Trade and Manufacturing Advisor Peter Navarro Discusses “Next Step” Chinese Trade Tariffs…

White House trade and manufacturing policy advisor Peter Navarro appears on Fox News to discuss the status of the U.S-China trade negotiations and the reason for a USTR delay on some product tariffs.

Peter Navarro confirms what we noted from the office of USTR Robert Lighthizer yesterday.  On December 15th “the tariffs will go on.”   While the statement flies over the head of Stuart Varney, Navarro confirms the “next step” process that Lighthizer implied.

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More below

The U.S. stock market continues reacting to an unusual dynamic. 50% of all companies manufacturing in China are U.S. owned multinational corporations. Those companies don’t want tariffs to succeed in disrupting their supply chain. As a consequence those Wall St. Corps also don’t want lower U.S. Fed interest rates designed to combat China’s currency devaluation.

Normally Wall St. would like lower rates (cheap money), but in this dynamic the U.S. multinationals are against it. Wall Street is schizophrenic. Domestic U.S. companies benefit from the lower rates; however, now, lower rates are adverse to the interests of the multinational companies.

It was Albert Einstein who aptly stated:

“The significant problems we have cannot be solved at the same level of thinking with which we created them.”

The same basic principle applies to those who are trying to understand and evaluate current economic activity yet failing to disengage themselves from their historic economic frames of reference.

Minds who are framed around thirty years of financial/monetary political policy; intended to influence the U.S. economy and created by vested interests who were building out the legislative priorities based on Wall Streets’ best interests; will struggle to understand the new landscape which is entirely formulated to benefit Main Street.

There are two economic engines: Wall Street and Main Street.

The two economic engines are divergent and detached. Time (30+ years), along with monetary focus only on Wall Street interests (multinationals), pushed those two economic engines further apart. The same monetary policies which worked in the immediate past will not work in the immediate future.

We are now in the economic space between both engines. The traditional cause and effect (Fed) is now uncoupled.  The administrators of the economy are perplexed; this is unfamiliar terrain.

The exact same areas of the country which have gone through three decades of economic contraction are now seeing economic expansion and revitalization. The Fed policy which influences Wall Street was not, and is not, domestic centric. The fed policy was corporate driven monetary policy and globalist in influence.

Until the two economies gain parity in value – any fed activity, taken as a consequence to their familiar traditional measurements (interest rates etc.), will have minimal to negligible impact on Main Street.

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This entry was posted in Auto Sector, Big Government, Donald Trump, Economy, Election 2020, energy, media bias, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

95 Responses to Trade and Manufacturing Advisor Peter Navarro Discusses “Next Step” Chinese Trade Tariffs…

  1. SAM-TruthFreedomLiberty says:

    And for any tumbles in the market President Trump can blame the anti-American FED.

    This will be a win-win situation.

    Liked by 10 people

  2. Ornus says:

    Sundance,
    How does this play into the Bond markets?

    Liked by 1 person

    • Dennis Leonard says:

      Stop reading CNN business,that is their excuse.

      Liked by 3 people

      • The Boss says:

        You are so right. CNBC and Yahoo are just as mentally challenged. This is getting too predictable IMHO.

        Out shopping for good dividend stocks. Already scored some Dominion Energy and AT&T. It’s not like either has exposure to China for heaven’s sake.

        Like

        • Dekester says:

          Exactly Boss,

          How about savvy investors that have held quality Gold Stocks, or even the metal itself

          A dear friend, an old Saskatchewan depression era survivor. Built a sizeable portfolio buying the dividend payers on the dips that had a multi decade history of decent returns.

          God bless PDJT

          Like

      • Ornus says:

        DL,
        I was not reading CNN, thanks ristvan for answering my question!

        Like

    • Pedro Morales says:

      1- Exports only make up 12% of GDP of the US economy. China is over 20%. Most of the EU is 30%.
      2- US tends to export essential products or products not easily replicated by other nations- Food, Energy, Civilian/Military aircraft, industrial machines
      3- We are essentially a self sustained economy where we can produce and manufacture everything we need. We are not dependent on trade. The world is dependent on our markets.
      4- We have the strongest currency in the world and essentially control the world banking currency, and commodity system. We control and wield sanctions. No one can sanction or penalize us. We own the board game
      Who wins a trade war? Who could avoid a recession?

      Liked by 10 people

      • jnr2d2 says:

        Saw somewhere today, China exports 47% of GDP.

