Winning Has Consequences – Head of European Central Bank Says President Trump Outwitting Global Control Officers…

Leftists love to trot out Christine Lagarde as the pontificating elite to defend their multinational interests.  Recently the former IMF leader was elected to take control of the European Central Bank.   As a direct result, Ms. Lagarde is now taking an adverse position toward a strong U.S. economy and decrying the ‘America-First’ policies of President Trump that have removed the tentacles of global financial control.

If you follow trade, finance and the interests of the multinationals, this is actually quite funny.  In this first brief interview segment Ms. Lagarde, has the elitist audacity to warn President Trump that lowering U.S. interest rates defeats the agenda of the EU.  She doesn’t put it in those terms, but watch and we’ll explain:

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Notice how Lagarde magnanimously claims that lowering interest rates when the U.S. economy is strong, and the U.S. unemployment rate is at historic lows, could lead to rising prices inside the U.S.  Too damned funny; how very kind of the EU to be worried about U.S. consumers… (pro tip: they ain’t).

What she’s really worried about is the dynamic that President Trump has created that is crushing the globalists. Let’s expand.

(Story Link)

♦ The EU economy writ large is contracting, shrinking, due to a lack of investment. The EU has dropped their interest rates in a futile effort to stimulate internal investment… but it ain’t happening. The consequence of the EU lowering rates into negative territory is a weakened EU currency. Two things are happening:

#1) The EU currency dropping means any exports from the EU are less expensive. This is part of the reason for lowering the value of their currency, to keep an export dependent economy alive. However….

#2) By dropping interest rates and driving down their own currency, the value of the dollar increases. This dynamic means EU banks actually purchase U.S. Treasuries for a return. [There is no return in the EU] And simultaneously this drives up the value of the dollar, making any U.S. imports of EU products cost less.

The combination of a weaker EU and a stronger dollar means the prices of the products we would import from the EU are lower. In essence, much like China, the U.S. is importing deflation from Europe.

Any U.S. import company that is not now renegotiating the prices of purchases is a fool. Now is the time for all U.S. companies to drive hard bargains from Asian and EU corporations who wish to sell goods into the U.S. From all current indicators these renegotiations for lower prices is happening both on the Chinese side and the European side.

Ms. Lagarde is not worried that lower U.S. interest rates will drive up U.S. prices, she is worried that lowered U.S. interest rates means greater internal investment in the U.S., while her EU is in direct competition for those investment dollars. Additionally, Lagarde knows that President Trump has boxed them into a trade spiral with no escape.

The lower price of EU products means President Trump can apply greater tariff pressure on the EU and still not create inflation within the U.S. on the imported categories. This is the same outcome Trump’s ‘America-First’ policy is doing to China.

♦ Secondly, it is President Trump’s confrontation with China that has caused Beijing to slow down, and in some cases stop, their industrial purchases. The EU economy, specifically Germany, Italy and France, are dependent on purchases from China. As China stops buying stuff, the EU economy contracts. This is what is happening right now.

If you elevate your perspective what you realize is that every dollar the U.S. does not give to China means one dollar less that China has to purchase from the EU. Yes, that is correct… the U.S. $500 billion annual deficit with China is what allows Beijing to purchase industrial goods from Europe.

As President Trump resets the U.S. trade imbalance with China, he simultaneously diminishes the EU economy. THIS dynamic is what Christine Lagarde is really upset about.

So now we look at the second Lagarde “citizen of this world” soundbite (embedded in tweet) listen carefully:

https://platform.twitter.com/widgets.js

In that soundbite “U.S. losing leadership” really means the America-First policies of President Trump means the U.S. is no longer spreading American wealth to the rest of the world.

♦ For more than three decades global economies have grown by removing wealth from the United States.  The U.S. multinationals (Wall Street Corporations and pundits) have countered the economic arguments by claiming those global economies have purchased U.S. treasuries; but that means we trade our current wealth for future debt.

President Trump has reversed this dynamic.  We are repatriating our national wealth through new trade policies and will pay for any incurred foreign debt by expanding our own economy and controlling our own destiny.

This is really what’s happening within the global economy that is causing massive reactions by those who were dependent on the status quo.   The ‘America-First’ agenda uses the size and scale of the U.S. market to drive up U.S. wealth, and then stops the export of the dollars generated by making the U.S. the best place to retain investment.

