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President Trump Realigning Geo-Political Alliances, and Few Paying Attention…

Perhaps it’s because the complexity is difficult to distill; maybe it’s because some just can’t give President Trump any credit; or perhaps it’s because the scope is too challenging to comprehend against the constant belittlement meme du jour.  Regardless of reason, President Trump is fundamentally realigning international geo-political alliances and almost no-one is connecting the dots.

President Trump obviously held a long-ball strategy with the Chinese; he’s described the approach in his books and lived the approach in his business life:

At the outset, position yourself at the furthest oppositional point when it costs you nothing; then leverage inward toward your opponent as they expend their resources to meet your stance.

Almost no-one is noting the scope of what President Trump has accomplished simply by positioning himself at the furthest extreme from the best interests of China, and then working his leverage back toward dual-interests as the Chinese expend capital to meet the point of mutual benefit.

President Trump has expended nothing other than his sheer will, and yet he has leveraged gains that are jaw-droppingly consequential.

♦ What’s the goal of identifying China as a currency manipulator?  To stop China from manipulating currency, right?  Well, arm-chair opposition says President Trump has reversed his position simply by ‘not doing something’.   However, that opposition doesn’t seem to acknowledge the end-goal of the labeling has been achieved without expending an effort.   The doing is unnecessary when merely the threat of the doing changes the behavior of the doer.

In two days, April 6th and April 7th, President Trump met with Chinese President Xi Jinping.  What actions has President Trump taken, other than ‘not’ doing something, and what actions has President Xi Jinping taken? (more…)

Modern Economics: Trumponomics, Politics and The Import Export Bank…

President Trump has expressed support for the continuation of the Import/Export bank. This has seemingly shocked a few people from conservative circles because the modern conservative doctrine has been to oppose the I/E bank.

However, Trump’s position hopefully does not come as a surprise to CTH readers because we identified a year ago how President Trump’s economic policies would seek to refocus the original intent of the Import Export Bank.

The key aspect is to return the IE to its “original intent“; not the bastardized Wall Street construct that exists today as a result of corrupt DC economic policies driven by the Wall Street’s legislative priorities purchased by multinational banks and corporations.

For more than three decades Wall Street has corrupted the economic policies emanating from DC.  The corrupted economic policy created the two economies previously discussed and the disconnected the engine of Main Street from Wall Street.  Yes, we originally shared this discussion in April of 2016, a year ago:

In 2009 the popular conservative opinion was to declare the Supreme Court’s Citizens United decision a win for “our side“. Of course, the decision ultimately opened the floodgates for unlimited corporate spending in elections via the new Super-PAC approach.

In 2016 90% of all American’s polled believe there is too much special interest money in politics, and both political parties no longer need the financial support of the electorate. Corporate lobbyists were always problematic, but now in a post CU world they control almost every aspect of electoral politics – including who wins elections. Citizens United wasn’t a win, its consequence was a major fail.

Within that reality you find one of the synergies between candidate Donald Trump and former candidate Bernie Sanders. The popular insurgencies supporting each candidate rail against the corrupting corporate financial influence. Party leadership? Meh, not-so-much.

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Trump Doctrine: America First – Officials Briefing on Syria, North Korea and China…

A background briefing transcript from yesterday might aid in larger understanding of White House policy and strategic objectives toward Syria, Russia, North Korea and China.

[Transcript] – SENIOR ADMINISTRATON OFFICIAL:  (In progress) — on the relationship between the leaders of the United States, our President and Premier Xi, and then applying that newly formed relationship to complex problem sets from the Middle East to Northeast Asia, and then a result in the United Nations, it helps advance our mutual interests and the interests of all civilized people.

So I think it’s difficult to portray this as anything but a really great week for our citizens and the United States.

♦  Q    Thanks so much.  Japanese media is reporting that the USS Carl Vinson is in operations with the Japanese naval forces.  As you know, they have a (inaudible.)  What happens if there is a confrontation this week between North Korean forces and Japanese and U.S. forces?  And how will you prevent this from spiraling into a broader military conflict?

SENIOR ADMINISTRATON OFFICIAL:  Well, as you heard from the President many times, we’re not in the business of trying to predict with a high degree of certainty precisely what our response is going to be.

I think what we demonstrated last week was the ability of the President’s national security team to come together, convened by the National Security Council, to look at events such as those that might occur on the Korean Peninsula, quickly analyze those events, place them in context with U.S. vital interests, establish objectives that protect American citizens and advance our interests, and then develop and present the President with options.

So we have a team that is, I think, particularly adept at doing that.  And if there were to be continued destabilizing and aggressive behavior by the North Korean regime, that’s how the national security team would respond. (more…)

Economic Diplomacy Continues – President Trump Softens Tone Toward China Currency Manipulation…

President Trump gave an interview to the Wall Street Journal where he changed a prior position on declaring China a “currency manipulator”:

(Via ABC) According to the Wall Street Journal, the president said the decision came in consideration of talks with China over its role in countering North Korean weapons testing. Trump said that any move to attach the designation could hamper China-U.S. relations. He claimed that, in recent months, China’s currency manipulation has halted. (link)

Is this a change in position? Yes.

It is an arbitrary change, or even an unexpected shift? Hell no.

