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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National Economic Council (NEC) Director Larry Kudlow appears on Fox Business News to discuss the incredible December jobs report, the U.S. economic outlook, current Federal Reserve policy, and the state of China’s economy.
Chairman Larry Kudlow notes the disconnect between Wall Street and Main Street by outlining the success within the MAGAnomic economy. Job gains, real wage growth and low inflation equals more disposable income for a secure economic workforce.
Increases in productivity combined with investment growth and strong consumer confidence is a direct result of a healthy middle-class economy. Under these economic growth conditions blue and white collar Main Street fuels itself.

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Kudlow also expanded on the China issues, and the upcoming meeting next week with U.S. and Chinese trade delegations.  He also appeared on CNBC (below):
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Jumpin’ Ju-Ju Bones…. The Bureau of Labor Statistics (BLS) releases the December 2018 jobs report and the numbers are “eye-popping.”  ♦In the month of December 312,000 new jobs were added.  ♦Real wage growth now 3.2%.  ♦Prior October and November jobs reports were adjusted upward by 58,000 jobs.   Main Street USA is roaring!!

Here’s the data:  Total nonfarm payroll employment increased by 312,000 in December. The unemployment rate rose to 3.9 percent (more static workers entering workforce).
Employment in health care rose by 50,000 in December. Within the industry, job gains occurred in ambulatory health care services (+38,000) and hospitals (+7,000). Health care added 346,000 jobs in 2018, more than the gain of 284,000 jobs in 2017.
In December, employment in food services and drinking places increased by 41,000. Over the year, the industry added 235,000 jobs, similar to the increase in 2017 (+261,000).
Construction employment rose by 38,000 in December, with job gains in heavy and civil engineering construction (+16,000) and nonresidential specialty trade construction (+16,000). The construction industry added 280,000 jobs in 2018, compared with an
increase of 250,000 in 2017.
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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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Oh dear.  U.S. President Donald J Trump just posted a graphic on his Instagram account that will likely make his political opposition go bananas.  Epic:

(Link)

From all appearances President Trump is not backing down from his demand for border security that includes a border wall physical barrier.  And while Democrats thought they had him painted into a zero-sum corner, well, there’s every indication the White House is prepared to let the partial government shutdown go on for months if needed.
This position now puts all the pressure on Nancy Pelosi.
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Tomorrow, Friday January 4th, the U.S. Labor Department will release the December jobs report which will offer an in-depth look at the labor market including: job additions, the unemployment rate, the labor participation rate and actual wage growth.
In the interim, the ADP National Employment Report provides a monthly snapshot of U.S. nonfarm private sector employment based on actual transactional payroll data. Their review of national payroll ledgers shows a stunning; 271,000 jobs added in December.

(link to ADP data – link to pdf)

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Decepticon caucus senator-elect Mitt Romney (U-DC) appears on CNN to outline why he stands in opposition to President Donald Trump.  Understanding the unspoken background color here is important.
The Decepticon Caucus in the senate is comprised of senators who represent the interests of Wall Street; and every principle of finance and commerce that intersects with Wall Street’s multinational interests.  In essence the Decepticon Caucus is the defensive force protecting the global financial elite; ie. “The Big Club”.
U.S. Chamber of Commerce President Tom Donohue is the mechanism used by Wall Street multinational banks, corporations and billionaire influence agents to pay the Decepticons to protect their interests.   Mitt Romney is the newest member of the Decepticon Caucus and thus he has a role to play:

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It’s about money… and power… but mostly money. It’s not necessarily personal opposition to President Trump – though they do despise him.  It’s really us they hate.
It’s business, big business; massive multinational business. There are trillions at stake, and U.S. President Donald J Trump is the existential threat to the global financial system. That’s the cornerstone of this opposition.
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President Trump enters a new phase in legislative road-blocking fraught with challenges inside the Senate chamber.  Almost all U.S. Republican Senators have accepted the indulgences of U.S. Chamber of Commerce President Tom Donohue.
President Trump now relies on the upper chamber to consent on the America-First trade deals he has been renegotiating.  Simultaneously, Donohue and McConnell plot how to best utilize their increased influence over the executive branch…. [Romney was the first shot]

A tempered response does not come as a surprise given the landscape.
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Yesterday we noted how subtle (and not so subtle) messages have been coming out from Beijing China admitting how the party of Chairman Xi underestimated the cunning fortitude of U.S. President Donald Trump.   Today, a stunning visual is broadcast from inside North Korea which follows the same general outlook.
Remember, nuance and subtle optics are very significant in Eastern projections of political brand messaging.  When they present a nationally broadcast message every grain of sand on the optical beach has been thought out, considered, staged and carefully placed by hand with great forethought toward the intended audience. The optics are everything. [That’s also the reason why POTUS Trump used a video presentation (specifically for Kim) at the end of the Singapore summit.]
In an unprecedented international broadcast, North Korea’s Kim Jong-un delivers a message not just to his people, but more specifically to the international community.  The backdrop, the venue for the message as broadcast, reflects a stunning shift for the country of North Korea.  Notice the background message is ‘economic‘: Business attire; business office etc.  The guiding hand of Chairman Xi is visible, and the transmission is full of messages highlighting the influence of the Trump Doctrine.

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It is critical to remember that Chairman Xi (Beijing China), is still the leading influence agent over Chairman Kim (DPRK). That nuanced/subtle (hostage/captive) influence message is also inherent in the background of this broadcast. As the U.S. -vs- China confrontation continues, this video message provides additional support that Chinese Chairman Xi Jinping is no longer underestimating the cunning of POTUS Trump.
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A good discussion between Charles Payne and Gordon Chang on Fox Business over the U.S. -vs- China trade confrontation.  Mr. Chang makes a good point about 2018 being the year where Beijing realized they underestimated the cunning of President Trump.

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He caught them off guard – There is no doubt in my mind that President Trump has a very well thought out long-term strategy regarding China. President Trump considered strategic messaging toward the people of china very important. President Trump has, very publicly, complimented the friendship he feels toward President Xi Jinping; and praises Chairman Xi for his character, strength and purposeful leadership.
2018 is the year China discovered that President Trump knows how to play their panda/dragon games.
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