Asian policy specialist Gordon Chang interviewed by Maria Bartiromo on her Sunday talk show and accurately outlines the key to a denuclearized North Korea is an economically defeated China.  It appears Mr. Chang fully understands the Trump policy of using economics to achieve national security.
As we have continued to outline, China, specifically the old guard communist control agents within Beijing, use Kim Jong-un as a foil against the west, specifically against the United States.  The long-term objective in using the DPRK is retention of China’s economic strategy, and blockage of President Trump from upending their goals.  Watch:

President Trump uses economic leverage as a national security policy; and to understand who opposes President Trump specifically because of the economic leverage he creates, it becomes important to understand the objectives of the global and financial elite who run and operate the institutions.  The Big Club.
Understanding how trillions of trade dollars influence geopolitical policy we begin to understand the three-decade global financial construct they seek to protect.
That is: global financial exploitation of national markets:

♦Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.
♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.

♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).
♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

Against the backdrop of President Trump confronting China (tomorrow), and against the backdrop of NAFTA being renegotiated starting Wednesday, revisiting the economic influences within the import/export dynamic will help conceptualize the issues at the heart of the matter.  There are a myriad of interests within each trade sector that make specific explanation very challenging; however, here’s the basic outline.
For three decades economic “globalism” has advanced, quickly. Everyone accepts this statement, yet few actually stop to ask who and what are behind this – and why?
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The right-side of the DC UniParty are exploiting the opportunity to undermine President Trump through heavy use of the “weak Charlottesville response” attack narrative.
Against the background of NAFTA renegotiation (beginning Wednesday), and with a trade confrontation with China imminent (Tomorrow), the U.S. Chamber of Commerce is seizing on this opportunity to dispatch all of their paid operatives to destroy the threat to multinational corporatism and globalist economic expansion, U.S. President Trump.
It’s the perfect anti-Trump storm formation, with a motive oblivious to the U.S electorate because the media have not discussed any of the trade aspects to President Trump’s economic national security agenda.  The big business lobby, Tom Donohue, multinational corporations and their paid advocates have free reign to attack Trump.
Enter Karl Rove:

There have been multiple media reports in the last six hours that President Trump is going to announce trade investigation/sanctions against China during a press conference scheduled for Monday.
It makes sense the previously postponed 301 trade investigation against China for violations of intellectual property rights might be announced.

Section 301 of the Trade Act of 1974 provides the United States with the authority to enforce trade agreements, resolve trade disputes, and open foreign markets to U.S. goods and services. It is the principal statutory authority under which the United States may impose trade sanctions on foreign countries that either violate trade agreements or engage in other unfair trade practices. When negotiations to remove the offending trade practice fail, the United States may take action to raise import duties on the foreign country’s products as a means to rebalance lost concessions. (LINK)

However, a note of caution. Substantive trade negotiations, the kind which involve economics and national security, are always fluid and subject to pause, postponement or changes in direction based on compliance – or expressions of a willingness to comply.
Remember, this is Trump.  Looking out for U.S. economic interests is the baseline for trade “leverage”, a tactic and skill uniquely evident in this administration’s trade team.  Section 301 is a tool, actually a massive atomic sledgehammer, to force compliance.
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It must be weird for the ordinary person around the world to view U.S. politics through the prism of the American MSM lügenpresse.  We’re often left wondering if international observers realize how much deception and fraud exists in media broadcasts of President Trump.
However, that said, a few days ago CTH predicted via twitter that Friday would bring a “breaking news” revelation that President Trump’s administration had been in ongoing negotiations with North Korea.  Today, exactly that happened.

(Via ABC) Despite the bombastic rhetoric exchanged between North Korean and American leaders this week, the Trump administration has been quietly engaged in back-channel diplomacy with North Korea for several months, according to a source familiar with the negotiations.
The ongoing talks, which were first reported by The Associated Press, included discussions about U.S.-North Korean relations and Americans imprisoned in North Korea, the source said.

