President Trump has moved into Phase II of the U.S./China confrontation.  Part of that confrontation is to use the inherent weakness of the Chinese economy against them.  To understand the weakness is to understand the China ‘One-Belt / ‘One-World‘ economic trade strategy.  Here’s an outline of the economic battle-space we are witnessing.
People often talk about the ‘strength’ of China’s economic model; and indeed within a specific part of their economy –manufacturing– they do have economic strength.
However, the underlying critical architecture of the Chinese economic model is structurally flawed and President Trump with his current economic team understand the weakness better than all international adversaries.
Lets take a stroll and discuss.
China is a central planning economy. Meaning it never was an outcropping of natural economic conditions. China was/is controlled as a communist style central-planning government; As such, it is important to reference the basic structural reality that China’s economy was created from the top down.
This construct of government creation is a key big picture distinction that sets the backdrop to understand how weak the economy really is.
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National Economic Council Chairman Larry Kudlow discusses the framework for the U.S./E.U. trade agreement. [Remember, the highly controversial auto-sector is removed from the entire negotiation.] Chairman Kudlow discusses the benefit of the U.S. and E.U. working together to confront China at the World Trade Organization; this is key.
Additionally, Kudlow discusses the forward-leaning meetings being conducted by both the U.S. trade team and the Mexican trade delegation. The multidimensional U.S. trade strategy is operating, and advancing, on several simultaneous fronts.

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The White House has announced an unanticipated joint press statement/availability between President Trump and EU President Jean Claude Juncker to be held at approximately 4:00pm EST in the Rose Garden.
Apparently the EU has agreed to President Trump’s terms on lowering industrial tariffs to enhance U.S. trade opportunities; lower non-tariff barriers to increase agricultural trade, and committed to increased import of LNG (liquid natural gas) to offset Russian energy dependence.  THIS is a developing story….
UPDATE: Video Added

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Financial markets are essentially betting parlors.  Mohamed El Erian is considered to be one of the better, perhaps currently the best/most influential, financial market analysts in the world.   What El Erian outlines is something we have discussed at great length.

“When people realize that at the end of the day, the U.S. will prevail, because [China] is a less open economy, because [the U.S.] is a more dynamic economy, that ultimately you may end up in a situation where the U.S.’ position in global economic terms is better off.”

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The multinationals (corporations and financial entities) don’t like President Trump; nor do they like any politician who expresses economic nationalism – with the exception of Chinese President Xi Jinping, whom they had been using as the fulcrum for their investment betting on the U.S. as following a service-driven economic model.
Trump has crushed that fulcrum.  The economic globe is in a state of flux while it resets to the natural fulcrum with the U.S. as the centerpiece.  Previously we have explained the dynamic of this flux-time as the space between two economic engines.  Only President Trump could pull off this reset… his plans therein were assembled over decades.
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Earlier today Queen Elizabeth II welcomed President Donald Trump and First Lady Melania Trump to Windsor Castle.  The British monarch, 92, greeted Mr and Mrs Trump in the quadrangle of the royal residence ahead of a private tea.
A Guard of Honour, formed of the Coldstream Guards, gave a Royal Salute and the US national anthem was played as the US visitors arrived for the engagement. Mr Trump is the 12th president to meet Her Majesty.

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First Lady Melania Trump bowled over Britain with joy as President Donald Trump and Prime Minister Theresa May held bilateral discussions.
Mrs Trump joined Philip May for a visit to the Royal Hospital Chelsea in London on Friday morning.  Melania was, well, ‘radiant’ as she joined Chelsea Pensioners and local schoolchildren for the game of lawn bowling, and ended her turn on the green with a high-five to a Chelsea Pensioner, much to his delight.

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Following a bilateral meeting in Buckinghamshire, England, President Trump and Prime Minister Theresa May hold a joint press conference.

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British leader of Brexit, Nigel Farage, appears on Fox News Morning to discuss the ongoing visit by U.S. President Donald Trump and the issues surrounding a bilateral U.S./U.K. trade deal.

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President Trump gave Rupert Murdoch (British U.K. Sun) an interview prior to leaving Washington DC for Brussels and the NATO summit.   Mr. Multinational Murdoch is severely against President Trump’s trade positions and wants to retain control over the global trade structure.   Murdoch personally has billions of dollars dependent on retaining the current globalist multinational trade scheme.
That’s the backdrop to understand the timing and presentation of the interview content.
As to the substance of the interview, President Trump is 100% accurate.  If the U.K. keeps the pre-existing trade pact with the EU, and essentially stays economically attached to the EU through acquiescence to the EU trade bloc, then any bilateral trade deal between the U.S. and the U.K. is essentially impossible.   Duh.
The EU doesn’t allow member nations to conduct their own trade negotiations.  So, any agreement that keeps the U.K attached to the EU economically means any trade deal with the U.K. would be a trade deal with the EU; and the EU trade positions are adverse to the ongoing economic interests of the United States.
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President Donald Trump and First Lady Melania Trump arrive at Blenheim Palace for a black tie dinner in their honor held by British Prime Minister Theresa May. Video of the Official Welcoming Ceremony below:

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President Trump and First Lady Melania were greeted by the Welsh, Irish and Scots Guards’ bands. The performance included Amazing Grace featuring a bagpipe solo, as well as Liberty Fanfare and the National Emblem. Blenheim Palace was built in the early 18th century and was the ancestral seat of Sir Winston Churchill, who was born there in 1874.
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