For those who cannot see the multi-dimensional strategy here, an approach assembled for years in the aggregate and fine-tuned in the last several weeks, President Trump is reinforcing our prior analysis of his strategy:

A day before he meets face-to-face with Xi Jinping, President Trump is highlighting the enabler to North Korea.  President Trump is smartly setting up a spotlight for the entire world to see who is creating the problem, China.

President Trump will never start a military war because it’s antithetical to his entire constitution.  However, within the field of economic combat – watch out.  Not only will Trump engage in economic warfare, he’s built an armory for decades, he’s positioned to win against any opponent.  As such, the long-term adversary in this equation is not North Korea, it’s China.

To understand the longer and larger strategy, we must first remember the underpinning of all leverage, economics.  Every single aspect of national wealth and national security boils down to economics.  The true economic adversary to the United States is China.

(more…)

U.S. Secretary of State Rex Tillerson issues a formal statement in response to the ICBM missile test conducted by North Korea:

The United States strongly condemns North Korea’s launch of an intercontinental ballistic missile. Testing an ICBM represents a new escalation of the threat to the United States, our allies and partners, the region, and the world.

Global action is required to stop a global threat. Any country that hosts North Korean guest workers, provides any economic or military benefits, or fails to fully implement UN Security Council resolutions is aiding and abetting a dangerous regime.

(more…)

U.S. Officials are now confirming the North Korean missile test was an intercontinental ballistic missile.

The ICBM, which is believed to be “two-stage,” officials said, would have a range of at least 3,500 miles, and thus be capable of reaching Alaska. (NBC link)

This launch represents another escalation by Kim Jung-Un in his ongoing quest for long-range intercontinental ballistic nuclear missiles.  The ICBM test is another in a series of violations of U.N. Security Council resolutions banning the launches, and is simultaneously a slap in the face to Chinese President Xi Jinping who is presumably trying to get North Korea to back down.

China’s support of North Korea will become even more of an issue with the increased escalations.  Understanding the perspective of President Donald Trump toward these events, we would/should anticipate a series of economic actions by the U.S. administration against China.

The U.S. cannot focus exclusively on North Korea, their enablers must be targeted for corrective leverage. Economic sanctions can increase internal regional pressure.

(more…)

Continuing to look at the new economy through the prism of the new dimension, CTH notes the manufacturing landscape is shaping itself as predicted.  However, the disclaimer should also be noted that most economic observers are stuck in old economic paradigms.

[…]  The Institute for Supply Management said Monday that its manufacturing index rose to 57.8 last month from 54.9 in May. Anything above 50 signals that factory activity is increasing. The measure now stands at its highest level since August 2014, pointing to solid economic growth. (link)

Overall the trend-line is very positive for a resurgence in U.S. manufacturing.  According to the report fifteen of the eighteen manufacturing industries surveyed posted growth in June.  Those gains included: furniture, machinery, fabricated metals, petroleum and coal sectors. One transportation equipment firm surveyed for the report said “demand is up 5 to 7 percent.”

The manufacturing base is responding (via investing) to predictable market patterns.  However, the rate of response (production investment) will increase in direct proportion to the upcoming (late summer) trade negotiations.  Please keep that in mind.

(more…)

President Donald Trump, Vice-President Mike Pence, Secretary of State Rex Tillerson, Commerce Secretary Wilbur Ross and National Economic Council Director Gary Cohen discuss U.S. trade policies with South Korean President Moon and his accompanying economic and trade team.

It is worth noting and emphasizing the Paris Climate treaty specifically exempted China, India and SEAN (South East Asia Nations) from compliance with standards within the treaty.  This was by design of the multinational interests who constructed their economic global control mechanism under the auspices of ‘climate change’.  The climate was never the driver of the Paris treaty, it was always about multinational economic control.

With the U.S. withdrawing from the Paris Treaty, the economic trade architecture for the underlying market is now equal amid S.E.A.N (including South Korea) and the United States.  Those countries who remain within the Paris Treaty, particularly those EU entities who are attached the Transatlantic Trade and Investment Partnership (TTIP), are at a strategic disadvantage.  More on that later.

