 person

          • fritzers says:

            Conservation reserve program.

            Like

    • Pedro Morales says:

      If POTUS is re-elected then Xi will be ousted. He was playing the long game all along. Xi never intended to make a deal. Unless it was a deal he could easily cheat and violate. When he didn’t get a sweetheart deal from the rock band known as Donnie and the Wolverines, he stalled. He bet that he could get a better deal from Ukraine Joe. Just put a few million in a suitcase and Ukraine Joe and his coke head son would be living large. Hookers and blow make the Biden clan happy. As much as dating their sister-in-law. But I digress. But I do think Xi miscalculated. China is not the China of Mao. Lots of millionaires and billionaires who have power and aren’t happy with Xi. Xi underestimated the damage to his economy the stall would take. He Never saw the tariffs coming. He never saw the clauses in Nafta 2.0. Justin did not handle it for him. He also did not realize that The Teflon Don did not want a deal either. Donnie and The Wolverines strung Xi along like an ugly girl on prom night. Donald J Trump did not want a deal. He wanted a mass exodus of businesses out of China. He wants to cripple them. If he does not do it now, then China will be too strong economically, technologically, and militarily in a few years. We will be an after thought. Donald J Trump used Xi’s strategy against Xi. And now he realizes he was played. The commies are meeting now about strategy. They cant toss Xi due to appearances. It would be an admission that Trump won. But Xi is dead man walking.

      Liked by 31 people

      • amjean says:

        One of my favorite things to do is pull out my GDP chart when the media and
        the political nut jobs start banging the drum of despair. Russia! Russia! Russia!…
        ….with 2017 GDP of 1.527 T and the sky is falling because of President Trump’s
        tariffs – they were12 T vs. US almost 20T. Who is the big dog here? Very amusing.

        Liked by 1 person

      • Dorothy108 says:

        Thoroughly agree on Xi. He overestimated himself, and underestimated PDJT. Xi is stuck between a probverbial rock and a hard place. If he agrees to a deal with PDJT, then he loses face, exposing his weakness. No leader of a totalitarian country lasts long if he sticks out his achilles heel. If he doesn’t, make a deal, his economy collapses. Either way, Xi’s days are numbered.

        Liked by 4 people

      • Zippy says:

        “If POTUS is re-elected then Xi will be ousted.”

        It really doesn’t really matter much who is “in charge” there as they will want to continue to follow, but soon hopefully won’t be ABLE follow, their 100 year plan. Xi leaving would be an interesting show since he has appointed himself to his position for life. Methinks that somehow his life would come to an end after the revolt of the proles which hopefully occurs during their next, hopefully very severe crash.

        Liked by 2 people

      • Bill Dumanch says:

        sundance, and YOU share the webz winnerz today…

        Like

      • Kate says:

        Pedro, Xi and cohorts do not read the Refuge and Sundance, good thing huh?

        Like

      • James Carpenter says:

        Designated “President for Life”, what does this say about Xi’s tenure with his mortal coil?
        Anyone care to guess what his life insurance premiums might be now?

        Like

      • wondering999 says:

        I hope Xi is not a dead man walking. He’s in a very difficult position, but I don’t sense him as evil.

        Back around early 2017, one Treeper commented that Xi, as a young man, had visited his midwestern farm as part of a political exchange program…

        while I trust Trump will do whatever is necessary to protect us, I hope it will end up win/win, common sense, civility and enough good food for the entire world. My parents went hungry during the 1930s and I heard about it often enough. I don’t wish hard times on anyone.

        Yeah I know this may sound Pollyanna-ish or something. But I feel like people from overseas are watching and reading here. And I want them to know that I do not hate people in China, nor do wish them ill, and I don’t think I’m alone in this. I just want justice and fair trade, and prosperity for all. And I believe my President does also.

        Like

    • joshuamayes5487 says:

      One of the favorite things Sundance says is “cold anger”. That’s the way we can see the bigger picture.

      Liked by 2 people

    • Bill Durham says:

      And the stock market has rebounded dealing a blow to China, Dems, and CNN.

      Like

  2. cbjoasurf says:

    Since SANCTIONS were imposed on Iranian oil President Trump you said “If you do business with IRAN you WON’T do business with the U.S.A.” Was that an empty threat? Apparently CHINA violated the sanctions in July. BALL IS IN YOUR COURT!

    Methinks stopping trade with Chinat can only HELP with our trade negotiations.

    https://www.breitbart.com/national-security/2019/05/16/report-iranian-oil-delivered-china-possible-sanctions-violation/

    Liked by 1 person

  3. Sgt Troy says:

    Winning!

    Like

  4. Paul says:

    The President should just fire the head of the Fed and put an America FIRST person in place that understands the dynamics in play

    Liked by 1 person

    • neal s says:

      While that is a pleasant thought, VSGPDJT still lacks enough solid support in the Senate. He could not hope to get Ratcliffe confirmed to ODNI. (Of course my sneaky side thinks that Ratcliffe should be nominated for some other position for which he CAN be confirmed, and then at some time later, Ratcliffe could be moved into ODNI and would not need to be confirmed again)

      The senate has employed the tactic of preventing PDJT from making any recess appointments. That is how skimpy our VSGPDJTs true support is in the senate.

