During an afternoon announcement with Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer, President Trump announced the launch of section 301 trade investigations into China’s business practices for theft of U.S. technology and violations of U.S. intellectual property rights.
Perhaps the most overlooked portion of the remarks from President Trump happened as he sat down to sign the Presidential Memorandum authorizing the official investigation:

…This is only the beginning folks. This is only the beginning…

For approximately 30 years China has been engaged in a unidirectional trade war against the United States of America; facilitated and enabled by both Democrats and Republicans who have been purchased by multinational and corporate lobbyists to block any effort to defend our U.S. interests.  The biggest victims have been U.S. middle-class workers.
Today, for the first time in modern U.S. history, a singular President stood up and began what will be an arduous process of fighting back, defending the U.S. economy and balancing the rights of U.S. workers and companies with “fair” and “reciprocal” trade.

Section 301 of the Trade Act of 1974 provides the United States with the authority to enforce trade agreements, resolve trade disputes, and open foreign markets to U.S. goods and services. It is the principal statutory authority under which the United States may impose trade sanctions on foreign countries that either violate trade agreements or engage in other unfair trade practices. When negotiations to remove the offending trade practice fail, the United States may take action to raise import duties on the foreign country’s products as a means to rebalance lost concessions. (LINK)

(more…)

Asian policy specialist Gordon Chang interviewed by Maria Bartiromo on her Sunday talk show and accurately outlines the key to a denuclearized North Korea is an economically defeated China.  It appears Mr. Chang fully understands the Trump policy of using economics to achieve national security.
As we have continued to outline, China, specifically the old guard communist control agents within Beijing, use Kim Jong-un as a foil against the west, specifically against the United States.  The long-term objective in using the DPRK is retention of China’s economic strategy, and blockage of President Trump from upending their goals.  Watch:

.
As we have outlined extensively, President Trump holds all of the cards in this economic and trade standoff.  The U.S. is China’s customer and there’s a $500 billion trade deficit.
However, President Trump cannot be completely open with the strategy because part of the long-term plan is to allow China to save face by giving up North Korea’s nuclear ambitions. It would be against Trump’s interests if the entire global and geopolitical community understood what was happening.
So they question becomes, how will we know when President Trump has won in the economic and national security challenge?
(more…)

President Trump uses economic leverage as a national security policy; and to understand who opposes President Trump specifically because of the economic leverage he creates, it becomes important to understand the objectives of the global and financial elite who run and operate the institutions.  The Big Club.
Understanding how trillions of trade dollars influence geopolitical policy we begin to understand the three-decade global financial construct they seek to protect.
That is: 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.

Against the backdrop of President Trump confronting China (tomorrow), and against the backdrop of NAFTA being renegotiated starting Wednesday, revisiting the economic influences within the import/export dynamic will help conceptualize the issues at the heart of the matter.  There are a myriad of interests within each trade sector that make specific explanation very challenging; however, here’s the basic outline.
For three decades economic “globalism” has advanced, quickly. Everyone accepts this statement, yet few actually stop to ask who and what are behind this – and why?
(more…)

While President Trump confronts the North Korean military aggression through economic trade leverage with China, Secretary of State Rex Tillerson heads the diplomatic efforts toward regional partners in Southeast Asia.
Toward that end the Department of State conducts a Washington Foreign Press Center Briefing on “Secretary of State Rex Tillerson’s recent Trip to the ASEAN (Association of Southeast Asian Nations) Regional Forum.  Patrick Murphy DAS of State for Southeast Asia holds a press availability to debrief. (Q&A begins at 12:00)

(more…)

There have been multiple media reports in the last six hours that President Trump is going to announce trade investigation/sanctions against China during a press conference scheduled for Monday.
It makes sense the previously postponed 301 trade investigation against China for violations of intellectual property rights might be announced.

