Oh, go figure.  They re-cog-o-nized that all by themselves…
Yesterday CTH noted Princess Rainbow Sparkles was in Washington DC lobbying Washington State Representative Dave Reichert, Senator Jeff Flake, Senator Lindsey Graham, et al. Isn’t it funny how Canadian officials lobby U.S. representatives for their unique economic interests, but if a U.S. official stepped into Canada to lobby one of their members of Parliament,… yikes, heaven forbid. Foreign election conspiracy. I digress.

Reuters is reporting today that Canadian trade officials are increasingly convinced that President Trump is going to pull out of NAFTA.  The next round of negotiations is scheduled for the end of this month.  Half of the Canadian contingent thinks Trump will exit, the other half think the appearance of a pull-out is simply a negotiating strategy.
An official WH source “close to Trump” is attributing a statement to POTUS: “I want out”.
Ya think?  Scott Minerd, Global Chief Investment Officer at Guggenheim Partners, said “if Trump were to announce a NAFTA exit, the stock market would probably pull back by 5 percent or so, before advancing to new highs.”  He’s correct.
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If the U.S. were to exit NAFTA (North American Free Trade Agreement), the price you pay for most foodstuff at the grocery store would drop 10% in the first quarter and likely drop 20% or more by the end of the first year. Here’s why:
Approximately a decade ago the U.S. Dept of Agriculture stopped tracking, and reporting, U.S. consumer food prices. The food sector joined the ranks of fuel and energy in no longer being measured to track inflation and backdrop Fed monetary policy. Not coincidentally this was simultaneous to U.S. consumers seeing massive inflation in the same sector.

There are massive international corporate and financial interests who are inherently at risk from President Trump’s “America-First” economic and trade platform. Believe it or not, President Trump is up against an entire world economic establishment.
When you understand how trade works in the modern era you will understand why the agents within the system are so adamantly opposed to U.S. President Trump.
The biggest lie in modern economics, willingly spread and maintained by corporate media, is that a system of global markets still exists.
It doesn’t.
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Well, that didn’t take long.  About a decade ago we needed a phrase to describe a very specific set of republican senators, thus originated the term “Decepticons”.
Decepticons are different from traditional ‘establishment’ types in that they are a cloistered club, a sub-set of the upper-tier within the GOPe, and they protect their exclusive position because of the payments and benefits they receive from an individual lobbyist, Tom Donohue.

Tom Donohue is the President of the U.S. Chamber of Commerce, the largest single lobbying group in all of Washington DC.   Donohue represents the interests of massive financial institutions and multinational corporations.  Donohue receives hundreds of millions from his corporate conglomerates; and he controls the distribution of tens-of-millions toward individual senators on capitol hill who agree to uphold those interests.
A ‘Decepticon’ will NEVER break ranks with the Chamber. EVER.  Regardless of the Chamber position.  That character trait is what makes them uniquely “Decepticons.”

WASHINGTON DC – Senate Republicans are growing frustrated with what they see as a lack of clear direction in President Trump’s trade agenda, which they warn is hurting U.S. exporters.
Republican members of the Senate Finance Committee vented their concerns in a recent meeting with U.S. Trade Representative Robert Lighthizer.

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The economic strategy of President Trump is so consequential and encompassing, even the domestic effects are felt globally.

♦Removing the U.S. from the multinational TPP trade deal initially planted the seeds of doubt amid multinational trade forecasters because the shift positioned the U.S. with unique leverage. They saw Trump using access to the worlds largest market as a negotiating strategy.
♦A few months later, President Trump walked away from the ridiculous regulatory restrictions within the Paris Climate Treaty.  Instantaneously this put even more strategic manufacturing and economic advance on the U.S. ledger, and simultaneously made American energy independence a foregone conclusion.
♦And now that congress has codified President Trump’s lower domestic business taxes, in conjunction with opening up ANWR for energy development (a strategic economic goal for 20+ years), the size of the U.S. economic and manufacturing advantage has just increased U.S. trade leverage to almost unimaginable levels.

Economic Nationalism – President Trump’s strategy has created: •Lower and long-term predictable energy costs, not attached to OPEC or multinational influence; •Lower and long-term raw material costs due to slashed regulatory environment; •lower and long-term business manufacturing tax rates; and now Trump begins negotiating trade deals.

Add these advantages together within the largest economic market in the world and the U.S. is now the place where manufacturers will want to do business.  Additionally, the process of utilizing Canada and/or Mexico as a workaround into the U.S. market, via NAFTA, is on the cusp of removal.
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Oh, we have no idea yet how big and consequential the synergy between all of President Trump’s economic policies are toward an almost unfathomable MAGAnomic result; but we’ll find out really soon, BIGLY.
The international community is just now beginning to recognize how intensely sequential the domestic MAGAnomic tax policy is when combined with the international America-First trade policy therein.

