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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Go through the archives and you’ll note a strategy unfolding that few, including us, could fully conceptualize when it first appeared.  Way back when candidate Trump first began to put his economic plans into platform outlines the subtle signature was there, but few were paying attention.
In order to reverse three decades of middle-class economic erosion, there were indicators that Trump’s strategy was a radical change in approach.  In essence the strategy was to split the economic policy into two areas and sequence the policy: highly-consumable goods (first) and durable goods (second).
Both product sectors have historically been viewed and approached by economic policy makers using a single financial strategy.  That singular approach gave rise to Wall Street benefiting and Main Street suffering.  Investment-class gained; middle-class suffered.
Trump outlined an approach –albeit vaguely– that was multidimensional.
His policy would first target multinational corporations, using the U.S. Treasury (Mnuchin) to weaken their grip and influence; simultaneously, he would use energy policy to drive down domestic prices in highly-consumable products (fuel, food, energy sector).  These sectors are not measured in fed inflation indexes; however, if lowered, these facets of consumer spending can also increase the amount of disposable income available for workers.
In essence, expand the economy by lowering the aggregate cost of living for the middle-class who live paycheck-to-paycheck.  Use monetary policy, fiscal policy and trade policy), to entice domestic investment and create jobs; and ultimately put upward pressure on wages.
That’s where we are now.
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$64 billion of the current annual trade deficit with Mexico stems from the auto sector alone.
For over a decade auto manufacturers have moved to Mexico in order to import parts from Asia, assemble and install them, and then ship the completed cars into the U.S. through NAFTA without duties (tariffs).
The U.S. auto ancillary business groups (parts suppliers) have been pushed out of competition in the auto sector by this corporate profit strategy.  Thousands of U.S. jobs have been lost in both the plant assembly and the ‘auto-parts’ manufacturing sector.
CTH has called attention to this bastardized supply chain for years.  Foreign auto-parts, made by foreign workers, assembled into U.S. owned manufacturing, and sold as U.S. automobiles. The weird supply chain and assembly process is essentially a multinational corporate scheme (in the auto sector) which exploits one of the loopholes in the 25-year-old NAFTA agreement.
If the assembly plant was on U.S. soil the foreign (mostly Asian) parts would be taxed as imported parts.  However, so long as the assembly is in Mexico (or Canada), the origin of the parts is currently irrelevant, and the finished automobile crosses the border into the U.S. avoiding the taxes using NAFTA.
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There is a notable intent to talk down the economy amid almost all financial news providers.  However, despite their negative tone the economic reality continues to surpass their Eeyore disposition.
October’s U.S. housing starts jumped +13.7% to 1.29 million units and now begins to catch up with the underlying economic data.
You’ll note CTH discussed how housing would be regionally specific as the larger Main Street MAGAnomic policies were implemented.
Capital expenditures by home builders and home purchasers are the biggest financial decisions for most American workers.
Due to the deliberate factors involved, home purchasing is the largest railroad car in the economic train; it is also positioned in the rear of the economic sequencing.  However, when home building takes off the entire economic train gains momentum.

(Via Reuters) […] The sharp rebound in home construction reported by the Commerce Department on Friday was also driven by robust gains in the Northeast and Midwest regions.
The broad recovery could ease concerns about the housing market, which has been a drag on economic growth since the second quarter. The report added to labor market, manufacturing and retail sales data that have pointed to strong economic momentum as the year winds down.

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There are many people taking notice of modern politics for the first time in their lives. There is also some confusion noticed between two groups who talk above and around each other. Two groups communicating from two entirely different sets of understanding.  Perhaps it is valuable to reset the larger frames of reference and provide clarity.
Many, heck, most people think when they vote for a federal politician -a representative- they are voting for a person who will go to Washington DC and write or enact legislation. This is the old-fashioned “schoolhouse rock” perspective based on decades past.
There is not a single congress person who writes legislation or laws.
In 2017 not a single member of the House of Representatives or Senator writes a law, or puts pen to paper to write out a legislative construct. This simply doesn’t happen.
Over the past several decades a system of constructing legislation has taken over Washington DC that more resembles a business operation than a legislative body. Here’s how it works right now.
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Multinational corporations and foreign governments spend hundreds of millions in Washington DC lobbying House and Senate politicians to retain trade positions.  It’s generally a legal bribery business where congressional representatives get rich by selling their votes to corporations and foreign governments.
Most of you already know the game: It’s a big club, and we -the working class- ain’t in it.
Fortunately for us, President Trump won the election without funding from the big corporations and lobbyists within the U.S. political system.  As such they cannot influence Trump’s decisions on economic policy matters and trade; and President Trump rarely invites them into the White House for policy meetings.
Specifically because the lobbyists don’t have access to the White House they rely on their purchased politicians in the House and Senate to influence the administration.

