President Trump Proposal to Counteract China and Big Club/Big AG Strategy…


Today President Trump outlines an approach to head-off the anticipated retaliation from China over the increase in U.S. tariffs that began today. Whether this is structurally possible, or whether this is Trump’s attempt to diminish the leverage carried by Vice-Chairman Liu He, is an interesting question. However, the strategy is clear.

Overall U.S. inflation remains low relative to the economic gains from MAGAnomic policy. [Current CPI HERE].  GDP and wage growth are both exceeding inflation. As such, now is indeed the best time to confront China. President Trump notes this today in a tweet:

Inflation in the U.S. remains low overall at 1.8%…. now is the perfect time to hit Beijing with expanded tariffs.  However, President Trump knows China will retaliate through the multinationals on Wall Street.  President Trump knows China will specifically target the U.S. Agriculture sector. China will likely attempt to put pressure on Trump by refusing to buy U.S. farm product. The BIG AG multinationals will go bananas.

The BIG AG multinationals, those who control food/farm production, also control key Senators; they have been purchased through lobbyists. This is part of the Big Club approach/strategy.  Wall Street and the U.S. Senate will be aligned to support China; as a consequence President Trump needs to counteract their effort.

President Trump’s approach to counteract China’s strike against the U.S. agricultural community is visible in a series of tweets today.  I don’t necessarily agree with the proposal long-term, BUT I do understand the short-term objective…. optimum expediency.

As you can see, President Trump is proposing to counteract the Chinese boycott of U.S. farm product, by using income from the Chinese tariffs to purchase the farm product.  It would appear the U.S. Dept. of Agriculture, Secretary Sonny Perdue, would be in charge of the program.

In the short term this would mean the corporate income losses from BIG AG multinationals would be offset by U.S. purchases.  The Dept. of Agriculture would purchase harvests that exceed the domestic U.S. supply need.  President Trump is proposing we then give that harvest to nations who need food: “poor and starving countries”.

In essence income from the tariffs on China would be used to subsidize U.S. farmers.

Perhaps as a short-term, optimal solution, this is a good plan.  However, the downside is the U.S. food prices, what you pay at the grocery store, will remain artificially elevated.

If there was no intervention, domestic farm production would far exceed internal U.S. consumer demand.  This would mean prices on U.S. food products would necessarily drop (rather quickly).  The supply would far exceed demand.

This over-production dynamic is caused by more than 25 years of BIG AG growth, where multinationals have contracted with U.S. farms to grow and export food product.  We’ve talked about this corrupted and “controlled market” system extensively here on these pages. [Go Deep]

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The process of multinationals controlling farm output is very similar to how the multinationals controlled manufacturing output and moved the process to the place of lowest production costs; and highest profits.  The outputs of U.S. farms are moved around the globe to the location of highest return; it is a controlled market.  This process has driven up the domestic price of U.S food rapidly in the past 20 years.

The multinational agriculture lobby is massive. We willingly feed the world as part of the system; but you as a grocery customer pay more per unit at the grocery store because domestic supply no longer determines domestic price.

Within the agriculture community the (feed-the-world) production export factor also drives the need for labor. Labor is a cost. The multinational corps have a vested interest in low labor costs. Ergo, open border policies. (ie. willingly purchased republicans not supporting border wall etc.).

To offset the 20 year increase in U.S. prices, the multinational lobbyists paid DC to expand food subsidies (SNAP, Food stamps, EBT benefits); this helps their bottom line and shifts tax dollars onto their Profit-and-Loss statements.   This is the ‘exfiltration’ of American wealth. It is a corrupt system.

The proposal by President Trump to shift tariff proceeds to off-set farm losses is okay, perhaps likely necessary, in the short term; but once the issues with China are resolved we are still going to have to deal with the underlying cause of this corrupted market process.

Economic security is national security.

We need to start looking at food production as a National Security issue.

♦The Modern Third Dimension in American Economics – HERE

♦The “Fed” Can’t Figure out the New Economics – HERE

♦Proof “America-First” has disconnected Main Street from Wall Street – HERE

♦Treasury Secretary Mnuchin begins creating a Parallel Banking System – HERE

♦How Trump Economic Policy is Interacting With The Stock Market – HERE

♦How Multinationals have Exported U.S. Wealth – HERE

Property Rights in the 21st Century


Published on Aug 25, 2011

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Timothy Sandefur, Principal Attorney at the Pacific Legal Foundation, discusses how the evolution of law in the United States has affected our property rights. Beginning with discussions of the founding fathers, Timothy describes how our rights, especially property rights, have eroded as a consequence of progressive ideas and judges. To reverse this cycle, Timothy states that we must strengthen the philosophical arguments of private property rights.

