As you know CTH takes a different approach at significant world events. We try to share the untold stories as they shake out, in real time, in granular details not noted by the MSM.  We discuss the stuff on the way to the destination.  That way when we arrive at a ‘way point’ we have a historic reference, a back-story, to comprehend consequential headlines when they happen.
With that in mind, here’s another non-discussed granular detail, spotted recently, building toward a much more significant geopolitical outcome, vis-a-vis Russia.
You might remember on August 4th President Trump and French President Emmanuel had a phone call.  The outline of the phone conversation is HERE, but there was no real reason for them to be chatting…. or was there?
Western media has paid virtually no attention to how Trump’s big picture economic policy enmeshes and bolsters his national security policy.
Quite literally, and I really want to emphasize this, Secretary Mnuchin (Treasury) and Secretary Ross (Commerce) are just as important as Secretary Mattis (Defense) and Secretary Tillerson (State).
Stop and think about that for a minute.
When President Trump went to Saudi Arabia for the Arab Security Summit the two most visibly active cabinet members were Mnuchin and Ross.  When has a Treasury Secretary and Commerce Secretary ever had as much importance during world security events?
Think about it.
Who was Obama’s Commerce Secretary during Iran negotiations?
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– “Walking in a Winner Wonderland” –

Two years ago CTH began discussing the ramifications to a new emphasis on the economy outlined as a possibility of candidate Donald Trump’s economic policy outlook. Within the overall discussion we walked through the anticipated changes possible if A.) Trump won the election, and B.) Trump began instituting Main Street economic policy ahead of Wall Street policy (the past 20+ years).
We discussed the new dimension that would occur between two economic engines (Main Street -vs- Wall Street) as three decades of federal policy shifted. CTH outlined anticipated economic activity in the space between the two dynamics.

Part of those discussions focused on energy costs (we see them lowering), product costs (we explained how inflation would be weird), and importantly, wage rates. It takes several months of policy emphasis, actual outcomes, before the labor market wage rates would grow. We anticipated seeing that impact in Q1 of Fiscal Year 2018, which is October 1st 2017.
Today the Job Opening and Labor Turnover Survey, “JOLTS report”, begins to show the initial stages of that wage rate increasing trend. The job market has tightened,… considerably. *Note* We are ending fiscal year Q4 (July, Aug, Sept.) and the trend within MAGAnomics is responding according to predictions. For those of us who argued these policy theories for the past two decades, these results are really cool.
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President Trump’s strategic approach using economic leverage to gain U.S. national security has established a very rare victory in the U.N. with unanimous support for Security Council sanctions against North Korea.  Yes, China and Russia supported.
Remember, from Day #1 of his administration President Trump was faced with a threat from N-Korea.  On his departure President Obama told the incoming new President Trump that North Korea would be his #1 Geopolitical national security challenge.
The MSM will likely never give President Trump credit for the remarkable long-term economic strategy he deployed to gain China and Russia’s support today.

UNITED NATIONS (Reuters) – The United Nations Security Council imposed new sanctions on North Korea on Saturday that could slash by a third the Asian state’s $3 billion annual export revenue over Pyongyang’s two intercontinental ballistic missile tests in July.

The U.S.-drafted resolution bans North Korean exports of coal, iron, iron ore, lead, lead ore and seafood. It also prohibits countries from increasing the current numbers of North Korean laborers working abroad, bans new joint ventures with North Korea and any new investment in current joint ventures.

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POTUS direct confrontation is not reserved for domestic political enemies, it also applies to external nations threatening the U.S.  However, notice with each example there is an almost identical pattern: ♦An honest attempt at an open handed diplomacy; ♦a rebuke from the opposition in favor of the status quo; ♦a sincere appeal to reconsider; ♦time for reflection, contemplation and planning; ♦a final request not to engage in combat (today); ♦and then the hammer.
The sequence is always the same.

“foolish past leaders” … “We will no longer allow”..

China, the Big Panda, chose the Red Dragon approach and is positioned to feel the big hurt if they don’t take action…

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The U.S. Gross Domestic Product (GDP) is the value of all goods and services generated within the U.S. economy over a designated period of time. In the second quarter (April, May, June) the GDP grew at a rate of 2.6%. That’s more than double the first quarters 1.2% growth rate.