The multinational corporations and multinational banks are against the U.S. removing ourselves from multilateral trade agreements.  Those institutions rely on being able to manipulate the U.S. consumer market – EXPLAINED HERE.  The biggest influence agent, and by far the biggest lobbyist spender, is Tom Donohue, President of the U.S. Chamber of Commerce, who represents the interests of the multinational corporations and Wall St.
So when you see these letters, knowing they are written by K-Street and transcribed onto legislative letterhead by political staffers, all you need to do is look at the signatures of the politicians and you can quickly identify who has been purchased by Tom Donohue:
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No-where is Trump Derangement Syndrome more evident than in the position of activist Democrats now swearing allegiance to multinational trade deals.
It was only a short time ago when Democrat activists and liberal politicians demanded U.S. withdrawal from TPP and openly discussed how NAFTA was disastrous for the U.S. worker. Both Bernie Sanders and Hillary Clinton ran on pulling out of TPP etc.
Trump gets elected, actually fulfills a campaign promise and promptly pulls-out of TPP subsequently beginning to renegotiate NAFTA (with leveraged threats to withdraw); and suddenly, Democrats are joining arm-in-arm with corporate Republicans expressing their profound love for multinational trade deals. Go figure.

Round #5 of NAFTA renegotiation begins today in Mexico, absent any diplomatic trade ministers, and Canada announces their intent to use their access to congress as leverage over the executive branch in an attempt to work around President Trump:

OTTAWA (Reuters) – Canada will redouble its lobbying efforts in Congress to block any Trump administration move to pull the United States out of NAFTA, sources familiar with government strategy said, as talks to modernize the treaty run into trouble.
[…] Canadian officials say there is some considerable doubt as to whether Trump could pull out of NAFTA without approval from Congress, which makes lobbying its members so important.

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Chairman Xi is sending his CPC special envoy, Song Tao, to North Korea.

Song Tao, special envoy of General Secretary of the Communist Party of China (CPC) Central Committee Xi Jinping, will leave for the Democratic People’s Republic of Korea (DPRK) on Friday.  (Story Here)

This is President/Chairman Xi Jinping, now fully empowered by the communist party in Beijing, sending the party apparatus to talk to Kim Jong-un.  Previously these instructions would have come from Beijing’s old guard.  However, Chairman Xi now commands all power over the communist government; he doesn’t need their approval any longer.
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CTH has a strong sense that when the final analysis on Venezuela’s ongoing socialist struggle is written, some years from now, the geopolitical strategy used by the Trump administration will be taught in political science classes. [Backstory Here]
As a result of horrific socialist policies, primarily driven by using oil production to maintain it’s socialist governance, Venezuela is under massive debt and desperate for cash.  The United States was one of the few remaining cash purchasers of Venezuela oil before U.S. Secretary of Treasury  Mnuchin imposed sanctions.
Previously China and Russia purchased Maduro’s oil, however their current purchases are/were all made as offsets, repayments, for prior loans.  China and Russia already own 49% of Venezuela’s state oil company PDVSA. Venezuela repays China and Russia with oil, but Venezuela needs cash revenue. It doesn’t generate additional revenue for Maduro if China and Russia purchase more oil, it only pays down the Venezuelan debt.
Venezuela needs money.  However, if anyone engages in restructured debt or further loans or bond holdings to Maduro they run the risk of running afoul of Secretary Mnuchin’s sanctions which could have a downstream effect of freezing their own banks and international financial systems from engagement with U.S. banks.
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President Trump, together with Team USA, attend the 31st summit of the Association of South-East Asian Nations (ASEAN) today.  Paying close attention to who Trump is meeting with, along with the specific length of time allocated to each of the bilateral exchanges, helps to measure the value of each participant in the larger economic strategy.

In the morning (Manilla local time – 8pm U.S. Eastern), President Donald J. Trump will participate in a photo opportunity with President Rodrigo Duterte of the Philippines. The President will then participate in a welcome ceremony for the 31st ASEAN Summit.
Later in the morning, the President will participate in a bilateral meeting with Prime Minister Malcom Turnbull of Australia, followed by a bilateral meeting with President Duterte. In the afternoon, the President will attend the 5th U.S.-ASEAN Summit which commemorates the 40th anniversary of U.S.-ASEAN relations.
Later in the afternoon, the President will participate in a bilateral meeting with Prime Minister Narendra Modi of India followed by an embassy meet and greet.
Schedule below:
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