The latest announcement by President Trump via Truth Social [SEE HERE] should not come as a surprise to anyone here.

As the economic impact of MAGAnomics starts to sink-in to the global psyche, once again it is predictable that China and the EU will use their central banking system in a defensive posture against President Trump’s economic, trade and tariff policies.  As a direct result, the value of the dollar increases, and as we noted before, “Exports from the USA ultimately cost more because the dollar is stronger against EU and Asia currencies. However, a stronger dollar is an offset to BRICS leverage and allows Trump to play economic chess.”

That’s the background for this:

[Source]

President Trump knows how to leverage U.S. market access as part of the economic security program for the entire country.  President Trump is the only person who can do this.   If a nation wants to align with an alternative trade currency, President Trump will tariff their products at 100%, and/or shut them out of the USA market completely.

MAGAnomics Simplified: Everyone who is a pragmatic critical thinker knows that China will (a) subsidize their targeted industries; then (b) devalue their currency to lower the impact of exports to the USA. Beijing controls the banks, and they did this before. As a result, the dollar value increases and imports cost less.

The Chinese imports then enter the USA at a lower price consistent with their cost estimate as a tariff offset. China takes in a lower price but retains access. That’s just how it works. The importers pay the tariff with a lowered price and a higher valued dollar. Essentially statis for the time being.

Then…..

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Interesting that none of the Europeans saw this outcome looming, which is likely why Samantha Power and her USAID/CIA election operation was not present for round #1.   Unfortunately, it should be expected that team USA will quickly react and dispatch assistants to help recover in round #2.

Make Romania Great Again candidate Călin Georgescu came out of nowhere and has won the first round in the presidential election.

Georgescu campaigned on an anti-EU, anti-NATO and anti-war with Russia platform; simultaneously supporting domestic farmers, domestic energy production and advocating for a Romania that is free from foreign influence.

Oh, and instead of traditional media, his campaign message was strongly directed to the Romanian people, via TikTok. Imagine that.

As noted by Politico, “Ultranationalist Călin Georgescu comes from nowhere to lead center-left PM Marcel Ciolacu and liberal Elena Lasconi in first round.

[…] According to the partial results, Georgescu leads with 22.2 percent followed by center-left Prime Minister Marcel Ciolacu on 20.2 percent. Reformist candidate Elena Lasconi is on 18 percent, while another hard-right candidate, George Simion, trails with 14.1 percent support, with 96 percent of precincts reporting.

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Germany is the largest economy in the E.U. However, due to a confluence of horrible events, most of them self-created as an outcome of ridiculous energy production decisions, the German industrial economy has been contracting since 2022.

Into this downward spiral of negative economic events within Germany, now comes the problem of President Trump eager to eliminate the Marshal Plan of one-way tariffs and start dealing with the trade inequities.  The German industrial manufacturing companies who make up the majority of the economic output are concerned, very concerned.

Within the discussion suddenly something appears that all Western financial pundits have yet to accept. Leo Barincou, a senior economist at Oxford Economics in Paris says:

[…] limited tariffs on selected products, such as cars, chemicals and agricultural products, may not be too much of a problem, Barincou says. A rising dollar, and hence a falling value of the euro, would offset some of the harm caused by the tariffs. “At a macro level, the impact would be limited,” he says. (read more)

Yep, here we go again.

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Suspicious Cat smells some possible streamlining and downsizing afoot.

Not only has President Trump announced the nomination of Howard Lutnick as Commerce Secretary, but he has also announced that Lutnick will carry the role and “responsibility for the Office of the United States Trade Representative” (USTR).

[LINK]

Perhaps in the second term President Trump and Howard Lutnick are going to fold the USTR into the Dept of Commerce?  Interesting.

Hopefully, Howard Lutnick, like Wilbur Ross, will keep the U.S. Chamber of Commerce blocked from influence over the upcoming trade discussions and potential trade agreements.  We note that former USTR Lighthizer was part of the transition discussion, and it seems odd his name has not surfaced…. yet.

Regardless, Howard Lutnick is an excellent choice for all the reasons previously outlined.

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In September we noted Howard Lutnick was the *ONLY* person, other than former Commerce Secretary Wilbur Ross, who accurately outlined: (1) Energy as the core source of sticky inflation; and (2) ending the Marshal Plan for EU tariffs as a key objective in term-2.

In combination with his eloquence in outlining MAGAnomics, which is remarkably impressive, this combination of skillsets would make Howard Lutnick the ideal candidate for Term-2 Commerce Secretary.  The guy simply ‘gets it.’ {SEE HERE}

Howard Lutnick was also in the running for Treasury Secretary; however, today several media outlets are reporting that Lutnick is likely to be nominated as Commerce Secretary, making him the first and leading WOLVERINE announced in the MAGAnomic team.

WASHINGTON DC – Donald Trump is expected to nominate veteran Wall Street financier Howard Lutnick to lead the Commerce Department, according to people familiar with the matter, elevating one of the financial world’s most vocal supporters of the president-elect to a crucial position overseeing the incoming administration’s economic agenda.

