PHASE II – President Trump tweeted earlier today about the ongoing geopolitical contest that is priority #1 in defending U.S. interests and retaining our economic strength.
Do not be surprised if North Korea launches another provocative missile test soon. Watch China, not N.Korea. It’s Chairman Xi’s people in the DPRK who are taking action. Kim Jong-Un is an expendable proxy regime. The war is the U.S. -vs- China trade and economic confrontation. North Korea is the Potemkin backdrop for the Beijing puppeteer.

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As POTUS Trump and the U.S. trade team target ever increasing tariff pressure upon Beijing to change their behavior, keep a close eye on North Korea. Given the zero-sum approach of the Chinese; and their history of weaponizing the DPRK; we could expect to see Beijing roll out nuclear antagonism again in an overt effort to gain concessions.
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President Trump has moved into Phase II of the U.S./China confrontation.  Part of that confrontation is to use the inherent weakness of the Chinese economy against them.  To understand the weakness is to understand the China ‘One-Belt / ‘One-World‘ economic trade strategy.  Here’s an outline of the economic battle-space we are witnessing.
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 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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In June and July last year it became obvious President Trump was going to initiate a full-frontal geopolitical confrontation with China based on their ambitions for economic conquest.  We labeled the confrontation: Eagle -vs- Red Dragon.
Specifically around: intellectual property theft; massive U.S. trade imbalances; imposed tariffs, and ridiculous non-tariff barriers put in place by China, we anticipated the conflict would eventually force Beijing to drop the Panda mask and expose their economic intentions.  Additionally there was clarity within President Trump’s approach for any observer who was willing to accept the history of Mr. Trump’s views on the larger issues. In short, POTUS Trump will not back down.
In March of 2018 U.S. Trade Representative Robert Lighthizer completed a section 301 review of China’s trade practices.  [SEE HERE] Section 301 of the U.S. Trade Act of 1974 authorizes the President to take all appropriate action, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S. commerce.  However, as talks with China progressed, President Trump shelved the 301 action to see where negotiations would end-up.
Due to the severity of communist ideology, and the intransigence of China to make any modification to their global economic plans, Chairman Xi Jinping made the strategic decision to elevate the confrontation in full Red Dragon mode.  The May and June, 2018, negotiations between the U.S. and China provided no progress.  The 301 review of China is now pulled back off the shelf, and President Trump assembles his trade-war strategy:
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The White House has announced an unanticipated joint press statement/availability between President Trump and EU President Jean Claude Juncker to be held at approximately 4:00pm EST in the Rose Garden.
Apparently the EU has agreed to President Trump’s terms on lowering industrial tariffs to enhance U.S. trade opportunities; lower non-tariff barriers to increase agricultural trade, and committed to increased import of LNG (liquid natural gas) to offset Russian energy dependence.  THIS is a developing story….
UPDATE: Video Added

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Against the backdrop of U.S. withdrawing from the ill-fated Iran nuclear deal (JCPOA); and against the backdrop of looming U.S. sanctions therein; there has been an ongoing geopolitical simmering/positioning between allies and adversaries surrounding the current and future disposition of Iran.
Recently China, likely responding to economic trade leverage from the U.S., made a deal with Saudi Arabia for petroleum purchases weakening their alliance with Iran.  At the same time Turkey, a tenuous NATO ally, began positioning in advance of U.S. sanctions and removing Iran oil purchases.  Collectively, and with President Trump putting pressure on Russian President Vladimir Putin via Syria and Iranian influence, this has led to Iran feeling an economic squeeze similar to the previous Trump Doctrine leverage as witnessed in N-Korea.
Iranian President Hassan Rouhani is feeling the heat.  On Sunday he said “war with Iran is the mother of all wars.” That led to the tweet reply from President Donald Trump:

This follows on the immediate heels of a speech given by Secretary of State Mike Pompeo yesterday at the Ronald Reagan Presidential Foundation and Library in Simi Valley, CA.
There is a clearly coordinated and unified message:
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Amid ongoing maneuvers by China and Russia to influence the activity of North Korea; and amid both Chinese and Russian interests in violating ongoing trade and economic sanctions against North Korea; Secretary of State Mike Pompeo and U.N. Ambassador Nikki Haley meet with the U.N. Security Council.

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[Transcript] SECRETARY POMPEO: Good afternoon, everyone. First I want to commend my good friend Ambassador Haley and her excellent team here at the United Nations. Her leadership in advancing American interest on North Korea and many other issues has been evident here this morning, and she’s got a great team behind her helping. So thank you, Nikki.
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President Trump hosts a cabinet meeting after returning from the NATO summit, U.K. visit and Helsinki meeting with Russian President Vladimir Putin.   The overall emphasis was on the U.S. economy, employment, job-training and the larger goal of leveraging economic strength to advance American interests.
The administration kept the cameras rolling as key cabinet members and White House officials discussed ongoing initiatives with a heavy emphasis on workforce development. If you want an idea of the massive scale and scope of Trump’s MAGAnomic initiatives for American workers, watch this video in its entirety.

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Labor Secretary Acosta discussed an ongoing workforce development initiative for providing job skills and apprenticeship programs for former prisoners/inmates.
Commerce Secretary Wilbur Ross discusses the expanded investment into the U.S., massive employment opportunity for skilled workers, and the importance of continuing to develop a skilled labor pool.
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President Trump begins the day with a breakfast with the President of the host nation Finland.

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[Transcript] – Mntyniemi Residence – Helsinki, Finland – 9:54 A.M. EST
PRESIDENT NIINIST: Mr. President, ladies, gentlemen, it’s great to have you here.
PRESIDENT TRUMP: Thank you.
PRESIDENT NIINIST: — you are most welcome. We have done our utmost so that your visit and your negotiations here would be successful. And, like we see, even the sun is with us, although it begins to be far too warm, even here in the North.
But, once again, warm welcome. And we wish all the success in your meetings and negotiations with President Putin.
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President Trump and First Lady Melania Trump participate in the NATO Belgium welcoming ceremony.  Anticipated start time 1:10pm EST
UPDATE: Video Added

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Oh snap.  Brilliant, simply brilliant.  President Trump keeps the cameras rolling during a breakfast with NATO Secretary General Jens Stoltenberg; and absolutely crushes the NATO position on needing money to defend against Russia when NATO -specifically Germany- is funding Russian expansion financially through energy development, and simultaneously asking the U.S. for money to defend against Russia.
Secretary of State Mike Pompeo looks like he is half going to break out laughing, and half saying to himself: oh, it’s on..

Stoltenberg: […] I think that two World Wars and the Cold War taught us that we are stronger together than apart.
Trump: But how can you be together when a country is getting its energy from the person you want protection against or from the group that you want protection?
Stoltenberg: Because we understand that when we stand together, also in dealing with Russia, we are stronger. I think what we have seen is that —
Trump: No, you’re just making Russia richer. You’re not dealing with Russia. You’re making Russia richer.

This is a MUST WATCH:

Transcript – AT BILATERAL BREAKFAST – Chief of Mission Residence – Brussels, Belgium – 9:13 A.M. CEST – PRESIDENT TRUMP: Good morning, everybody. Good morning to the media — the legitimate media and the fake-news media. Good morning to them. A lot of good people here. Surprising.
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