If you followed my research on banking and the reality of the Russian sanction regime, this report takes on an entirely new dimension.  The article is from ZeroHedge, and the topline is not the real story.

ZEROHEDGE – The collapse of three US regional banks – First Republic Bank, Silicon Valley Bank, and Signature Bank – marked some of the largest failures in the banking system since 2008. Central banks contained the “mini-crisis” earlier this year with forced interventions and the mega-merger of Credit Suisse and UBS. Despite the interventions, global banks still axed the most jobs since the global financial crisis. 

A new report from the Financial Times shows twenty of the world’s largest banks slashed 61,905 jobs in 2023, a move to protect profit margins in a period of high interest rates amid a slump in dealmaking and equity and debt sales. This compared with the 140,000 lost during the GFC of 2007-08. (more) 

Look carefully at the graphic labeled “global banks.”  What do they all have in common?

These are not global banks, they are all “western banks.”  Do you remember a key component of my trip to eastern EU {Password Protected}.   That part of my research trip was specifically to understand the contradiction between what the west says about the Russian financial sanctions, and the reality of the irrelevance of those sanctions in Russia.

I didn’t talk, I watched; I listened.

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This is somewhat of a predictably tragic outcome all things considered. I remember a previous conversation on these pages when GM moved massive investment into China to build their mid-size SUV brand, Encore.

Continuing the U.S. decline of the brand, the Wall Street Journal is reporting that approximately half of all Buick dealership in the U.S. have opted to take a buyout from GM, as opposed to spending millions in retooling, restructuring and retraining their staff to accommodate the EV influx.

Most of the EV’s shoved onto the dealer lots sit idle without customers to purchase them.

Wall Street Journal – General Motors (GM) has bought out about half of its 2,000 Buick dealers nationwide, based on their decision to not sell electric vehicles, according to a company spokesman Wednesday.

Dealers who are taking the buyout would give up the Buick franchise and no longer sell the brand, he said. The dealer can continue to sell other GM models, such as Chevrolet or GMC, that often account for a higher percentage of sales.

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The original BRICS economic alliance between Brazil, Russia, India, China and South Africa has expanded today.  During the summit held in South Africa, the group which is home to about 40% of the world’s population and a quarter of global gross domestic product, voted to accept the applications of Iran, Argentina, Saudi Arabia, United Arab Emirates, Egypt and Ethiopia.

What we see forming now is further evidence of the great energy cleaving.  As most western nations chase the World Economic Forum’s priority around ‘climate change’, the BRICS alliance hedges for more traditional energy sources (oil, natural gas, coal).  China will benefit the most as the Western industrial economies will not be able to compete in a global market using windmills and solar panels.

The western alliance (yellow) will be chasing climate change energy policy to power their economies.  The rest of the world (grey) will be using traditional and more efficient energy development.  The global cleaving around energy use would be complete.

This is not some grand conspiracy, ‘out there‘ deep geopolitical possibility, or foreboding likelihood as an outcome of short-sighted western emotion.  No, this is just a predictable outcome from western created events that pushed specific countries to a natural conclusion based on their best interests.

(New York Times) […] On Thursday, the bloc revealed its decision, adding six new countries, including the staunchly anti-Western Iran, in an apparent victory for Beijing.

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Several people have made queries about the current state of our national economic condition against the backdrop of disconnected data points that seemingly conflict. Here’s my review.

July and August are key months to gauge the prior six months of U.S consumer positioning.

Why?

Because all advance purchase orders for the U.S. holiday season are made in May, June and July for inventory builds and delivery schedules for September.  The decisions made by purchasing officers in late spring and early summer, reflect their predictive analysis for the holiday season.

Inventories are evaluated, critical financial discussions are held, and orders are placed for September arrival and distribution.  This predictive activity is what we see in the July and August data that flows from the global, multinational and shipping corporations who facilitate the transfer of the goods.  Check what is happening in distribution, and you can see what eventually creates the boxcar effect in the supply chain that ultimately leads to shuttered manufacturing.