Lutnick, chief executive of the financial-services firm Cantor Fitzgerald, in recent months has become a close Trump ally and had been a top contender to lead the Treasury Department. As the co-chair of the president-elect’s transition team, Lutnick has spent much of his time at Mar-a-Lago, Trump’s private Florida club, poring over shortlists of candidates for positions in the administration.

A spokeswoman for Lutnick declined to comment. A Trump transition team spokeswoman didn’t immediately respond to a request for comment. Punchbowl News earlier reported that Trump was expected to chose Lutnick for the role. (read more)

Howard Lutnick gets it. The essential core of MAGAnomics.  Drive down the cost of goods through expanded energy development, then leverage reciprocity in tariffs to end the exfiltration of wealth.  Then cut out regulation and unleash American enterprise. This is the way to reverse this insufferable economic trajectory that creates a “service driven economy.”   The entire interview is well worth watching:

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Appearing on Fox News, Venture Capital Chairman Kevin O’Leary outline the anticipated impact of RFK Jr. as HHS secretary on businesses, President Trump’s plan to reducing government costs via Elon Musk, and what to expect with Doug Burgum as interior secretary.  WATCH:

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Businessman Chris Wright is the CEO of oilfield services group Liberty Energy.  Wright helped launch the American Shale Revolution of the mid-2000s that significantly increased US production of oil and natural gas.

President Trump has announced the nomination of Chris Wright to be Secretary of Energy.

[SOURCE]

“The Council of National Energy will consist of all Departments and Agencies involved in the permitting, production, generation, distribution, regulation, transportation, of ALL forms of American Energy. This Council will oversee the path to U.S. ENERGY DOMINANCE by cutting red tape, enhancing private sector investments across all sectors of the Economy, and by focusing on INNOVATION over longstanding, but totally unnecessary, regulation,” Trump said Friday.

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President Trump has announced the nomination of North Dakota Governor Doug Burgum to head the Department of the Interior and also Chairman of a newly formed cabinet-level National Energy Council (energy Czar).

[Source]

Very interesting move, not in the appointment of Burgum, but in the duality of a method to tear apart the Dept of Interior Silo.

As the American people are starting to become aware of a return to civics, the President of the United States has absolute power within the Executive branch and absolute immunity for everything he defines as an official act of his office.

By appointing Burgum as the Interior Secretary and simultaneously the appointed energy-sector representative of the president, carrying the full weight and authority therein, there is no way for the institutional bureaucracy of the climate change officials inside the agency to block any changes decreed by President Trump within the mandate of the Energy Czar.

Secretary Burgum will sit at the top of the Dept of Interior organization, AND Czar Burgum will sit inside every agency, office, and subsidiary department that has anything to do with “American Energy” production/regulation.

A very strong power move. I like it.

Burgum would lead a new National Energy Council comprising all agencies and departments involved in the production, regulation and transportation of “ALL forms of American Energy.” … “This Council will oversee the path to U.S. ENERGY DOMINANCE by cutting red tape, enhancing private sector investments across all sectors of the Economy, and by focusing on INNOVATION over longstanding, but totally unnecessary, regulation.”

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Responding to reporters’ questions, today President of the European Union commission Ursula von der Leyen congratulated Donald Trump then immediately began the framework to explain EU background discussions in economic terms. “We still get a lot of [liquified natural gas] from Russia, and why not replace it by American LNG, which is cheaper for us and brings down our energy prices,” said Ursula von der Leyen.

The EU realizes the seismic shift that is upon them as a result of the U.S. election.  Everything from the Ukraine-Russia war; the economics of energy which President Trump will use in negotiations for peace; to the factual lowered prices within the EU created by Joe Biden energy policy to punish Americans; to funding for NATO in combination with the potential for the end of the Marshal Plan one-way tariffs are looming.  President von der Leyen is in a very precarious position.

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Ursula was speaking from ¹Budapest, Hungary.

While many are interpreting her remarks about purchasing LNG to be snuggling up to President Trump, factually it is a much bigger problem than western media will openly discuss.

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It’s not complicated, but several have asked, so here’s the elevator speech.  This is what WILL happen with a Trump victory.  It’s not a “might” issue, it’s a will happen.

MAGAnomics Simplified: Everyone who is a pragmatic critical thinker knows that China will (a) subsidize their targeted industries; then (b) devalue their currency to lower the impact of exports to the USA. Beijing controls the banks, and they did this before. As a result, the dollar value increases and imports cost less.

The Chinese imports then enter the USA at a lower price consistent with their cost estimate as a tariff offset. China takes in a lower price but retains access. That’s just how it works. The importers pay the tariff with a lowered price and a higher valued dollar. Essentially statis for the time being. Then…..

EU industrial products to Chinese manufacturing plants start to contract, due to China’s aggressive cost cutting initiatives.

The EU gets angry about the impact to their economy. The EU then follows the same path and devalues their central bank currency; further pressuring the dollar to an upward price. Exports to the EU are now more expensive; however, imports from the EU to the USA are now cheaper. Again, the EU goal is statis.

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