      By eliminating more uni-party RINOs and having an even greater Republican majority in the Senate after the 2020 elections, then PDJT can hope to make more appointments that currently he cannot successfully make.

      Liked by 11 people

    • AnotherDeplorable says:

      Trump already tried to get Herman Cain (2012 Presidential candidate before Romney did the dirty on him, but also chairman until 1996 of the Kansas City Fed) along with Stephen Moore on the Fed board, but the board has to be confirmed by the Senate. There was opposition from RINOs and I suspect Mitch McConnell didn’t make much of an effort to coral support, so the nominations were withdrawn

      Liked by 1 person

    • mugzey302 says:

      I thought we were going to eliminate the Fed?

      Liked by 1 person

      • Aeyrie says:

        Yes. Can’t do it yet, though. After the election will be the time to focus on that. Meanwhile, watch the President wind up for the pitch. Cool to watch! We know he hits Big home runs.

        Liked by 2 people

  5. bluebongo says:

    Just imagine how a corporate tax rate reduction would impact globalists when we win the House in 2020.

    Liked by 1 person

    • 1970novass396 says:

      They actually want the tax cut and the cheap labor with the cheap labor being #1. Trump tried to appease them but that wasn’t enough. I am hopeful The Donald has more tools in his toolbox to use against the enemy because they’re coming after him with all they have. There will be more blood in the streets before the Presidential election.

      Liked by 2 people

      • Best Tool:

        INDEX Capital Gains for Inflation to ELIMINATE TAX on INFLATED GAINS:

        This DIVIDES corporate opponents into
        • Companies who will CLING to Investments TRAPPED by massive Capital Gains
        • Companies who will SNAG Investments LIBERATED by Indexed Capital Gains

        Liked by 3 people

  6. Robby says:

    Been reading some articles recently about the internal battles raging within the CCP leadership. It appears there is disunity on how to handle Trump/US relationship hence China’s lack of coherent response. Interesting days ahead

    Liked by 4 people

    • Zippy says:

      From -2001-:

      Liked by 3 people

    • amjean says:

      I think China is playing the stall game, waiting to see if President Trump is
      defeated for his second term. Whether their economy can wait that long is another
      question.

      Liked by 3 people

      • Zippy says:

        “waiting to see if President Trump is defeated for his second term”

        Oh, absolutely. If you were them, wouldn’t you? That’s why they will give him nothing IF THEY CAN AVOID IT until after the 2020 election so as not to give him any political feathers in his cap. The way things are going there, they may be FORCED to give him something before the election.

        However, I don’t think he should lay off at all at that point because what they give certainly won’t be enough. Gordon Chang who is intimately familiar with the Chinese economy, its weaknesses and its politics says the only way to get them to reliably concede is to drive their economy to collapse because the ONLY thing the “will always be insanely wealthy no matter what half measures we apply” Chicom fatcats truly fear is REVOLT.

        Liked by 2 people

      • Pale rider says:

        Then we would be the target to stop president Trump from being elected again.

        Like

        • Judith says:

          Yes, ‘we the people’ are their real target, as we, and more importantly our Constitutional Republic, stand in the way of these New World Order Totalitarians. Our politicians over many decades sold us out. The end of USA was a done deal for the year 2021.

          They will therefore continue to attack ‘we the people’ via domestic terrorism, censorship and intimidation. And they will target our electoral college, our voting terminals, our ballots and our means of disseminating real information, instead of their propaganda, to the masses.

          My guess would be all of the above will hit us right between the eyes from now until 2020. After that it will get even worse, unless we vote out every crook in CONgress.

          Like

  7. Tom Idlewood says:

    I doubt China could withstand a 25% across the board tariff rate through 2020, so let’s give it a try! Real pain is required for the CCP to budge.

    Liked by 5 people

  8. Sam Slaughter says:

    In 5 years will there be any politician that will continue the America first policy? Perhaps the hope is it will be easier at that time because Trump will have taken all the sharpest arrows and the evidence of it’s success will be clear to all

    Liked by 1 person

    • Muthaucker says:

      They will have no choice but to. Any changes in AF policies brings recession.

      Liked by 1 person

      • dd_sc says:

        Eastern Europe is in the EU so they would have to deal with those regulations.

        The big winners could be Mexico and Central America, but USMCA would probably have to pass first.

        Other SE Asian are already picking up manufacturing leaving China, and Brazil appears to be on board with MAGA. If Mexico and Central America get on board with MAGA, they would also see investment flowing in.

        One condition of USMCA is the $16/hr wage requirement for auto sector – really good pay for South of the border that would most likely be the template for future deals.

        Rising wages south of border removes a lot of incentive for them to come north; immigration issue partially solved.

        Liked by 3 people

        • dd_sc says:

          And WordPress put my reply in the wrong spot so it lacks some context.

          Liked by 1 person

        • amjean says:

          Mexico has the 15th largest economy in the world at 1.149 T with Canada at
          no. 10 with 1.6 T. Its in their best interests to work with the Trump administration
          policies and grow their economies. When was the last time we heard from
          Trudeau? His little tantrums along with his female financial person seem to
          have ended. Mexico is assisting with border patrol. Believe me, they all
          know where their bread is buttered.