President Trump set a goal of 3% GDP growth for the first year of his administration. Reaching 2.6% in the second quarter is significant progress toward the attainment of a goal all economists said was unattainable. Those same nay-sayers are also focused on wage rate growth which they claim is not moving with the economy. They are disconnected.
Again, CTH draws attention to the new modern era in economics. Most analysts and punditry have no historic reference points for a new dimension in U.S. economics; where 30 years of fiscal policy to the benefit of Wall Street has how shifted to the benefit of Main Street. We are now in the space between these two economic engines. Traditional economic review no longer applies.
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Finally today we see a significant loss for the “Big Club”. Speaker Paul Ryan, the GOPe professional business class, Wall Street and the U.S. CoC accept the Border Adjustment Tax is not going to be a part of any larger tax reform agenda under the Trump administration.

Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and President Trump win the policy argument with the removal of the B.A.T.
In a joint statement outlining the forward plans for tax reform the “Big Six” tax negotiators (Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steve Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch, House Ways and Means Committee Chairman Kevin Brady), announce the consumer punishing BAT will not be included.

[…] “While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.” (more)

The B.A.T was to revenue collection on imported products and impact on consumers – what the Obamacare mandate was to revenue collection on healthcare and impact on consumers.
The B.A.T  was simply a scheme to embed the cost of renegotiated trade import tariffs, directly onto the consumer, isolated away from any responsibility on the corporation to reduce their own internal efficiencies as a method to keep the price down. It was a dubious and manipulative effort.
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Those who have followed the MAGAnomic trade and economic policy closely were aware a tonal shift had taken place in the last several weeks.
Specifically because of their weak position, and faced with the first U.S. President in their modern economic history who intends to stop the erosion of American wealth, China intentionally used North Korean aggression in order to create trade leverage with the U.S.
Today, at the U.S./China Comprehensive Economic Dialogue in Washington DC Commerce Secretary Wilbur Ross left no room to doubt the approach President Trump and the U.S. trade team are going to take in the upcoming trade standoff.
At opening remarks between the two sides, Ross outlined the U.S. trade gap with China in unusually blunt terms. While U.S. exports to China have grown in recent years, imports have expanded even faster, leading to a $309 billion trade deficit.

“If this were just the natural product of free-market forces, we could understand it, but it’s not,” Ross said, as Chinese Vice Premier Wang Yang looked on. “So it’s time to rebalance in our trade and investment relationship in a more fair, equitable and reciprocal manner.”  (video below)

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To understand the larger objectives of the global and financial elite it is important to understand the three-decade global financial construct they seek to protect. Global financial exploitation of national markets:

♦Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.
♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.
♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).
♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

Since initially explaining this modern import/export dynamic some have asked for specific examples in order to gain a better understanding.  There are a myriad of interests within each sector that make specific explanation very challenging.  However, here’s an attempt.
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Earlier today USTR Robert Lighthizer released President Trump’s NAFTA Objectives outline to congress and the American people.  The NAFTA renegotiations are scheduled to begin in August.
The bilateral trade negotiations with the EU (European Union), S.E.A.N. (Southeast Asian Nations), China, U.K. and all other nations will follow -individually- after the NAFTA process is complete.

It cannot be overstated how critical this is.  Please, please, understand.  There are trillions of dollars at stake.   All political opposition to President Donald Trump will increase in exponential severity as the dates of these renegotiated trade deals draws closer.  There are trillions of dollars at stake.   The entities outlined below will throw everything at the current administration in an effort to secure a better financial outcome for their interests.
Multinational Corporations, Wall Street interests and Multinational Financial stakeholders (mostly banks and foreign governments), have lobbied DC politicians for decades to create trade outcomes favorable to them.  It is, at its core, the financial and policy cancer that has distributed America’s physical and financial wealth globally. Additionally, multinational corporate media are part of this entire process and are stakeholders in the outcomes.
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The Big Panda is positioned to feel the Big Hurt if they don’t take action…

First Lady Melania Trump wore a purposeful red jacket today as she was seated at the G20 during President Trump’s remarks to the summit leaders with Chinese President Xi Jinping seated next to him.

While in Warsaw Poland last Thursday President Trump was asked about possible action against North Korea:

“I have some pretty severe things we’re thinking about. Doesn’t mean we’re going to do them. I don’t draw red lines.” …  “It’s a shame they’re behaving this way and they’re behaving in a very dangerous manner, and something will have to be done about it.” (link)

Today during a bilateral meeting with China’s President Xi Jinping President Trump reinforced the message:

President Trump, at the start of his meeting Saturday in Germany with Chinese President Xi Jinping, called the Asian nation a “great trading partner” and said the increasing North Korea nuclear threat will eventually be resolved “one way or the other.”  (link)

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