President Trump tweets about a slow-down in the Chinese economy:
The message is toward the Panda. The specific language notes the cunning Dragon behind the Panda mask.
Classic Donald Trump.
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The baseline when reviewing economic data from China is to remember the entire economy is controlled by the communist central government. If they say the economy is “less strong” than previously expected, generally we can anticipate the truth is much worse.
The second aspect to remember is that many U.S. manufacturers made anticipatory advanced purchases, building up inventory ahead of possible tariffs, in the 3rd and 4th quarters of 2018. Those advance purchases can amplify any manufacturing slow down.
BEIJING (Reuters) – China is expected to report on Monday that economic growth cooled to its slowest in 28 years in 2018 amid weakening domestic demand and bruising U.S. tariffs, adding pressure on Beijing to roll out more support measures to avert a sharper slowdown.
Growing signs of weakness in China — which has generated nearly a third of global growth in the past decade — are stoking worries about risks to the world economy and are weighing on profits for firms ranging from Apple to big carmakers.
Earlier today President Donald Trump, Secretary of State Mike Pompeo and North Korean Minister Kim Yong Chol held a 90 minute meeting at the White House discussing ongoing talks and negotiations between the U.S. and North Korea.
Following the meeting the White House announced there would be a second summit between President Trump and Chairman Kim Jong-un:
“President Donald J. Trump met with Kim Yong Chol for an hour and half, to discuss denuclearization and a second summit, which will take place near the end of February. The President looks forward to meeting with Chairman Kim at a place to be announced at a later date.” (link)
(Via Fox News) […] The face-to-face came after Secretary of State Mike Pompeo met with Kim Yong-chol, North Korea’s lead negotiator, in the nation’s capital early Friday morning to negotiate terms that could lead to a second nuclear summit between Trump and Pyongyang leader Kim Jong-un.
In November of last year the New York Post interviewed President Trump asking specifically why he was not declassifying “spygate” documents, and inquiring about the purpose for his reluctance. President Trump responded: “Maybe it’s better that the public not see what’s been going on with this country.” Many people were disappointed, but its always been President Trump’s primary MAGA agenda to focus on economic security.
As the president has repeatedly stated: “economic security is national security.” And with that cornerstone as the foundation, any evidence of a ‘Five-Eye’ ally participating in the scheme against Trump becomes leverage. Cue the example:
EUROPE – European officials said today they will make tariffs on steel imports to the region permanent to help stem the glut of supply sparked by Donald Trump’s trade war against China.
The move highlights that protectionism is spreading and Donald Trump’s trade war with China is entrenching itself into the global economy.
The EU will impose quotas on 26 product categories and levy a 25% duty on imports exceeding those quotas, the executive arm said on Wednesday. The move cements proposals laid out last July with the stated aim of protecting European steelmakers amid Chinese overcapacity.
The timing here is subtle as a brick through a window. As the U.S. and China sit down for the first preliminary trade discussions…. simultaneously, Chairman Kim Jong-un arrives in China for a pre-scheduled meeting with Chairman Xi Jinping.
Those who follow the strategy of Beijing will note China’s historic approach has been to leverage antagonism by their proxy province of North Korea to gain economic leverage over their U.S. adversary. It would appear Xi Jinping is sending exactly that message, yet again. China controls the DPRK and they will deploy that leverage as needed.
(BNO News) North Korean leader Kim Jong Un has arrived in China for a meeting with Chinese President Xi Jinping, making it his fourth visit in less than a year, the Chinese government announced on Tuesday.
Kim arrived in China on Monday and will be staying until Thursday, according to a spokesperson for the ruling Communist Party, who added that the visit is taking place at the invitation of Xi. Other details about the visit were not immediately known.
Commerce Secretary Wilbur Ross discusses the ongoing U.S. -vs- China trade confrontation and the current status of China’s economic contraction.
Secretary Ross outlines that China has now internally admitted their reliance on access to the U.S. market; and Team Trump’s continued willingness to deliver death by 1,000 cuts to Beijing if needed.