 

 

Sweatshop Wages and Third-World Workers: Are the Wages Worth the Sweat?


Published on Jun 7, 2011

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Prof. Ben Powell discusses the economics of sweatshops. He begins with a few photos and personal travel stories to demonstrate typical working conditions in third world countries. He then discusses the economic forces that determine working conditions and wages. Looking at empirical data, he finds that sweatshop workers earn higher wages than non-sweatshop workers in their respective third world country. He concludes with recommendations to activists who want to actually help sweatshop workers. Credits: This lecture was delivered in 2009 at the Metropolitan State College of Denver School of Business, as part of the Exploring Economic Freedom Lecture Series, directed by Prof. Alexandre Padilla. This video was produced and directed by Scott Houck, and edited by Adrienne Christy. Video production provided by the Educational Technology Center at Metropolitan State College of Denver. Video used by LearnLiberty.org with permission.

Failure to Plant Crops


COMMENT: Good day from Chatham, Ontario Canada (50 miles east of Detroit 42.4048° N, 82.1910° W);
Interesting your models are warning of the next year’s results in climate change.

Our location is always the first to plant in Canada as it is the same latitude as northern California.
A few climate tidbits;

– As of today, May 18th, 2019, no farmers (zero) have started planting.
– In 3 years the percentage of April planting starts has decreased to 0% from 70% just 4 years ago. Typically planting was completed by mid to end of May.
– Flooding this year from Ottawa to Detroit along with cooler temperatures can wreak havoc on winter wheat crops which are planted in the fall and has germinated. But if the heat doesn’t come to dry up the land then the wheat crop is susceptible to rot.
– soil temperatures are below the 25-year average by 23 degrees.
– more rain means less sunshine.
– Songbirds in our area are unusual for May. Makes for a very noisy morning coffee.

Bird watchers reporting many species have not finished their normal migration north. Somehow they have stalled in lower latitudes knowing the northern food sources are not ready.
The birds singing is nice, but I would like to eat.
Best to you;

RH

REPLY: Others are reporting the same general trends. Some people write in and try to disagree with the forecasts. What they fail to understand is this is BY NO MEANS my “opinion” or what “I think” for I do not see myself as qualified on such a personal level to forecast such events since I am not a farmer and have never been. My grandfather had maybe an acre where he grew grapes, fruit trees, and some other things like tomatoes. He was not a professional farmer.

All I can do is report what the computer is projecting and I believe it does a far better job than human forecasting simply because it just goes by the data and extracts the patterns upon cycles. I take no pleasure in warning that we could be headed into a very rough patch for food production into 2024/2025 if we see a colder and longer winter again next year.

Trading Against the Reversals


COMMENT: So guess what. I’ve always played the gaps when one elects and it’s a decent size and it lines up with the arrays and technicals I’ll get in and sell at the touch of the next reversal after the gap. Easy. But last month for the first time I tried trading against the reversal and it worked out amazingly. There was a quadruple bullish reversal in Cisco and a direction change the week and month after and I shorted it a few cents away from that reversal and basically got the high in a very strong uptrend. AM even thought I was crazy shorting it. The very next day it started falling and fell straight to the last major weekly yesterday.

Maybe not “Marty” type amazing trade, but I saw it unfolding the way Socrates said and I thought Damn haha

First time against a reversal!!! And a quadruple at that. Wanted to share that with you.

REPLY: Excellent. That was a good trade. Notice the energy. It peaked well before, so as the market is making new highs and failing to get through the reversals, look at the energy. If you see divergence and the stochastic, the odds are in your favor.

The divergences in those two indicators with the Array and the Reversal System allows for low-risk trades. Always know where you are wrong on a trade. In that case, the other side of the Reversals you are selling against. The declining energy with a rising market warns that the rally is not sustainable.