        Like

      • thedoc00 says:

        To put some figures with your statements, which I have consistently seen to support your points. The US Consumer drives 70% of our domestic economy and over 40% of the global economy. That 40% figure is huge given the size the US population and buying power per capita. Our consumers are the worlds piggy bank and only this President recognizes the leverage provide as well as the need to put real jobs with growth potential back into the US economic engine to preserve that leverage.

        Obama had the US on the glide path to hamburger flipper as top end of the middle class. In essensence the US economic leverage would settle back into a “population proportional” level.

        Liked by 3 people

        • GB Bari says:

          Ozero was simply continuing the glide path begun in the 1990s under Clinton and continued without any attempt to reverse by Bush43.

          Ozero had zero economic intelligence and was more interested in stirring up social justice unrest to move the country as far hard Left as possible. What ever recovery from the 2008 crash that occurred under Ozero was more because of artificially rock-bottom interest rates and low paying service industry jobs than any genuine effort (there wasn’t any) on the Administration’s part.

          Liked by 1 person

        • lemmus1 says:

          “Obama had the US on the glide path to hamburger flipper as the top end of the middle class”
          LUVVVVVVVV IT!!!! 🤣🤣🤣🤣🤣

          Like

      • Bubba Cow says:

        like

        Like

      • lemmus1 says:

        …yes and no …as another treeper pointed out yesterday, 80% of the key ingredients in our pharmaceuticals still come from China …there are a number of holes like that …we’ll get there but until we do, look for the potholes.

        Like

  3. Mike in a Truck says:

    Just like in ’07/08 the MSM,Demos,and “economic experts” are attempting to talk the U.S. into a recession. Like just before an election huh? I dont think it will work this time. First,back in ’07 we had a knucklehead for President. Second, the country was being scammed into electing an even bigger knucklehead as President. Third, and most importantly we now have PDJT who is way ahead of these turds that are trying,praying, hoping,dreaming a recession is nigh.

    Liked by 12 people

    • Dekester says:

      British newspapers too. They are also taking up a “Trump recession “ evil folks these MSM slime.

      God bless PDJT

      Liked by 3 people

      • Bill says:

        The media always like to spin everything as a negative, so
        Trump’s recession is a NEGATIVE recession.
        So it really is a recovery.
        We have a true leader in the White House.
        Winnamins to Winfinity

        MAGA

        Liked by 1 person

    • booger71 says:

      Gasbagerino was all over Fox Business basically calling President Trump and his economic team morons. I could on take about 30 seconds.

      Liked by 2 people

      • 1970novass396 says:

        Charlie knows something about Morons for sure. Maybe The Donald can start bringing in some of those Obama 1% GDP numbers that the cast at CNBC though so highly of back in the day.

        To hell with Fox and the two useless Murdoch snowflakes.

        Liked by 5 people

    • Mikgen says:

      The same in 1991/92 when the msm and WS made their utmost to elect Clinton by talking down the economy.

      Liked by 1 person

      • desperatelyseekingmelania says:

        My first red pill. Was in my early 20s, not politically formed, and asking myself “Why are all these newspapers I was taught were objective so obviously for Clinton?” I say taught because I had studied journalism, but thankfully I found another profession.

        Liked by 1 person

        • TheLastDemocrat says:

          DSM: this will reveal your generation:

          Sure, they taught you that journalism was “objective;” but did they also teach you that your job is to work to overturn oppression? To be the guardian for the oppressed of the world?

          Or, just to judge what is newsworthy, and just tell the story.

          Like

    • YvonneMarie says:

      True Mike.
      But Deep State will keep trying until defeated.

      Liked by 1 person

    • techherder says:

      Bloomberg: RECESSION RECESSION RECESSION pushes all day. They are praying for a RECESSION so as to make @POTUS look bad. Pharisees and Chinese Talking heads. SCUMBAGS all.

      Liked by 2 people

    • Ray Runge says:

      Mike, in a pick up IMO, 07 markets included the credit default swaps as options and the AAA real estate bonds that were actually bundle of guaranteed to fail realty loans. Many contrived and super leveraged financial instruments that burned cup like a Cali forrest once the dominoes began to fall.

      I am not aware of current over leveraged financial instruments in today’s market.

      Like

      • lemmus1 says:

        …take a look at leveraged loans syndicated by banks to companies with high debt ratios and/or poor credit …different vehicle, the same threat

        Like

  4. Dennis Leonard says:

    And that is why the stock market is down 700 so far today,not because some publication is flashing recession because of the bond market.

