Treasury Secretary Scott Bessent appears on Sunday Morning Futures now hosted by Larry Kudlow who has replaced Maria Bartiromo.  The primary topic of the conversation is the current state of the economy.

Secretary Bessent notes we have entered the phase of prior policy implementation where the economy now accelerates growth based on former policy changes including, targeted tax reductions, capital investment prioritization and expensing, regulatory changes and direct investment.  GDP growth now looks to achieve 5% or more.  WATCH:

Oil prices are the underlying friction within the economy creating higher gasoline and diesel prices.  However, when you take the energy sector out of the inflation calculation, the current rate of wage growth is exceeding inflation.

Bessent also notes, currently the only oil not coming through the Strait of Hormuz is Iranian oil.  Other than those supplies, oil flows through the Strait are at normal levels.

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Speaking to a forum hosted by the Economist in New York, Secretary of Energy Chris Wright explained that banning the export of diesel fuel will do nothing to impact the price of diesel fuel and would, eventually, raise the price.

The reasoning is simple.

“The blunt tool ​of banning diesel exports definitely doesn’t work,” Wright said. “If you can’t ⁠export the diesel that comes out of our refineries, you run out of places to store it, and you have to reduce US refining, which would ​put upward pressure on gasoline prices and jet fuel prices,” Wright said.

The part that Wright didn’t say is the component of price that is entirely detached from supply/demand.  The pump price is determined by market speculators, commodity traders and multinational financial interests.  That “market price” has nothing to do with the amount of diesel in the inventory.

Restricting exports, a process that ends with restricting production, only gives the speculators and traders a justification to project higher prices.   The USA ends up swimming in diesel fuel as the pump price climbs to $15/gal.

If you want to end the disconnection of supply to price, you have to do what Russia does. Sell outside the “market price” at the production cost + profit margin.

In the “west” it’s a rigged game; but be careful. The DSA crowd wants to change the game’s outcome by changing the referees who can then ban/control the players.

Trump’s MAGAnomic approach changes the rulebook of the game completely and is more in line with Putin (BRICS).

George Carlin previously explained it.

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During remarks following discussions with Sergey Lavrov at the United Nations, Secretary of State Marco Rubio announced that President Trump has extending the G20 invitation to Russian Federation President Vladimir Putin.

The G20 in Miami is scheduled for December 14th and 15th, and while there is no official reason for Volodymyr Zelenskyy to ever attend any of the G7, G20 or NATO forums, the President of Ukraine has been a participant in the last several years due to the European and Canadian political manipulations surrounding such events.

That said, if Vladimir Putin attends the G20 and Zelenskyy is invited to the G20 (for whatever ridiculous justification that might be presented), it would be the first time Zelenskyy and Putin have been in an international forum simultaneously.

In the background today, Russian Foreign Minister Sergey Lavrov was reported to have told Secretary Rubio that Russia understands the United States no longer is influencing the EU-NATO decisions about escalating conflict in the European desire to achieve full military combat against Russia; therefore there was no reason for Lavrov and Rubio to waste time in discussions of some meeting between Putin and Zelenskyy when the people in actual control of Kiev’s decision-making are in London, Berlin and Brussels.

It appears Rubio respected Lavrov’s pragmatic reality yet still wants to set the stage for an opportunity that exists outside the constraints of the EU-NATO alliance – hence, the G20 venue in Miami becomes a possibility.

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Secretary of State Marco Rubio talks to the assembled press pool following extensive conversations with various foreign ministers, including discussions today with Russian Minister Sergey Lavrov.

Questions to Rubio surrounded the Iran conflict, the status of Venezuela, the discussions between the U.S., Russia and Ukraine, the status of Cuba and beyond.  Secretary Rubio gives direct, honest and substantive responses to each of the regional questions asked.  Exceptional press conference. WATCH:

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Take heart, we only need to wait approximately 60-days until we see a major price decline in diesel and gasoline prices in the USA.  Once the midterm election is over, prices will begin their retreat with the finished collapse mid-January.

