Washington Times: Fed Policy Powerless to Influence Inflation…

In 2015 we discussed candidate Trump’s economic positions and how they would impact the economy.  CTH anticipated that MAGAnomics would be reversing three decades of federal reserve fiscal policy. After about a year of analysis and discussion, in 2016 CTH presented a theory: “A new Dimension in Modern Economics“.
CTH shared a possibility of what could happen if Trump Economic Policy was shifted to favor Main Street over Wall Street.  One aspect we presented was how Federal Reserve monetary policy would be oddly disconnected from its ability to influence inflation.
Washington Times today:

(Article Link)

While the issues inherent within economic influences can be riddled with complexity, we remain optimistic that MAGAnomics will be very very successful.
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"Justinesque" – Angela Merkel: Germany Must Tighten "Border Checks"…

Hypocrisy, thy name is….  German Chancellor Angela Merkel is facing an election challenge.  In 2014 German Chancellor Angela Merkel told the world that German’s borders were open and welcoming to Islamic refugees from the Middle East.  Hundreds of thousands of Muslim males aged 18 to 34 took her up on her offer.
Terrorism necessarily skyrocketed throughout Germany and Western Europe in 2015, 2016 and 2017.  Today German Chancellor Angela Merkel is saying Germany’s borders must be protected.

(Via Irish Times) With a month to election day, German chancellor Angela Merkel has ramped up her refugee-critical rhetoric in a bid to pull back far-right voters, boost her Bavarian allies and win over a record number of undecideds.

The chancellor used weekend interviews and rallies to stand by her 2015 decision that saw almost one million asylum seekers arrive in the country. She said she would decide the same way again, but insisted that events of 2015 “must not be repeated”. Aware of huge public unease over the refugee crisis, and related terror attacks since, she signalled Germany would demand an extension of border checks on the border with Austria, a Schengen suspension requiring EU approval.

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President Trump Holds Hurricane Harvey Cabinet Meeting…

WASHINGTON – President Trump and Vice President Mike Pence met with the Cabinet secretaries and other senior administration officials on Saturday to discuss the government’s Hurricane Harvey response and recovery efforts.

The president directed officials to “stay fully engaged” and prioritize saving lives of those affected by the Category 4 storm, according to the White House Press Office. Trump directed his team to work in support of the governors of Texas and Louisiana, and offered his prayers to any Americans in harm’s way.
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Understanding Gary Cohn -vs- President Donald Trump…

Recently there has been a great deal of opinion on Chief Economic Advisor to President Trump and his recent critique of President Trump’s comments surrounding the events in Charlottesville, Virginia.  For many people the latest Cohn -vs- Trump scenario is just more proof that President Trump is succumbing to influence/pressure from the wrong side of the ideological spectrum.
This outline is intended to directly speak toward those concerns.  However, to understand the dynamics of Gary Cohn -vs- Donald Trump it is first necessary to understand the perspective of Gary Cohn and President Trump.

Few people have an appropriate understanding of the scale, scope and seismic shift President Trump is delivering to the world of geopolitical financial influence.  A recent comment by someone who appears to understand the dynamic reads thus:

Enjoy this because we will never see this again. You’ll never see your president shift the pendulum the way Donald Trump is. The international market of high-pressure real estate development and financing incorporates every facet of business activity known to humanity and no President we have ever had has been more prepared to do what needs to be done then President Donald J Trump. In addition to trying to right the ship he has to navigate waters filled with landmines and torpedoes and those firing the torpedoes claim to be Americans. God bless this man.  ~ FromSeaToShiningSea

That’s a good a place as any to elevate the discussion, review the historic nature of the participants, and comprehend the dynamics behind: Manhattan -vs- Queens; Global finance -vs- National interests; Wall Street -vs- Main Street; and ultimately Gary Cohn -vs- Donald Trump.
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Dr. Sebastian Gorka Departs White House…

It is being reported by multiple media outlets and their sources that Dr. Sebastian Gorka has parted ways with the White House.  Some reports say ‘forced out‘, others say ‘resigned’; it matters not.  Gorka was staff; simply staff, nothing more than staff; he and Bannon can go make cucumber sandwiches now.
Dr. Gorka was essentially a Steve Bannon employee in the administration; Gorka reported to Bannon, and Gorka took instructions from Bannon.  With General Kelly creating a formal chain of contact and message discipline within the White House; and with Gorka’s boss having resigned a week ago; it was entirely predictable that Gorka would leave.

Dr. Sebastian Gorka had been on a semi-hiatus since a week prior to Bannon’s departure when Gorka appeared on national television and did a big stupid.  Gorka asserting he held influence over Defense Secretary General Mattis and claiming Secretary of State Rex Tillerson was “nonsensical” and did not know the Administration’s military agenda toward North Korea.