          Liked by 2 people

    • Thomas Roy says:

      Governor Ron DiSantis. the only other guy who plays golf with Rush. (Trump)

      Liked by 1 person

  9. DJT2020 says:

    If talks do not go the way Trump likes in September I predict 25% across the board. China I think will try to ride it out as long as they remain gaslit to think Trump is weaker than he actually is. As long as they are gaslit they will think they can influence the election with money and allies to get a dem win. When they finally realize Trump is going to win they will fold like a cheap suit and methinks Xi will be out of a job.

    Liked by 1 person

    • scrap1ron says:

      Don’t put it past any of the leftists opposed to Trump screwing up their lucrative status quo arrangements not to be exploring a “grassy knoll intervention” insurance policy.

      Liked by 1 person

      • sturmudgeon says:

        scrap: for an interesting ‘alternative’ theory… read S. Hunter’s “The Third Bullet”.

        Like

      • James Carpenter says:

        The good folks who brought you BHO and tried to get Hillary elected will stop at nothing. It is about the trillions at stake, whoe rice bowl is getting broken. Grassy knolls likely.

        “There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. For the reformer has enemies in all those who profit by the old order, and only lukewarm defenders in all those who would profit by the new order, this lukewarmness arising partly from fear of their adversaries … and partly from the incredulity of mankind, who do not truly believe in anything new until they have had actual experience of it.”

        — Niccolo Machiavelli

        Like

    • Xi shouldn’t worry about being out of a job; he should worry about being out of air.

      Liked by 3 people

    • amjean says:

      In the meantime Vietnam has increased their exports to the US by 8-9%.

      Liked by 1 person

    • sturmudgeon says:

      I suggest that we will never learn how the Chinese ‘think’… at least, those in power.

      Like

  10. The Boss says:

    After seeing these tweets over the last 24 hours or so, I asked myself:
    “Self? How long until Sundance posts about the fed tweets?”
    Well – this didn’t take long! 🙂

    Liked by 5 people

  11. California Joe says:

    The Federal Reserve Board hates President Trump! The morning after Trump won the election in 2016 Fed President Janet Yellen was on TV pounding the table in a rage to increase interest rates destroy tge economy and destroy Donald Trump. I saw her and she was insane with anger. That’s what we are fighting!

    Liked by 5 people

    • MILupper says:

      On election morning 11-8-2016 Maria Bartiromo, FBN, had on the head of Goldman Sacs trading. She asked what would happen to interest rates after the election.
      Without batting an eye he said that if Hillary wins interest rates stay at 0. If DJT wins interest rates are going up.

      The fed was set to destroy PDJT from the day of the election. Why else would Krugman and all the MSM talking heads agree that a major recession was guaranteed if DJT was elected.

      The dems, rhinos, media and the fed were and are working from the same playbook.

      Liked by 2 people

  12. Larry says:

    I’m wondering if the long term offshore manufacturing play is Eastern Europe?

    China’s cost structure has been moving up. I wonder how their cost structure compares with Belarus, Romania, Bulgaria, Ukraine, et al. Things in Poland, Hungary, Czech Republic are moving in the right direction.

    The middle of the North American continent was populated by immigrants from these areas.

    The way Pakistan and India are handling things, I suspect manufacturing may look to move to more stable countries.

    Liked by 9 people

    • sturmudgeon says:

      Interesting observations… thanks… more to think about… learning, learning, learning, (I hope)

      Like

    • MicD says:

      Tak, Polacy są doskonałymi rzemieślnikami !!!

      Like

    • ATheoK says:

      The best locations will be those that support Republics, Democracies and capitalism.

      Businesses are rapidly relearning the dangers of committing to Socialist or Communist leaning countries.

      Liked by 2 people

      • steph_gray says:

        I could never understand why any business would even think of even trading, much less locating, in a Communist/Socialist country. It’s like putting your unlocked new car in a bad neighborhood with a big sign saying Please Steal This.

        Actually, worse, if the company is an innovator it’s like doing that with a car you built yourself from the ground up.

        Liked by 2 people

    • jeans2nd says:

      There is also a renaissance going on in Central Asia, in the Muslim countries that were part of the Soviet Union. These countries are moving to free market systems. They started with pumping oil and have moved to manufacturing, and their populations are now highly educated. There is a big Chevy plant in Azerbaijan, iirc.

      Like

    • Great thought.

      Will watch for Central European dominos to start rethinking EU Entrapment
      … immediately after Brexit and a British Bilateral Trade Deal with President Trump.

      Energy & Defense deals are laying the groundwork!

      Like

  13. thomas says:

    Basically they care about their own wealth more than the country itself..

    Liked by 3 people

  14. ristvan says:

    It takes time—years—to move supply chains. PDJT is right to move at a judicious pace. And on Main Street, it also takes time for job training and capex. Big ships do not turn on a dime.

    Further Fed interest rate moves won’t much change the strong dollar because the main influences are China currency manipulation and EU negative interest rates. His tweets about the Fed are IMO working as he intended, as a heads up more than a call to further action.

