To say there are conflicting reports of the U.S-China trade discussion, and possible breakdown therein, would be an understatement.  However, mining through the various U.S. and China news agencies, a more clear picture emerges.

U.S. Trade Representative Robert Lighizer is quoted today: “We felt we were on track to get somewhere. Over the course of last week we have seen an erosion of commitments by China. That in our view is unacceptable.”  This statement appears to be in line with reports from Beijing about Chinese negotiators: “with sources suggesting that President Xi Jinping vetoed additional concessions proposed by his negotiators.”

(Bloomberg) […] Lighthizer and Treasury Secretary Steven Mnuchin told reporters on Monday that the Chinese backsliding became apparent during their visit to Beijing last week, but that they had been reassured by their Chinese interlocutors that everything would turn out.

That changed over the weekend when China sent through a new draft of an agreement that included them pulling back on language in the text on a number of issues, which had the “potential to change the deal very dramatically,” Mnuchin said.

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Well, it looks like all suspicions are now confirmed. The dragon dance of 2017 and 2018 has extended into 2019. DPRK Chairman Kim fires rockets, Trump smacks Chinese Chairman Xi. Yes, we can officially put the remaining bits of skepticism to rest…
The meeting last week between Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer and their Chinese counterparts including Vice-Chairman Liu, was especially important.  Mnuchin and Lighthizer said they would debrief President Trump on the likelihood of whether a successful trade deal with a communist regime was structurally possible; or whether Beijing was playing a game of delay.
The ongoing dance with the dragon has been a series of cunning manuevers between the Panda mask and the Dragon face. At the conclusion of the Beijing visit by Mnuchin and Lighthizer, Chinese Chairman Xi sent a proactive response using his familiar proxy North Korean Chairman Kim. The DPRK test-fired three missiles.
Today President Trump responds:

The increase of the Round-1 tariffs from 10% to 25%, previously delayed after discussions between Xi and Trump in Argentina, will now be triggered. Additionally, the Round-2 tariffs (25% on $325 billion of different goods), originally scheduled for March 1, also postponed after the Argentina dinner, will now be implemented.
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Secretary of State Mike Pompeo appears on Fox News Sunday to debate Swamp antagonist Chris ‘But’ Wallace on issues related to Venezuela, Russia, China and North Korea.
Despite the Weissmann/Mueller report, Chris “But” Wallace continues advancing the Russia collusion-conspiracy… until moving forward and cheerleading for North Korea, Hamas and China.

There’s something really odd about the latest reports from South Korea about a test of three missiles the South has corrected to describe as “projectiles”.  The odd part is there’s zero mention in North Korea state media about it.  Fox News picked up on that aspect in a brief sentence inside their report:

[…]  South Korean officials were monitoring the situation and were sharing information with their American counterparts. North Korea did not report on Saturday’s firings. Seoul’s intelligence agency said it thinks the projectiles were not missiles given their short travel distances and low altitude.

Amid a tremendous amount of recent geopolitical background moves; and given the history of China using the DPRK as a geopolitical proxy province; there’s a possibility Beijing ordered the action.
Out of caution, please note our CTH perspective is entirely outside the mainstream view on the dynamic within the DPRK and the network around Kim Jong-un.  Quite simply all of the moves, counter-moves, and specifically the timing of them, align with the U.S. and China confrontation far more than most mainstream observers seem to notice.
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The Bureau of Labor Statistics (BLS) releases the April 2019 jobs report and the results are excellent.  It’s a home run for MAGAnomics as the trifecta continues: Job gains +263,000, Wage growth +3.2%, Inflation low at 1.4%.
With a gain of 263,000 new jobs in April, the overall unemployment rate dropped to 3.6%.  There are more jobs available than people looking for work.  Additionally, the prior two months jobs results were revised upward by 16,000 more than previous reported.

• Total nonfarm payroll employment increased by 263,000 in April, compared with an average monthly gain of 213,000 over the prior 12 months.
• Professional and business services added 76,000 jobs in April. Over the past 12 months, professional and business services has added 535,000 jobs
• In April, construction employment rose by 33,000. Construction has added 256,000 jobs over the past 12 months.
• Employment in health care grew by 27,000 in April and 404,000 over the past 12 months.
• In April, average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents to $27.77. Over the year, average hourly earnings have increased by 3.2 percent.
• BLS Release Link

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Considering how Joe Biden exploited China for personal financial gain, this position by a democrat presidential candidate is likely not going to age well.

I’ve met virtually every major world leader in my role as Vice President, as Foreign Relations Chairman over the last 30 years. That’s not hyperbole. Virtually every one. I don’t know a single solitary one who would not change places with the problems the President of the United States has versus the problems they have. China is going to eat our lunch? Come on, man.
They can’t even figure out how to deal with the fact that they have this great division between the China Sea and the mountains in the east, I mean in the west. They can’t figure out how they are going to deal with the corruption that exists within the system. I mean, you know, they’re not bad folks, folks. But guess what, they’re not competition for us.”

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This is disturbing: “This is the third case in less than a year in which a former US intelligence officer has pled or been found guilty of conspiring with Chinese intelligence services to pass them national defense information.”

VIA DOJ –  A former Central Intelligence Agency (CIA) case officer pleaded guilty today to conspiring to communicate, deliver and transmit national defense information to the People’s Republic of China. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Assistant Director for Counterintelligence John Brown of the FBI and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea.

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China, Russia and Cuba are financing and supporting the socialist regime of Nicolas Maduro in Venezuela.  Russian and Chinese military equipment was previously shipped into the country and military members from Cuba are fighting on the ground.
In response to the violence and presence of the Cuban military, President Trump is now threatening a full and complete embargo of Cuba by the U.S.

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Director of the National Economic Council, Larry Kudlow, discusses the booming U.S. economy, the future outlook and why he supports the USMCA deal.

A tale of two contrasting sets of economic priorities. The U.S. economy continues to outpace all economic forecasts.  Recently U.S. retail sales, wage growth and housing starts have exceeded all expectations.  Tomorrows announced U.S. GDP growth is positioned to exceed all previous doomsayer predictions from the professional financial back-bench.
However, the economic results in Canada are going in the opposite direction.  The Bank of Canada cut their GDP forecast from 1.7% to 1.2% today.  A forecast drop of half a percent is a massive drop considering the prior rate of growth was meager at best.

Two full years into the advancement of America-First priorities, the international community is now admitting they can only find growth and value in U.S. investments.

(Via Reuters) […] The [Canadian] central bank now expects economic growth in the first half of 2019 to be lower than anticipated in January, when it released its last monetary policy report, due to a slowdown in Canada’s oil sector, the negative impact of global trade policies and a weaker-than-expected housing sector.

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