Those who are involved in the business of shipping goods are signaling the flares around the state of the consumer economy and what will happen.  At the same time, the wording is almost hilarious in this era of great pretending.  Instead of saying ordinary words like “poor sales results for durable goods,” the parseltongue calls sales, “destocking.”  Example:  “CEO Vincent Clerc said he saw no sign that the destocking which has curbed global trade activity would end this year.”

Global shipping company Maersk is warning that shipping volume is low because warehouse inventories are high.  The goods are unsold.

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“Platitudes”, that’s the best word to describe what the DeSantis campaign previously claimed would be a substantive economic policy outline from the Florida governor.  As the policy was unveiled in New Hampshire yesterday, I watched it all {Direct Rumble Link Here} to see what it would cover and how DeSantis would deliver it.  Summary, major fail.

First, I must admit to coming to any economic policy outline as presented with a laser focus. You tell me you have an economic policy, and you have my full attention.  Why? Because the economic policy of a federal candidate will ultimately determine monetary policy, fiscal policy and foreign policy.  It is the only national policy we cannot affect from a local level, yet we are necessarily impacted by it and cannot avoid it.

MAGA starts with MAGAnomics.  So, to say I get into the weeds on this, would be a soft understatement.

Unfortunately, but not unexpectedly, what Ron DeSantis outlined yesterday was a series of 10-point meaningless platitudes.  If the UniParty policy teams of Pete Buttigieg and Kamala Harris got together over a weekend with Mitch McConnell and Kevin McCarthy, they would create a think-tank-driven UniParty economic policy outline very similar to what Ron DeSantis presented yesterday.

Platitudes, soundbites and structurally incoherent gibberish – presented with a word assembly that amounts to nothing.

“We will declare our economic independence from the failed elites that have orchestrated American decline, from the reckless federal spending that has inflated prices and plunged this nation to the brink of bankruptcy.”  ~ Ron DeSantis 7/31/23

Declare away doofus, you can declare all you want but it takes an actual set of targeted actions to move from declaration to outcome.  Those same “failed elites that have orchestrated American decline” are the same people financing your run for office.

I’m sure somewhere in a Pete Buttigieg kind of way, that soundbite might have seemed like a good sentence; but in reality, it’s gibberish and parseltongue.

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The multilateral trade agreement known as the Transpacific Partnership (TPP), is a massive pacific rim trade agreement favored by Wall Street, the US Chamber of Commerce, Club for Growth, Ron DeSantis (voted to approve) and now candidate Vivek Ramaswamy.

President Trump famously took the U.S. out of the TPP agreement around the same time he took us out of the Paris Climate Agreement.  As noted by President Trump and his economic team at the time, Free Trade Agreements (FTA’s) are beneficial to the USA when they are bilateral between the U.S. and another singular nation.  Multinational trade agreements end up serving the interests of the least common denominator nation and are detrimental in their finished outcome to U.S. consumers.

Wall Street loves multinational trade agreements because they provide greater flexibility for the profit opportunities of global corporations, multinational corporations and banks.  However, Main Street USA suffers from lost manufacturing jobs, lowered overall wages, and cheap imported durable goods that are an outcome of the lowest cost manufacturing priority.

During a Twitter spaces discussion yesterday presidential candidate Vivek Ramaswamy said he was in favor of reengaging the U.S. in the TPP trade agreement.  This is a non-starter for any America First economic platform.

“I think we should re-enter it,” Ramaswamy said to Musk about 94 minutes into the conversation on Twitter. “I think this is a little bit different than what, you know, the course of action taken by Trump in exiting the TPP [Trans-Pacific Partnership]. I think that was actually a poor decision.” (link)

This should be a disqualifying position for any consideration in the Trump administration.

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Earlier today President Trump kicked off a new coalition of Farmers for Trump in Council Bluffs, Iowa {Direct Rumble Link}.

While much of the first segment of the speech covers topics of significant importance to farming and agriculture, President Trump also expanded his remarks to cover current political events. WATCH:

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New analysis of the long-term impact from Section 301 tariffs triggered by President Trump against China, shows just how consequential economic nationalism can become.

Our own analysis of U.S. consumer prices in 2019 showed that prices of imported goods actually declined despite the tariffs. A recent report from CPA takes a look at the impact to Chinese exports to the U.S.  [SEE DATA HERE] Bottom line, the tariffs worked to reduce Chinese imports.