    Liked by 18 people

    • sturmudgeon says:

      Ristvan: Thanks.. Gad, I LOVE this site!

      Liked by 3 people

    • Scott says:

      He’s been after the Fed, calling them out since he got elected. He’s been pointing out their failures in simple terms so people can understand better. He’s also branded them as idiots, not knowing the right way to handle rates. He’s put them in the public’s eye, and they don’t like that.

      Wall Street will make their money no matter what. What they hate right now is losing power.

      Liked by 3 people

    • Pale rider says:

      Question for the informed. With higher interest we have a secure dollar? And secure dollar means more outside investors investing in the dollar? Weak dollar, less interest to invest?

      Like

      • Assuming that the recent massive inflows into 10-Year Treasury Bonds came from the EU (and maybe China), it may presage a second and quicker step (with the ice broken for Invest-in-America First) to shift from U.S. Bonds to USA-Centric Stocks.

        Like

      • ATheoK says:

        Unfortunately Pale, you conflate issues that lead you to an incorrect assumption.

        • Higher interest rates entice treasury buyers eager to benefit from a secure income source. That security is directly based upon the security of the country itself.
        Would you consider Sept. 2018’s Venezuela Short Term 62.66% interest rate as enticing?

        • Higher interest rates harm businesses seeking loans to support construction, expansion, research and development.

        • Higher interest rates harm civilians and businesses trying to purchase or construct property.

        • Higher interest rates raise the costs and benefits of using overnight funds; something from which most wage earners rarely benefit. Banks love holding onto funds overnight as they gain the benefit of the higher interest rates overnight.

        • Higher interest rates harm businesses as raw material and product cost more; as well as causing their products to cost more.

        That other nations and large entities love to benefit from high interest treasuries, is often simplified as a solid or secure dollar. That viewpoint is solely from perspective of those who directly benefit from high interest rates.
        They are investing in the dollar because they benefit from usurious application of America’s interest rates. Otherwise, all of their dollars would immediately go to back Venezuela’s Bolivar Soberano.

        Liked by 1 person

        • guybee55 says:

          High interest rates are another form of taxation. It is all about the velocity of money. With lower rates, money moves quicker. This means more economic activity and more investment and expansion. You slow down an economy to wring out inflation. The stock market thrives on rising earnings. Earnings can rise from inflated prices or from inflated activity. Which is better for the USA in the long run?

          Like

      • Pale rider says:

        I googled it
        https://www.investopedia.com/ask/answers/040315/how-do-changes-national-interest-rates-affect-currencys-value-and-exchange-rate.asp
        My thought was investors will leave China’s currency for safety sake. The solid dollar high interest may slow growth but little. I lived in Carters time, that was slow growth due to high interest. 2.99 for a car loan now, that’s cheap, way cheap compared.

        Like

    • doofusdawg says:

      There is a major disconnect when the fed funds rate is over 3% and the 10 year is below 2%. This is nothing more than Wall Street push back against rising labor costs. Before Trump the fed was afraid that rising prices would eventually show up in rising labor costs which is why they would raise rates. Rising wages were bad because they would hurt Wall Street’s bottom line. With Trump main street has realized that rising wages are good and the elites are hyperbolic… the unions are neutered… and the fed is forced to keep it’s mouth shut and play along as little as possible with main street until they can put things back in their natural elite order.

      And once again the media girls go…

      Liked by 1 person

  15. Grumpy Grandpa says:

    Long-time voyeur at the Treehouse. I mean lurker. Read this book https://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/091298645X and you will understand that the Federal Reserve is not a Federal agency of the government. One of the best books about money I have ever read. And, I am well-read.

    Liked by 5 people

    • bearsgrrr says:

      Yes. Not our friend. They know what they are doing. Their goal isn’t MAGA. They propped up 0bama and are trying their best to keep Trump’s economy down.

      Liked by 1 person

    • WethePeopleHandbook says:

      Agree 100% Grumpy. KnowSERENoFear recommended it to me and sent me one. Just received mine two days ago and dived in………and I am NOT well-read, but this book is so well written anyone at the high school level should be able to understand it. It’s written more like a mystery novel than a history textbook.

      Liked by 2 people

    • givethanks says:

      On your recommendation, I just purchased it.

      Like

    • KnowSERENoFear says:

      Should be required reading to graduate HS…that and a thorough understanding of the Constitution. If ALL Americans understood the corrupt relationship between financiers and government AND how OUR Constitution is a prophylactic against their collaboration to transfer OUR property into their coffers….we would enjoy LIBERTY once again.

      Treepers simply can not afford not to read this book!

      Liked by 4 people

    • LafnH20 says:

      Then Why do personnel changes at “The Fed” require Senate approval?

      Like

      • KnowSERENOFear says:

        To sell the legislation to legislators and the the public in 1913, it had to look like the FED was a federal agency and not a cartel of bankers from NY (which it really was). The name Federal Reserve, was purposely named such to fool Americans into thinking it was a federal agency…and “reserves” made it appear that the federal government was backing up citizen deposits. Nothing about the FED is constitutional, as the government can only COIN money (strike gold or silver coins) AND create/monitor “weights and measures.” …the “printing” of money is unconstitutional. The FED prints $ to give to banks that can’t cover their “deposits”…this is called inflation which is a tax on consumers. And when the SHTF, the federal government bails out banks with OUR $.

