The official, albeit preliminary, U.S.T.R. delegation from the United States is on the ground in China to begin initial discussions of “technical details” surrounding the ongoing trade dispute.  The preliminary talks are today (Jan 7th) through Wed (Jan 9th).

The prior notice from USTR announced the delegation: •Ambassador Jeffrey Gerrish, Deputy U.S. Trade Representative (pictured above – center); •Ambassador Gregg Doud, USTR Chief Agricultural Negotiator; •Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, U.S. Department of Agriculture; •Under Secretary of Commerce for International Trade Gilbert B. Kaplan, U.S. Department of Commerce; •Assistant Secretary for Fossil Energy Steven Winberg, U.S. Department of Energy; and •Under Secretary for International Affairs David Malpass, U.S. Department of the Treasury.

The delegation will be accompanied by senior officials from the White House, USTR, and the U.S. departments of Agriculture, Commerce, Energy, State, and Treasury. (link)

Tu Xinquan, director of the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing is quoted as saying Beijing’s first phase will be focused on technical details before more important voices “make hard political decisions.”
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Some of the highlights from today’s protests in France are quite remarkable.  Additionally, it seems indicative of an inflection point for Reuters to point out that Macron’s current approach toward the Yellow Vests is only making things worse….  Strange times.

PARIS (Reuters) – Emmanuel Macron intended to start the new year on the offensive against the ‘yellow vest’ protesters. Instead, the French president is reeling from more violent street demonstrations.
What began as a grassroots rebellion against diesel taxes and the high cost of living has morphed into something more perilous for Macron – an assault on his presidency and French institutions.

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Last Wednesday night the arrest of a key political organizer of the Yellow Vest protests, a 33-year-old truck driver named Eric Drouet, spurred the movement to claim French President Macron was now arresting his political opponents. The arrest of Drouet has led to an increase in retaliation by the group against the French government. [Video from today]

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Yellow Vest demonstrators are now allied with various groups from across the political spectrum; most peaceful, but some, notsomuch.  This led to French government ministry official Benjamin Griveaux warning Emmanuel Macron yesterday that a “full blown revolution” was possible.
The evidence to support Minister Briveaux’s dire warning did not take long to surface as a team of masked intruders used a forklift and broke into the French ministry causing police and special forces to evacuate him to safety.
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In the realm of everything geopolitical in consequence, a recent article from an interview with Brazilian President Jair Bolsonaro highlights the globalists’ worst nightmare. And the comments from the WTO reflects the global influence of President Donald J Trump.

Before getting to two key points, rather stunningly delicious points, it’s worth remembering that Brazil is the “B” in the ‘BRICS alliance’.  Before U.S. President Donald Trump took center stage in the world of international influence, the former governments of Brazil, Russia, India, China and South Africa (BRICS) had formed a coalition.  Each nation represented an enlarged -and growing- regional trade/economic influence.
Shortly after taking office; and with hindsight – prior to the China confrontation; President Trump began a systematic process of challenging various economic influencers.  This is the origin of the Trump Doctrine .
By expanding U.S. energy development, strategically engaging with OPEC (Gulf Cooperation Council) States, and simultaneously engaging with Baltic States at the Three Seas Summit in Warsaw Poland, President Trump established the groundwork for downward pressure on oil prices.  This comprehensive and geopolitical energy strategy diminished the ability of Russia to maintain a consistent external financial influence.
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Former British Prime Minister Winston S Churchill famously said: “It is not enough that we do our best; sometimes we must do what is required.”  Perhaps, in an ironic way, that is exactly what the British Army are doing as they reveal an ad campaign to recruit the finest young men and women the U.K. has for military service:

This is not a parody; these recruitment posters are very real. The stereotypical traits of British Millennials are accepted as the standard and re-branded as strengths.
The indulgent trait of self-centeredness becomes “self-belief;” the generational obsession with phones and gadgets becomes “focus”; and those with a propensity for compulsive selfie-taking are now cast with internal “confidence.”
Yes, the British Army have officially accepted that a generation where everyone deserves a trophy is now the first line of national defense; and thus recruitment efforts need to be modified accordingly.
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The announcement of The United States drawing down troop deployment from Northern Syria – with the United Arab Emirates, and Saudi Arabia sending in replacements to bolster the region, highlights a much larger backstory.

