The upcoming NAFTA trade discussions between the U.S., Mexico and Canada will be more interesting, and far more consequential, than any trilateral trade discussion in our lifetime.  We can anticipate dozens of congressional masks to drop each day as the tentacles of their financial interests and corporate donors will gain a level of sunlight never before seen.

For the first time in our lifetime the corporatist’s within the U.S. CoC lobby will be neutered, and Republicans owned by Wall Street will have no choice but to openly rail against America while embracing their friends in the MSM.

White House – President Donald J. Trump met today with President Enrique Peña Nieto of Mexico during the G20 Summit in Hamburg, Germany. President Trump emphasized the strong bilateral relationship that the United States enjoys with Mexico and noted the importance of renegotiating NAFTA to help workers in both countries.

President Trump thanked President Peña Nieto for Mexico’s partnership on the Central America Conference last month. The leaders also discussed regional challenges, including drug trafficking, illegal migration, and the crisis in Venezuela. (link)

Video Below

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Secretary of State Rex Tillerson and Treasury Secretary Steven Mnuchin outline the past 48 hours of diplomatic discussions within the framework of the G20.

**Remember** as you read this transcript, e.v.e.r.y.t.h.i.n.g eventually boils down to economics and the seismic geopolitical shifts currently underway.  (See Bottom for Important Detail)

[Transcript] 7:18 P.M. CET – SECRETARY MNUCHIN: Hi, everybody. I just want to highlight very briefly, and then Secretary Tillerson will go on, and then afterwards we’ll both answer a few questions.

But President Trump has had a very, very significant few days. I think, as you know, we went to Poland on Wednesday. In Poland, he met with 12 different leaders. We had bilats with Croatia and with Poland, as well as 10 other leaders at the Three Seas Conference where we talked about energy — the importance of the energy markets, the importance of supplying independent energy, infrastructure and opportunities there. I think, as you know, the speech which was just incredibly well-received, is part of our “America First But America Not Alone.”

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A “SME” (pronounced ‘smee‘) is a Subject Matter Expert.   President Trump’s entire cabinet is an assembly of specific SME’s for a specific economic purpose.

The entire landscape of modern geopolitics is an assembly of various nations specifically focused on their economic interests.  Fundamentally, the economics of a nation is the cornerstone for their ability to hold, advance, influence and present their ideology.

Without the underlying economic capability to provide sustainability and stability, the nation, any nation, cannot maintain itself regardless of the underlying political outlook.  In short, as the old verse presents: “money makes the world go ’round“.  Everything boiled down to it’s essential core – is about economics.

The shock to the system of modern multinational financial interests was created by an earthquake known as Trump; which created a seismic shift via the 2016 U.S. presidential election outcome.

The tectonic political and economic shift was so unsettling to the global elites -who created a decades-long system of global financial interests- they have been thrashing around desperate to regain footing ever since.

All modern political alliances are based on this economic reality, and every single action taken by every member within each grouping is based on their affiliated and interconnected self-interest in the underlying economic equation.

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Sharing only because CTH readers have a more thorough understanding than most; and we are entering a phase of extreme consequence.

Donald Trump doesn’t bluff.

Bluffing is for those who accept they may or may not win.  The outcome is based on an unpredictable response from the opponent.

In business or in life, go review the decades of available information and you will see that Donald Trump, now President Trump, doesn’t bluff.  It’s one of the reasons he so openly owns the downsides.  It’s also the reason he has never engaged in the stock market.

President Trump controls outcomes.

Donald Trump the person, doesn’t wait for an entity, ally or opponent to enter his orbit. He greets them at the perimeter.   Trump doesn’t sit with his back to the door, he positions to see all upon entrance.   Donald Trump doesn’t try to hide his interest, he’s quite open about any engagement he is focused upon.

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For those who cannot see the multi-dimensional strategy here, an approach assembled for years in the aggregate and fine-tuned in the last several weeks, President Trump is reinforcing our prior analysis of his strategy:

A day before he meets face-to-face with Xi Jinping, President Trump is highlighting the enabler to North Korea.  President Trump is smartly setting up a spotlight for the entire world to see who is creating the problem, China.

President Trump will never start a military war because it’s antithetical to his entire constitution.  However, within the field of economic combat – watch out.  Not only will Trump engage in economic warfare, he’s built an armory for decades, he’s positioned to win against any opponent.  As such, the long-term adversary in this equation is not North Korea, it’s China.

To understand the longer and larger strategy, we must first remember the underpinning of all leverage, economics.  Every single aspect of national wealth and national security boils down to economics.  The true economic adversary to the United States is China.

