Well, well, well. In what can only be described as perfectly representative of the perspectives of Canada, Mexico and the U.S., the principals within NAFTA [Robert Lighthizer (U.S.), Chrystina Freeland (Can), Ildefonso Guajardo (Mex)] showcase their unique positions during a press conference at the conclusion of round #4.
U.S. Trade Representative Robert Lighthizer begins with the elements of a statement that all parties agree upon. Not much. (Transcript added)
Next comes the smug, self-righteous, and virtue signaling Canadian economic parasite Chrystina Freeland; with an over-the-top emotional plea about how military cemeteries should form the basis of multinational trade deals because trade sectors should be based on her feelings, or something. Mexican economic parasite Ildefonso Guarjardo joins the CanMex position decrying the insufferable demands of the economic host: “we must understand that we all have limits.”
Then comes the hammer. Lighthizer announces to both parasites their positions are fraught with hypocrisy and self-preservation; and the time to reset the imbalance is now. Pointing out how Canada and Mexico agreed to TPP text they are now rejecting in NAFTA, and specifically identifying how their companies have become reliant on special preferences, Lighthizer lets Canada and Mexico know that the time for their feasting on the host is OVER. Watch (transcript added below):

The distance between the parties is too significant and a diplomatic “cooling off” period of one month is agreed upon; prior to entry into round #5 which will take place in Mexico, mid-November. The goal of an agreement, if any agreement is possible, concluding by the end of the year is gone.
(more…)

NAFTA Round #4 negotiations have been ongoing and resulting in little progress on the serious issues surrounding the three nation trade pact.
Word from behind the scenes, and off-the-record, finds several insiders with the opinion that the decision by the U.S. Chamber of Commerce lobbying group to conflict with President Trump and the U.S. trade team has backfired.
U.S. CoC President Tom Donohue made the decision to align in common cause with Canada and Mexico, against the interests of the U.S., and go public with his attacks against the U.S. negotiating team, the administration and President Trump personally.
Following the confrontational approach by the largest DC lobbying group, the U.S. team asked Canada to take their protectionist trade restrictions off the Dairy and Poultry sectors.  Canada was adamant they will never leave their agriculture unprotected, and rejected any consideration of open trade discussion toward those sectors.
The U.S. is standing firm on three elements that Mexico and Canada are dead-set against:
(more…)

Israeli Prime Minister Benjamin Netanyahu appears with Face the Nation host John Dickerson to discuss the Iran nuclear deal.
Dickerson lives a life amid a professional and social network of ideological allies who are opposed to both Israel and President Trump.  Dickerson has to retain his bona fides with his community of fellow travelers.  Meanwhile Netanyahu outlines the economic leverage held by President Trump and the regional allies.    [Pay attention to the last minute]

(more…)

Just because western media doesn’t understand how President Trump executes a geopolitical strategy based on economic leverage, that doesn’t mean adversaries are not fully aware of the effectiveness of the approach.
The Trump Doctrine has two avenues toward dealing with national security adversaries.
The first route is direct assignment of responsibility toward the enablers: see China for North Korea; The Gulf States for Qatar (Sunni extremism); Russia for Syrian terrorism (Assad); and Pakistan for Afghanistan (Taliban); as recent examples.

However, when the geopolitical threat stems directly from the enabler, and not the enabled, the Trump Doctrine has a distinctly different and far more encompassing, approach.  Route two goes through leveraging regional allies and partners: See ASEAN and India for ¹China; and France, Poland, Baltic States for ²Russia.  And now President Trump is beginning to shift toward ³Iran.
In each case: China, Russia and Iran, unlike Western media, these powers assemble volumes of research to assist them in understanding the most likely sequence of events President Trump will take.
When we say volumes of research, we indeed mean hundreds of people researching and drafting position documents based upon every scintilla of every deal Donald J Trump has engaged in.  No expenses are spared as these state actors assemble information toward their own strategy to counter the most unpredictable adversary they have faced.
(more…)

Prior to the 2016 election (Oct ’16) consumer confidence measured by the University of Michigan was indexed at 87.2  Today that same confidence rating is 101.1  A stunning 15.9% increase.  Similarly, consumer expectations were indexing 76.8 in October 2016 and now stand at 91.3, an increase of 18.9%.

(Data)

Consumer confidence is at the highest level since 2004 and Americans have the brightest outlook for their economic future in decades.  The MAGAnomic data is clear. Yet even those who assemble the data interpret MAGAnomics with some false assumptions.

