Secretary of Treasury Steven Mnuchin and U.S. Trade Representative Ambassador Robert Lighthizer are currently leading another round of trade negotiations in China.  Recent reporting indicates the U.S. team will meet with Chairman Xi Jinping at the conclusion of this round of discussions.

At the conclusion of the previous round of discussions in Washington DC, President Trump invited the Chinese delegation to the Oval Office. The surface panda-face diplomacy appears to be based on reciprocity; however, there is no indication President Trump and Chairman Xi are making any efforts for a meeting.

BEIJING – China’s President Xi Jinping “is scheduled to meet” key members of the US trade talks delegation, including US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin, in Beijing on Friday, according to sources close to the matter.

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It’s an interesting exercise to consider just how much national economic policy shifts can impact U.S. workers and industry.  Only a few years ago the ‘best play‘ for auto executives was shifting manufacturing overseas or to Mexico.
Today, with the advent of a comprehensive energy policy, enhanced U.S. investment incentives, re-prioritized trade expectations, focused tariffs, lowered regulations, and expanded  economic freedom allowing consumer demand to drive investment decisions, the entire landscape of a massive industry shifts.

Now the ‘best play‘ is for multinational firms to focus on expanded investment directly in the U.S.A.  Simple, yet stunningly consequential:

CHICAGO – Ford said Thursday it will hire 500 workers and invest $1 billion in its Chicago assembly operations to help keep up with booming demand for sport and crossover-utility vehicles.

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Two Canadian political and economic observers, Ezra Levant of The Rebel.media and lawyer and consultant Manny Montenegrino, discuss how the USMCA grants special consideration to Mexico that Canada doesn’t receive.

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Historians will note the trilateral negotiations, including the U.S. and Canada, broke down in a series of events between October 2017 and January 2018; culminating with USTR Robert Lighthizer and President Trump deciding to focus on a bilateral agreement between the U.S. and Mexico that Canada was later forced to join.
The intransigent demands by Canada, which would have forced the U.S. to accept any Canada-China trade deal, was the fracture point.  [SEE HERE] This strategic mistake by Justin Trudeau and Chrystia Freeland created the downstream consequences now beginning to surface.
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ACTION ALERT: The Decepticon caucus inside the senate, under the control of U.S. Wall Street’s primary CoC Lobbyist and Big Club President Tom Donohue, are assembling to launch a full frontal assault against President Trump’s trade policies. Seriously watch out for Senators Pat Toomey, Rob Portman and Ron Johnson:

Toomey said reining in Trump’s tariff powers also has strong backing from the U.S. Chamber of Commerce, Business Roundtable and dozens of other trade associations. “There’s clearly a lot of momentum, but only time will tell whether it’s enough to get over the goal line.” (link)

National Economic Council Director Larry Kudlow appeared on Fox Business today to discuss President Trump’s State of the Union address and the Trump administration’s economic policies.

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The heartbeat of MAGAnomics is Main Street USA.  Keeping in mind we have suffered through three decades of economic and financial policy that was specifically structured to the benefit of Wall Street (globalists) over Main Street (nationalism); back in 2015 and 2016 when Candidate Trump started to put specifics on his economic proposals we were able to map out some likely possibilities.

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All significant economic changes take years to fully mature.  However, because it was easy to identify where nationalist economic policy would run into conflict with the prior globalist data-trends, we were able to predict a series of economic disconnects.
The primary disconnect is where Main Street inflation, wage growth and GDP growth, would be disconnected from the Federal reserve monetary policy.  Any Fed action would impact Wall Street results (sad trombone); but the disconnect that was caused by 30-years of diminished Main Street value (U.S. investment went overseas), and would mean MAGAnomic policy would grow the internal U.S. economy regardless of the Fed action.
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The baseline when reviewing economic data from China is to remember the entire economy is controlled by the communist central government.  If they say the economy is “less strong” than previously expected, generally we can anticipate the truth is much worse.
The second aspect to remember is that many U.S. manufacturers made anticipatory advanced purchases, building up inventory ahead of possible tariffs, in the 3rd and 4th quarters of 2018.  Those advance purchases can amplify any manufacturing slow down.

