This is the big one.  This is the inflection moment.  Tonight around 5:00pm Chinese Vice-Chairman Liu He will engage with team U.S.A. on the substantive issues around the future of the U.S-China trade relationship.   Trillions at stake.
At midnight tonight the tariffs on Round One of Chinese goods are scheduled to increase from 10 percent to 25 percent.  Round Two is yet determined.  The background for the disposition of TEAM USA was outlined HERE.

Mnuchin – Trump – Lighthizer and Ross

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnunchin previously worked a 150-page outline agreement with China on seven chapters of trade issues covering: Theft of U.S. intellectual property; protection for trade secrets; forced technology transfers; competition policy; access to financial services; and currency manipulation.  Last week China reversed course on all of the substantive agreements. 
Today Vice-Chairman Liu He is going to try to justify to President Trump why China can no longer accept the commitments they made over the past three months.
It cannot be overstated how everything in/around DC must first be filtered through the prism of this inflection point.  At the heart of U.S. politics, the majority of the Senate Chamber is aligned with the Chinese through purchased multinational lobbying interests. Again, there are trillions at stake.  Wall Street through K-Street has paid the Big Club to defend their multinational/financial interests from President Trump.
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There are numerous media reports about the Senate Intelligence Committee filing a subpoena for additional testimony from Donald Trump Jr.  However, there’s something a little, well, ‘off’ about how the story is being presented…. zero official verification.

Without any verification, and with only vague references to anonymous sourcing, CTH would advise to wait-and-see on this one.  DJT-jr has been used more than once for leak hunting.   The AP Article is HERE.  That said, Trump Jr. did retweet this message:

USTR Robert Lighthizer has filed the official notification with the federal register for the increase in Section 301 tariffs from 10% to 25% effective Friday (full pdf below).  Additionally Reuters has exclusive details of the collapse in U.S-China trade talks.
As most CTH readers are aware, Lighthizer has focused heavily on the enforcement mechanisms within the trade talks. [Previous Bookmark] Apparently, when the 150 page draft agreement was presented to the Chinese politburo, Beijing balked at allowing the U.S. to hold controlling enforcement over the trade agreement terms.

The fallback presentation from Vice-Chairman Liu was: we cannot put the binding enforcement mechanisms in writing, you’ll have to ‘trust us’ to honor the agreement; at which time Lighthizer said no-way.

WASHINGTON/BEIJING (Reuters) – The diplomatic cable from Beijing arrived in Washington late on Friday night, with systematic edits to a nearly 150-page draft trade agreement that would blow up months of negotiations between the world’s two largest economies, according to three U.S. government sources and three private sector sources briefed on the talks.
The document was riddled with reversals by China that undermined core U.S. demands, the sources told Reuters.

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In the aftermath of GM’s announcement to close the Lordstown, Ohio, auto assembly facility, President Trump worked earnestly to get GM to sell the facility and save jobs for the region.  Today President Trump and GM CEO Mary Barra announce the likely sale to Workhorse Group pending UAW union approval.

Washington (AFP) – General Motors Wednesday announced plans to invest $700 million in Ohio and to sell a shuttered plant to a company that makes electric trucks, drawing cheers from President Donald Trump who has assailed the US automaker for cutting American jobs.

“GREAT NEWS FOR OHIO!” Trump tweeted, revealing the details ahead of the company’s official announcement.

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I can just picture the The New York Times gathering a team of actuaries, legal accountants, tax historians, advisers and financial consultants around a big executive office table, piled high with reams of papers and spent coffee cups, saying:

“We’ve got him now…. as soon as people understand: fixed asset depreciation schedules; and if the assets were depreciated legally using straight line or diminishing balance; then we move to whole-value equity pick-up, or minority interest accounting; before digging into section 1031 ‘like-kind’ asset exchanges; partnerships (limited or writ large), carried interest loopholes, pass-throughs, net capital losses/gains, seven-year income averaging and the difference between long-term and short-term capital gains”…

…or something.
Seriously, the ‘Trump-taxes’ story has to be the biggest, funniest, most well documented, and most absurd, ongoing snipe hunt in history.  “I was going to support President Trump’s re-election until I saw his depreciated amortization schedule from 1989″… said no-one, like, ever.
Could it be possible John Barron is still pulling this hilarious trick twenty-five years after the New York Times called Donald Trump “The Comeback King“?…
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During the House Judiciary Committee farce debate toward a pre-written impeachment resolution, Ohio Rep. Jim Jordan outlines the political motives of House democrats to try and avoid the looming investigation by Attorney General Bill Barr.

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A full contempt vote normally follows the creation of the contempt resolution; which is an outcome of the debate.  However, to showcase just how ridiculous and political the agenda of Nadler has become, the actual contempt resolution was already written – SEE HERE.
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A win for the Trump administration in the ongoing effort to stem the influx of migrants crossing the U.S-Mexico border seeking asylum.  The ninth circuit federal appeals court ruled (full pdf below) that the Trump administration can continue returning Central American migrants to Mexico while their requests for asylum in the U.S. are adjudicated.

The Ninth Circuit decision is a victory for the administration.  The ruling stays the effect of a decision last month by a judge who blocked the policy while it was being challenged.

(WSJ) […] The policy, officially named the Migrant Protection Protocols, is more commonly known as “Back to Mexico” or “Remain in Mexico.”
While Tuesday’s court action isn’t a final decision on the merits of the case, the appeals court held that several legal factors favored allowing the Trump administration to administer the policy while the litigation continues.

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Smart move by DOJ lawyers.  The letter below informs Judiciary Chairman Jerry Nadler the previous report content was provided without assertion of executive privilege; however, if Nadler follows-through with impeachment plan, executive privilege is now enforced and the totality of the report is withdrawn from congress.
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On January 22nd, 2018, eleven months prior to the mid-term election, lawyers from the special counsel’s office told Judge Boasberg in a sealed-courtroom why they needed to keep James Comey’s memos from being released.
Special Counsel Attorney Michael Dreeben informed the court the special counsel was charged with investigating an obstruction case against President Trump from the beginning. President Trump was the target of their investigation from the outset.

The previously sealed court transcript was released today – SEE HERE
Despite Deputy AG Rod Rosenstein and Special Counsel Mueller assuring the President and his lawyers he was not the target of the investigation, they were lying.
As soon as the court was told Trump was the target (hearing January 22, 2018) the court agreed to seal everything relating to the journal of James Comey. [BACKGROUND]

This is frustrating, but not surprising.  In the updated DOJ court filing today (pdf link here) the DOJ tells the court they want to keep the Comey Journal (memos) hidden from public review {BACKSTORY HERE}:
Hat Tip Techno-Fog: The release of Mueller’s Report… “does not alter the FBI’s position with regard to the remaining redactions in the Comey Memos.”
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