Ok, this one strategic maneuver has just pegged my too-much-winning needle on max overdrive. Donald Trump took a congratulatory phone call from the President of Taiwan, and now the Chinese will be apoplectic.
Those of you who have been with us for a while, will note our arguments against China’s MFN (Most Favored Nation) trade status have continually fallen on deaf ears within DC.  Why?  Because they are political ears paid to remain necessarily deaf, while various Chinese national interests have taken influence over our legislative priorities on trade and commerce.

In short, we’ve been ripped off.  Bigly.  For decades.
Rule #1 in any trade deal is to fully understand who is the customer within the equation.  The U.S. market is the biggest trade customer on this entire beautiful blue planet.  We hold all the leverage.  Access, or denial of access, to this market is the leverage.  (more…)

As we all begin to filter the impact of a historic Donald Trump victory, perhaps it is important to remind ourselves what should be the primary filter for perspective..

…the economics.

For the first time in many decades the chief executive of the United States will walk into office concerned about the fiscal stability of the United States.  For the first time ever, a titan of American Main Street is going to be in the oval office. Do not downplay the significance of this aspect. Money makes the world go ’round.
Every single global leader and politician is reviewing the U.S. election through their own domestic financial prisms. Enter, the land of Samsung, Kia etc:

SEOUL (Reuters) – South Korea said on Wednesday it will react firmly to severe financial market volatility if needed after Republican Donald Trump stunned the world by winning the race for U.S. president House, sending global markets plunging.

The government and central bank said they plan to boost monitoring of markets around the clock.

(more…)

Let us all hope the good people of New Hampshire spot the insufferable and poorly briefed politicians who want to lead the nation.

In a recent South Carolina GOP debate Jeb Bush talked about trade with China and showed how much he relies on briefings by his team to create his talking points. Bush did not realize Boeing was moving a manufacturing plant to China, and with it American Jobs – SEE HERE

Similarly, last night in New Hampshire, to bolster his propositions about eminent domain, Governor Jeb Bush made the gobsmacking assertion the Keystone Pipeline project was a “public use” project.

It isn’t.

(more…)

What does one shallow dictator do when another delicate dictator visits a land of freedom?

The @WhiteHouse puts up screens to block #Xi's view of protestors during visit. Bad move. Insult to American values. pic.twitter.com/ktz6HERJnz

— Marion Smith (@smithmarion) September 25, 2015

Warning, some of the content is graphic.  Sketchy details. The blast reportedly happened at approximately 11:30 p.m. local time in the Chinese city of Tianjin, or 11:30 a.m. Eastern Time.  At least 7 people are reported killed, hundreds injured.  • Latest report says the explosion happened in an explosive manufacturing facility. • 18 Fire Squads responded and actively battling blaze.  • Most injuries from flying debris.   Two firefighters missing.  • Death toll now 18 with 400 wounded.

In the grand scheme of all things current this might seem a little insignificant.  But for those who are intent on knowing the “why” behind the activity from DC it is a Biden-esque deal.
For months I have been trying to identify “the play”, “the juice”, that Tom Donohue held over President Obama and the White House regarding the Trans-Pacific Partnership trade deal.

What play could Tom Donohue possibly hold that was so significant it would force Obama to defy his left-wing base and support a trade deal that only benefits Donohue and the Wall Street interests he represents.
The Mitch McConnell support was a no-brainer, the GOPe machine is in the back pocket of the U.S. Chamber of Commerce, and Tom Donohue, and has been for a long time.
The TPP trade deal was, and is, antithetical to U.S. main street business interests – but I couldn’t figure out why President Obama was willing to buck Elizabeth Warren, Bernie Sanders, and the like-minded anti-Wall Street ideologues. (more…)

(Reuters) […]  On Wednesday, more than 500 China-listed firms announced trading halts, bringing the total number to around 1,300, almost half of China’s roughly 2,800 “A share” listed companies.

[…]  China’s stock market has so far tumbled 30 percent from its mid-June peak, reversing a year-long, highly-leveraged bull run, and wiping out nearly $3 trillion in market capitalization.

A slew of government support measures, including direct purchases of blue chips, a central bank pledge of liquidity support, and a halt in initial public offerings, has not been able to stem the slide. (more…)

From our friends at PJTV, and Bill Whittle.

Who, I mean WHO, in their right mind would go along with this idea?

For an administration so singularly focused, tuned-in, and twitchy about “optics”, and control thereof, this had to be an intentional set-up to allow ridicule of President Obama in China.   There is no other reasonable explanation.

(@03:45 Video) John Kerry: […] One of the issues that we’re going to discuss today, no doubt, is the situation in Hong Kong. And as China knows, we support universal suffrage in Hong Kong accordant with the Basic Law, and we believe in open society with the highest possible degree of autonomy and governed by rule of law is essential for Hong Kong’s stability and prosperity. And we have high hopes that the Hong Kong authorities will exercise restraint and respect for the protestors’ right to express their views peacefully.