BEIJING (Reuters) – China is expected to report on Monday that economic growth cooled to its slowest in 28 years in 2018 amid weakening domestic demand and bruising U.S. tariffs, adding pressure on Beijing to roll out more support measures to avert a sharper slowdown.
Growing signs of weakness in China — which has generated nearly a third of global growth in the past decade — are stoking worries about risks to the world economy and are weighing on profits for firms ranging from Apple to big carmakers.

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A big day for geopolitical moves.

Earlier today President Donald Trump, Secretary of State Mike Pompeo and North Korean Minister Kim Yong Chol held a 90 minute meeting at the White House discussing ongoing talks and negotiations between the U.S. and North Korea.

Following the meeting the White House announced there would be a second summit between President Trump and Chairman Kim Jong-un:

“President Donald J. Trump met with Kim Yong Chol for an hour and half, to discuss denuclearization and a second summit, which will take place near the end of February. The President looks forward to meeting with Chairman Kim at a place to be announced at a later date.”  (link)

(Via Fox News) […] The face-to-face came after Secretary of State Mike Pompeo met with Kim Yong-chol, North Korea’s lead negotiator, in the nation’s capital early Friday morning to negotiate terms that could lead to a second nuclear summit between Trump and Pyongyang leader Kim Jong-un.

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In November of last year the New York Post interviewed President Trump asking specifically why he was not declassifying “spygate” documents, and inquiring about the purpose for his reluctance.  President Trump responded: “Maybe it’s better that the public not see what’s been going on with this country.”  Many people were disappointed, but its always been President Trump’s primary MAGA agenda to focus on economic security.

As the president has repeatedly stated: “economic security is national security.”  And with that cornerstone as the foundation, any evidence of a ‘Five-Eye’ ally participating in the scheme against Trump becomes leverage.  Cue the example:

EUROPE – European officials said today they will make tariffs on steel imports to the region permanent to help stem the glut of supply sparked by Donald Trump’s trade war against China.

The move highlights that protectionism is spreading and Donald Trump’s trade war with China is entrenching itself into the global economy.

The EU will impose quotas on 26 product categories and levy a 25% duty on imports exceeding those quotas, the executive arm said on Wednesday. The move cements proposals laid out last July with the stated aim of protecting European steelmakers amid Chinese overcapacity.

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{{{snicker}}} Jobs, Jobs, Jobs. Oh, remember that White House meeting with the big four German automakers [back on December 4th, 2018] that mainstream media ignored amid the fury of the, well, more popular ‘resistance’ narrative?   Yeah, THAT one.
Well, combine that US/trade White House meeting with the details within the USMCA auto-sector; mix it up a little with the initiatives and incentives for Trump’s industrial vocational apprenticeship training; give the auto actuaries a little time to crunch the numbers; let the executives settle in…. Then, fast forward a month and currently the big Detroit auto-show is happening.
Voilà!… what does Volkswagen announce?  Ahem:

TENNESSEE – Volkswagen to create 1,000 new jobs in Chattanooga expansion:
Volkswagen announces Chattanooga will be the home to the company’s first electric vehicle manufacturing facility in North America. This will be the company’s second U.S. facility.

The automaker made the announcement Monday morning at the Detroit Auto show. Tennessee Governor Bill Haslam, Chattanooga Mayor Andy Berke, and Hamilton County Mayor Jim Coppinger were all in Detroit for the major announcement.

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Commerce Secretary Wilbur Ross discusses the ongoing U.S. -vs- China trade confrontation and the current status of China’s economic contraction.
Secretary Ross outlines that China has now internally admitted their reliance on access to the U.S. market; and Team Trump’s continued willingness to deliver death by 1,000 cuts to Beijing if needed.
Secretary Wilburine is one of the top targets for Wall Street, GOPe, Democrats and the collective group of beneficiaries from the U.S. Chamber of Commerce. He is effective; he is unrelenting; they want/need him to be removed.   The inability to influence the White House economic policy team is the biggest threat to the corporate lobbying community.

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