The non-pretending reality exists within a generally non-western perspective that current “market prices” are not driven by oil supplies, refining capacity or the other various justifications used by the speculators, traders and various regional spot-market control systems.  The prices are being controlled in order to influence political outcomes.

Once those political influence operations are concluded, the stakeholders in the market price approach will moderate their justifications accordingly, and prices will plummet.  Sound nuts?  Well, let me explain who agrees.

On my side of the argument is Russian Federation President Vladimir Putin, who does happen to operate the world’s largest gasoline station – at least, according to the professional republicans. Others on my side include Chinese Chairman Xi Jinping, Saudi Crown Prince Mohammed Bin Salmon, Qatari Sheikh Tamim bin Hamad Al Thani, Turkish President Recep Erdogan and Venezuelan interim President Delcy Eloína Rodríguez Gómez.

Others who accept the reality of this position, albeit with various political limits to their ability to speak openly about such matters, include President Donald J Trump, Treasury Secretary Scott Bessent and Secretary of State Marco Rubio. Unfortunately for this aligned group they are stuck inside the largest western political system who controls global finance and world economic outcomes.

What all of these aforementioned names understand is that “market prices” are entirely detached from the archaic terminology behind supply and demand; a quaint concept that stopped applying years ago – but pretenses must be maintained or else the masses may find their pitchforks, see: DSA pitchfork suppliers.

A second subset of allies who unintentionally support this perspective, includes those who use the terms “sold at a discount” where “sold at a discount” in reality means sold outside the western market pricing approach.

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President Trump holds a meeting with the Middle East Gulf Cooperation Council (GCC) an assembly of mid-east allies for President Trump and the overall effort to bring peace and stability to the region.  Obviously, the number one concern of the assembly is the ongoing Iran conflict.

Leaders from Lebanon, Iraq, Qatar, Jordan, Turkey, Syria, Kuwait and Egypt were in attendance for the meeting.

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There is a general rule that applies to geopolitical contexts surrounding 96 hours or four days.  The timing is the difference between an event happening Day one, the analysis of the event by nation states communicated to leadership, and the policy shift outcome in Day four.  The rule of 96 is consistent and it is worth understanding.

Four days ago, the EU oil disruption from Saudi Arabia’s East/West pipeline event was noticed. In the four days between event day and policy day (#4) the EU have been beating the drumbeat for war against Russia.  However, you will notice the shift in tone and policy now that we have reached day four.  Analysis has reached policy makers. You might say reality sets in.

Europe now recognizes a vulnerability that was not in their policy briefs 96 hours earlier.  Things change {SOURCE}, and the quiet stuff starts to become visible. Russia has been sending France oil/gas energy products, quietly. Macron needed the internal stabilization because he’s been up against a wall.  On top of all his other issues, Macron could not afford an energy crisis.

Simultaneously, despite what we have been told by Western media, the 5,000 strike drones into the Moscow region should again be taken in context.  Russia is an analog system in a digital world. Russia is exceptionally resilient and can repair and recover much faster than western analysts ever fathom.  Again, apply the ‘rule of 96.’

Russia is now overproducing diesel fuel. Wait, what(?) you might ask.  It’s true.  Russian strategic diesel fuel reserves are now full and overproducing 15% beyond storage capacity. {SOURCE} So, where is the excess capacity going?  To the “stans” in Central Asia, from there it ships to forward destinations. Turkey is a dependent beneficiary. Do you remember the strategic agreement between the USA and Kazakhstan? {Source}

Russia increased diesel supplies to Mongolia by 73.4% in August from July to 215,000 metric tons, while shipments to Kyrgyzstan surged 16.4 times to 72,000 tons and deliveries to Tajikistan rose 3.5 times to 56,000 tons. Russia also exported 28,000 tons of diesel to Kazakhstan after making no deliveries there in July. {source}

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Treasury Secretary Scott Bessent joins CNBC ‘Squawk Box’ this morning to discuss his 12-hour meeting with Chinese Vice Premier He Lifeng.  Within the interview Bessent details the ‘U.S.-China AI Dialogue’, the calls for a slowdown in AI development and whether regulation is needed.

