Nuance is important as tensions are very high.

Secretary of State Rex Tillerson is attending the Association of Southeast Asian Nations (ASEAN) conference in Manila, Philippines. The primary topic on everyone’s mind is North Korea and the economic sanctions agreed upon yesterday as conveyed in the unanimous U.N. Security Council resolution.

Specifically, all conference participants are familiar with the (generally non-discussed) historic activity of China where they agree to sanctions then become willfully blind to violations of those sanctions; and essentially enable the DPRK to increase hostility.
During this visit U.S. Secretary of State Rex Tillerson is delivering a very severe message that U.S. President Donald Trump is well aware of all historic behavior, and President Trump is not going to allow willful blindness.  It is a new era in economic consequence.
The ASEAN audiences at the conference appear accepting of the first-hand message and welcoming a new understanding that President Trump is not going to allow status quo. Here’s the play-by-play as captured by AP during the early part of the conference.
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White House Advisor Sebastian Gorka discusses the unanimous U.N. resolution today putting massive sanctions against North Korea – BACK STORY HERE–

[*NOTE* Ambassador Nikki Haley will be appearing for a lengthy interview on Sunday Morning FBN news with Maria Bartiromo tomorrow (10:00am EDT).]

• FULL BACKSTORY HERE

Today, following the historic and unanimous U.N Security Council sanction vote on North Korea, U.N. Ambassador Haley appeared on CNN for an interview:

President Trump’s strategic approach using economic leverage to gain U.S. national security has established a very rare victory in the U.N. with unanimous support for Security Council sanctions against North Korea.  Yes, China and Russia supported.
Remember, from Day #1 of his administration President Trump was faced with a threat from N-Korea.  On his departure President Obama told the incoming new President Trump that North Korea would be his #1 Geopolitical national security challenge.
The MSM will likely never give President Trump credit for the remarkable long-term economic strategy he deployed to gain China and Russia’s support today.

UNITED NATIONS (Reuters) – The United Nations Security Council imposed new sanctions on North Korea on Saturday that could slash by a third the Asian state’s $3 billion annual export revenue over Pyongyang’s two intercontinental ballistic missile tests in July.

The U.S.-drafted resolution bans North Korean exports of coal, iron, iron ore, lead, lead ore and seafood. It also prohibits countries from increasing the current numbers of North Korean laborers working abroad, bans new joint ventures with North Korea and any new investment in current joint ventures.

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U.S. Ambassador Nikki Haley is structuring a U.N. Security Council resolution toward North Korea by targeting a ban on DPRK exports.  This approach is in line with the larger Trump strategy to leverage economic sanctions as pressure on North Korea to stop advancing military expansion and nuclear weapons.
However, how President Trump has set Nikki Haley up for success on this resolution is something for the history books to write about:

♦First: A review of the possible enhanced sanctions against N-Korea should be incorporated with the larger issue of policy toward the DPRK’s enabler, China.  President Trump, Secretary Mnuchin and Secretary Ross have positioned a severely consequential trade reset between the U.S. and China.  [Trump and Ross delayed an announcement on trade sanctions against China which was scheduled for today.]
♦Second: The enhanced U.S. energy export initiatives, in conjunction with lower oil prices, an outcome of U.S. energy policy and a mutually beneficial relationship between President Trump and Arab states in the GCC, have severely weakened the economic position of Russia.
Russia’s energy export economy is dependent on energy prices remaining high. President Trump has brilliantly worked the geopolitical economic relationships to leverage influence over a large portion of the Russian economy.
Combine these two points and you discover the leverage President Trump’s team has created.
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“The Trump administration believes in free and fair trade and will use every available tool to counter the protectionism of those who pledge allegiance to free trade while violating its core principles. The U.S. is working to restore a level playing field, and under President Trump’s leadership, we will do so. This is a true free-trade agenda.”

[Free-Trade is a Two-Way Street – By Commerce Secretary Wilbur Ross – Wall Street Journal, August 1, 2017]
The Trump administration last week celebrated the workers and businesses that make this country great. The purpose of “Made in America Week” was to recognize that, when given a fair chance to compete, Americans can make and sell some of the best, most innovative products in the world.
Unfortunately, many governments across the globe have pursued policies that put American workers and businesses at a disadvantage. For these governments, President Trump and his administration have a clear message: It is time to rebalance your trade policies so that they are fair, free and reciprocal.
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Today Secretary of State Rex Tillerson highlighted events over the past six months.  T-Rex takes another stroll around the globe discussing regional policy, specific state policy, and ongoing challenges.  Secretary Tillerson then takes questions from the media at the conclusion of his remarks.
Very informative. Very well worth watching (T-Rex Begins at 03:40):

Don’t focus on the waves, look closely at the tide.

You wouldn’t know if you just paid attention to the MSM presentations on developments in China, however internally China has already made the shift from Panda to Red Dragon. Over the past twenty years China has climbed economically driven mostly by massive internal manufacturing bolstered by strong central authority controls over their growth.
The Communist Party of China (CPC) is rarely discussed within most media conversations about China’s economic strength. However, in the face of a U.S. President who is no longer going to enable an erosion of America’s economy, President Trump’s trade policies become a risk to the objectives of Xi Jinping.
Big Panda drops the mask and shows the Red Dragon beneath the surface.
The exhibition of China’s military during a parade last weekend, and the words from China’s President Xi Jinping in combination with their facilitation of N-Korea’s aggression, reflect an increasingly obvious outlook China is preparing for conflict; and the Communist Party of China is rallying the Chinese people with a call for economic patriotism.

CHINA – […] The CPC undertakes noble responsibilities to ensure China’s peace and development, and enable people to realize their dreams. The ambitious responsibilities will be better identified when viewed in a historical context.
The CPC, Chinese government and the military should take on their responsibilities. National cohesion is critical for the people’s wellbeing and country’s competitiveness, yet opposing voices often find favor in diverse public opinions. Hence, having a firm leader is crucial for a power’s comprehensive national strength.

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POTUS direct confrontation is not reserved for domestic political enemies, it also applies to external nations threatening the U.S.  However, notice with each example there is an almost identical pattern: ♦An honest attempt at an open handed diplomacy; ♦a rebuke from the opposition in favor of the status quo; ♦a sincere appeal to reconsider; ♦time for reflection, contemplation and planning; ♦a final request not to engage in combat (today); ♦and then the hammer.
The sequence is always the same.

“foolish past leaders” … “We will no longer allow”..

China, the Big Panda, chose the Red Dragon approach and is positioned to feel the big hurt if they don’t take action…

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Finally today we see a significant loss for the “Big Club”. Speaker Paul Ryan, the GOPe professional business class, Wall Street and the U.S. CoC accept the Border Adjustment Tax is not going to be a part of any larger tax reform agenda under the Trump administration.

Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and President Trump win the policy argument with the removal of the B.A.T.
In a joint statement outlining the forward plans for tax reform the “Big Six” tax negotiators (Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steve Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch, House Ways and Means Committee Chairman Kevin Brady), announce the consumer punishing BAT will not be included.

[…] “While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.” (more)

The B.A.T was to revenue collection on imported products and impact on consumers – what the Obamacare mandate was to revenue collection on healthcare and impact on consumers.
The B.A.T  was simply a scheme to embed the cost of renegotiated trade import tariffs, directly onto the consumer, isolated away from any responsibility on the corporation to reduce their own internal efficiencies as a method to keep the price down. It was a dubious and manipulative effort.
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