President Trump travels to Pittsburgh, PA, today to tour the Shell cracker plant and deliver remarks on “America’s Energy Dominance and Manufacturing Revival.” The anticipated start time is 2:10pm EST. [Update – Video Added]

(more…)

First rule in geopolitics, it’s always about the economics.  Second rule in geopolitics: refer to rule #1.    Understanding this basic truism is the key to understand how President Trump is able to be so effective.  There are trillions at stake, and infinite interests.

“Economic security is national security.” ~President Trump

All politics circles back to the underlying economics; whether it is an individual financial self-interest for a specific politician, or whether it is a larger financial interest for a group or even a nation.  Everything is always about the money, and that essential truth is why Donald Trump is so uniquely qualified, influential and stunningly effective. Today:

(VIA CBC) The United States would “enthusiastically” support a no-deal Brexit if that is what the British government decided to do, U.S. national security adviser John Bolton told reporters on Monday.
[…]  As the United Kingdom prepares to leave the European Union on Oct. 31, its biggest geopolitical shift since the Second World War, many diplomats expect London to become increasingly reliant on the United States.
“If that’s the decision of the British government we will support it enthusiastically, and that’s what I’m trying to convey. We’re with you, we’re with you,” said Bolton, in London for two days of talks with British officials. The U.S. administration is seeking an improved U.S.-British relationship with Prime Minister Boris Johnson after sometimes tense ties between Donald Trump and Johnson’s predecessor, Theresa May.

(more…)

The White House has announced the Trump administration will enforce long-standing immigration laws that require entrants to be economically self-sufficient and limits public welfare benefits.   An entry alien who is -or becomes- dependent on public welfare assistance, is known as a “public charge”.   Aliens will be barred from entering the United States if they are deemed likely to become public charges, or welfare dependent.
These immigration rules have been in place for over 100 years, and generally were strictly enforced until the last 25 years.  The Trump administration is re-enforcing the rules.

.
The enforcement action will have a direct bearing on the current immigration process as most border arrivals are economic migrants manipulating asylum claims.  Immigration based on self-sufficiency has been U.S. law for generations.
(more…)

After reviewing the unexpected resignation of Canadian Ambassador to the United States, David MacNaughton, several aspects of the U.S-Canada economic relationship; and the larger political ideological relationship between the far-left in both countries; begins to take a sharper focus.
Justin from Canada has acquiesced to the influence of democrat Speaker of the House Nancy Pelosi, and agreed to postpone any USMCA ratification vote in Parliament until Pelosi gives Justin her approval.  For political purposes, Speaker Pelosi is attempting to stall the USMCA vote in congress, which directly supports China, as long as possible.

When we first reviewed this political quid-pro-quo, we wondered if Justin from Canada was actually willing to hurt his own economy just to assist the political efforts of U.S. democrats.  Unfortunately, the answer is a resounding yes.

OTTAWA—Canada’s unemployment rate rose in July as the economy unexpectedly shed jobs for a second straight month, fueling speculation over a possible Bank of Canada rate cut later this year.
The Canadian economy lost a net 24,200 jobs in July on a seasonally adjusted basis, Statistics Canada said Friday. Market expectations were for a net job increase of 12,500.

(more…)

Former White House chief strategist Steve Bannon appears on Fox News with Maria Bartiromo for a wide-ranging discussion on current political and geopolitical events.
Topics include the U.S-Mexico border security and immigration; the 2020 democrat candidates (announced and unannounced); the bigger geopolitical issues behind the U.S-China trade conflict; Joe and Hunter Biden’s direct financial relationship to the Chinese communist government; the USMCA trade agreement; Trump’s leverage to increase an EU free economic alliance against China; and radical action by dems.

(more…)

White House Manufacturing and Trade Policy Advisor Peter Navarro appears on CNBC to discuss the turbulent week on Wall Street and the current status of the U.S. trade position with China.  Pundits are starting to accept that bigger tariffs are on the horizon.  Team Trump is not backing down; and our U.S. position is much stronger.
On one hand, Wall Street loves cheap money (low fed rates). However, on the other hand 51% of all Chinese manufacturing is done by U.S. owned multinationals; and those corporations don’t want to see the retention efforts of China undermined with a lower dollar value (lower fed rate). As a consequence Wall Street is schizophrenic.