    Like

    • jnr2d2 says:

      What the bond market is telling the FED is that 0.25% was not enough. Trump called for 0.5%, which have reestablished a non inverted curve. But by FED ignoring that, we may need 0.75%

      Liked by 4 people

  5. Larry says:

    If you don’t want to hear people complain about you, all you need to do is:

    Say nothing, do nothing, be nothing.

    Liked by 3 people

  6. BebeTarget / abdb61 says:

    President Trump knows exactly how to deal with China for the benefit of Main Street. Second-guessing accomplishes only one thing: Makes the Left believe his base is cracking. It isn’t and it IS a win-win.

    Liked by 3 people

  7. Pedro Morales says:

    1- Exports only make up 12% of GDP of the US economy. China is over 20%. Most of the EU is 30%.
    2- US tends to export essential products or products not easily replicated by other nations- Food, Energy, Civilian/Military aircraft, industrial machines
    3- We are essentially a self sustained economy where we can produce and manufacture everything we need. We are not dependent on trade. The world is dependent on our markets.
    4- We have the strongest currency in the world and essentially control the world banking currency, and commodity system. We control and wield sanctions. No one can sanction or penalize us. We own the board game
    Who wins a trade war? Who could avoid a recession?

    Liked by 5 people

  8. ristvan says:

    In the past, an inverted yield curve was thought a sign of impending domestic recession. Not this time, since the ‘cause’ is negative yields and weakening Euro in Europe. 10 year bonds become a monetary safe haven, and European demand drives bond price up so yield down. Is external to US domestic economic dynamics.
    Record employment, record low unemployment, rising wages, and ~3% GDP growth are NOT harbingers of recession.

    Liked by 23 people

  9. Pa Hermit says:

    This pinhead Varney is almost as bad as Chrissy Wallace! Hard to listen to!

    Liked by 5 people

    • Dutchman says:

      Yes, Varney is an IDIOT. In negotiations, ONE approach is to use small measures, to build ‘trust’, so PDJT gave China the opportunity.
      Xi gave him his personal guarantee that he,would stop the flow of Fentanyl.
      He didn’t, and given China is a tryranical dictatorship, so he COULD have stopped it, he undermined any trust.
      Xi and his negotiators have promised to buy big ag purchases. They haven’t. They have repeatedly lied.

      So WHY in the,world does Varney keep suggesting “If China did THIS, could PDJT hold off?” He, like so many just don’t GET it. In order to negotiate, you need a ‘partner’; its like trying to negotiate with the Palestinians for ‘peace’; they don’t WANT ‘peace’.

      “Will we BE in a trade war?” You idiot, we have BEEN in one, for many years!

      Liked by 12 people

    • The Boss says:

      All the bozos on FNC and FBN are pretending they’re intellectual simians all of a sudden, and becoming just damn rude – especially to Navarro. They are way out of their league now, and resort to flinging their poop around the studio in tizzy.

      Liked by 10 people

  10. IMO, PROGRAM TRADING drove market down today, through PRE-PROGRAMMED SELLING

    • Triggered at the moment the Bond Yield Curve “Inverted”.

    • Sustained by Selling Momentum as more and more small investors are SPOOKED into unloading their investments at the worst possible time.

    Liked by 8 people

  11. Carrie says:

    Ok, if it wasn’t clear before, it is now. Stuart Varney is a tool. He was so rude to Navarro and kept trying to spin everything he said! This market reaction has virtually nothing to do with China tariffs and everything to do with the Fed (and the absolutely abysmal idea of quantitative easing- massive failure!). I absolutely loved it when Navarro called him out on using the word “radical” changes! Absolutely excellent catch and lightning reaction to point out that that was a prime example of Varney trying to make things more volatile where it isn’t necessary!

    Liked by 11 people

  12. Dutchman says:

    Actually, if the F’ing Fed would cut, I really don’t care who gets the credit, DJT or the ‘markets’, just cut, then cut again.

    Like

  13. Zippy says:

    Nice, simple overview on how China is cutting its own throat:

    Like

  14. GGHD says:

    Varney seems to speak for both China and Wall Street; NOT just Fox Business News. Navarro, speaks for Trump, and once again reiterates the Seven Problems caused by China.

    NAVARRO>> LET’S DO THE SEVEN THEN. =
    1. CYBERINTRUSION INTO OUR BUSINESS NETWORKS.
    2. FORCED TECHNOLOGY TRANSFER IN EXCHANGE FOR MARKET ACCESS
    3. INTELLECTUAL PROPERTY THEFT.
    4. DUMPING INTO OUR MARKETS.
    5. STATE-OWNED ENTERPRISES WHICH ARE HEAVILY SUBSIDIZED.
    6. CURRENCY MANIPULATION.
    7. KILLING AMERICANS WITH FENTANYL.

