There are many new commentators at CTH, and even more new people taking notice of politics for perhaps the first time in their lives. There is also some confusion noticed between two distinct groups who appear to be talking above and around each other. Two groups trying to communicate from two entirely divergent sets of understanding.
Perhaps it is valuable to reset the larger frames of reference and provide clarity.
Many, heck, most people think when they vote for a federal politician -a representative- they are voting for a person who will go to Washington DC and write or enact legislation. This is the old-fashioned “schoolhouse rock” perspective based on decades past.
There is not a single congress person who writes legislation or laws.
In 2017 not a single member of the House of Representatives or Senator writes a law, or puts pen to paper to write out a legislative construct. This simply doesn’t happen.
Over the past several decades a system of constructing legislation has taken over Washington DC that more resembles a business operation than a legislative body. Here’s how it works.
President Trump has a simple economic platform: “Buy American and Hire American“; toward that goal all economic and fiscal policies are now directed to assist U.S. manufacturing companies and retain U.S. workers. Period.
Two days ago Commerce Secretary Wilbur “Wilburine” Ross announced a 20% tariff, countervailing duties, on imported Canadian soft wood lumber. Today, Pleasant River Lumber Co. in Jackman Maine announces their wood mills will now expand as a direct result of the beneficial impacts of even trade practices.
This is a big deal for this community.
MAINE – The Dover-Foxcroft-based Pleasant River Lumber company is expanding its Jackman sawmill in anticipation of increased demand for American lumber amid the U.S. government’s plans to levy tariffs on Canadian softwood.
In a media release Tuesday, Pleasant River Lumber said it is expanding its Moose River spruce mill in Jackman to add drying capacity this summer and hire up to 20 new workers for a second shift starting this fall.
During an AP interview last week President Trump first mentioned a possibility of complete withdrawal from the 25-year-old NAFTA agreement. Today several outlets are reporting on a draft executive action to do just that.
BACKGROUND: One of the problems with the NAFTA trade agreement (and most other trade deals) has been that no administration ever reevaluates them to measure their long-term impact since implementation. It has been almost 25 years since Bill Clinton signed NAFTA (’94) and only now in 2017 is the Commerce Secretary Wilbur Ross evaluating the current value and measuring the economic impact to the U.S. in current terms.
Ah, the simple joys in life. Wilburine Ross interviewed by Lou Dobbs… Sip slowly.
The general status of angst created by ordinary swamp review has a tendency to wear down a soul. It’s at the times when we feel surrounded we should reflect upon how lucky we are to have the T’Rex’s and Wilburines on our team. We’ve already won, our opponents just haven’t noticed yet.
Having spent over 30 years deep in the weeds on the actuarial side of trade and economics, I can guarantee you there’s a generational need to completely reset all frames of reference when it comes to imports, exports, and U.S. trade principles in general.
It is no longer worthwhile even beginning a conversation around the arcane concept of “free trade”, especially when discussing commodities and agricultural trade. The “free market” was structurally disassembled years ago when multinational corporations began using the business end of agriculture to create investment and global profit via Wall Street.
The BIG AGRICULTURE legislative lobbying groups are funded -much like the U.S. CoC- with multinational corporations and multinational investment banks. Agricultural prices, formerly referenced on basic supply and demand principles have been bastardized through global purchases, and contracts therein, of U.S. farm products.
Simple question to understand the dynamic: “If there is such a U.S. glut of raw milk, then why has the 10-year price of milk skyrocketed”? Within the answer to that question you realize the product is not domestic. It is controlled by multinationals, exported under controlled contract, and the domestic price (you pay) driven by global trade not domestic production/consumption (supply and demand).
The inverse (import pricing) is also true. We’ve been getting screwed by the multinational interests of global trade for decades. This is NOT ‘free trade’. The BIG CLUB owns the process (inputs and outcomes) and manipulates the market in their interests, not yours. There simply is no “free market”.
[TRANSCRIPT] – 3:14 P.M. EDT – THE PRESIDENT: Busy day. They had a very busy day — had a good day. We’re doing well, very well. Things are turning around. I know they’re turning around for you folks, so I just want to welcome you very much to the White House — special place — America’s farmers and ranchers.
I especially want to congratulate Secretary — now I can say, Secretary Sonny Perdue, who was just sworn in as the Secretary of Agriculture — (applause) — sworn in by Justice Thomas. And it was a beautiful ceremony, and we’re going to celebrate a little bit later, and that’s great. We’re very happy. And you had a good vote too.
How do you get congress to accept the NAFTA notification of intent letter? Why, you backstop the Canadian decision to undermine U.S. dairy farm exports by applying equity import tariffs and offsetting losses to U.S. manufacturers.
First stop, lumber mills. ie U.S. regional impacts, not coincidentally, represented by key Democrat constituents.
The congressional delegations from Washington State and Oregon happen to be mostly elected Democrats; and they happen to applaud the efforts; which means they are not able to criticize the approach. Hmm, it’s almost as if Wilburine and POTUS had a strategy or something. Nah, couldn’t be.
