Earlier today President Trump met with Italian President Matarella and held a press availability in the oval office prior to bilateral discussions. [Video and Transcript below]

.
[Transcript] – PRESIDENT TRUMP: Well, thank you very much. It’s a great honor to have the President of Italy with us. He is a man of great distinction. He’s highly respected in this country. And it’s nice to have you at the White House. Thank you very much, Mr. President.

We’ve had a great relationship with Italy for a long time. I don’t think it’s ever been closer than it is now. We have won a $7.5 billion award from, as you know — I guess it’s been pretty big news. And I know that this is against the European Union and World Trade — good ole World Trade. For a long time, they’ve been taking advantage of the United States. And I know Turkey is going to talk to us about their share of it because they feel they shouldn’t have to pay so much.

(more…)

Commerce Secretary delivered a speech to the Federalist Society today as he explained U.S. trade policy under President Trump and the long-term goals and objectives.

(more…)

President Trump has played this out perfectly.  By isolating Turkish President Recep Erdogan, and effectively leaving him naked to an alliance of his enemies, Erdogan is now urgently asking for the U.S. to mediate peace negotiations with Kurdish forces.
This request happens immediately after President Trump signed an executive order [See Here] triggering the sanction authority of Treasury Secretary Steven Mnuchin.  Erdogan called the White House requesting an urgent phone call with President Trump.
After President Trump talked to Kurdish General Mazloum Kobani Abdi, the commander of the Kurdish-led Syrian Democratic Forces, President Trump then discussed the options available to President Erdogan.  As a result of that conversation, Erdogan requested the U.S. mediate negotiations.  Vice-President Mike Pence announces he will be traveling to the region with National Security Advisor Robert O’Brien to lead that effort.  WATCH:

(more…)

President Trump prefers to use targeted economic weapons instead of the U.S. military forces against foreign adversaries.  In keeping with this strategy President Trump is announcing a set of economic sanctions and tariffs against Turkey for their decision to cross into Syria and create a crisis amid all regional interests.  (Source)
(more…)

Eight years ago Zurich Mike penned an analogy of the ‘Islamist Spring’ that still rings true today, when he said: President Obama helped kill the zookeepers and unleashed the big cats…. The Turkish movement into Syria is all part of this continuum.
When President Obama ignited the “Islamist Spring” with his speech in Cairo Egypt, what he really articulated was a shift in U.S. foreign policy to support The Muslim Brotherhood.

Political Islam, writ large, is represented by The Brotherhood.  Turkish President Recep Erdogan sees himself as the modern leader of political Islam using the Brotherhood to recreate the Ottoman Empire.
Ben Ali (Tunis), Hosni Mubarak (Egypt) and Khadaffi (Libya), were the first zookeepers removed.  Obama’s U.S. foreign policy supported Muslim Brotherhood replacements like Mohamed Morsi in Egypt.  However, Obama failed in the effort to remove Bashir Assad in Syria; as a result all extremist factions of the Brotherhood gathered to form ISIS.
Factions like al-Qaeda, al-Nusra and ISIS all fall under the umbrella of The Muslim Brotherhood.  The exiled Brotherhood leaders initially fled Egypt to Qatar until they were further driven-out by the Gulf Cooperation Council and ultimately given safe-harbor in Turkey, by Recep Erdogan.
(more…)

Hat Tip OverTheMoonbat for making sure we didn’t miss this segment from last week.  This video also explains why Larry Kudlow, Secretary Mnuchin, Secretary Ross and Peter Navarro have tended to spend more time discussing economic policy with CNBC analysts than Fox Business.   However, before watching, it is worth revisiting the background.

For three years CTH has explained the challenge in dealing with, or renegotiating with, the Beijing, China ideology.  Encapsulated thus in 2018:

[…] China has no cultural or political space between peace and war; they are a historic nation based on two points of polarity. They see peace and war as coexisting with each other.
China accepts and believes opposite or contrary forces may actually be complementary, interconnected, and interdependent in the natural world, and they may give rise to each other as they interrelate to one another. Flowing between these polar states is a natural dynamic to be used -with serious contemplation- in advancing objectives as needed.
Peace or war. Win or lose. Yin and Yang. Culturally there is no middle position in dealings with China; they are not constitutionally capable of understanding or valuing the western philosophy of mutual benefit where concession of terms gains a larger outcome. If it does not benefit China, it is not done. The outlook is simply, a polarity of peace or war. In politics or economics the same perspective is true. It is a zero-sum outlook.
If it does not benefit China, it is not done !

(more…)

Defense Secretary Mark Esper discusses and defends President Trump’s smart decision to withdraw U.S. troops from Northern Syria in advance of Turkish forces launching an assault into Syria against Kurdish forces and the SDF.
The background here goes back to Turkish President Recep Ergodan, a gatekeeper between the middle-east and Europe; and his intention to use his ideological alignment with political Islam, via the Muslim Brotherhood, to recreate the Ottoman Empire.

(more…)

Steve Bannon is at his best when he explains how the Chinese Communist Party (CCP) use their power in economics -against the capitalist view of profit- to erode the values of western companies and corporations.   Good points made in this interview.

(more…)

Here is the video and transcript from the Oval Office press announcement by President Trump and Chinese Vice-Premier Liu He.   USTR Lighthizer and Secretary Mnuchin also provided some insight into “Phase-One” of the U.S-China trade agreement.

[Transcript] – PRESIDENT TRUMP: Well, thank you very much. We’ve had a lot of very big news and some very good news today. But I’d like to hold this for China. There’s nothing bigger than what we’re doing with China. I think it’s important that these are the questions that are asked. And, as you know, we have the Vice Premier of China, one of the most respected men in all of China, and the world, for that matter. And we have great respect for him, a great friendship with him.
(more…)

Lots of dragon-dancing with a very hungry panda.

President Trump, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Mnuchin gathered with their Chinese counterparts in the Oval Office for a lengthy  announcement of “phase-one” of a U.S-China trade agreement.  Vice-Premier Liu He leads the Chinese delegation.  [No point sheet on USTR website yet]  According to the presser:

Phase One has reached ‘agreement in principle‘, and includes: Intellectual Property issues; Banking and Financial Services to include currency devaluation; and major agricultural purchases ($50 billion +).  There will be several phases, and each phase will have an individually tailored enforcement mechanism. [Note: this approach sounds similar to the ‘six sectors and stages’ USTR Lighthizer discussed in March 2019.]
The Phase One agreement details still have to be put on paper over the next five to six weeks.  The U.S. and China are hopeful to have ‘phase one‘ complete by December. In exchange for current AG purchase commitments, and as an act of good faith while phase-one is finalized, the U.S. will suspend the tariff rate increases scheduled to take effect on October 15th. The tariff increase from 25% to 30% has been ‘suspended‘.
The scheduled U.S. tariff increases for December are still planned; however, they will be assessed as part of the ongoing negotiations.  Meanwhile, touchy issues like tech company Hauwei, 5G, telecom and the Chinese firms on the U.S. blocked “entity list” (ie. trade ‘blacklist’) are not part of the discussions.  Those issues fall under U.S. National Security and will not be part of any ongoing trade negotiations.
[Video Below]
(more…)