        Liked by 3 people

  16. Zippy says:

    China’s Militarized KABUKI THEATRE

    Liked by 2 people

  17. DiogeneseVindicated says:

    I’m not a financial policy wizard, but it seems to me that once the main street economy over takes wall street the feds will have better incentives to play along.

    Like

  18. Peter Orange says:

    God forbid, but my biggest fear is that this brave man, PDJT will be assasinated by the bankers and global elites whose entire world he is disrupting.

    Liked by 3 people

  19. Dutchman says:

    “We are COMPETING against other countries” is KEY, so reiterating Sundances emphasis.
    The pre-Trump view of international relatiins was to totally disconnect ECONOMICS, from any discussion of relations between countries.

    So, we had our ‘allies’ like EU countries, etc.
    And, we had our ‘enemies’ like the old USSR and IRAN. Leading to cold wars, hor proxie wars, tensions etc.

    The MAGANOMIC, TRUMPIAN view: to see countries as like companies; therefore there are NO ‘allies’, no ‘enemies’ either. There are only COMPETITORS.
    ECONOMIC security is,NATIONAL security is a fundamentally, completely different mindset.

    You don’t attempt ‘regime change’ by invasion, attempting to impose Democracy. Nor do you undermine from within, ala CIA.

    You since FORCE all countries to engage with you, on TRADE, fairly. If they can’t, like a business competitor, they “go under”. Since a free market capitalist Democratic Republic is inherently an economically more vibrant, healthy, productive and innovative system than a closed,,centrally controlled dictatorship (whether Conmunist or islamist) those systems will inherently collapse of their own inertia.

    We are NOT “allies” with Western European countries, Canada, Mexico or ANY other country.
    But, we are NOT “enemies” of Iran, China or any other country, either.

    We are COMPETITORS of ALL countries, and THEY with us. Makes things so simple. No “Fenemies”, or “alliances” with countries we find repugnant, due to a percieved “common enemy”.

    And, we aren’t SAYING, for instance, that China or Iran should change their form of Government. The people of those countries should decide. Of coarse, as they see a clear demonstration that ‘our’system of free market captalist republican democracy puts their systems into bankruptcy, onecwould THINK they would decide to emulate us.

    And thats fine. The PEOPLE will be highly motivated to develop a system that can compete with America. Which means the PEOPLE of other countries will be motivated to adopt a system similar to ours cause its INHERENTLY better.

    So, not IMPOSED from without, but groeing organically from within.
    Neocons, eat,…spit. Ditto, “Socialists”.

    And really, if EU was openly formed and intended to compete with us economically, WHY are we ‘defending’them from Russia?

    Its like Walmart, picking up the,tab, for Targets security. Makes absolutely NO sense!

    Liked by 11 people

    • bearsgrrr says:

      Bunches of Likes!

      Like

    • Terrific STRATEGIC REFRMING, Dutchman.

      Post of the Day!

      President Trump’s Bilateral Trade Deals will take BOTH countries’ games to new levels.

      These will be SUSTAINABLE through Free, Fair and RECIPROCAL treatment, and because the BEST of them will encompass EXISTENTIALLY-CRITICAL SCOPE:
      • Agriculture
      • Defense
      • Energy
      • Trade that is UNENCUMBERED by
      … Tariffs, Barriers, Subsidies, Currency Manipulation, Technology Transfer or IP Theft

      Liked by 3 people

      • Dutchman says:

        Isn’t it ironic. My whole life, I hears “Free trade” as if it was a GOOD thing.
        Tarifs equal PROTECTIONISM, and thats BAD, so U.S. shouldn’t do it.

        All the while, OTHER countries were tariffing the CRAP out of the,U.S.

        Oh, also heard “Populism” and “Nationalism” were “Bad”.

        Makes me,wonder, at all the other things,I was told, and didn’t question,….gravity really exists, right?

        Liked by 7 people

        • Oh, there’s gravity, all right.

          The kind that’s now draining the stolen-wealth pockets of those high-flying Globalists!

          Liked by 4 people

        • GB Bari says:

          Most of us were rolling along for years thinking something was “off” but – – golly gee, it must be our lack of sophistication and understanding……

          ….Until some event or some insightful blogger (TCTH?) red pilled us and opened our eyes….and switched our brains off of “remote control” – – –

          – – and we finally saw the real Reality.

          Liked by 1 person

          • Dutchman says:

            Yep. Perot started it, with the sucking sound. But then everything returned to ‘normal’.
            Then there was 2008, and,EVERYBODY knew SOMETHING was wrong. Lefty’s did Occupy, which petered out. Right did Tea party, which also petered out.
            The “The Donald” road the escalator.
            And then after the election, I stumbled into TCH, and began reading about the BIG UGLY, and found it fascinating.
            But everycsovoften, he would have one of those MAGAnomics articles, which I found,…boring and hard to understand. But, I would read them, even tho my eyrs,would glaze over, after a couple if paragraphs. But, the next time, I would get a little further. And a little further.
            And a little bit ,…angry. And the more I read and understood, the,angrier I got.
            Finally I had my epiphany!

