National Security Adviser HR McMaster appears on NBC ‘Meet the Press’ with Chuck Todd to discuss issues surrounding North Korea.   However, Todd predictably uses the first half of the interview to discuss the “Charlottesville Trump-is-racist narrative”, and then, rather sneakily, shifts the discussion into the “alt-right” -vs- McMaster angle.
Chuck Todd uses the “Bannon-wing talking points” and “allies within the White House” to draw out a division within the administration.  It’s obvious the MSM are ‘all-in’ on the strategy to highlight the division.  The second half of the interview finally focuses on North Korea.
At 08:06 the China as an economic enabler to DPRK comes in. Watch how HR McMaster responds on the economics of the North Korean issue.

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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:

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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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Holding the second impromptu press conference of the day, President Trump, Secretary of State Tillerson, U.N. Ambassador Nikki Haley and National Security Adviser HR McMaster delivered remarks following their national security meeting discussing North Korea and global issues.
Speaking clearly, on point and entirely extemporaneously, President Trump and Secretary Tillerson answered questions on a variety of issues. WATCH:

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President Trump is drowning the MSM in news. The media are aging before our eyes. Good stuff.
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Serial fibber Brian Williams leads his interview segment with a moment of honesty.  During his introduction to a panel segment he leads with the set-up: “tonight our job is to scare you”. WATCH:

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Seriously folks, CTH readers, MAGA supporters, and those who travel the deep weeds of politics and have followed Donald Trump can spot the strategy he is deploying.  The strategy is all about economics and leverage.  The media will NEVER discuss it, because they need to act willfully blind to it and use fear as a weapon.
The media is simply taking advantage of “fear” to position yet another anti-Trump narrative. However, all of their hyperbolic analysis of the North Korea situation takes on new understanding when idiots like Williams let it slip that their job is to “scare people to death on this subject.” He makes it clear their goal is to drive down the public’s trust in the President to handle this threat.
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Speaking from Bedminster New Jersey, President Trump answers questions from media surrounding the ongoing issue with North Korea, and the intransigent republican Senate Majority Leader Mitch McConnell and his inability to move legislation.

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It’s always about the economic folks.  President Trump is the first U.S. president to fully appreciate, and utilize, economic leverage to achieve U.S. national security objectives.

…”If China helps us with North Korea I will feel a little differently about trade”…

~President Donald Trump

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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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As you know CTH takes a different approach at significant world events. We try to share the untold stories as they shake out, in real time, in granular details not noted by the MSM.  We discuss the stuff on the way to the destination.  That way when we arrive at a ‘way point’ we have a historic reference, a back-story, to comprehend consequential headlines when they happen.
With that in mind, here’s another non-discussed granular detail, spotted recently, building toward a much more significant geopolitical outcome, vis-a-vis Russia.
You might remember on August 4th President Trump and French President Emmanuel had a phone call.  The outline of the phone conversation is HERE, but there was no real reason for them to be chatting…. or was there?
Western media has paid virtually no attention to how Trump’s big picture economic policy enmeshes and bolsters his national security policy.
Quite literally, and I really want to emphasize this, Secretary Mnuchin (Treasury) and Secretary Ross (Commerce) are just as important as Secretary Mattis (Defense) and Secretary Tillerson (State).
Stop and think about that for a minute.
When President Trump went to Saudi Arabia for the Arab Security Summit the two most visibly active cabinet members were Mnuchin and Ross.  When has a Treasury Secretary and Commerce Secretary ever had as much importance during world security events?
Think about it.
Who was Obama’s Commerce Secretary during Iran negotiations?
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– “Walking in a Winner Wonderland” –

Two years ago CTH began discussing the ramifications to a new emphasis on the economy outlined as a possibility of candidate Donald Trump’s economic policy outlook. Within the overall discussion we walked through the anticipated changes possible if A.) Trump won the election, and B.) Trump began instituting Main Street economic policy ahead of Wall Street policy (the past 20+ years).
We discussed the new dimension that would occur between two economic engines (Main Street -vs- Wall Street) as three decades of federal policy shifted. CTH outlined anticipated economic activity in the space between the two dynamics.

Part of those discussions focused on energy costs (we see them lowering), product costs (we explained how inflation would be weird), and importantly, wage rates. It takes several months of policy emphasis, actual outcomes, before the labor market wage rates would grow. We anticipated seeing that impact in Q1 of Fiscal Year 2018, which is October 1st 2017.
Today the Job Opening and Labor Turnover Survey, “JOLTS report”, begins to show the initial stages of that wage rate increasing trend. The job market has tightened,… considerably. *Note* We are ending fiscal year Q4 (July, Aug, Sept.) and the trend within MAGAnomics is responding according to predictions. For those of us who argued these policy theories for the past two decades, these results are really cool.
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