There is a notable intent to talk down the economy amid almost all financial news providers.  However, despite their negative tone the economic reality continues to surpass their Eeyore disposition.
October’s U.S. housing starts jumped +13.7% to 1.29 million units and now begins to catch up with the underlying economic data.
You’ll note CTH discussed how housing would be regionally specific as the larger Main Street MAGAnomic policies were implemented.
Capital expenditures by home builders and home purchasers are the biggest financial decisions for most American workers.
Due to the deliberate factors involved, home purchasing is the largest railroad car in the economic train; it is also positioned in the rear of the economic sequencing.  However, when home building takes off the entire economic train gains momentum.

(Via Reuters) […] The sharp rebound in home construction reported by the Commerce Department on Friday was also driven by robust gains in the Northeast and Midwest regions.
The broad recovery could ease concerns about the housing market, which has been a drag on economic growth since the second quarter. The report added to labor market, manufacturing and retail sales data that have pointed to strong economic momentum as the year winds down.

(more…)

There are many people taking notice of modern politics for the first time in their lives. There is also some confusion noticed between two groups who talk above and around each other. Two groups communicating from two entirely different 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 right now.
(more…)

Multinational corporations and foreign governments spend hundreds of millions in Washington DC lobbying House and Senate politicians to retain trade positions.  It’s generally a legal bribery business where congressional representatives get rich by selling their votes to corporations and foreign governments.
Most of you already know the game: It’s a big club, and we -the working class- ain’t in it.
Fortunately for us, President Trump won the election without funding from the big corporations and lobbyists within the U.S. political system.  As such they cannot influence Trump’s decisions on economic policy matters and trade; and President Trump rarely invites them into the White House for policy meetings.
Specifically because the lobbyists don’t have access to the White House they rely on their purchased politicians in the House and Senate to influence the administration.

The multinational corporations and multinational banks are against the U.S. removing ourselves from multilateral trade agreements.  Those institutions rely on being able to manipulate the U.S. consumer market – EXPLAINED HERE.  The biggest influence agent, and by far the biggest lobbyist spender, is Tom Donohue, President of the U.S. Chamber of Commerce, who represents the interests of the multinational corporations and Wall St.
So when you see these letters, knowing they are written by K-Street and transcribed onto legislative letterhead by political staffers, all you need to do is look at the signatures of the politicians and you can quickly identify who has been purchased by Tom Donohue:
(more…)

No-where is Trump Derangement Syndrome more evident than in the position of activist Democrats now swearing allegiance to multinational trade deals.
It was only a short time ago when Democrat activists and liberal politicians demanded U.S. withdrawal from TPP and openly discussed how NAFTA was disastrous for the U.S. worker. Both Bernie Sanders and Hillary Clinton ran on pulling out of TPP etc.
Trump gets elected, actually fulfills a campaign promise and promptly pulls-out of TPP subsequently beginning to renegotiate NAFTA (with leveraged threats to withdraw); and suddenly, Democrats are joining arm-in-arm with corporate Republicans expressing their profound love for multinational trade deals. Go figure.

Round #5 of NAFTA renegotiation begins today in Mexico, absent any diplomatic trade ministers, and Canada announces their intent to use their access to congress as leverage over the executive branch in an attempt to work around President Trump:

OTTAWA (Reuters) – Canada will redouble its lobbying efforts in Congress to block any Trump administration move to pull the United States out of NAFTA, sources familiar with government strategy said, as talks to modernize the treaty run into trouble.
[…] Canadian officials say there is some considerable doubt as to whether Trump could pull out of NAFTA without approval from Congress, which makes lobbying its members so important.

(more…)

Chairman Xi is sending his CPC special envoy, Song Tao, to North Korea.