            THIS, I realised, this “MAGAnomics stuff”, is the REASON for the Big ugly.

            They don’t hate DJT because if his ‘brash demeanor’ or his,’tweets’, or cause he’s ‘unPresidential’ or an outsider.

            If he left Trade the wayvit was, they would have only given him the normal level of hate, ridicule and bad press like they gave GW BUSH. Justcenough to keep the useful idiots on both ‘sides’ aligned.

            They hate him, and MUST destroy him, and will not stop, because he is exposing them, their scam, and he is putting an end to it, and them.
            “NOW I GET IT!” I yelled.

            Liked by 3 people

    • Mo says:

      excellent thoughts Dutchman

      The President’s goal is a return of realist foreign policy.

      “It is our true policy to steer clear of permanent alliance with any portion of the foreign world”: it was George Washington’s Farewell Address to us. The inaugural pledge of Thomas Jefferson was no less clear: “Peace, commerce, and honest friendship with all nations-entangling alliances with none.”

      source: https://www.foreignaffairs.com/articles/1970-07-01/entangling-alliances

      Article written in 1970 however part of it is behind a paywall and i have given up my subscription to the magazine.

      Cheers
      Mo

      Liked by 1 person

  20. schizoid says:

    Devaluing the currency hurts everyone. A better option would be to switch from tariffs to quotas. That would force manufacturing back to the US no matter what other countries do.

    Like

    • ATheoK says:

      ???
      Other countries devaluing their currency is meant to harm USA. Exactly how does quotas change their intent?

      Countries moving back to the USA because it makes economic sense is just a forerunner of countries fleeing Socialist and Communist countries; as once again, those countries nationalize all industry within their border.
      Currently, globalism only works because Socialistic countries allow temporary benefit of low wage employees.

      Liked by 2 people

  21. wilski says:

    Yesterday morning on CNBC their panel of 8 “financial experts” addressing same issue, were intensely and feverishly 99.999% pro-China and Anti-America. Each panel member couldn’t wait their turn to put in their anti-USA comments, anti-PDJT comments. Most of the time 3 or 4 were speaking at the same time; trying to out-do their fellow panel members in anti-Trump, anti-USA policy discussions.

    Where do these “experts” come from?

    It’s not a “Trade War”, it’sPDJT correcting years of “Trade Imbalance” problems.

    Costing Americans hundreds and hundreds of billions.

    Liked by 4 people

    • It’s a thing of beauty to watch our own MAGAnomics WINNING under President Trump’s genius-of-audacity leadership DESTROY the carefully-curated public images of these Fraudsters … again and again and again over his 4-year First Term!

      Liked by 3 people

  22. Robster says:

    Inflation is the expansion of money supply, and there’s been plenty of that (including increasing asset values). With the Federal Reserve further increasing the money supply (through lower interest rates) dollar devaluation and price increases are inevitable. If we (the US) really wanted to get our act together, we’d go on the gold standard. (Just look at what’s been happening to the price of gold denominated in dollars.)

    Like

  23. citizen817 says:

    Navarro w/Maria Bartiromo

    Liked by 3 people

    • GB Bari says:

      Bartiromo was relentlessly pushing the globalist establishment POV in this interview. Navarro was quite patient and polite with her despite her argumentative tone. She apparently did not want to “hear” Peter’s clear explanations plus she cut him off several times to switch the topic when he was making good points.
      Not Maria’s best side in this interview.

      Liked by 2 people

    • Mo says:

      Dr. Navarro is an all star. “The wall street journal is not much different than the peoples daily in terms of the news it puts out” !

      Liked by 2 people

  24. genjake says:

    Looks like gas will drop below $2 by the end of summer. That will drop the inflation rate even further putting more pressure on the Fed to reduce rates in the absence of inflation. SD can check this but Kyle Bass is saying the Chinese are running low on dollars to pay for their overhead. A $400B loan to China by a UK bank just got their CEO fired. Thus a lower rate will decrease the dollar making it even tougher for China to cover their bills. It’s not looking good for Xi right now.

    Like

    • TreeClimber says:

      I could deal with $2 gas… We have a 25 gallon tank, if I remember correctly… it’s currently $50-$60 to fill up…

      Like

    • Mo says:

      Kyle Bass does not seem to be playing with a full deck sometimes. I unfollowed the fellow a couple months back when he blew his lid (during the last President Trump Xi meetings) about the President allowing American manufacturers to continue selling certain hardware that the commerce dept. had determined to be harmless to national security to Huawei. He seems to be tightly in the Rubio orbit and aligned with some former nevertrumpers so be aware of the source as you rightly noted.

      Like

  25. Anonoma says:

    Economic illiterate here, can someone explain the following to me?

    1) Quantitative tightening is paying down debt and reducing inflation. Why does Trump think that’s a bad thing for main street?

    2) Why does Trump say that high bond interest rates are a bad thing for main street?