Nonetheless, consumers anticipate low unemployment, low inflation, small increases in interest rates, and most importantly, modest income gains in the year ahead. [True]
It is this acceptance of lackluster growth rates in personal income and in the overall economy that signifies that consumers have accepted, however reluctantly, limits on the pace of improving prospects for living standards.  [False interpretation]

With lowered costs associated with highly-consumable, albeit non Fed measured products (fuel, food, energy), average living standards actually increase.  It is a false interpretation of data to say consumer confidence/expectations are at the highest levels in fifteen years, and simultaneously say people have resigned themselves to stagnant living standards.
(more…)

This is a great interview from the perspective of seeing first hand how the disconnect between historic economic theory (Kudlow) runs into the reality of a person (Ross) who completely understands how Trade and Finance are enmeshed in a completely new economic paradigm. [The Myth of Modern Free Markets]
If you have read “The New Economic Dimension” you’ll note that Kudlow represents the economist sitting in the Atlantic, only able to see the Wall Street economy; while Wilbur Ross has a satellite perspective on both the Main Street and Wall Street economic engines.
Kudlow’s financial perspective runs into Ross’s reality about two-thirds of the way through the interview when Secretary Ross asks the question: “I bet you can’t give me an example of an economically sound investment that hasn’t found capital”.  It’s just a splendid thing to watch.

.
Despite his financial-centric economic focus Kudlow is a good MAGA ally.  However, Wilbur Ross understands every single pixel of the larger economic picture, and how trade interacts with the larger U.S. economy within the Main Street -vs- Wall Street dynamic.
(more…)

President Donald Trump and First Lady Melania Trump welcome Prime Minister Justin Trudeau and Sophie Gregoire Trudeau back to the White House.
By all media accounts, especially those from Canada, the primary purpose of Trudeau’s visit is to firm up support for NAFTA.  Prior to the bilateral meeting between the two leaders, Trudeau was lobbying the congressional GOPe Ways and Means Committee to rebuke the America-First economic policies of President Trump.

[Transcript Here]

.
Isn’t it interesting how heads of foreign governments feel so comfortable coming to the U.S., engaging with Washington DC politicians and openly attempting to eliminate the national economic policy interests of a sitting U.S. President (and American workers)?
No, really… think about that.  If you ever needed to remind your family, friends and neighbors of how thoroughly our national economic sovereignty has been destroyed, simply put the reality of foreign leaders lobbying Washington DC to retain their global interests into the context of any conversation…. then ask them to think about it.
Name another country that would even fathom allowing such activity.
(more…)

President Trump’s MAGAnomic Main Street policy initiatives surround a very basic set of principles.  To add wealth to the middle class you: A.) increase wages, and B.) lower the cost of living.
Increasing wages is the long-term economic outcome from America-First business and corporate manufacturing policies (Secretary Wilbur Ross), in combination with fiscal policies (Secretary Mnuchin).   Subsequently, within his economic agenda, President Trump visibly engages an extraordinary amount of effort on both Commerce and Treasury.
However, there’s a part of the plan for reestablishing middle-class wealth that also comes from lowering the cost of living (high consumables).  That’s where EPA Administrator Scott Pruitt intersects with Ross and Mnuchin as Pruitt works to lower energy costs.

.
Lowering energy costs has an exponential benefit to the overall economy.  Not only does it drive down the cost of domestic highly consumable products, but it also binds the building blocks of the manufacturing and production sector.  Lower energy costs offset higher wages on products manufactured for export and helps keep the U.S. competitive.
(more…)

Here we go… buckle up, and grab the popcorn.  This is the part where the “trillions at stake” comes into play…

U.S. Chamber of Commerce President Tom Donohue is now engaged in a direct fight with U.S. President Donald Trump. As would be expected, and as we specifically predicted, Tom Donohue is now specifically aligning himself with Canada and Mexico against the interests of the United States economy.

Tom Donohue gives hundreds of millions to Mitch McConnell and the crony UniParty capitalist ilk that infect Washington DC. Donohue owns the vast majority of U.S. politicians. This battle is the epicenter of lobbying usurpation, and how multinational corporations own U.S. politicians. This battle will be epic.

MEXICO CITY/WASHINGTON (Reuters) – The most powerful U.S. business lobby accused the Trump administration on Tuesday of making “poison pill proposals” to sabotage talks aimed at modernizing NAFTA, as negotiators began gathering in Washington for fresh trade talks.
[…] Speaking in Mexico City, Thomas Donohue, the U.S. Chamber of Commerce’s president and chief executive, listed several U.S. proposals that he said would undermine $1 trillion in annual trilateral trade, including a “sunset clause” to force regular negotiations.

(more…)

Ahead of a working lunch with Secretary of State Rex Tillerson and Defense Secretary James Mattis, President Trump holds a consultation meeting with former Secretary of State Henry Kissinger. Mr. Kissinger has been an arms-length foreign policy adviser since the campaign.
Undoubtedly the requested Kissinger insight would be regarding China, and more specifically regarding Beijing, and the old communist guard’s outlook toward the ongoing communist congress currently taking place in the deepest bamboo forest.
President Trump took the media opportunity to discuss a myriad of ongoing issues including the collapsing ObamaCare issues and the ongoing tax proposals.

.
The meeting with Kissinger follows a familiar pattern for those who have watched the nuance of President Trump and how he advances his own ideological philosophy by listening to historic advocates with insight into what Trump considers “prior failed policy”.
(more…)