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The totalitarian left is beginning to rise up in defense of North Korea.  Partly they are doing this because they are ideologically aligned with a similar totalitarian world view of order that they alone demand to be in control; the globalist view.  However, they do this also as an outcropping of the economics – a generational defense of China.
President Trump will never take first-strike action against North Korea; it’s not his approach.  Instead Trump prefers to take on the economic side of the conflict and he is more than willing to wage thermonuclear economic war against the DPRK’s enabler, communist China.
Remember, e.v.e.r.y enterprising nuclear power needs nuclear allies to protect them during the end-stages of their accomplishment.  History has a perfect track record on this dynamic. It has always been thus…. Always.

To wit, and taking the bait to expose her ideological world-view, German Chancellor Angela Merkel rises up to defend Kim Jong-un from possible military action.

GERMANY – German Chancellor Angela Merkel warned on Friday against “the escalation of rhetoric” in the wake of rising tensions between the U.S. and North Korea, adding that she didn’t see a military solution to the issue.

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Zogby Analytics is out with a new survey of 1,300 “Likely Voters” and shows President Trump’s approval numbers are climbing and now around 45%.  However, the interesting aspect of the survey is the groups showing the highest gains in approval.
It won’t surprise you to discover the strongest gains in support for President Trump can be found amid the middle-class and working population of the U.S.  Those who are benefiting the most from Trump’s America-First Main Street economic policy are the constituent group with the largest gains in support.
Highlights:

♦Trump’s approval numbers have moved up slightly, especially among his base and a few other sub-groups not known for their support of the president.

♦When it comes to party, President Trump’s numbers are steady among Republican likely voters; he has a 76% approval/22% disapproval rating among Republicans, which is almost identical from our July poll. Among Independents, Trumps numbers have improved nearly seven points to 40% approval/50% disapproval. The president’s numbers are still down among Independents from a few months ago.

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The PPI is the Producer Price Index.  The CPI is the Consumer Price Index.  The PPI reflects the price product producers are getting for their goods and services.  The CPI reflects the price consumers are paying for their goods and services.  They generally run together as lower production prices usually mean lower consumer prices.
Here again today, the fed is perplexed.  With a growing economy, and with labor market tightening, the people who control the monetary policy have continued to anticipate inflation, rises in the PPI and CPI.  However, as we have outlined, it’s not happening.
It’s a little wonky, but basically prices are NOT going up.  The Fed is perplexed.  We predicted this:

[…] The Labor Department said its producer price index for final demand slipped 0.1 percent last month, weighed by decreasing costs for services. That was the largest decline since August 2016 and reversed June’s 0.1 percent gain.
In the 12 months through July, the PPI increased 1.9 percent after rising 2.0 percent in the year through June. Economists had forecast the PPI to tick up 0.1 percent last month and 2.2 percent from a year ago. (read more)

Neither the PPI nor the CPI measure changes in food or energy costs.  Those high consumption sectors have always been removed from Fed measures.
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Well, many of us were waiting for this – and we have discovered exactly what most CTH readers anticipated, China is a paper tiger.
Last night China finally delivered the official communist government position outlining their perceived leverage over the U.S. and President Trump’s economic diplomacy and economic security platform.
China has always used The Global Times to communicate their official communist state positions.  Last night China delivered their warning; oh, you’re gonna love this:

“US needs correct logic in dealing with North Korea”.

[…] The US asks China for help when it cannot solve its problems with North Korea. Some US elites even want to urge China to claim full responsibility for the issue or they will threaten to retaliate. Under this logic, isn’t it reasonable for North Korea to attack its southern neighbor when it is under military threat from the US?
Moreover, those US elites may not have considered the leverage China has over the US. What if China restricts the usage of iPhones and the number of Chinese students to the US, or imports fewer US agricultural products? (link for more)

Now, it is critical to emphasize this is the official outlook of the Chinese Communist regime and what they perceive as their leverage over the United States.  This is the official outlook of the party apparatus behind Xi Jinping.
So let’s look at their position in sequence.
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Secretary of State Rex Tillerson has been engaged with Southeast Asian nations for the past five days during his trip to the ASEAN conference.  The issues surrounding North Korea took up most of the dialogue.  En route to Guam Secretary T-Rex holds a brief press conference aboard Air Force 2: