Coronavirus task force member and FDA Commissioner, Stephen Hahn, appears on Fox News to discuss the latest U.S. effort to mitigate the threat of COVID-19.

Maria Bartiromo asks a great question about what the U.S. can do to reduce our national dependency on China for the manufacturing of critical healthcare products and medicines.  Dr Hahn explains the FDA role in that process and what intervention is possible by the U.S. government to mitigate that dependency.

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One of the positive outcomes from this larger conversation is increased public pressure on government officials to support what President Donald Trump has been saying for years about bringing back critical manufacturing to the U.S.  Long before he was a politician President Trump was very public in saying this should be our number-one priority.

Donald Trump is exactly the right president for this moment in time.

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Suffice to say 3M CEO Mike Roman will not be sending a Christmas card to the White House this year.  White House manufacturing advisor, and policy lead for the execution of the Defense Production Act, Peter Navarro, tells 3M to stop with the PC excuses and just do their damned job….  Perfect.

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Everything you would ever need to know about a slimy multinational corporate executive is laid out in this interview with 3M CEO Mike Roman.  While answering questions globalist Roman tries to hide what 3M is doing by stuttering and stammering around cover words.

Keep in mind, 3M is a U.S. owned company doing manufacturing business inside China. However, Beijing took control over 3M and nationalized their manufacturing facilities.  But Roman doesn’t want to admit what happened. Listen carefully at 03:00:

“we have produced millions of respirators and now we have arranged to import more masks from China.  We have an agreement to allow us to export ten million additional masks a month out of China”…

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Earlier today President Trump and Defense Secretary Esper announced a major deployment of U.S. military to interdict narcotics trafficking from Central America.

On the surface the effort to deploy naval assets to the Caribbean and southern pacific is justified based on intelligence drug cartels will exploit the coronavirus pandemic to ship more narcotics into the U.S.

However, in the bigger picture there’s also a likelihood the CCP would work with their allies in Central American regimes to further weaken the U.S. during a time of increased vulnerability.

In times of war, or severe geopolitical confrontation, exploiting a vulnerability is a common strategy.  Therefore it’s a smart and prudent geopolitical move for President Trump and U.S. military to take very aggressive action against the cartels and their communist sympathizers.  There’s more going on here than appears on the surface.

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Admitted or not we are at war with the Red Dragon.  Chairman Xi is cunning and strategic; President Trump is countering.  Keep watching…

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Oh, this is almost too much winning.  Almost…  President Trump has appointed White House Manufacturing Advisor Peter Navarro to lead all U.S. coordination of the Defense Production Act.   Just like that… presto… Navarro becomes a bazillion times more powerful than CoC President Tom Donohue.   Delicious.

WASHNGTON – President Trump announced Friday he is appointing his trade adviser Peter Navarro to serve as his national Defense Production Act policy coordinator after using the act to force General Motors to begin making ventilators to treat coronavirus patients.

“He’s a tremendous guy and he will do a fantastic job,” the president said during a press briefing with his coronavirus taskforce at the White House. He said Navarro will serve as the national Defense Production Act coordinator for the federal government. (link)

Peter Navarro has been a long-term China hawk warning about the risk of U.S. multinationals doing critical supply-chain manufacturing overseas.  Navarro, working closely with U.S. Trade Representative Robert Lighthizer, has been the tip of the spear in the execution of America First policy and jobs.

This appointment, and these additional responsibilities, is a recognition for his efforts.

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• Phase One was retail. • Phase two was distribution. • Phase three was the space between manufacturing and distribution. • Phase four is raw material supply to manufacturing. U.S. food processing, and manufacturing is now operating at full capacity.

By now the majority of protein manufacturing has caught up. Beef and pork should be solid at your local market; however, chicken, while available, will lag to full replenishment capacity in the protein sector. The reason is: “chicken” is an ingredient component in many shelf stable items (soup etc.), that are still short as the manufacturing sector runs at capacity.

We enter a phase where grain commodities are now arriving at manufacturing.

♦ Between the Appalachian mountain range and the Colorado mountain range there is a massive amount of grain, meal, and derivative (farming) product generated. Thin component inventories, now exhausted at processing, are the cause of the current manufacturing supply chain stress… This lag will take a little longer.