(Via CNN) These are the first tariffs imposed by President Trump, who during his election campaign threatened to use them on imports from both China and Mexico. The decision on Monday is bound to lead to a standoff and could stoke fears of a trade war between the US and Canada, two of the world’s largest trade powers.
Commerce Secretary Wilbur Ross said the tariffs, or taxes, announced Monday evening were being imposed after trade talks on dairy products fell through.
Sometimes geo-politics can be funny and deserve a little snark in discussion. The International Monetary Fund (IMF), and World Bank, are holding a conference in DC. this weekend. Deplorable Secretary Mnuchin represents U.S. and Trump interests.
Amid the earlier G20 Summit the Trump effect ended up with changed language from the finance leadership. Titan Trump’s election changed the way the IMF and World Bank globalists talk about international trade. Bi-lateral and nationalism are no longer dirty words.
WASHINGTON (Reuters) – International Monetary Fund members on Saturday dropped a pledge to fight protectionism amid a split over trade policy and turned their attention to another looming threat to global economic integration: the first round of France’s presidential election. (more)
However, funnier still is the resurfacing of a familiar face. You might well remember former Mexican Finance Minister Augustin Carstens resigned as Mexico’s central bank chief just after the election of Donald Trump. Well, apparently, the job of saving face for the changed approach of the IMF/World Bank is now squarely on Carsten’s shoulders.
Office of Management and Budget Director Mick Mulvaney appears on Bloomberg News to discuss the seismic, epic, thundershock confrontational clash that is about to take place between the Trump administration and the DC UniParty.
There are no adjectives capable of describing the scope and immeasurable scale of the battle that is about to transpire between the White House and the Democrat/Republican UniParty.
MONEY is where every entity within the full-swamp goes nuclear against President Trump and the administration. Despite all prior discussions toward this end, it is doubtful that more than one-in-a-million people can fully grasp the dynamic at play.
Because the procedural wonk is so inherently riddled with ten thousand tentacles of political schematics, I will defray the wonk-speak until after the video.
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If you are interested in deep political weeds, keep reading. However, if you have blood pressure issues or are concerned about your physical or mental health, STOP HERE and go enjoy life. Believe me.
Noting President Trump’s Asian Strategy. [High Profile, but Under-reported] •A firm open hand •leveraging new policy •structured around personal trust •building modern alliances:
♦February 10th – President Trump hosted Japanese Prime Minister Abe at the White House and at Mar-a-Lago, w/both spouses, to discuss regional issues (including N-Korea).
♦February 27th – President Trump and Chinese State Councilor Yang Jiechi meet in the White House Oval Office to discuss regional issues (including N-Korea).
♦March 15th – Secretary of State Rex Tillerson visits Japan, South Korea and China to follow up on February’s conversations and discuss the forward path (including N-Korea).
♦April 6th and 7th – President Trump hosts Chinese President Xi Jinping in Mar-a-Lago where they discussed all of the critical bilateral and regional issues (including N-Korea).
♦April 15th – Vice President Pence arrives in Asia for a ten day visit; positioned as the steady, stable and reliable administration policy closer (including N-Korea).
The White House (Trump) approach and results so far have been stunningly effective.
There have been more consequential Asia-Pacific/U.S. results (trade, economics and security) in the past two months than in the prior ten years. The stunningly successful and deliberate strategy continues today with Vice President Mike Pence in Japan.
Perhaps it’s because the complexity is difficult to distill; maybe it’s because some just can’t give President Trump any credit; or perhaps it’s because the scope is too challenging to comprehend against the constant belittlement meme du jour. Regardless of reason, President Trump is fundamentally realigning international geo-political alliances and almost no-one is connecting the dots.
President Trump obviously held a long-ball strategy with the Chinese; he’s described the approach in his books and lived the approach in his business life:
At the outset, position yourself at the furthest oppositional point when it costs you nothing; then leverage inward toward your opponent as they expend their resources to meet your stance.
Almost no-one is noting the scope of what President Trump has accomplished simply by positioning himself at the furthest extreme from the best interests of China, and then working his leverage back toward dual-interests as the Chinese expend capital to meet the point of mutual benefit.
President Trump has expended nothing other than his sheer will, and yet he has leveraged gains that are jaw-droppingly consequential.
♦ What’s the goal of identifying China as a currency manipulator? To stop China from manipulating currency, right? Well, arm-chair opposition says President Trump has reversed his position simply by ‘not doing something’. However, that opposition doesn’t seem to acknowledge the end-goal of the labeling has been achieved without expending an effort. The doing is unnecessary when merely the threat of the doing changes the behavior of the doer.
In two days, April 6th and April 7th, President Trump met with Chinese President Xi Jinping. What actions has President Trump taken, other than ‘not’ doing something, and what actions has President Xi Jinping taken? (more…)
Many, heck, most people think when they vote for a federal politician -a representative- they are voting for a person who will go to Washington DC and write or enact legislation. This is the old-fashioned “schoolhouse rock” perspective based on decades past.
