No current events have as much impact on the lives of ordinary paycheck-to-paycheck Americans as the NAFTA trade negotiations.  Every person in the U.S., our children and the lives of following generations, are impacted by the ongoing economic battle. The consequences are epic in proportion, yet the MSM insufferably avoids discussion.
Against the backdrop of NAFTA Round #2 renegotiations beginning in Mexico, the massive Multinational Corporations fight back to retain their market exploitation.  Decades-long established masks are dropping; the grand usurpation’s are being exposed; there are trillions of dollars at stake.

MEXICO CITY (Reuters) – Trade negotiators from Canada and the United States gathered under rainy skies in Mexico City on Friday to discuss the North American Free Trade Agreement, with the mood darkened by U.S. President Donald Trump’s persistent threats to pull out.
Teams from the three countries were due to kick off a second round of talks on 25 areas of discussion, with subjects such as digital commerce and small businesses seen as areas where consensus was possible, Mexican officials said.
The Sept. 1-5 round will also touch on more thorny topics such as rules governing local content in products made in North America, Mexico’s economy ministry said in a statement. Mexican officials believe Trump wants to include rules that some content must be made in the United States.

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To understand the China ‘One-Belt / ‘One-World‘ economic trade strategy it becomes necessary to understand how structurally weak the Chinese economy was when created.
People often talk about the ‘strength’ of China’s economic model; and indeed within a specific part of their economy -manufacturing- they do have economic strength.
However, the underlying critical architecture of the Chinese economic model is structurally flawed and President Trump with his current economic team understand the weakness better than all international adversaries.
Lets take a stroll and lightly discuss.
China is a central planning economy. Meaning it never was an outcropping of natural economic conditions. China was/is controlled as a communist style central-planning government; As such, it is important to reference the basic structural reality that China’s economy was created from the top down.
This construct of government creation is a key big picture distinction that sets the backdrop to understand how weak the economy really is.
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Despite the good news, the insufferable MSM are still trying to bury the cause and effect. In an effort to give a more precise picture I’m going to use a Reuters summary, and shift their text location to highlight what they bury and emphasize what they avoid:
WASHINGTON (Reuters) – The U.S. economy grew faster than initially thought in the second quarter, notching its quickest pace in more than two years, and there are signs that the momentum was sustained at the start of the third quarter.
Gross domestic product increased at a 3.0 percent annual rate in the April-June period, the Commerce Department said in its second estimate on Wednesday. The upward revision from the 2.6 percent pace reported last month reflected robust consumer spending as well as strong business investment.
Growth last quarter was the strongest since the first quarter of 2015 and followed a 1.2 percent pace in the January-March period. Economists had expected that second-quarter GDP growth would be raised to a 2.7 percent rate.
♦[…] Businesses helped to carry the economy in the second quarter, with spending on equipment jumping at a rate of 8.8 percent. ♦[…] Trade added two-tenths of a percentage point to growth. ♦[…] Government spending contracted for a second straight quarter. ♦[…] Housing was a drag on growth in the last quarter, with investment on home building contracting at a 6.5 percent rate.
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Things are going swimmingly, strategically, seemingly according to plan.  When the full measure of history allows time to review, observers will note the strategic victory was achieved on August 5th, 2017; that’s the original date when Russia and China agreed to the U.N. Security Council sanctions against North Korea.  That first, historic, Russia and China U.N. Security Council vote against North Korea came as a result of eight months of assembled economic leverage created by President Donald Trump.
As a result of this ongoing strategy, every time North Korea’s Kim Jong-un takes an action, President Trump hits China’s Xi Jinping with an additional economic squeeze.  As Beijing feels the squeeze, they tell Kim Jong-un to act. Every time Kim Jong-un acts, President Trump squeezes Beijing with more economic pressure.  Wash-Rinse-Repeat.
Communist Beijing has boxed themselves into this inescapable cycle. The only way out of the box is to concede and lay the DPRK defeat at the feet of Kim Jong-un.  The conceding will evidence itself when Beijing inevitably calls for ‘Six Party Talks‘.  Today:

(Via Associated Press) Chinese Foreign Minister Wang Yi says his country will “fully and completely” abide by U.N. Security Council sanctions resolutions on North Korea.
Wang told reporters Wednesday China would work with other members of the council on how best to react to North Korea’s launch of a ballistic missile over Japan on Tuesday.
He says, “We will make a necessary response.”

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China, via Beijing’s communist old guard, has played right into the hands of the Trump administration by overreacting to the economic pressure of President Trump.  Beijing authorized an atomic elbow via another provocative North Korean missile test. However, their response now empowers the Trump administration to point out the terrible DPRK behavior and simultaneously take a higher diplomatic road.
President Trump, Secretary Tillerson and Secretary Mattis’s “Fire and Fury” approach was essentially a dynamic Win/Win.  By utilizing diplomacy (Tillerson/Haley) while constructing the appearance of military possibility (Mattis/McMaster), while simultaneously President Trump put the BIG geopolitical economic squeeze on China, team U.S.A. created a multidimensional box – and Beijing walked directly into the trap.