.

[Transcript] 10:50 A.M. EDT – PRESIDENT TRUMP: Okay, thank you very much. We have many of our great members, our Vice President, Secretary of State, Secretary of Defense. We have several of our really wonderful leaders here. And you have your leaders with you and your representatives.

(more…)

Earlier today President Donald Trump and South Korean President Moon Jae-In delivered remarks and issued a joint statement from the Rose Garden at the White House.

(more…)

President Trump and Energy Secretary Rick Perry, together with EPA Secretary Scott Pruitt and Interior Secretary Ryan Zinke, are doing something with energy independence that was long discussed but never acted upon.  Forget the Paris Climate Treaty, this Trump action on energy development is in a stratosphere thought almost unimaginable.

Together the entire cabinet has studied, formulated and instituted an executive American energy policy platform to go beyond mere energy independence, and actually start using energy resources as an export commodity for economic growth.

Pause for a moment and consider just how monumental that approach actually is; and also overlay the independent national security ramifications therein.  Oddly enough, we predicted this two years ago.

[…]  Trump has proposed continued investment and exploration of “clean coal” technology using the vast coal mine resources in the Appalachian Range throughout West Virginia and into Pennsylvania. Trump has proposed energy export leverage (oil, coal, natural gas) as part of the larger Trade-deal packages.

The U.S. can negotiate a resurgence of U.S. manufacturing with lower fully developed energy costs, a competitive advantage; and simultaneously our abundant resources in energy fuels also provide trade leverage (standards and tariffs) through energy export.

With a fully utilized energy sector, the U.S. can also use the accompanying economic growth to invest in alternative resource development such as nuclear, solar and wind. The costs of alternative fuel research and development become underwritten by the expansive use of current resources. (link)

The intensely consequential outcome is a visible representation of ‘America-First’ principles applied to deliver MAGA level shifts in the future of our nation.  Massive possibilities for wealth creation at local and state levels; and simultaneous national security interests. Win – Win – Win… And yet stunningly this result is only in one sector of national security and national economics.

(more…)

Our friends at the U.S. Dept of Commerce (DoC) took the weekend off prior to uploading the content from last week’s SelectUSA conference on economics and trade. Unfortunately that delayed our ability to discuss.

However, that said, CTH is often asked how we are able to predict economic and financial events with accuracy. The answer is quite simple, we listen to the raw information. We don’t listen to the media’s interpretation of events, we seek out the actual events and analyze the raw information. Assemble enough of those disparate (but connected) raw information data points and logical predictive conclusions follow.

During the U.S. DoC SelectUSA trade and economic conference last week both Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross provided some great insight into the policies that will structurally impact everyone. Three videos are available below:

Secretary Wilbur Ross armchair discussion and Q&A:

(more…)

Modernizing government might not sound sexy as a political agenda item, and definitely doesn’t carry the interest of MSM headlines, however it’s actually a key tenet to reducing the size, scope and expense of government.  The utilization of modern technology to downsize government is a policy initiative.

The Trump administration is quietly putting private sector operational efficiencies into place within the federal government, as Commerce Secretary Wilbur Ross outlines:

(more…)

USTR Robert Lighthizer delivered testimony to congress today including an outline of dates, objectives and policy initiatives the Trump administration trade team plan to act upon in the next several months.

Important Discussion.

The current U.S. “America First” economic and trade team is entirely deconstructing the globalist efforts formerly pushed by multinational interests, multinational corporations, multinational banks and Wall Street.

Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and USTR Robert Lighthizer are positioned to shred and reverse decades of trade manipulation that have punished the middle-class and manufacturing base.   The best part of the committee discussion begins at 10:00 of the video with Lighthizer’s opening statement (prompted).

https://youtu.be/98sgAnjJ-CQ?t=10m

Congress is apoplectic about being stuck between their Wall Street corporate benefactors and a Trump trade team that is only looking out for America’s best interests.  The level of lobbyist angst amid the Big Club is palpable.

(more…)