.
On the issue of manufacturers leaving China, Forbes has this outlook: “American businesses now have a month to prepare their supply chains for the impending tariff changes. Companies that do well will be the ones who have taken Trump at his word, rather than to doubt the Disruptor-in-Chief’s position on China. Further disruptions are coming to the U.S. supplier network, impacting how equity analysts view companies, recommend their stocks, and — in a broader sense — impacting the business cycle, already long in the tooth.” (link)
(more…)

Chopper pressers are the best pressers. President Trump was leaving the White House at 9:48am for travel to New York and New Jersey when he conducted a full press conference that lasted more than 30 minutes.  The journalists were melting.
Topics and questions included: China and status of trade conflict, background checks, the Federal Reserve and interest rates, a new “very beautiful letter” from Kim Jong Un, the Mississippi ICE enforcement actions, Colin Kaepernick’s prospects for NFL employment and Joe Biden’s defects as a candidate.  [Video below – Transcript ADDED]

.
[Transcript] – THE PRESIDENT: So, we’re doing very well with China. We’re talking to China. We’re not ready to make a deal, but we’ll see what happens. But, you know, we’ve been hurt by China for 25, 30 years. Nobody has done anything about it. And we have no choice but to do what we’re doing.
It’s working out very well, as you know. We called them on manipulation and they brought their numbers back, and they brought them back rapidly. And they were able to do that because they manipulate. But that’s — so it’s called “monetary manipulation.” Not good.
(more…)

In a remarkable admission today on Twitter AFL-CIO Labor Union President Richard Trumka supports the principle of illegal alien workers taking the jobs of American workers.  This is quite a bucket of sunlight upon a previously hidden agenda.

It is quite remarkable to see a large U.S. labor union now standing in support of illegal workers in the U.S.  There was a time, throughout the history of labor unions, when some of the strongest immigration voices were against American worker displacement.  Apparently that time is passed.
The United Food and Commercial Workers (UFCW) union was recently impacted by a federal immigration authority raid in Mississippi; which resulted in almost 700 illegal alien workers being identified and removed. In addition to the unlawful border entry, most of the illegal workers used fake documents, fake identifications and stolen social security numbers to falsify employment eligibility.
(more…)

It is hard to believe but it’s been three years since we first outlined what would happen if candidate Donald Trump’s “America First” policy was implemented.  Specifically how the Federal Reserve would essentially become disconnected and functionally obsolescent for a few years.  As a result of the evidence visible, we are in a unique position to explain.
Staying in the big picture, a disconnected Fed was very predictable.  In the past 35 years the Wall Street multinationals gained as cheap money flowed overseas to start global manufacturing operations; Main Street USA suffered.  When you reverse this process by punishing the multinationals (tariffs), shifting the global supply chain, and changing the best location for investment dollars, Main Street USA benefits.  President Trump August 7th tweets statement:

Notice the “we are competing against other countries” part of the statement.  This is key to understanding what is in the future.  The Wall Street ‘multinationals’, corporations making and selling goods, are invested in production within other countries.
On one hand, Wall Street loves cheap money (low fed rates). However, on the other hand Wall Street multinationals are invested in overseas manufacturing; and those corporations don’t want to see the retention efforts of China and the EU undermined with a lower dollar value (lower fed rate).  So Wall Street is schizophrenic (check the stock market).
(more…)

Wow. Go Wilburine!  U.S. Commerce Secretary Wilbur Ross has slapped a whopping $4.4 billion countervailing duty on Chinese cabinet manufacturers.  The rate of manufacturing subsidy identified within the ‘wood cabinet‘ study shows a massive 229% subsidy rate via discounted land, free lumber, electricity, raw materials, direct grants from government and discounted loans from Chinese banks to enhance export incentives.

The current study and duty only applies to wood cabinets and vanities, but if you ever wondered how come Chinese furniture is so cheap, well, it’s not a stretch to consider those same subsidy rates likely apply to their household furniture and wood products.

(Bloomberg) Add $4.4 billion in imported cabinets to the long list of Chinese goods slapped with U.S. levies in the escalating trade dispute between Washington and Beijing.
The Commerce Department said Tuesday it will ask the U.S. Customs and Border Protection to collect cash deposits from importers of the wooden cabinets and vanities from China based on subsidy rates of as much as 229%. Commerce issued a preliminary determination in response to a petition filed earlier this year by the American Kitchen Cabinet Alliance, alleging at least $2 billion in harm from the Chinese shipments.

(more…)