“The idea that Secretary Tillerson is going to discuss military matters is simply nonsensical,” Gorka said at the time. “It is the job of [Defense] Secretary [Jim] Mattis, the secretary of defense, to talk about the military options, and he has done so unequivocally.” (link)

Anyone noticing a pattern here?
Yup, just like Steve Bannon claiming only he was skilled enough to direct U.S. foreign policy engagement from the State Department, Sebastian Gorka was way out of line with is “nonsensical” Tillerson statement. It’s not accidental that Bannon’s statements and Gorka’s statements were similarly framed.
To the extent you can know anyone from watching them, I like Bannon and Gorka. But, c’mon, I mean seriously… what level of stupid arrogance is needed for Bannon and Gorka to think they held free reign to undermine Cabinet Officers?  Have neither of these guys worked in a large corporate and/or institutional system where you understand your role and the number one rule: “never compromise your leadership.”
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President Trump Continues Strategic Trump Doctrine – Economic Leverage To Produce National Security Objectives…

It must be pointed out; it is up to us to do so.  The corporate media are hopelessly deficient in their coverage and explanations of how strategic objectives for national security are being delivered through a Trump Doctrine via economic leverage.  The results are stunningly effective, yet few have noticed, and even fewer seem willing to articulate.

The latest example of the geopolitical Trump Doctrine in action comes via Venezuela, and in the wake of a fraudulent Maduro election – the Trump administration’s economic and financial policy delivering sanctions against the rogue Maduro regime:

(Via LA Times) The Trump administration on Friday slapped sweeping financial sanctions on Venezuela, barring banks from any new financial deals with the government or state-run oil giant PDVSA.
The sanctions Trump signed by executive order are bound to dramatically escalate tensions between Venezuela and the U.S. and exacerbate the country’s economic crisis.

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Major Presser – Sarah Sanders, HR McMaster, Secretary Mnuchin, Tom Bosser – White House Press Briefing August 25th…

White House Press Secretary Sarah Sanders, National Security Adviser HR McMaster, Secretary of Treasury Steve Mnuchin and Homeland Security Adviser Tom Bosser hold an extensive press briefing to cover: Current events, Venezuela, Afghanistan, the debt ceiling and Hurricane Harvey.


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On Venezuela it is important to note the brilliance of the U.S. strategy and leverage.  The U.S. is the only remaining cash purchaser of Venezuelan oil for refinement. Both China and Russia purchase Venezuela oil, however their purchases are made via pay-downs to previous loans from China and Russia to the Maduro regime. Since the corrupt election the U.S. has not refined oil shipments from Venezuela putting massive financial strain on the regime.  (ie. economic leverage)

MEXICO CITY (Reuters) – A tanker carrying a cargo of about 1 million barrels of Venezuelan heavy crude has been stranded for more than a month off the coast of Louisiana for lack of a bank letter of credit to discharge, three sources have told Reuters.
[…] Major banks are cutting exposure to Venezuela as a result of political upheaval in the South American country. Some have closed accounts linked to officials of the OPEC member who have had sanctions leveled against them by the U.S. government and have refused to provide correspondent bank services or trade in government bonds.

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President Trump Hints At Timing of "Big Ugly" – Everyone, Except McConnell/Ryan, Misses The Signal Flare…

Prior to last nights intensely enjoyable MAGA rally in Phoenix Arizona CTH was wondering if President Trump would trigger “The Big Ugly“; the looming and necessary battle with the professional republican DC apparatus.
All the key ingredients were there: A challenger for Senator Jeff Flake; prior statements from both Mitch McConnell and Paul Ryan in opposition to the President; the perfect geography to highlight the GOPe’s 800lb open-border agenda; the failure to repeal Obamacare because of an Arizona senator; the border wall, etc.
The righteous list is long and the timing looked about right.

The Arizona stage was almost perfect for President Trump to begin the final conflict, the direct battle against the corrupt decepticons within the republican party. The goal would be fulfillment of a destiny we all know has to happen: To destroy the Professional Republican Party apparatus and every non-MAGA Republican politician within it.
But he didn’t.
Oh sure, President Trump came closer to launching the Big Ugly political MOAB than ever before.  He walked right up to the line, flipped open the Zippo; with a glint in his eye Trump knelt down grinning at the fuse, winking at the audience…. but he didn’t ignite it.
Nope, the timing wasn’t just right yet.
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Mitch and The Big Club Opposition – It's All About The Economics…

There are Trillions of Dollars at Stake. CTH has been highlighting the hidden motivation for years.  Opposition is all about the economics folks.
Against President Trump’s promise to renegotiate trade deals, withdraw from TPP and TTIP, walk away from the fraudulent economic scheme within the Paris Climate Treaty, and renegotiate or pull out of NAFTA.  Well,… it’s called a strategy session folks:

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President Trump Discusses NAFTA: "I think we'll end up, probably, terminating NAFTA at some point"…

At the end of the first round of NAFTA renegotiations, Sunday, I shared a confidence level of “3” on a 10 point scale; as to whether a deal was likely. [Explained Here]
On Monday Commerce Secretary Wilbur Ross and U.S Trade Representative Robert Lighthizer debriefed President Trump the on the results of the first round (5 days).   USTR Lighthizer and Secretary Ross were both at the White House during the eclipse viewing.
On Tuesday, following that briefing, President Trump shares his opinion on NAFTA. WATCH:


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Remember, this statement follows the discussions with Ross and Lighthizer a day earlier.  It would appear that President Trump did not like the information they shared.  Knowing that POTUS Trump isn’t going to accept or compromise on an economic deal that doesn’t fix the issues; and knowing he’s wanted to walk away from NAFTA in favor of bilateral trade deals from the outset; I might need to lower my confidence to a “1” or lower…
Super-Mega-MAGA-Winning! (more…)