Song Tao, special envoy of General Secretary of the Communist Party of China (CPC) Central Committee Xi Jinping, will leave for the Democratic People’s Republic of Korea (DPRK) on Friday.  (Story Here)

This is President/Chairman Xi Jinping, now fully empowered by the communist party in Beijing, sending the party apparatus to talk to Kim Jong-un.  Previously these instructions would have come from Beijing’s old guard.  However, Chairman Xi now commands all power over the communist government; he doesn’t need their approval any longer.
(more…)

CTH has a strong sense that when the final analysis on Venezuela’s ongoing socialist struggle is written, some years from now, the geopolitical strategy used by the Trump administration will be taught in political science classes. [Backstory Here]
As a result of horrific socialist policies, primarily driven by using oil production to maintain it’s socialist governance, Venezuela is under massive debt and desperate for cash.  The United States was one of the few remaining cash purchasers of Venezuela oil before U.S. Secretary of Treasury  Mnuchin imposed sanctions.
Previously China and Russia purchased Maduro’s oil, however their current purchases are/were all made as offsets, repayments, for prior loans.  China and Russia already own 49% of Venezuela’s state oil company PDVSA. Venezuela repays China and Russia with oil, but Venezuela needs cash revenue. It doesn’t generate additional revenue for Maduro if China and Russia purchase more oil, it only pays down the Venezuelan debt.
Venezuela needs money.  However, if anyone engages in restructured debt or further loans or bond holdings to Maduro they run the risk of running afoul of Secretary Mnuchin’s sanctions which could have a downstream effect of freezing their own banks and international financial systems from engagement with U.S. banks.
(more…)

President Trump, together with Team USA, attend the 31st summit of the Association of South-East Asian Nations (ASEAN) today.  Paying close attention to who Trump is meeting with, along with the specific length of time allocated to each of the bilateral exchanges, helps to measure the value of each participant in the larger economic strategy.

In the morning (Manilla local time – 8pm U.S. Eastern), President Donald J. Trump will participate in a photo opportunity with President Rodrigo Duterte of the Philippines. The President will then participate in a welcome ceremony for the 31st ASEAN Summit.
Later in the morning, the President will participate in a bilateral meeting with Prime Minister Malcom Turnbull of Australia, followed by a bilateral meeting with President Duterte. In the afternoon, the President will attend the 5th U.S.-ASEAN Summit which commemorates the 40th anniversary of U.S.-ASEAN relations.
Later in the afternoon, the President will participate in a bilateral meeting with Prime Minister Narendra Modi of India followed by an embassy meet and greet.
Schedule below:
(more…)

Those who have walked in the deep weeds of geopolitical strategy know the emphasis the Trump administration has placed on ASEAN (Association of South-East Asian Nations) as a counter-balance (control leverage) to the Chinese trade and military expansion.
The ongoing trade and security relationship between the U.S. and India, as well as other regional partners, is a large part of the overarching dynamic.  The ASEAN Summit in Manilla Philippines is an opportunity for President Trump to expand the conversations; enter into deeper discussions surrounding the terms of partnership; and deepen commitments toward larger U.S. international objectives.

.
The ASEAN (Association of Southeast Asian Nations) region including India, comprises a combined population of 1.85 billion people, one-fourth of the global population. From the perspective of India – “Prime Minister Modi is likely to reassert India’s push to create a global approach to deal with terrorism. He will also pitch steps to boost regional trade. One of the more significant meetings will be Prime Minister Narendra Modi’s meeting with US President Donald Trump.”
(more…)

At 10:20am (local) / 10:20pm (U.S. EST) President Trump and President Quang will be holding a joint press conference from the Presidential Palace, Hanoi, Vietnam.
UPDATE: Video Added

.
President Trump pushed back against the ridiculous questions about Russian election conspiracy and knocks the nonsense out of the ballpark. GREAT ANSWER (Video Segment Below)
(more…)

Just love this guy. Remember to teach your kids, grand-kids, family etc. about the unknown wolverine, the third musketeer, United States Trade Rep. Robert Lighthizer.

Da Nang, Vietnam – United States Trade Representative Robert Lighthizer today released the following statement in response to President Trump’s speech on trade between the United States and the Indo-Pacific region, at the Asia Pacific Economic Cooperation (APEC) CEO Summit (emphasis mine):

“The President spoke loud and clear: the era of trade compromised by massive state intervention, subsidies, closed markets and mercantilism is ending. Free, fair and reciprocal trade that leads to market outcomes and greater prosperity is on the horizon.
“President Trump understands that too many nations talk about free trade abroad, only to shield their economies behind tariff and non-tariff barriers at home. The United States will no longer allow these actions to continue, and we are willing to use our economic leverage to pursue truly fair and balanced trade.
“I look forward to doing as the President instructed me and to pursue policies that will improve the lives of our workers, farmers and ranchers.” (link)

(more…)