    THESE ARE THE SEVEN STRUCTURAL ISSUES THAT WE NEED TO GET SETTLED IN THIS NEGOTIATION. [From Transcript]

    The Trump Team wants to Make America Great. … Varney seems to speak for Wall Street and the Multi-National Corporations, that want to make more money. = Even if, that hurts Americans and >helps China. For Varney it’s about Wall Street, and the ‘bottom line’ for the people exploiting the economic slave-laborers in China.

    Liked by 4 people

  15. willthesuevi says:

    I lurk another private board with some very smart people. Between CTH and this other board I have been educated more than I thought possible at my age. Anyway, I saw this comment and wanted to post here because I thought it was interesting. Even more interesting if true. The posters are vetted and most are known to each other. I did clean the language up a bit:

    “On yet a fourth hand, POTUS’s trade war is giving Chinese businessmen kittens. Some Chinese manufacturers are now looking to establish fabrication facilities CONUS (I am personally aware of two, and I’m told that–modified quote here–“China businessmen were excited” when the offer to provide a CONUS facility was made). I think a secondary effect of the trade war–and I don’t know if this was brilliant strategy, or just luck–is that Chinese businesses are getting the wake up call that the ChiCom party gives zero &^%$* whether the businessmen get to keep their lavish lifestyles, and they’re feathering nests outside of China. Setting up facilities in the US is one of the few things they can do to get hard currency out of the country. So we may be getting some of the manufacturing base back.

    Liked by 5 people

  16. Robster says:

    Not sure it makes sense that Wall Street want one thing (cheap money) but U.S. multinationals don’t. The fundamental mistake was interest rates were too low for too long…there is a significant amount of mis-allocated capital, and way too much debt out there (including government debt, budget deficits and US multinational corporate bonds). It’s higher interest rates that will break this cycle….Powell headed in that direction late last year and then caved.

    Like

    • Paula S Daly says:

      Agree, interest rates were and are too low, for too long. Wall St loves cheap money, and so do governments, so they can spend more, and have less interest to pay. This and RFL’s are my biggest differences with PDJT. Sorry, but he’s just wrong on these two issues.

      Like

    • Matthew LeBlanc says:

      How about not “break a cycle” until after an election so as to not create the economic situation they want to get the president they want? Globalist bankers never have nor will have the best interests of working Americans.

      Like

    • Suffocating President Trump’s Manufacturing Renaissance the moment he takes office is like taking a toddler on a 20-mile road march with a 50 pound pack to “help” him grow up quicker.

      Liked by 1 person

    • desperatelyseekingmelania says:

      Central banks can’t meaningfully raise rates while public debt is so high. If it’s up to the fed, interest rates will be low or negative for the rest of my life.

      Like

  17. The USA is AWASH in CAPITAL.
    • Foreign Investors are flocking to our Bonds.
    • Companies are Repatriating Foreign Profits that decline in value if held in Foreign Currency
    • Any Fed Rate Reduction will be matched overseas, accelerating Foreign Inflows.
    • Main Street Workers are earning MUCH more, saving more and spending more.
    • Opportunity Zones are multiplying private investments & workers in depressed Communities.
    • Entrepreneurs are multiplying again and hiring more.
    • Domestic Businesses are growing more and earning more.

    Companies that DEFER investing in USA Operations will LOSE BIG-TIME.
    • ROI at low-and-declining USA Interest Rates will surge.
    • ROI from Offshore Production will be consumed by Tariffs.
    • Offshore Producers shifting from China to Vietnam will be jumping from the frying pan to the fire, when POTUS Tariffs spread to other Currency Manipulators and Transnational Shippers evading China Tariffs, … not to mention WASTING their Reinvestment and FUNDING new Competing Capacity.
    • POTUS will be expanding our Government commitment to Buy Made-in-USA to a Private-Sector commitment at both Corporate and Personal levels, to MATCH China’s directives to Buy Made-in-China.
    • Offshore Producers will sacrifice both Brand Image and Market Share.

    Liked by 4 people

  18. SharonKinDC says:

    Well… Varney was horrifically insufferable, blindingly illogically, and willfully obtuse. He SO wanted Navarro to say buying Ag products would get China off the hook, despite the fact Navarro outlined TWICE, the key issues which totally transcend a one off purchase of soybeans. Geez.

    Like

    • … not to mention China’s not gonna need soybeans to feed the diseased hogs they’re slaughtering nationwide.

