The Big Panda is positioned to feel the Big Hurt if they don’t take action…

First Lady Melania Trump wore a purposeful red jacket today as she was seated at the G20 during President Trump’s remarks to the summit leaders with Chinese President Xi Jinping seated next to him.

While in Warsaw Poland last Thursday President Trump was asked about possible action against North Korea:

“I have some pretty severe things we’re thinking about. Doesn’t mean we’re going to do them. I don’t draw red lines.” …  “It’s a shame they’re behaving this way and they’re behaving in a very dangerous manner, and something will have to be done about it.” (link)

Today during a bilateral meeting with China’s President Xi Jinping President Trump reinforced the message:

President Trump, at the start of his meeting Saturday in Germany with Chinese President Xi Jinping, called the Asian nation a “great trading partner” and said the increasing North Korea nuclear threat will eventually be resolved “one way or the other.”  (link)

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Secretary of State Rex Tillerson and Treasury Secretary Steven Mnuchin outline the past 48 hours of diplomatic discussions within the framework of the G20.

**Remember** as you read this transcript, e.v.e.r.y.t.h.i.n.g eventually boils down to economics and the seismic geopolitical shifts currently underway.  (See Bottom for Important Detail)

[Transcript] 7:18 P.M. CET – SECRETARY MNUCHIN: Hi, everybody. I just want to highlight very briefly, and then Secretary Tillerson will go on, and then afterwards we’ll both answer a few questions.

But President Trump has had a very, very significant few days. I think, as you know, we went to Poland on Wednesday. In Poland, he met with 12 different leaders. We had bilats with Croatia and with Poland, as well as 10 other leaders at the Three Seas Conference where we talked about energy — the importance of the energy markets, the importance of supplying independent energy, infrastructure and opportunities there. I think, as you know, the speech which was just incredibly well-received, is part of our “America First But America Not Alone.”

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Sharing only because CTH readers have a more thorough understanding than most; and we are entering a phase of extreme consequence.

Donald Trump doesn’t bluff.

Bluffing is for those who accept they may or may not win.  The outcome is based on an unpredictable response from the opponent.

In business or in life, go review the decades of available information and you will see that Donald Trump, now President Trump, doesn’t bluff.  It’s one of the reasons he so openly owns the downsides.  It’s also the reason he has never engaged in the stock market.

President Trump controls outcomes.

Donald Trump the person, doesn’t wait for an entity, ally or opponent to enter his orbit. He greets them at the perimeter.   Trump doesn’t sit with his back to the door, he positions to see all upon entrance.   Donald Trump doesn’t try to hide his interest, he’s quite open about any engagement he is focused upon.

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Exactly as predicted.  President Trump is aboard AF1 headed to the EU.  After discussions with the President this morning, U.N. Ambassador Nikki Haley delivers prepared remarks  at the United Nations on the topic of North Korea’s continued military escalation.

Her full remarks are below.   Note she discusses speaking with President Trump this morning about trade with China.  Specifically note her comments about trade:

[02:59] “We have other methods of addressing those who threaten us, and of addressing those who supply the threats; we have great capabilities in the area of trade.  President Trump has spoken repeatedly about this, I spoke with him at length about it this morning.”

“There are countries that are allowing, even encouraging, trade with North Korea, in violation of U.N. Security Council resolutions.  Such countries would also like to continue their trade arrangements with the United States, that’s not gonna happen.  Our attitude on trade changes when countries do not take international security threats seriously.”

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For those who cannot see the multi-dimensional strategy here, an approach assembled for years in the aggregate and fine-tuned in the last several weeks, President Trump is reinforcing our prior analysis of his strategy:

A day before he meets face-to-face with Xi Jinping, President Trump is highlighting the enabler to North Korea.  President Trump is smartly setting up a spotlight for the entire world to see who is creating the problem, China.

President Trump will never start a military war because it’s antithetical to his entire constitution.  However, within the field of economic combat – watch out.  Not only will Trump engage in economic warfare, he’s built an armory for decades, he’s positioned to win against any opponent.  As such, the long-term adversary in this equation is not North Korea, it’s China.

To understand the longer and larger strategy, we must first remember the underpinning of all leverage, economics.  Every single aspect of national wealth and national security boils down to economics.  The true economic adversary to the United States is China.

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U.S. Secretary of State Rex Tillerson issues a formal statement in response to the ICBM missile test conducted by North Korea:

The United States strongly condemns North Korea’s launch of an intercontinental ballistic missile. Testing an ICBM represents a new escalation of the threat to the United States, our allies and partners, the region, and the world.

Global action is required to stop a global threat. Any country that hosts North Korean guest workers, provides any economic or military benefits, or fails to fully implement UN Security Council resolutions is aiding and abetting a dangerous regime.

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U.S. Officials are now confirming the North Korean missile test was an intercontinental ballistic missile.

The ICBM, which is believed to be “two-stage,” officials said, would have a range of at least 3,500 miles, and thus be capable of reaching Alaska. (NBC link)

This launch represents another escalation by Kim Jung-Un in his ongoing quest for long-range intercontinental ballistic nuclear missiles.  The ICBM test is another in a series of violations of U.N. Security Council resolutions banning the launches, and is simultaneously a slap in the face to Chinese President Xi Jinping who is presumably trying to get North Korea to back down.

China’s support of North Korea will become even more of an issue with the increased escalations.  Understanding the perspective of President Donald Trump toward these events, we would/should anticipate a series of economic actions by the U.S. administration against China.

The U.S. cannot focus exclusively on North Korea, their enablers must be targeted for corrective leverage. Economic sanctions can increase internal regional pressure.

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Kim Jung-Un has test fired another missile.  President Trump responds:

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USTR Robert Lighthizer delivered testimony to congress today including an outline of dates, objectives and policy initiatives the Trump administration trade team plan to act upon in the next several months.

Important Discussion.

The current U.S. “America First” economic and trade team is entirely deconstructing the globalist efforts formerly pushed by multinational interests, multinational corporations, multinational banks and Wall Street.

Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and USTR Robert Lighthizer are positioned to shred and reverse decades of trade manipulation that have punished the middle-class and manufacturing base.   The best part of the committee discussion begins at 10:00 of the video with Lighthizer’s opening statement (prompted).

https://youtu.be/98sgAnjJ-CQ?t=10m

Congress is apoplectic about being stuck between their Wall Street corporate benefactors and a Trump trade team that is only looking out for America’s best interests.  The level of lobbyist angst amid the Big Club is palpable.

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Men of consequence – Secretary of State Rex Tillerson and Secretary of Defense James Mattis hold a joint statement and press availability to discuss ongoing constructive discussions with China and the current efforts to deal with an increasingly unstable North Korea.

While I greatly appreciate the efforts of President Xi & China to help with North Korea, it has not worked out. At least I know China tried!

— Donald J. Trump (@realDonaldTrump) June 20, 2017

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