There are train-loads of grain products heading both East and West daily; but there is a process of background prioritization taking place within the grain (total), flour, meal, rice and dried beans sector. The downstream ingredient system has a long-term and short-term priority schedule.

Example: total flour is prioritized to industrial bakeries for the production of bread. Nationally retail or consumer flour shortages are caused by prioritization in this part of the supply-chain.

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You knew it was going to happen… The U.S. Chamber of Commerce (President Tom Donohue) begins having apoplectic fits at the thought of even stronger Trump administration policies that might undercut their Chinese manufacturing investments.

The U.S. CoC is the biggest stakeholder of U.S. multinational companies doing business in China.  The Trump administration has been warning them for years to put America First in their business plans; and now with the Chinese Pandemic showing just how dangerous it is for critical manufacturing to be made in the U.S.A, chamber President Tom Donohue is pleading to keep the U.S. dependent on China.

Keep in mind, this is the EXACT SAME group who said the steel and aluminum tariffs were going to cause massive inflation driving up the price of all consumer goods and cars by thousands of dollars… It never happened; because the CoC are manipulative liars.

WASHINGTON (Reuters) – White House plans to expand “Buy America” mandates to the medical equipment and pharmaceutical sectors could worsen shortages of urgently needed medicines and delay discovery of a vaccine for the new coronavirus, over 80 business groups warned.

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Former White House Council of Economic Advisers Chairman Kevin Hassett is returning to the administration as a senior economic advisor to President Trump during the COVID-19 response.

Kevin Hassett is very sharp and a happy warrior by disposition.  Hassett was excellent as CEA Chair and no doubt his rejoining the economic team with an advisory position to President Trump will bring a great voice back to the crew.

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…there had to be a point where the value of the Wall St economy surpassed the value of the Main St economy… Part I Here

We now look forward, and consider the question: How would the multinational underwriters, the multinational financial systems, reset all transactional tables (the bookkeeping systems underneath the valuation) if the U.S. stock market was ever forced to re-value economic nationalism over multinational globalism?

To first answer the “how” question, we must visit the “why” question. Why would the multinational financial underwriters want to reset their valuations?

Obviously, the global financial system does not act altruistically. What would motivate the global wealth valuation authority (various market investment indexes) to want, or need, a reset.

The answer to the “why” question might not be as challenging as it appears.

First, there has been a seismic shift in how the world looks at the economic exploitation of multinational systems, or globalism.  See Bernie Sanders?  See those yellow vests in France?  See what happened with the U.K. Brexit referendum?  See the shrinking EU influence?  See the open/public confrontation and push-back against China? See Trump? All examples are consequences of the rise of economic nationalism.

Secondly, the original Wall Street corporate motive (during decades of mergers and acquisitions) to shift product manufacturing to Southeast Asia (ASEAN nations) was driven by a lower cost of overall business, higher profit margins and greed.

As a direct outcome economic wealth was shifted from the U.S. to ASEAN nations, and particularly China. Low wages, low regulation, cheap operational costs, incentives and subsidies from Asia equals cheap TV’s, sneakers, furniture and durable goods.

Even with high fuel prices and overseas shipping costs, there was a big difference between U.S. and ASEAN manufacturing costs.  As hundreds of U.S. Wall Street multinationals chased profits the rust-belt was created.

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A very big picture discussion requires a considerable baseline.

The stock market is not the U.S. economy; the stock market is an investment instrument that determines valuations of economic activity company by company. The valuation is considerably arbitrary, based on the determinations of the arbiters (investors). This is empirically true.

However, that said, how would the multinational underwriters, the multinational financial systems, reset all transactional tables (the bookkeeping systems underneath the valuation) …if the U.S. stock market was every forced to re-value economic nationalism over multinational globalism?    Enter “Coronavirus”.

Four years ago CTH first explained a new way to look at the U.S. economic system and how Main Street was/is disconnected from Wall Street.  We presented a metaphor to explain. Before going deeper into the discussion of tomorrow; and at the request of several people who now accept the era of “deglobalization” is upon us,  I first present that prior reference & then will use this as the baseline to describe what could come next.

There is a key phrase at the fulcrum of everything past:

…there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street).

What we are going to outline in part II is the possibility what happens when this natural truism is reversed.  The objective is to answer: How, specifically would Wall Street reset its evaluative systems if Main Street once again emerged as the priority?

But first, a baseline revisit is needed.

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