Secretary Bessent notes President Trump is not going to deliver liability immunity to AI frontier labs and existing legal frameworks within the U.S. will remain as protective pathways as development moves from AI labs into engineering outcomes.

This is the core of the issue. The investors that poured money into the AI labs, now support immunity from legal liability that doesn’t exist in any other sector other than Big Pharma. AI wants the same protection as Big Pharma, and President Trump is not going to allow the shift in responsibility from AI developers to government. WATCH:

Also below is the full debriefing from Secretary Bessent and USTR Jamieson Greer that followed the Sunday meeting between the U.S. and Chinese counterparts.

As CTH has noted, the pace of these critical economic developments is going to speed up over the next several days and weeks.  It becomes increasingly important to stay tuned-in to the granular issues as they unfold in order to fully appreciate the landscape that surrounds us.   It can be challenging to absorb information as the pace increases, yet it is critical to remain aware so that each building block in the nationalist policy making remains in context.

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There has to be a purpose to this messaging, though I’m not exactly sure what it is.

President Trump again draws attention to the Ukraine-Russia war creating havoc on the global diesel market.  Trump notes that Russia has lost control of its diesel industry:

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The strange thing about this message is that Russia has taken measures exactly the opposite of this framework.

Back in July, when NATO began increased targeting of Russian refinery infrastructure, Russian President Vladimir Putin proactively signed a government order banning the export of Russian diesel fuel.  There have been no exports of Russian diesel since, with exceptions to the shipping industry and some humanitarian farm shipments.

Russia is the world’s second largest producer of diesel fuel and as soon as Putin made this announcement global prices of diesel began to rise. Russia then extended the bans, and the current export ban will run from Aug. 1 until Jan. 31, 2027.

Within the export controls there’s no doubt Russia is sending some diesel fuel to allied nations who are not part of the NATO attack alliance.  In essence, Putin is controlling who gets the Russian output and the “ban” on exports simply puts the Russian government in control of it.  This is what they call “intergovernmental agreements” which are not part of the ban itself.

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President Donald Trump announces a permanent security deal between the USA, Denmark and Greenland establishing U.S. military bases on the arctic region.  The government of Denmark confirms.

(Via Truth Social) – BREAKING NEWS: I am pleased to announce that the United States of America has entered into an Agreement with The Kingdom of Denmark, and Greenland, that gives the United States permanent control over security, and all other needs, in Greenland, completely addressing ALL of our many U.S. concerns. There will be NO COST to the United States!

At my direction, we worked with representatives of Denmark and Greenland to guarantee that the United States will FOREVER have the complete ability to do what is necessary in Greenland in order to secure and defend the security of Greenland, and the United States of America. Additionally, from now on, no U.S. adversary can EVER have a base in Greenland, have a military presence in Greenland, or make sensitive investments in Greenland, without our express written approval.

For over 100 years, Presidents have known the strategic importance of Greenland, but NONE of them were able to do anything about it. I am proud to be the President that permanently and conclusively addressed this very important situation. This is an “Infinite Life” Agreement, there is no end!

We are very honored and proud of what has just taken place, and everything agreed to today will be cherished by the American People. We will immediately begin the process of developing a large Military presence in the appropriate part of Greenland, of which there are many. We will work with the people of Greenland in its development and construction.”

“This solution is a great one for the United States of America, Denmark, Greenland, and all of our Allies. We look forward to working with the wonderful people of Denmark and Greenland toward a magnificent future with respect to this large, and highly strategic, parcel of land. We will be very protective of it! This is a dream come true for the United States of America, one that is very important, historic, and special. Thank you for your attention to this matter!” ~ President Donald J Trump

The government of Denmark has confirmed the deal.

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