    3) I get the idea that China is incentivized to negotiate if the dollar is weaker relative to the Yuan (higher US prices) because it’s likely to see factories move out of China, but doesn’t a strong dollar (lower US prices) also hurt China because their profit margins are lower and they have to spend more on subsidies? I would think that the tariffs are what make it a lose-lose situation for China, plus their desire to prevent layoffs.

    Like

    • TreeClimber says:

      Those are my questions, too. Not sure why importing deflation is a bad thing.

      Like

    • Ghost says:

      @ Anonoma:

      Simplified answer:

      Quantitative tightening is the Fed selling treasuries that they have held in their asset balance sheet into the market place.This in effect withdraws capital from the economy. Thus making capital for expansion more expensive. It is not paying down debt.

      I’m one who wishes for a bit higher rates, however the Fed did it much to fast using false reasons, inflation expectations, while also withdrawing vast amounts of capital through their quantitative tightening. Simply put PDJT is right. They purposely tried to derail his growth policies.

      Like

  26. MLK says:

    The Fed has been part of The Resistance. Its task was to tank the economy as a necessary predicate to the frame-up and removal of the POTUS. That was the plan until the end of last year when it panicked. It realized that unlike previous figureheads/pitchmen, POTUS Trump was making them liable for their actions with the American people.

    Trump has been single-handedly fighting a battle to restore legitimate constitutional authority. The Fed (along with the entirety of the commanding heights of finance) figured out that it is no match for a real POTUS exercising his legitimate authority.

    Liked by 1 person

  27. Mike in a Truck says:

    “Our Fed” is not ours. A cabal of international financiers- I would go so far as calling them fraudsters. They do not have Americas interests at heart. Beholden only to their masters- and we arnt supposed to mention who they are.Many gather at Davos every year. ABOLOISH THE FED!

    Like

  28. thedoc00 says:

    Put more simplistically, the majority of finical pundits, experts, “industry leaders”, et al still have not comprehended that this President does not represent them but does the represent the citizens and legal resident of the USA (the focus of the Mainstreet Economy).

    Like

  29. Zippy says:

    Like

  30. ATheoK says:

    Sundance again, brilliantly summarizes the American situation.

    “The Wall Street ‘multinationals’, corporations making and selling goods, are invested in production within other countries.

    On one hand, Wall Street loves cheap money (low fed rates). However, on the other hand Wall Street multinationals are invested in overseas manufacturing; and those corporations don’t want to see the retention efforts of China and the EU undermined with a lower dollar value (lower fed rate). So Wall Street is schizophrenic (check the stock market).

    U.S. tariffs hurt the Wall Street multinationals because they want to keep making cheap goods overseas and they have invested in this process.”

    Globalists, Wall Street and the Fed understand these roles entirely.

    “One way for the U.S. to respond is for the federal reserve to cut interest rates, which should lower our dollar value and make it easier to export products; but can also raise the price of things we import. That is why President Trump notes “(there is no inflation)”

    This is entirely alien to the Fed.

    The Fed has generations devoted to treating inflation as the utter evil. Along with their view that full employment and resulting wage increases underlie inflation.
    They believe this even after Obama’s reign meandering dismal economy of low interest rates and high unemployment couple with high though hidden inflation.
    Inflation is masked because the Fed removed major indications of inflation from their tracking, which is why most people saw wages stagnate, prices and real cost of living climbing higher while the Fed claimed COL (Cost of Living) remaining low.

    “[However, I doubt any action from the Fed will change anything. All the data looks to me like the Fed is disconnected in this process.]”

    Exactly!
    The Federal Reserve has as little understanding of President Trump’s achievements as a corpse does.

    Perhaps President Trump should bulldoze America’s banking system and remake it, just as President Andrew Jackson once accomplished?

    Liked by 1 person

  31. Zippy says:

    NEVER should have even considered allowing “U.S. companies to restart business with Huawei Technologies Co.” in the first place! By Chinese law they are a direct agent for the PLA!

    U.S. Holds Off On Huawei Licenses as China Halts Crop-Buying
    August 8, 2019

    https://finance.yahoo.com/news/u-holds-off-huawei-licenses-210704453.html

    (Bloomberg) — The White House is holding off on a decision about licenses for U.S. companies to restart business with Huawei Technologies Co. after Beijing said it was halting purchases of U.S. farming goods, according to people familiar with the matter.

    Commerce Secretary Wilbur Ross, whose department has vetted the applications to resume sales, said last week he’s received 50 requests and that a decision on them was pending. American businesses require a special license to supply goods to Huawei after the U.S. added the Chinese telecommunications giant to a trade blacklist in May over national-security concerns.

    Like

  32. schizoid says:

    In order for US manufacturing to be competitive prices of imported goods have to rise. Normally tariffs would do that but other countries are devaluing their currencies to keep prices low. Essentially they are eating the cost of tariffs themselves to maintain market share.

    Quotas would take away that option. The resulting shortage of imported goods would cause their prices to rise regardless of what the exporting countries were charging for them, creating the necessary incentive to manufacture in the US. This IMO is preferable to a dollar devaluation which would raise the price of everything.

    Like

    • schizoid says:

      My last comment was meant as a reply to ATheoK’s reply to my comment above. I don’t know why it didn’t post that way.

