Economic security is national security. “Economic growth, national security, those are the Presidents’ two most important priorities” ~ Secretary Mnuchin.

Treasury Secretary Steven Mnuchin discusses the ongoing trade negotiation with China and the specifics of sector-by-sector agreements in principle. The overall approach by the Trump administration is to balance the trade relationship through opening of Chinese markets to U.S. exports and retain stability within U.S. manufacturing sectors.

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The dragon is in the details…. and that’s where you find slayer-Secretary Wilbur Ross!

After over a year of discussions and structured way-points, China came into last weeks U.S. trade talks with outstretched steel fists. The delegation they sent to the negotiating table were some of the most loyal and die-hard communist leaders within their national economic team.

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The White House has released a “Joint Statement of the United States and China Regarding Trade Consultations“:

“At the direction of President Donald J. Trump and President Xi Jinping, on May 17 and 18, 2018, the United States and China engaged in constructive consultations regarding trade in Washington, D.C. The United States delegation included Secretary of the Treasury Steven T. Mnuchin, Secretary of Commerce Wilbur L. Ross, and United States Trade Representative Robert E. Lighthizer. The Chinese delegation was led by State Council Vice Premier Liu He, Special Envoy of President Xi.”

“There was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China. To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services. This will help support growth and employment in the United States.”

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DAY#3 – Everyone has a role to play. While President Trump’s ‘killers’ sharpen dragon-slaying strategy, NEC Chairman Larry Kudlow rubs Big Panda’s belly and discusses the optimistic outlook toward the ongoing trade negotiations with China.

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In Part II of the interview chairman cuddle-bunny discusses the issues of intellectual property rights, patents and copyright protections.

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National Economic Council Chairman Larry Kudlow appeared on Fox Business earlier Thursday to talk about the ongoing U.S. China trade negotiations. Those who follow the Dragon -vs- Panda strategies of China saw earlier yesterday how Chairman Xi Jinping was positioning N-Korea as leverage for the current trade negotiations.

The DPRK dragon-play didn’t work because President Trump knows the dragon’s moves, and predicted their approach from the outset. Remember, POTUS Trump began executing a geopolitical economic strategy toward both North Korea and China well over a year ago. [During the first meeting with Chairman Xi Jinping in Mar-a-Lago (Feb, 2017)]

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After over a year of discussions and structured way-points, China came into the current round of U.S. trade talks with outstretched steel fists. The line-up they sent to the negotiating table are some of the most loyal and die-hard communist leadership within their economic team.

It is obvious China is in dragon-mode knowing they are dealing with an entirely different administration than they faced before.

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President Trump met with NATO Secretary General Jens Stoltenberg at the White House today for a bilateral meeting on EU security and trade issues.  During the Oval Office press availability both made remarks but president Trump took the opportunity to have an impromptu presser on other current issues.   WATCH:

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Hopefully everyone paid attention to the North Korea topic. It was not coincidental the stompy-feet assertions of Kim Jong-un and the DPRK were timed at the exact moment Chinese Vice-Premier Liu arrived in the U.S. for important trade talks. Once again Chairman Xi Jinping is using his proxy province of N-Korea to leverage economic benefits:

WASHINGTON – Chinese President Xi Jinping’s special envoy and Vice-Premier Liu He arrived in Washington on Tuesday afternoon. Liu, also a member of the Political Bureau of the Communist Party of China Central Committee and chief of the Chinese side of the China-US comprehensive economic dialogue, is leading a Chinese delegation for the talks.

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Earlier today President Trump welcomed President Mirziyoyev of the Republic of Uzbekistan to the White House for a diplomatic meeting. Among the issues discussed were regional security issues important to Uzbekistan, and engagement in economic partnerships with U.S. companies to enhance a growing trade relationship:

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Recap video below:

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The NAFTA phone call between Justin from Canada and U.S. President Trump took place yesterday.

Due to the importance of the timing; and against the backdrop of Trump’s meeting with auto executives; and considering that Canadian Foreign Minister Chrystia Freeland spent five days in Washington DC last week without an agreement; and understanding no NAFTA talks are taking place this week; it was important to see who called whom in order to understand the import of the phone contact:

President Donald J. Trump spoke today with Prime Minister Justin Trudeau of Canada to address the renegotiation of the North American Free Trade Agreement. President Trump underscored the importance of quickly concluding an agreement.  (WH – link)

According to Canadian officials, Justin from Canada was the initiator of the call yesterday.

Speaker of the House Paul Ryan previously set a deadline date of May 17th, due to the statutory requirements for any agreement, based on this year’s legislative calendar.  That’s the day after tomorrow.  There is general consensus no agreement prior to that date is possible.   Additionally Mexico’s national election is July 1st, 2018.

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It is interesting to watch the Trump Cabinet debate the Obama Cabinet (U.S. media). In this interview between White House National Security Advisor John Bolton and ABC’s Martha Raddatz the central topic is Iran; the detailed conversation is deep weeds therein.

After Bolton presents the administration position and reasoning for exiting the deeply flawed, unsigned and unenforceable Obama Iran “deal” (not treaty), essentially a JCPOA pathway to the land of broken promises, Ambassador Bolton then reaches the part of the discussion where sanctions against European companies come back into play.  This is the best part.  WATCH:

Massive U.S. economic leverage, and the strategic application therein, is an aspect that drives the left-wing Iranian apologists bananas.  A weaponized $20 trillion U.S. economy is the unavoidable atomic sledgehammer at the foundation of the Trump Doctrine.  It is far more powerful than a military weapon and drops all nations to their knees in compliance.

Everything is about the economics. E.V.E.R.Y.T.H.I.N.G. Every point of opposition; every forward MAGA policy; every initiative, including freedom; every move toward success; everything is about the economics.

Look at the immediate take-away published by Reuters.

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Secretary of State Mike Pompeo sits down for an interview with the Deep State toll booth operator Chris Wallace.  Customary cost of admission, five shillings.

Secretary Pompeo briefly discussed the ISIS terror attack in France yesterday and expands upon the upcoming summit with North Korean Chairman Kim Jong-un. Secretary Pompeo appears to have a more thorough understanding on the Trump Doctrine of using economics to achieve national security objectives than former Secretary Rex Tillerson.

The duplicitous toll booth operator won’t raise the barricade until Pompeo discusses the view of former CIA Director John Brennan.   Pompeo exits the narrative and beats Wallace over the head with MAGA common sense: “Brennan’s remarks are silly“, moving on…

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Critical Update – Critical Update – Critical Update

Those who are watching the NAFTA negotiations must pay close attention to the activity in the past 36 hours.  There is a key video at the bottom.  First the backdrop:

As most are aware the NAFTA fatal flaw, the “loophole”, surrounds Mexico and Canada structuring their economic manufacturing policy -and trade deals- through the exploitation of a back-door into the U.S. Market. Understanding this key issue is paramount to understanding President Trump’s approach therein.

Remove the NAFTA “loophole” and there is no longer an incentive for U.S. manufacturers to locate their operations in Mexico or Canada. However, the removal of this loophole also means China, ASEAN nations and the EU lose the same incentive.

There have been hundreds of billions of previous investment by multinational corporations in Mexico and Canada.  Every dollar spent was intended to continue this exploitation.

Then came Trump.

In terms of investment size and scale of manufacturing, the auto-sector is perhaps the primary industry attempting to position themselves to avoid any reversal of the NAFTA scheme; and it is a self-interested economic scheme. In the short term there are billions at stake; in the longer term there are trillions within the equation.

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