Secretary Wilburine is one of the top targets for Wall Street, GOPe, Democrats and the collective group of beneficiaries from the U.S. Chamber of Commerce. He is effective; he is unrelenting; they want/need him to be removed. The inability to influence the White House economic policy team is the biggest threat to the corporate lobbying community.
The official, albeit preliminary, U.S.T.R. delegation from the United States is on the ground in China to begin initial discussions of “technical details” surrounding the ongoing trade dispute. The preliminary talks are today (Jan 7th) through Wed (Jan 9th).
The prior notice from USTR announced the delegation: •Ambassador Jeffrey Gerrish, Deputy U.S. Trade Representative (pictured above – center); •Ambassador Gregg Doud, USTR Chief Agricultural Negotiator; •Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, U.S. Department of Agriculture; •Under Secretary of Commerce for International Trade Gilbert B. Kaplan, U.S. Department of Commerce; •Assistant Secretary for Fossil Energy Steven Winberg, U.S. Department of Energy; and •Under Secretary for International Affairs David Malpass, U.S. Department of the Treasury.
The delegation will be accompanied by senior officials from the White House, USTR, and the U.S. departments of Agriculture, Commerce, Energy, State, and Treasury. (link)
Tu Xinquan, director of the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing is quoted as saying Beijing’s first phase will be focused on technical details before more important voices “make hard political decisions.”
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National Economic Council (NEC) Director Larry Kudlow appears on Fox Business News to discuss the incredible December jobs report, the U.S. economic outlook, current Federal Reserve policy, and the state of China’s economy.
Chairman Larry Kudlow notes the disconnect between Wall Street and Main Street by outlining the success within the MAGAnomic economy. Job gains, real wage growth and low inflation equals more disposable income for a secure economic workforce.
Increases in productivity combined with investment growth and strong consumer confidence is a direct result of a healthy middle-class economy. Under these economic growth conditions blue and white collar Main Street fuels itself.
In the realm of everything geopolitical in consequence, a recent article from an interview with Brazilian President Jair Bolsonaro highlights the globalists’ worst nightmare. And the comments from the WTO reflects the global influence of President Donald J Trump.
Before getting to two key points, rather stunningly delicious points, it’s worth remembering that Brazil is the “B” in the ‘BRICS alliance’. Before U.S. President Donald Trump took center stage in the world of international influence, the former governments of Brazil, Russia, India, China and South Africa (BRICS) had formed a coalition. Each nation represented an enlarged -and growing- regional trade/economic influence.
Shortly after taking office; and with hindsight – prior to the China confrontation; President Trump began a systematic process of challenging various economic influencers. This is the origin of the Trump Doctrine .
By expanding U.S. energy development, strategically engaging with OPEC (Gulf Cooperation Council) States, and simultaneously engaging with Baltic States at the Three Seas Summit in Warsaw Poland, President Trump established the groundwork for downward pressure on oil prices. This comprehensive and geopolitical energy strategy diminished the ability of Russia to maintain a consistent external financial influence.
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Yesterday we noted how subtle (and not so subtle) messages have been coming out from Beijing China admitting how the party of Chairman Xi underestimated the cunning fortitude of U.S. President Donald Trump. Today, a stunning visual is broadcast from inside North Korea which follows the same general outlook.
Remember, nuance and subtle optics are very significant in Eastern projections of political brand messaging. When they present a nationally broadcast message every grain of sand on the optical beach has been thought out, considered, staged and carefully placed by hand with great forethought toward the intended audience. The optics are everything. [That’s also the reason why POTUS Trump used a video presentation (specifically for Kim) at the end of the Singapore summit.]
In an unprecedented international broadcast, North Korea’s Kim Jong-un delivers a message not just to his people, but more specifically to the international community. The backdrop, the venue for the message as broadcast, reflects a stunning shift for the country of North Korea. Notice the background message is ‘economic‘: Business attire; business office etc. The guiding hand of Chairman Xi is visible, and the transmission is full of messages highlighting the influence of the Trump Doctrine.