      Like

      • ATheoK says:

        I’ve noticed that hitting the “Reply” under a comment can end up replying to other comments. Sometimes, I can catch it by re-reading the comment I want to reply to.

        Your earlier comment started off about devaluing currency. Leaving your comment about quotas following/extending the currency line.

        The problem with quotas is against who?
        The Chicago eating blob has “Made in China” components heading for our shores from many other countries.

        It is hard enough tracking component manufacture location without attempting to count components by country, by country of origin even when the product’s origin isn’t marked, against time. That would require a whole new bureaucracy to help Customs track quotas by country by product while seeking to keep out the “made in China” stuff.
        Keep it simple, blame the originating country and simply ban/limit any of their products discovered coming from other locations.

        Then there is the secondary impact of quotas.
        As one example of thousands; many of the condensing units for A/C units are made in China.
        Setting a quota for condensers will certainly raise prices. Beyond prices, many customers will start getting angry when their home or car A/C and Heat Pump units are dead until the next quarter’s quota is allowed entry.
        None available, at any price.

        Such quota conditions opens the market for middlemen.
        That is, buyers who corner the market when product is available, later resell for very dear prices when demand peaks; à la Enron style.

        In the international markets arena, President Trump is the best expert I’ve ever read about or seen. Second guess the best men in their field?
        Not for me!
        I’m thrilled just watching and living it.

        Liked by 1 person

        • schizoid says:

          I hear you when it comes to practical difficulties.

          My own preference would be to just keep raising tariffs higher and higher. If other countries want to keep inflating their currencies to hand us a big tax windfall I say let them. Eventually something’s gonna give.

          Like

  33. KnowSERENoFear says:

    First…the FED is not making any mistakes…it is acting purposely to ruin our economy and drive their Globalism/NWO agenda dictated to them by the Council on Foreign Relations and their other international equivalents.

    Second…and it’s probably too late…is for the FED to be eliminated and for US to return to a gold/silver standard. The FED is printing money even though it is NOT a federal institution. On that money is “United States of America,” the Sec of Treasury, and great seal of the US treasury…all smoke and mirror to make us think that our currency is generated/controlled by our federal government. A moot point anyway, because the federal government, per the Constitution, can ONLY coin money and establish standardized weights and measures to set “worth.” The States are supposed to be on a gold or silver standard per the Constitution.

    The creation of the FED in 1913 was the 4th try by the federal government to establish a central bank. Central banks were abhorred by our Founders (except Hamilton) because they eliminate competition and inevitably always move to fractional banking where they loan OUR money out without maintaining “gold or silver” on hand to back up their loans. Banks are only required to keep +/- 10% reserves to cover deposits…so if all us went to the bank to take our $, they would be 90% short….don’t let the FDIC fool you…they keep less than 10% to cover all banks in the US. Inevitable, banks run out of money to loan…that’s when the FED prints more money which the banks loan out…all while receiving interest.

    Printing $ and throwing it into circulation, creates inflation…which increases prices and decreases wages. WE are the ones that lose…inflation is a tax on those that save money and are frugal with money. WE have been scalped immensely by inflation. Funds form inflation are now redistributed throughout the world to KEEP debt alive. Our assets are now tied to our debt. IF the debt went away we would have nothing. Our Framers knew this and thus adamantly opposed a central bank.

    Like

  34. Pete says:

    I wonder why Fed critics like Sen Rand Paul have been silent about the incompetence at the very top positions at the Federal Reserve. Now more than ever, is the time to really look at the Fed’s antiquated models, and examine its mandate whether it needs to be made more responsive to the needs of a modern American economy. The other day, former chairs of the Fed called for a more independent Fed, an obvious dlight at the President. I thought that was the height of hypocrisy when they themselves admitted that the policies they followed caused past recessions. It’s time to audit the Fed!

    Like

  35. Pyrthroes says:

    Since when has the U.S. Federal Reserve ever served the (ho-ho) “public interest”?

    An independent (non-Treasury Department) agency concocted 1913 by Wilson’s Wall Street fixer son-in-law William McAdoo, who was instrumental in financing both Wilson’s New Jersey gubernatorial and subsequent national campaigns [even then, Wilson beat Taft only due to TR’s adolescent Bull Moose party split], this egregiously anti-10th Amendment organ was first stomped out by Andrew Jackson in the early 1830s.

    Rather than sit idly by, complaining of Powell et al.’s built-in “disconnect”, why not admit this brutally maleficent tool of –hoohah!– bloated capitalists is a century past-due for termination with extreme prejudice? In this respect, Fed arcana resembles doofus academics “climate change”– blow hot or cold, at least half the time you’ll get it wrong, eventually cumulating capital to zero.

    Think King Lear on the heath: “”Blow, winds, and crack your cheeks! rage! blow! / … all-shaking thunder, Strike flat the thick rotundity o’ the world! / Crack nature’s spouts … that make ingrateful man!” (Act III, Scene 2). Though DJT is a much cooler head, he’s good at “striking flat” his thick, rotund opponents [Jerry Nadler, anyone?].

    Liked by 2 people

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