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U.S. Secretary of State Rex Tillerson issues a formal statement in response to the ICBM missile test conducted by North Korea:

The United States strongly condemns North Korea’s launch of an intercontinental ballistic missile. Testing an ICBM represents a new escalation of the threat to the United States, our allies and partners, the region, and the world.

Global action is required to stop a global threat. Any country that hosts North Korean guest workers, provides any economic or military benefits, or fails to fully implement UN Security Council resolutions is aiding and abetting a dangerous regime.

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Continuing to look at the new economy through the prism of the new dimension, CTH notes the manufacturing landscape is shaping itself as predicted.  However, the disclaimer should also be noted that most economic observers are stuck in old economic paradigms.

[…]  The Institute for Supply Management said Monday that its manufacturing index rose to 57.8 last month from 54.9 in May. Anything above 50 signals that factory activity is increasing. The measure now stands at its highest level since August 2014, pointing to solid economic growth. (link)

Overall the trend-line is very positive for a resurgence in U.S. manufacturing.  According to the report fifteen of the eighteen manufacturing industries surveyed posted growth in June.  Those gains included: furniture, machinery, fabricated metals, petroleum and coal sectors. One transportation equipment firm surveyed for the report said “demand is up 5 to 7 percent.”

The manufacturing base is responding (via investing) to predictable market patterns.  However, the rate of response (production investment) will increase in direct proportion to the upcoming (late summer) trade negotiations.  Please keep that in mind.

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President Trump delivers remarks at the Kennedy Center “Celebrate Freedom Concert” featuring President Donald Trump and Dr. Jeffress –  ‘Celebrate Freedom’ Concert and Rally’ to commemorate Fourth of July Independence Day.

The concert is billed as a night of hope, celebration and commemoration. This unforgettable patriotic evening will feature music from a 500-voice First Baptist Dallas Choir and Orchestra, a tribute to our veterans from President Trump, and a timely word from Pastor Robert Jeffress.  Anticipated start time 8:00pm EDT

UPDATE Video Added (Pastor Jeffers intro and President Donald Trump)

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For the past three days we’ve been assembling a great deal of research on visible back-channel communication amid numerous nations and their economic teams.  There are tectonic plates shifting just below the Geo-political surface, and we will be outlining many of them, along with the predictable economic outcomes (bigly), in the next few days.

In the interim, it’s useful to review the latest information from NatSec McMaster and NEC Cohen as it relates to the upcoming objectives from the next segment of foreign travel.

National Security Advisor General H.R. McMaster and Director of the National Economic Council Gary Cohn pre-brief the media on President Trump’s upcoming trip to Poland and Germany for the G20 Summit.  An important read:

[Transcript] 1:21 P.M. EDT – AIDE: Hi. Just want to restate the ground rules. Today’s briefing is off camera, on the record, and the audio is not for broadcast. It is embargoed until the end of the briefing.

And with that, I will turn the podium over to —

Q Can you make this on — can you make the audio available? Because it puts radio at a disadvantage.

AIDE: It is off camera, not for broadcast. Those are the ground rules.

And now I’m going to turn it over to General H.R. McMaster and Gary Cohn. Thank you.

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President Trump and Energy Secretary Rick Perry, together with EPA Secretary Scott Pruitt and Interior Secretary Ryan Zinke, are doing something with energy independence that was long discussed but never acted upon.  Forget the Paris Climate Treaty, this Trump action on energy development is in a stratosphere thought almost unimaginable.

Together the entire cabinet has studied, formulated and instituted an executive American energy policy platform to go beyond mere energy independence, and actually start using energy resources as an export commodity for economic growth.

Pause for a moment and consider just how monumental that approach actually is; and also overlay the independent national security ramifications therein.  Oddly enough, we predicted this two years ago.

[…]  Trump has proposed continued investment and exploration of “clean coal” technology using the vast coal mine resources in the Appalachian Range throughout West Virginia and into Pennsylvania. Trump has proposed energy export leverage (oil, coal, natural gas) as part of the larger Trade-deal packages.

The U.S. can negotiate a resurgence of U.S. manufacturing with lower fully developed energy costs, a competitive advantage; and simultaneously our abundant resources in energy fuels also provide trade leverage (standards and tariffs) through energy export.

With a fully utilized energy sector, the U.S. can also use the accompanying economic growth to invest in alternative resource development such as nuclear, solar and wind. The costs of alternative fuel research and development become underwritten by the expansive use of current resources. (link)

The intensely consequential outcome is a visible representation of ‘America-First’ principles applied to deliver MAGA level shifts in the future of our nation.  Massive possibilities for wealth creation at local and state levels; and simultaneous national security interests. Win – Win – Win… And yet stunningly this result is only in one sector of national security and national economics.

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