In a letter to the president EPA Administrator Scott Pruitt has resigned from his position. President Trump has accepted his resignation and notes that Deputy Administrator Andrew Wheeler will assume the acting administrator position Monday. (letter below)
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Today U.S. Chamber of Commerce President Tom Donohue announced another campaign to protect and defend his Wall Street contributors against initiatives that benefit Main Street U.S.A. This is not the first time, and unfortunately it will likely not be the last time.
For a great historic reference consider THIS ARTICLE from 2014; when the U.S. Chamber of Commerce announced their direct attack against the Tea Party backed candidates that threatened to remove the massive lobbying power of Tom Donohue’s corrupt officials. That 2014 reference point has two parts. I strongly urge anyone who would defend the U.S. CoC approach to read both.
The overwhelming majority of economic punditry and opinion come from salespeople on the purchased payroll, direct and indirect, of the chamber. It is one of the most, check that, it is the most corrupt and abusive enterprise in the history of our nation. They are pulling out a very familiar playbook.
(Reuters) – The U.S. Chamber of Commerce on Monday denounced President Donald Trump’s handling of a global trade dispute, issuing a report that argued the tariffs imposed by Washington and retaliation by its partners would boomerang badly on the American economy.
Within the German economy the auto-sector holds the largest political influence. Because of this dynamic all German politicians kneel at the knee of the big industrial auto manufacturers. It has been said that losing support from within the auto-sector is much worse on a German politician than losing support from party or parliament.
Because of this dynamic; and specifically because the German auto-sector is dependent on the United States as their biggest customer, President Trump holds leverage over German Chancellor Angela Merkel. This makes Fraulein Merkel unhappy.
President Trump wants three EU issues resolved: 1) Germany to contribute the minimum 2% of GDP for their own NATO defense. 2) Germany/EU to support enhanced sanctions against Iran; and 3) President Trump wants all German/EU protectionist trade barriers and tariffs lowered or eliminated – and new trade deals negotiated.
To gain momentum on these initiatives, President Trump is using the economics of trade as leverage. Trump has suggested a 20% tariff on all EU automobiles shipped into the U.S. [The same standard now likely proposed toward Canada] The German auto-sector, and as a consequence the German economy, simply cannot survive without low cost access to the U.S. market, their biggest customer.
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With new spark plugs, Kuddles was thrilled to discuss the latest economic key performance indicators. National Economic Council Chairman Larry Kudlow talks about the health and growth of the U.S. economy with Maria Bartiromo.
Today Canada released an updated list of retaliatory tariffs designed as countermeasures to the U.S. Steel and Aluminum tariffs [SEE HERE] which will begin Sunday, July 1st.
Additionally, Foreign Minister Chrystia Freeland, Innovation Minister Navdeep Bains, and Employment and Labour Minister Patty Hajdu, announced they would initiate an emergency program to use Canadian taxes compensate workers, expand unemployment benefits, and subsidize impacted industry. Yes, in a transparent display of political ideology (throwing capitalism directly out the window), Canada doubles-down on centralized government subsidies to offset market impacts. Brilliant ‘eh!
Chrystia Freeland made the announcement on the floor of a Hamilton steel factory Friday. In a rare backdrop, Ms. Freeland actually entered a factory with machines and things, to deliver the carefully choreographed political message (video below – watch the last minute to understand).
Team U.S.A. have applied tariffs to Canadian softwood lumber, Steel and Aluminum as Canada refuses to negotiate new terms for NAFTA where North American products are prioritized. Canada demands the ability to continue importing Asian, mostly Chinese, products for their assembly-based market.
With the latest counter-move by Justin and Chrystia from Canada, it is increasingly likely President Trump will levy a 20% tariff on imported Canadian automobiles. Last month (May) the Canadian economy dropped over 31,000 Full-Time jobs.
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Earlier today President Trump delivered remarks celebrating the six month anniversary of the U.S. Tax Cuts and Jobs Act. Today is also the last business day of the second quarter.
On the six-month anniversary of the tax cut/tax reform legislation passage, Treasury Secretary Steven Mnuchin sits down with Maria Bartiromo to discuss the current status of all MAGAnomic initiatives.
Tomorrow is also the last day of the second quarter (April, May June), and today is the last business day of Fiscal Year 2018 third quarter (fiscal years start Oct. 1st).
Following the groundbreaking ceremony, President Trump delivered remarks to a Wisconsin audience to commemorate the opening of the massive high-tech industrial complex.
There is an article from Bloomberg which finally concedes the obvious economic and trade dynamic within a U.S. -vs- China confrontation. The media paradigm shift is based on new statements from Chinese Ministers admitting they cannot win a trade confrontation with U.S. President Trump.
The summary reason is simple, we have discussed it frequently:
China is a production-based economic model, they do not have the ability, or wealth, to consume their own durable goods production; they rely on exports.
The U.S. is a more balanced economy; we consume 80% of our own production. We are self-sustaining, China is not.
Without a market to sell their products, the Chinese economy cannot survive.
Conversely, China has focused so intensely on durable-goods manufacturing, their consumable goods market (food) is dependent; they cannot feed themselves. The U.S. can survive without exporting food, China cannot survive without importing food. The U.S. economy can survive without importing durable goods; the Chinese economy cannot survive without exporting durable goods. This is the unavoidable trade reality. As a consequence President Trump has all the factual leverage.
In stunning, and carefully worded economic writings, Chinese academics and economic ministers are now talking about the inherent weakness of the Red Dragon policies:
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Seek first to understand. During an assembly of Canadian left-spectrum pundits the U.S. and Canada relationship is the topic; the backdrop is the economic consequences, trade and NAFTA. In this group the high-minded Canadians express their views, their wounded sensibilities, and yet simultaneously highlight an important strategic flaw.
Within their political frame-of-reference, they cannot fathom the tenuous nature of their dependency. They think they are more important than they are. Their inability to accept the weakness of their economic position is based on their feelings. Pride is very dangerous in negotiations amid apex predators. If you are prideful you provide a strategic advantage for the opposition. In negotiations, President Trump doesn’t care about ‘feelings’ or opinions toward his approach.
The Canadian economic position is ‘not to lose‘, the Trump position is to win. There is a huge strategic difference within those two perspectives.