Section 301 of the Trade Act of 1974 provides the United States with the authority to enforce trade agreements, resolve trade disputes, and open foreign markets to U.S. goods and services. It is the principal statutory authority under which the United States may impose trade sanctions on foreign countries that either violate trade agreements or engage in other unfair trade practices. When negotiations to remove the offending trade practice fail, the United States may take action to raise import duties on the foreign country’s products as a means to rebalance lost concessions. (LINK)

However, a note of caution. Substantive trade negotiations, the kind which involve economics and national security, are always fluid and subject to pause, postponement or changes in direction based on compliance – or expressions of a willingness to comply.
Remember, this is Trump.  Looking out for U.S. economic interests is the baseline for trade “leverage”, a tactic and skill uniquely evident in this administration’s trade team.  Section 301 is a tool, actually a massive atomic sledgehammer, to force compliance.
(more…)

Holding the second impromptu press conference of the day, President Trump, Secretary of State Tillerson, U.N. Ambassador Nikki Haley and National Security Adviser HR McMaster delivered remarks following their national security meeting discussing North Korea and global issues.
Speaking clearly, on point and entirely extemporaneously, President Trump and Secretary Tillerson answered questions on a variety of issues. WATCH:

.
President Trump is drowning the MSM in news. The media are aging before our eyes. Good stuff.
(more…)

Serial fibber Brian Williams leads his interview segment with a moment of honesty.  During his introduction to a panel segment he leads with the set-up: “tonight our job is to scare you”. WATCH:

.
Seriously folks, CTH readers, MAGA supporters, and those who travel the deep weeds of politics and have followed Donald Trump can spot the strategy he is deploying.  The strategy is all about economics and leverage.  The media will NEVER discuss it, because they need to act willfully blind to it and use fear as a weapon.
The media is simply taking advantage of “fear” to position yet another anti-Trump narrative. However, all of their hyperbolic analysis of the North Korea situation takes on new understanding when idiots like Williams let it slip that their job is to “scare people to death on this subject.” He makes it clear their goal is to drive down the public’s trust in the President to handle this threat.
(more…)

Following a briefing and meeting with cabinet members and national security officials President Trump and Vice-President Pence held a rather lengthy Q & A with media reporters to answer a myriad of questions surrounding national security and ongoing administration policy.
The president discussed North Korea, regional partners, the United Nations, China, Russia, Syria as well as leaks, Jeff Sessions, Mitch McConnell, healthcare reform, taxes etc. together with Vice President Mike Pence in Bedminster, New Jersey.

(more…)

Speaking from Bedminster New Jersey, President Trump answers questions from media surrounding the ongoing issue with North Korea, and the intransigent republican Senate Majority Leader Mitch McConnell and his inability to move legislation.

.
It’s always about the economic folks.  President Trump is the first U.S. president to fully appreciate, and utilize, economic leverage to achieve U.S. national security objectives.

…”If China helps us with North Korea I will feel a little differently about trade”…

~President Donald Trump

(more…)

The PPI is the Producer Price Index.  The CPI is the Consumer Price Index.  The PPI reflects the price product producers are getting for their goods and services.  The CPI reflects the price consumers are paying for their goods and services.  They generally run together as lower production prices usually mean lower consumer prices.
Here again today, the fed is perplexed.  With a growing economy, and with labor market tightening, the people who control the monetary policy have continued to anticipate inflation, rises in the PPI and CPI.  However, as we have outlined, it’s not happening.
It’s a little wonky, but basically prices are NOT going up.  The Fed is perplexed.  We predicted this:

[…] The Labor Department said its producer price index for final demand slipped 0.1 percent last month, weighed by decreasing costs for services. That was the largest decline since August 2016 and reversed June’s 0.1 percent gain.
In the 12 months through July, the PPI increased 1.9 percent after rising 2.0 percent in the year through June. Economists had forecast the PPI to tick up 0.1 percent last month and 2.2 percent from a year ago. (read more)

Neither the PPI nor the CPI measure changes in food or energy costs.  Those high consumption sectors have always been removed from Fed measures.
(more…)