CPA – […] Since the Section 301 tariffs were imposed, the share of imports from China has steadily declined from 21.6% in 2017 the year prior to the tariffs to 16.5%, a decline of 5.1%. No other country has lost as much share of total U.S. import penetration over the past five years.

In terms of total import value, Mexico gained the most from the tariffs, adding $110.8 billion. Vietnam gained the second most in import value by $78.4 billion and by far gained the most of total share of U.S. imports. In 2017, Vietnam accounted for about 2% of U.S. imports at $46.5 billion. In 2022, the U.S. imported $127.5 billion in goods from Vietnam, and the share of the total nearly doubled to 3.9%. Other countries in Southeast Asia such as Thailand, Cambodia, and Indonesia all saw significant increases in their value of imports by the U.S. (read more)

With the leading opponent to President Trump, Florida Governor Ron DeSantis, not supporting tariffs on behalf of the multinationals and Club for Growth donors who stand behind him, it’s worth revisiting the actual outcome to American consumers to dispel the popular myths about tariffs raising prices here at home.

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The larger story behind this recent Intercept Article is the headline you just read. Let’s talk….

The U.S. Chamber of Commerce is a representative organization in the United States that lobbies Congress.

The CoC represent the interests of the multinational corporations who use K-Street and J-Street in DC to write rules, regulations, policies and laws as part of their corporate control over U.S. wealth.  That’s what the CoC does.  That’s the entire purpose of the Chamber of Commerce.

For a long time, the CoC has been in the background of multiple political discussions.

During the Obama administration, the federal Dept of Commerce permitted the private sector U.S. Chamber of Commerce to write U.S. trade language; that is to physically write the words that go into U.S. trade deals with other countries.  This was the era of maximum value for the CoC that saw their coffers swell as massive multinational corps realized the CoC was in the business of literally controlling the U.S. capitalist economy.

The arch nemesis of the CoC was President Donald Trump, who threw the CoC out of the room when decisions were being made about trade and economic policy.  This was the era of minimum value for the CoC, when corporations were no longer getting to influence the policy.

In desperate response the CoC turned to their purchased politicians in Congress, specifically to their #1 ally Mitch McConnell, and asked or help in overcoming the problem that Trump and his America First agenda represented.

As MAGA (America First) economic and trade influence in Congress increased, the CoC had trouble because President Trump could target any Republican CoC beneficiaries that undermined the economic policy.  That could result in a career ending primary challenge.  For the first time in decades, the Republican wing of the UniParty had a tough time supporting Chamber President Tom Donohue in his demands for influence.

What happened next was stunning.

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As customary in this era of a great awakening, there are a lot more Republican masks dropping this week.  There is a great deal of sunlight upon the professional and institutional Republican politicians that hold office, when contrast against the indictment of Donald Trump.  As we bear witness to the establishment opposition of candidate Donald Trump, once again it is valuable to understand the motive at the heart of this opposition.

CTH can get down in the weeds of each specific issue to discuss the motives and intents (we will, and do), but the big picture MUST remain at the forefront of understanding. If we lose track of the big picture, the weeds are overwhelming.

…“It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than a new system. For the initiator has the enmity of all who would profit by the preservation of the old institution and merely lukewarm defenders in those who gain by the new ones.”

~ Niccolò Machiavelli

♦POTUS Trump was disrupting the global order of things in order to protect and preserve the shrinking interests of the U.S.  He was fighting, almost single-handed, at the threshold of the abyss. Our interests, our position, is zero-sum. His DC opposition seeks to repel and retain the status-quo. They want to return to full economic control.

In these economic endeavors, President Trump was disrupting decades of financial schemes established to use the U.S. as a host for their endeavors. President Trump was confronting multinational corporations and the global constructs of economic systems that were put in place to the detriment of us.

There are trillions at stake. The need for control is a reaction to fear. The billionaire donor class fear losing control over economic policy and finance. They are funding every candidate, media resource, influencer operation, RNC, RGA, and every institution possible to retain their equity position. Opposition is based on economics; everything else is chaff and countermeasures.

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