2018 will be the year when every international trade partner reassess their best financial interests; and with the tax outline codified into law, POTUS Trump, Secretary Ross, Secretary Mnuchin and U.S. Trade Representative Lighthizer are about to initiate the biggest multinational trade shift in the history of international economics.
Yes folks, I’m actually talking about that phase when we discover we are living within the orbit of: “almost too much winning”.   This is where we begin to recognize that 5%, 6% and even 7% GDP growth is easily attainable. Here’s how it works.
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T-Rex and Twinkles

Against the backdrop of NAFTA renegotiation that appears headed for certain doom, Secretary of State Rex Tillerson appears contrast against the overly familiar Canadian Foreign Minister Mrs. Twinkles and Rainbows Chrystia Freeland.  I doubt you could find two individual personalities more divergent (watch you’ll see “Rex”?):

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[Transcript] FOREIGN MINISTER FREELAND: Okay. Hi, everybody. Great to see everyone here. Before I begin, I’d like to extend Canada’s thoughts and condolences to our American guests in light of the terrible train derailment in Washington state. We extend our sympathies to those who lost loved ones and wish a full and swift recovery to the injured.
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USTR Robert Lighthizer is attending the World Trade Organization (WTO) summit in Argentina.

[…] Ahead of the meeting, the United States blocked efforts to draft a joint statement emphasizing the “centrality” of the global trade system and the need to aid development. Its opposition has raised concerns that the WTO will not be able to accomplish even modest goals, such as addressing fishing and agricultural subsidies, at the conference. (Reuters)

The Ambassador’s opening remarks to the conference are below and include Lighthizer rightly informing the WTO that the Trump administration believes they have strayed far away from trade issues and are now, essentially, uni-focused on litigation.  He’s right.

[Transcript] “I would like to start by thanking the government of Argentina for hosting MC11, and Minister Malcorra, Director General Azevedo, and their staffs for their excellent work. We appreciate all the effort over many months that go into creating a conference of this magnitude.
In the brief time I have, I would like to make a few basic points.
First, the WTO is obviously an important institution. It does an enormous amount of good, and provides a helpful negotiating forum for Contracting Parties.  But, in our opinion, serious challenges exist.
Second, many are concerned that the WTO is losing its essential focus on negotiation and becoming a litigation-centered organization. Too often members seem to believe they can gain concessions through lawsuits that they could never get at the negotiating table. We have to ask ourselves whether this is good for the institution and whether the current litigation structure makes sense.
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You hired a man who developed a life of very specific skills.  A man who knows how to use those unorthodox skills to generate intensely competent results.  Relax, enjoy them…

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Two thoughts:  Oh, POTUS is enjoying this; and the pine-cone-on-his-chair-look on Flake’s face is, well, priceless.  Also, remember that NAFTA prediction about timing, strategic patience, etc.? Well…
THE PRESIDENT: Well, thank you very much. I appreciate everybody coming in.
We had some very late nights getting the tax-cut bill to conference. Last was very smooth, and I think we’re going to make it so that it comes out very beautifully. I call it “the mixer.” It’s a conference where everyone gets together and they pick all the good things and get rid of the things they don’t like.
But it’s a fantastic bill for the middle class. It’s a fantastic bill for jobs and for companies wanting to bring back massive amounts of money into our country. It’s really — I view it more than anything else, is it’s a tremendous bill for jobs and for the middle class.
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Back in 2015 we described the basic principles behind MAGAnomics. CTH continually reminds people that for most Americans under age 45 they have NEVER seen, or participated in, a fully functional U.S. economy. There’s a reason for those reminders.
The Main Street economy is like a train that has sat idle for three decades. MAGAnomics is that train’s engine. President Trump’s ‘America-First’ economic policy agenda is the starter fluid and the super-fuel.
After the initial blast of quick-start is applied, the engine ignites, coughs, backfires loudly, clears out the cylinders… then slowly -awakening- it begins to auto-sync… It winds up as the internal energy builds… Then comes that first, familiar and glorious roar:

Remember, this economic engine has not yet been put into gear.  She has gained more than 3% GDP growth while tuning herself.  Once this glorious American industrial machine gets moving, there ain’t much that can ever stop it…
The prior usurping economic control agents starved her of fuel to shut her down.
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CTH has been looking, unsuccessfully, for China SME’s who have insight on the DC lobbying angle by Chinese foreign nationals and the hidden story of how the Trump administration might be confronting that aspect.
Gordon Chang briefly touches on that note during a discussion segment on the overall outcome of President Trump’s 12-day visit to Asia.
Apparently, if Chang’s sources are accurate (likely they are), the notification by POTUS Trump toward Chairman Xi Jinping, of the lobbyist warning did take place [Video 02:25].

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The foreign influence lobbying is a critical element for us domestically in the larger geopolitical strategy.  Chinese nationals pay our congressional representatives millions of dollars to purchase U.S. foreign policy.  CTH is cautiously optimistic this is a key element of Robert Mueller.
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