President Obama’s February ’09 Cairo speech began a sequence of events that led to what was called the “Arab Spring“; factually an extremist uprising.  Bolstered by the resulting chaos the Muslim Brotherhood rose to power in Egypt behind Mohammed Morsi.
However, a majority of the Egyptian people rejected President Morsi’s sharia governance, and asked a well respected General Fattah al-Sisi to step in.  Accepting the request of a desperate people Sisi removed Morsi, disbanded the Muslim Brotherhood and went on to win a landslide election in 2014.   The leadership of the Brotherhood fled to Qatar.
President Obama and his policy team was not happy with this outcome.  Obama supported Morsi, not al-Sisi.  Another person who was not happy, was Turkish President Recep Erdogan, who also supported Morsi and the Muslim Brotherhood.
Undeterred, and understanding the need for urgency, Egyptian President al-Sisi then began a long process of confronting extremism.  Sisi destroyed the Hamas terror tunnels on the border between Egypt and Israel; and, despite the anxiety expressed by U.S. Secretary of State John Kerry, Sisi brokered an interim peace agreement between the Palestinian Authority and Israelis.
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Economic security is national security… In July 2017 President Trump traveled to Poland to attend the Three Seas Initiative Summit, a gathering of countries bordering the Adriatic, Baltic and Black Sea (Poland, Austria, Croatia, Hungary, Czech Republic, Slovenia, Slovakia, Romania, Bulgaria, Lithuania, Estonia and Latvia).
The primary purpose of the visit was to discuss security initiatives including how to diminish Russian influence through a cooperative agreement over energy.  President Trump took the SME’s, and delivered a speech in Warsaw, Poland:

[…] “President Duda and I have just come from an incredibly successful meeting with the leaders participating in the Three Seas Initiative. To the citizens of this great region, America is eager to expand our partnership with you. We welcome stronger ties of trade and commerce as you grow your economies. And we are committed to securing your access to alternate sources of energy, so Poland and its neighbors are never again held hostage to a single supplier of energy.”

Well, today a massive multi-billion energy contract for the United States sale and Poland purchase of Liquefied Natural Gas (LNG) was announced.  While financial terms were not disclosed, the agreement is for the sale and purchase of approximately 2.7 billion cubic meters per year (after regasification) – enough natural gas to meet about 15 percent of Poland’s daily needs.  The contract is for 20 years of purchases.

SAN DIEGO, Dec. 19, 2018 /PRNewswire/ — Port Arthur LNG, LLC, a subsidiary of Sempra Energy (NYSE: SRE), and the Polish Oil & Gas Company (PGNiG) today announced they have entered into a definitive 20-year sale-and-purchase agreement for liquefied natural gas (LNG) from the Port Arthur LNG liquefaction-export facility under development in Jefferson County, Texas.

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CTH has pointed, repeatedly, toward a very specific economic and financial dynamic  because President Trump is uniquely focused on Main Street’s “real economy“.
Everything happening in/around the financial markets is very predictable when you focus on understanding the principles of Main Street MAGAnomics and how those basic principles diverge from Wall Street’s “paper economy”.
President Trump is clawing back American wealth; inch by inch… bit by bit.  This is the full monty.  This is economic nationalism. This is for all the marbles.
This is it.
Everything is happening in a very predictable sequence. Few understand the MAGAnomic reset, and what was predicted to happen in the space between disconnecting a Wall Street economic engine (globalism and multinationals) and restarting a Main Street economic engine (nationalism/America-First).  In 2015, 2016, 2017, 2018 CTH explained where we would be today. With current Wall Street events, perhaps it is worthwhile remembering the dynamic.
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I apologize in advance for my shortcomings in trying to de-wonk multinational economics and the financial constructs that impact, at the core, the U.S. worker and consumer.  It’s a big issue to tackle in digestible portions.  However, that said some inflationary statistics are presenting an opportunity for expanded discussion.
Reuters has an article out today highlighting inflationary data as released by the Bureau of Labor Statistics (BLS) [DATA HERE]. The overall summary is the Consumer Price Index is stable or flat reflecting low inflation on measured goods; however, that’s not the part that bears emphasis.   Instead I would direct attention to this:

The Fed’s preferred inflation measure, the core PCE price index excluding food and energy, increased 1.8 percent year-on-year in October, the smallest gain since February, after rising 1.9 percent the prior month. It hit the U.S. central bank’s 2 percent target in March for the first time since April 2012.

At the heart of the controlled monetary system; at the epicenter of the multinational global control mechanisms; inside the offices of the global economic elites; there is a system of financial manipulation with tentacles that reach into your pocket.  This system seems hard to understand, but it is critical to do so… so we need to try and understand it.
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Early this morning China transmitted and interesting tweet position that was/is a transparent display of their panda mask. In essence the panda play was a call for team USA to drop the zero-sum outlook and seek a win/win. Given the historic nature of Chinese negotiations the tweet was rather funny. However, it does highlight the dance.
Additionally, a few hours later President Trump tweeted about ongoing U.S-China trade discussions and something to watch for:
Moments ago we received the first indications of Chairman Xi’s panda play:

(Via Wall Street Journal) China agreed to reduce tariffs on U.S. autos to 15%, down from 40% currently, during a phone call with U.S. officials that opened the latest round of trade talks aimed at settling a trade dispute festering between the world’s two largest economic powers, according to a person familiar with the matter.

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