You might remember back in July the IMF, which is euro-centric, increased the projected U.S. economic growth for 2019 to 2.6 percent. They then warned everyone else, that globally the world economy is in a position of weakening, or shrinking etc; and you won’t be surprised at the reason for the IMF negative global forecast. Of course it’s horrible Trump and his strategic trade reset that’s to blame. Grumble, grumble, grumble.

♦ 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.

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).

President 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.

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This entry was posted in Bailouts, Big Government, Big Stupid Government, China, Decepticons, Deep State, Dem Hypocrisy, Donald Trump, Economy, Election 2020, European Union, Japan, media bias, Notorious Liars, Occupy Type Moonbats, President Trump, Professional Idiots, propaganda, Trade Deal, Typical Prog Behavior, Uncategorized, United Kingdom (UK) and Great Britain, US dept of agriculture, US Treasury, USA, USMCA. Bookmark the permalink.

160 Responses to Winning Has Consequences – Head of European Central Bank Says President Trump Outwitting Global Control Officers…

  1. spoogels says:

    I keep this on my computer to remind people of the EU’s evil pedigree

    UNDER GERMAN JACKBOOT ONCE MORE-The EU is based on the Nazi plans published in Berlin in 1942

    The European Union/s evil Nazi pedigree

    http://freenations.net/the-european-unions-evil-pedigree-berlin-1942/

    Like

    • spoogels says:

      And

      The Nazi design for the EU was in 1942 by Hitlers ministers–mooted as the EEC

      The Treaty of Rome brought about the creation of the EEC-signed on 25 March 1957

      EEC morphed into EU w the Treaty of Maastricht
      1 November 1993

      The EU is a Nazi construct

      Like

      • BigTalkers says:

        I’d say that’s a bit tough…

        But it’s no secret the Germans have purposely imposed themselves as the “engineers” of Europe’s current bid for global trade preeminence.

        Like

  2. itsy_bitsy says:

    Go Trump!!

    Liked by 1 person

  3. cdor1 says:

    Hats off to you Sundance. Your reports are always thorough and documented…and highly educational. Thank you for your amazing efforts.

    Like

  4. Alfred Barnes says:

    Isn’t she the one who says there must needs be a jewish elite to rule a replacement population in Europe?

    Like

  5. HellInAHandbasket says:

    And what’s even better, there are dumb-dumbs like Canada’s Foreign Affairs Minister Chrystia “sparklepants” Freeland doing their nation’s bidding, and pretending they have the slightest clue of how to go-up-against a guy like Trump. I can imagine, once President Trump took a look at the complete list of fools he was to “negotiate” with, and knew the men he’d put at the helm with him for US negotiations … he did a Snoopy-esq “HAPPY DANCE” #Winning

    Like

  6. Dave the Differentiator says:

    How do all of these folks miss the bigger picture of Tariff’s over the long haul? Of course, these same people also miss the Foreign Aid America pays to them along with Americas military support and military bases located in their countries?

    This narrative is offensive to me because it does not include all of the facts about the main issue. America has shown great sympathy for Germany and the other European Nations since WW-II. The same can be said for Asia and Japan specifically.

    The stupid Democrats are destroying America and do not appear to realize that President Trump is the last hope for America. President Trump realizes the problems and is making every effort to correct a long over due problem.

    The Central Banks are a big part of the problem. Germany and Japan attempt to take over the world back in WW-II and failed. Now these two are trying once again to rule the World by economic extortion. The Democrats appear to be against America! How can these fools ever think that illegal immigrants have more rights than Americans? WTF?

    President Trump is working for America and Americans. How can any rational person suggest that Make America Great Again is a bad Idea? How can any American ever suggest the America First is a bad Idea? President Trump is working to Drain the Swamp and return America to the Rule of Law! How can any true American find fault with this PLAN?

    Christine Lagarde does not have America First in her plans or heart. President Trump is working to eliminate the Federal Reserve and the IMF. Central Banks are bad business for America.

    GO TRUMP!

    Like

  7. Patriot 1 says:

    Wall Street funds the world wars and the American citizen ultimately ends up getting screwed.

    Like

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