Whooo-doggies, middle-class Americans spent more this holiday shopping season than any year before it.  Despite losing a week due to the late Thanksgiving holiday, total Christmas sales growth was +3.4 percent year-over-year.

(Reuters) […] The holiday shopping season is a crucial period for retailers and can account for up to 40% of annual sales. But this year, Thanksgiving, which traditionally starts the U.S. holiday shopping period, was on Nov. 28, nearly a week later than last year’s Nov. 22, leaving retailers with six fewer days to drive sales between Thanksgiving and Christmas.
E-commerce sales this year made up 14.6% of total retail and rose 18.8% from the 2018 period, according to Mastercard’s data tracking retail sales from Nov. 1 through Christmas Eve. Overall holiday retail sales, excluding autos, rose 3.4%.
“E-commerce sales hit a record high this year with more people doing their holiday shopping online,” said Steve Sadove, senior adviser for Mastercard.

Now watch the Reuters spin…
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Donald J Trump was the only candidate in 2016 who knew how to use China’s panda playbook against them.  Thus, when you plant your tree in another man’s orchard, don’t be surprised when he charges you to harvest your own apples…

BEIJING (Reuters) – China will lower import tariffs on over 850 products from Jan. 1, including frozen pork and frozen avocado, the finance ministry said.
It will also further lower import tariffs on some information technology products from July 1 next year, said the ministry, in a statement on its website. (link)

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As expected the House of Representatives has passed the USMCA trade agreement with an overwhelming 385 to 41 vote.  Pelosi’s political objective was to use USMCA to water down the toxic political environment created by her impeachment fiasco:

Also as expected, after passing the USMCA the House went into immediate recess for the Christmas holiday without any movement on the fraudulent impeachment articles.
In the time-frame between today and the return to the next congressional session in January, House lawyers will attempt to use the passage of the articles to support their background court cases: (1) McGahn forced deposition; (2) access to Mueller 6(e) grand jury information; and (3) possible access to Trump family financial records.
[PREDICTION for bookmark: Upon return in January Speaker Pelosi will refuse to allow impeached President Trump to deliver a State of the Union address in the House.]
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Great interview with United States Trade Representative Robert Lighthizer as he described the goals, objectives and outcomes of the USMCA and U.S-China Phase One agreements.
While answering a question about Wall St. journal criticism of the USMCA, Lighthizer discussed the dynamic of Wall Street -vs- Main Street as part of the bigger picture objective in the revised deal. He avoids the words “globalism” -vs- “nationalism” but the sentiment as described is there.
On China Lighthizer emphasizes the “phase one” deal is really a test to see if it is even possible to have an enforceable trade agreement between a communist state-run economy (China) and a free-market economy (U.S).

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At the same time Beijing is reportedly promising internal reforms to retain access to a vital and necessary U.S. market for Chinese goods, Beijing is threatening Germany if they block Huawei technology from their 5G network China will announce German autos are unsafe for import…. Chancellor Angela Merkel is in a pickle.

According to Bloomberg analysis, German automakers sold approximately seven million cars to China in 2018.  The Chinese Ambassador to Germany said this weekend: ” “If Germany were to take a decision that leads to Huawei’s exclusion from the German market, there will be consequences. The Chinese government will not stand idly by.”

(SCMP) […] The Chinese ambassador in Berlin has stirred up a fresh controversy over the tech giant Huawei after he threatened “consequences” if it was excluded from Germany.

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National Economic Council Chairman Larry Kudlow appears on Fox News for a discussion of the status of the U.S. economy, the USMCA and the U.S-China trade agreement.
The Wall Street GOPe, positioned primarily in the senate, are preparing to punish the administration for their restructuring of global trade against the backdrop of the senate influence over impeachment.

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USTR Robert Lighthizer made a rare appearance in the media to discuss the “big picture”, and some specifics, around the U.S-China phase-one agreement.
Ambassador Lighthizer notes the principle challenge is generating an enforceable set of standards -within a written agreement- between a totally controlled communist economic system (China) and a free-market system (USA).  No other nation has ever tried, and there is no preexisting trade agreement to facilitate a mapping.  What Lighthizer is constructing will be what all nations will start to use going forward.  This is historic stuff.
Arguably, next to President Trump, USTR Lighthizer is one of the most consequential members of the administration. What he is constructing, with the guidance of President Trump, is going to influence generations of Americans.

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[Transcript] MARGARET BRENNAN: This week, the U.S. and China agreed on the first phase of a trade deal that would roll back some American tariffs. It’s expected to be signed in early January. We’re joined now by the U.S. Trade Representative, Robert Lighthizer, the top negotiator in those talks with Chinese officials. Good to have you here.
U.S. TRADE REPRESENTATIVE ROBERT LIGHTHIZER: Thank you for having me, MARGARET.
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Interesting:  Tuesday budget vote. Wednesday Impeachment vote. Thursday USMCA vote.
National Economic Council Chairman Larry Kudlow appears with Maria Bartiromo to discuss the ratification of the USMCA and the U.S-China “phase one” trade deal.

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USTR Lighthizer appeared on CBS to discuss the China agreement, he goes into more detail. That conversation is coming next.
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U.S. Trade Representative Robert Lighthizer has released a two-page summary fact sheet [pdf link here] outlining the “Phase-One” agreement in principal.  From research into the material the principal agreement appears to be an 86-page document covering nine chapters.  The fact sheet covers the top lines of seven chapters:

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It is exactly as we thought it would be.  There are multiple interests, nuances in details, a completely overlooked big picture, and the financial pundits are flummoxed.
CTH has followed the granular details over several years. In advance of a “phase one” announcement we noted a necessary paradigm shift needed to understand most of the dynamics at play [SEE HERE]. It is all going according to a very visible plan.  President Trump tweets:

China has agreed to a $40 billion agricultural purchase from the U.S.  In exchange for that purchase President Trump will be maintaining the full 25 percent tariffs on approximately $250 billion of Chinese imports and reducing to 7.5 percent the tariffs on approximately $120 billion of Chinese imports (round two).  [Those were 15% prior to reduction]
The net difference (dropping 15% to 7.5%) is around $9 billion in tariff relief.  Additionally, the U.S. is “suspending” the December 15th tariffs pending compliance verification with the non-tariff issues and China pledges.
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