As we have pointed out since the February 2016 GOP debate, the Trump approach toward North Korean hostilities is to leverage China to get control over N-Korea. –Expanded Backstory

President Trump is realigning U.S. geopolitical relationships based on America-First interests.   President Trump is using economic leverage to provide security and global stability. President Trump knows how to stroke the panda fur.

Last night President Trump and Chinese President Xi Jinping held another consultation call.  (more…)

Economic Diplomacy – China Refuses a Dozen Cargo Ships of North Korean Coal…

During the February 2016 GOP primary debate candidate Trump told the world what he would do in response to continued North Korean missile aggression –SEE HERE–  In January of 2017 President Trump repeated the message –SEE HERE

On April 6th and 7th, last week, President Trump and Chinese President Xi Jinping held a two day summit discussing trade and North Korea.   The United States and China are the two largest economies in the world.  Now see this:

A fleet of North Korean cargo ships is heading home to the port of Nampo, the majority of it fully laden, after China ordered its trading companies to return coal from the isolated country, shipping data shows.

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Following Trump Meeting With Xi Jinping U.S.S. Carl Vinson Moves Toward N Korea…

We are seeing a lot of media reports about the U.S.S. Carl Vinson carrier group being re-routed back toward North Korea.

However, stunningly, what we are not seeing is any media pointing out the specific conversation between President Trump and President Xi Jinping about North Korea (as shared by Secretary T-Rex).

First, the latest media report via Reuters:

A U.S. Navy strike group will be moving toward the western Pacific Ocean near the Korean peninsula as a show of force, a U.S. official told Reuters on Saturday, as concerns grow about North Korea’s advancing weapons program.

Earlier this month North Korea tested a liquid-fueled Scud missile which only traveled a fraction of its range.

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Tillerson, Mnuchin and Ross Debrief on China Summit…

As President Donald Trump and President Xi Jinping wrapped up the summit in Mar-a-lago, overshadowed in media reports by U.S. missile strikes in Syria, President Xi joined with President Trump and focused on stressing the positive mood of the meetings between the world’s two biggest economies.

Team U.S.A insisted both President Trump and their delegation had made good on the pledge to raise concerns about China’s trade practices and said there was some headway. Team China and President Xi agreed to a 100-day plan for trade talks aimed at boosting U.S. exports and reducing China’s trade surplus with the United States.

Secretaries Tillerson (State), Mnuchin (Treasury) and Ross (Commerce) held a debriefing session with the media at the end of the summit.  What a stunning difference in the approach and level of direct and concise communication.  (Oh, and side note – Wilburne continues to crack me up, even in the reading of his responses.)  Here’s the transcript:

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President Trump and President Xi Hold Talks in Mar-a-lago…

Today President Trump and President Xi JinPing of China conducted bi-lateral meetings to discuss ongoing concerns surrounding trade, finance, military engagement, and the need for China to assist in leverage over North Korea’s hostilities.

[Transcript] 11:22 A.M. EDT – PRESIDENT TRUMP:  I just want to say that President Xi and all of his representatives have been really interesting to be with.  I think we have made tremendous progress in our relationship with China.  My representatives have been meeting one-on-one with their counterparts from China.  And I think, truly, progress has been made.  We’ll be making a lot of additional progress.

The relationship developed by President Xi and myself I think is outstanding.  We look forward to being together many times in the future.  And I believe lots of very potentially bad problems will be going away.

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President Trump and First Lady Melania Trump Welcome President Xi Jinping and

President Donald Trump and First Lady Melania Trump welcomed Chinese President Xi Jinping and his wife to a summit at Mar-a-lago, President Trump’s private Florida beach resort and residence.

President Xi and his wife were greeted by President Trump and first lady Melania Trump at the Mar-a-Lago estate before making their way to dinner.

Ahead of the dinner, Trump said he and Xi already had had a long discussion and had “developed a friendship,” and then joked, “I have gotten nothing, absolutely nothing.”

The White House said the location was selected to give the two days of discussions a more relaxed feel. A number of Trump’s top advisers were in attendance, including his daughter, Ivanka Trump, and son-in-law, Jared Kushner.  (AP report)

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China and Syria – Seismic Comments From Secretary Tillerson Today in Palm Beach Florida…

Secretary Rex Tillerson delivered very important remarks today in Palm Beach Florida ahead of ongoing discussions with the Chinese delegation and President Xi Jinping meeting with President Donald Trump.

Following the segment by T-Rex outlining the parameters for the meetings today and tomorrow, Tillerson communicated a position of the Trump administration that Syrian leader Bashir Assad should step down from power.

“With the acts that he has taken, it would seem that there would be no rule for [Assad] to govern the Syrian people.

The process by which Assad would leave is something that I think requires and international community effort, both to first defeat ISIS within Syria, to stabilize the Syrian country to avoid further civil war, and then to work collectively with our partners around the world through a political process that would lead to Assad leaving.”

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Neither Secretary Tillserson or President Trump are proposing military action to remove Assad.  However, the remarks by Secretary Tillerson about Syria and Bashir Assad are a shift in approach, and were almost simultaneously communicated by President Trump (albeit with nuance) aboard Air-Force One en route to Palm Beach.   See below: (more…)