Unintentionally, China has now created a diplomatic ‘high-road’ path in response to the DPRK for the Trump administration.  China, seeking to retain position behind the curtain of the DPRK, will not be able to oppose, publicly or in the U.N., any U.S. and allied position now or they run the risk of the entire world seeing their controls over Kim Jong-un.  Notice the strategy in the well coordinated approach today:

President Trump Speaks To PM Shinzo Abe – President Donald J. Trump spoke yesterday with Prime Minister Shinzo Abe of Japan to address North Korea’s launch of a missile that overflew Japanese territory. The two leaders agreed that North Korea poses a grave and growing direct threat to the United States, Japan, and the Republic of Korea, as well as to countries around the world. President Trump and Prime Minister Abe committed to increasing pressure on North Korea, and doing their utmost to convince the international community to do the same. (LINK)

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Beijing (China) is attempting to “trigger” President Trump’s internal neo-con and militaristic opposition. Stay frosty, avoid emotional reports demanding military engagement, and remain steady with a high altitude perspective.
Multiple reports now confirming that North Korea has conducted a missile test. The flight path escalates the issues by crossing over part of Northern Japan. In essence, Beijing China just threw an elbow at President Trump. [The likely “Why” follows breaking report]

TOKYO (Reuters) – North Korea fired a missile that passed over northern Japan early on Tuesday, the Japanese government said. The government’s J-Alert warning system advised people in the area to take precautions, but public broadcaster NHK said there was no sign of damage.
The Japanese military did not attempt to shoot down the missile, which passed over Japanese territory around 6:06 a.m. local time (2106 GMT). (Reuters)

Japanese Prime Minister Shinzo Abe, speaking to reporters in Tokyo after the launch, said the missile appeared to have passed over airspace and that the government was urgently collecting intelligence on the incident and doing everything to ensure the safety of its citizens, according to remarks broadcast on NHK, Bloomberg News reports.
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In 2015 we discussed candidate Trump’s economic positions and how they would impact the economy.  CTH anticipated that MAGAnomics would be reversing three decades of federal reserve fiscal policy. After about a year of analysis and discussion, in 2016 CTH presented a theory: “A new Dimension in Modern Economics“.
CTH shared a possibility of what could happen if Trump Economic Policy was shifted to favor Main Street over Wall Street.  One aspect we presented was how Federal Reserve monetary policy would be oddly disconnected from its ability to influence inflation.
Washington Times today:

(Article Link)

While the issues inherent within economic influences can be riddled with complexity, we remain optimistic that MAGAnomics will be very very successful.
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An interesting press release from Ford Motor Co. operations in the U.K. as they announce financial incentives (additional $2,500) to trade in old vehicles for newer “cleaner” emission vehicles in the U.K.

(Via Fox Business) Ford (F) is offering car buyers in Britain a 2,000-pound ($2,570) incentive to trade in older vehicles for newer, less polluting models.
The offer announced Tuesday is available to new car buyers who trade in vehicles registered before Dec. 31, 2009. The cars will then be taken off the road and scrapped. (read more)

Pay attention to these types of stories within the auto sector.  Watch for these types of “incentives” to cross the Atlantic.  The incentives described here are wrapped around a point of cleaner emissions, ie. “climate friendly” etc.  However, as we have shared the financial branch of the auto sector is in trouble; these incentives appear to be a marketing ploy.
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Recently there has been a great deal of opinion on Chief Economic Advisor to President Trump and his recent critique of President Trump’s comments surrounding the events in Charlottesville, Virginia.  For many people the latest Cohn -vs- Trump scenario is just more proof that President Trump is succumbing to influence/pressure from the wrong side of the ideological spectrum.
This outline is intended to directly speak toward those concerns.  However, to understand the dynamics of Gary Cohn -vs- Donald Trump it is first necessary to understand the perspective of Gary Cohn and President Trump.

Few people have an appropriate understanding of the scale, scope and seismic shift President Trump is delivering to the world of geopolitical financial influence.  A recent comment by someone who appears to understand the dynamic reads thus:

Enjoy this because we will never see this again. You’ll never see your president shift the pendulum the way Donald Trump is. The international market of high-pressure real estate development and financing incorporates every facet of business activity known to humanity and no President we have ever had has been more prepared to do what needs to be done then President Donald J Trump. In addition to trying to right the ship he has to navigate waters filled with landmines and torpedoes and those firing the torpedoes claim to be Americans. God bless this man.  ~ FromSeaToShiningSea

That’s a good a place as any to elevate the discussion, review the historic nature of the participants, and comprehend the dynamics behind: Manhattan -vs- Queens; Global finance -vs- National interests; Wall Street -vs- Main Street; and ultimately Gary Cohn -vs- Donald Trump.
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United States Ambassador to the United Nations, Nikki Haley, recently visited the IAEA (International Atomic Energy Agency) to review the ongoing JCPOA (Joint Comprehensive Plan of Action) as they continue to monitor Iran’s nuclear program.
Ambassador Haley outlined a summary of the IAEA meeting and fielded additional questions about North Korea and Venezuela.  She will be traveling to Washington DC on Monday to brief President Trump and Secretary Tillerson.

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As you might note from her remarks (see below), Ambassador Haley is keenly aware of the uniqueness, and effectiveness, of President Trump’s economic approach toward regional national security issues – specifically as it pertains to the recently announced Venezuela sanctions. Strong concise statements. Strong, short, effective and deliberate answers.
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