      Like

      • lemmus1 says:

        …exactly …I thought most of the bally-hoo about China not buying soybeans just to hit Trump politically was a bridge too far. They’re not buying soybeans because the feedlots are empty and likely to remain so for some time to come.

        Liked by 1 person

  19. I Hear You Now says:

    retweeted by Sundance

    Liked by 3 people

  20. railer says:

    I notice the retailers were big losers today. There has been a push to hold them harmless on the tariffs, and I’m guessing Trump told them negative o

    Like

  21. fangdog says:

    Talking heads talking recession is not such a bad thing. Trump wants lower interest rates and what better to get the Fed to lower interest rates than talk the fear of recession, real or imagined.

    Liked by 1 person

  22. Loren says:

    Well its apparent the MSM including ‘FOX’ is ramping-up for the 2020 election. “Controversy” is their stock and trade, without it there is no news. You can imagine they have way to much money in the stock market and have no clarity on the new paradigm. Wall-street vs Main-street. FOX is duplicity in covering-up. In reality they have no concept of free and fair trade and if they do, they have no idea how to get to free and fair trade.

    Like

  23. Magabear says:

    Mark Levin is one who is stuck on the old theories of economics. Tariffs bad, blah, blah, blah. He’s using this current delay in tariffs on China to prove his point, but this was done to ease worries over the stock market more than to keep import prices low. I think PDJT should just lower the tariff boom on China now, but a few months delay is no biggie.

    Like

  24. The Admiral says:

    Man… not sure I have seen Varney ever be such a heel, in an interview before!

    Every time Navarro wanted to make a specific point, Varney badgers him.

    Wonder who put the pressure on Varney about this interview?

    Liked by 1 person

  25. GB Bari says:

    Varney exposed his asinine side here. He was totally arguing from the globalist position – “what crumbs that China could offer will PDJT accept to completely stop the tariffs?” Ok, not in so many words, but that’s what he was trying to goad Navarro into offering. But Pete is far too wise to be fooled by that amateur attempt at “gotcha” journalism.

    Liked by 1 person

  26. Kay says:

    Normally I watch Varney and then switch over to CNBC where their bias is blatant. The COC Troika of Cavuto/Charlie Gaspirino/Liz Claman are too anti-trump for me. I try and turn back to FoxB for CharlesPayne.
    But today on FoxB it was all about China and Tariffs and Trade. Nobody mentioned the USMCA sitting on Nancy Pelosi’s desk waiting for action from her. Get that done and it would provide the “certainty” the market is craving (per talking heads). Also today? Inverted Yield Curve = Recession! They must have a rolodex of names for bear commentators of the world is going to end because it was 6 months, 18 months, 24 months – they don’t know but these are the leading lights of what inverted bond yield means.

    1 out of the 12 today had the temerity to say what the truth is: the USA is the only country on the planet with positive yields. Everyone else has screwed up their economy so badly that they’re offering NEGATIVE INTEREST RATES. Go in and open an account with $1. The next day in any country in Europe now that $1 is down to 99cents or 98cents. The next day you have 97 cents. And so on. Nobody is putting money into the banks. Nobody wants to take out a loan. Germany just went into contraction on their GDP and Great Britain, the last hold out with positive yields on their bonds went negative today. So what does everyone do? They go to their local bank and get a US Treasury bond! For 10 years at any positive rate!!! That’s whats causing the inverted yield curve. The Fed has to cut by .75 to catch up with the bond rate the market is at. It has a meeting in September when they get back from Jackson Hole Wyoming next week. But remember – 2 of the voting members of the Fed didn’t want to even cut rates last time in June. 7 out of 10 times a recession has occured because of the wrong moves by the Federal Reserve (either tightening too fast or not loosening soon enough). The other 3 were policy driven: tax rates higher, loose mortgage underwriting, trade not getting done soon enough, money taken out of circulation by regulations, bad laws being passed, etc.

    But again – 1 person tried to explain it on CNBC. That person had about 2 minutes and was pushed in the end to agree it was all about tariffs/trade/china. No mention of South Korea and Japan deciding to call it quits over favored nation status and billions of dollars lost between them,

    Like

    • lemmus1 says:

      Today in Denmark, they are offering mortgages with negative interest rates.
      Think about that. The bank is literally paying you to live in your house, applying the negative interest to pay your mortgage principle for you.

      We live in interesting times.

      Like

  27. Mrs. E says:

    I respected Varney at one time; not anymore. He is unbelievably rude! He is being provocative! Navarro is correct.

    Like

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