 

Australian Conservatives Win by Thin Margin


Australia’s center-right government won a surprise victory over the left. Voters backed the center-right government in a slowing economy for another three years and rejecting the opposition’s progressive agenda which has been really pretty out there at times. Despite trailing in most opinion polls for years, Scott Morrison’s Liberal-National coalition won attacking Labor’s pledge to take tougher action on climate change and strip tax perks from wealthy Australians. Many are calling Labour’s loss for its leader Bill Shorten, the shock of all time up there with the loss of Hillary Clinton because the polls just got it wrong again.

The Winter that Will Not End


This is the winter that does not want to leave. It is still raining and snowing in California, even in May, as reported by the LA Times. We are experiencing a long protracted winter in many areas. This does not bode well for the summer, which also appears to be shorter. If this unfolds and we see yet another long and cold winter next year, it appears this trend will continue into 2025.

Steve Hilton Interviews President Trump…


President Trump gave a lengthy interview to Steve Hilton on a variety of topics.

Interview continues (just hit play):

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Google Suspends Business With Huawei After Trump/Ross Blacklist…


Commerce Secretary Wilbur Ross has to be the coolest cat in the crew. On May 15th at 6:00pm Ross blacklists Chinese Company Huawei, requiring Commerce Dept. licensing prior to any “American technology transferring to a company or person on the Entity List.” An hour later… Wilbur Ross is chillin’ in the East Room at a black tie dinner:

President Trump […] … And Wilbur had a very big day today. You probably have read about it. It came out at about 6 o’clock in the evening. So, we’re surprised to see you here, Wilbur. You should be working right now, Wilbur — (laughter) — wherever you are. (link)

The Chinese communists hate U.S.T.R. Lighthizer, but I bet they tremble more over Ross.

NEW YORK (Reuters) – Alphabet Inc’s Google has suspended business with Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing, a source familiar with the matter told Reuters on Sunday, in a blow to the Chinese technology company that the U.S. government has sought to blacklist around the world.

The move could hobble Huawei’s smartphone business outside China as the tech giant will immediately lose access to updates to Google’s Android operating system. The next version of its Android smartphones will also lose access to popular services including the Google Play Store and Gmail and YouTube apps.

“Huawei will only be able to use the public version of Android and will not be able to get access to proprietary apps and services from Google,” the source said. (read more)

Does Barr’s Transparency With Mueller Report Indicate a Positive Shift for IG Horowitz Report?…


On June 14th, 2018, the DOJ Inspector General delivered a 568 page report on the DOJ and FBI handling of the Clinton investigation.

Those who reviewed the full report noted the executive summary was entirely disconnected from the body of material. Additionally, beyond the content disconnection, there was transparent coordination from the institutions of the DOJ and FBI which highlighted an unnerving sense of ongoing corrupt intent.

The IG report on FBI Clinton bias was released to the public Thursday June 14th, at approximately 1:00pm EDT.  Within 13 minutes Trey Gowdy released a public statementon the content.  Within 90 minutes the report was downloaded and shared by most media and investigation followers.  Within two hours the FBI announced a national press conference by FBI Director Chris Wray for 5:30pm EDT.  Four short hours after release.

When FBI Director Chris Wray approached the podium to announce the Inspector General had found “no evidence of political basis influencing the investigation”, but he was going to have everyone in the FBI undergo “bias training”, no-one at the press conference had read the full report.  No-one had time.

The 5:30pm presser looked like a strategic political move to capture the oxygen for the 6:00pm EDT nightly news lead and defend the institutions.

As the hours progressed, and more of the actual content of the report was able to be reviewed, it became obvious the ‘executive summary’ was written specifically to dilute the most damaging information.  Additionally, the full IG report was/is a challenging read.

In hindsight, and with full acceptance of a highly political special counsel investigation happening in the background of the FBI and DOJ, it became more obvious corrupt and sketchy officials within both institutions had a vested interest in the report content. The same “small group” is at the epicenter of both reports.

In short, the 2018 IG report of DOJ/FBI conduct during the Clinton investigation was heavy on narrative engineering; contained the fingerprints of institutional participants focused on justification (ie. ‘small group’); and was devoid of accountability for the bigger issues outlined within it.

The question becomes: will the 2019 IG report on DOJ/FBI handling of the FISA application process suffer the same outcome?

For the upcoming report the diminutive influence of Jeff Sessions is gone; the institutional protective influence of Rod Rosenstein is gone; and the corrupt intents of Andrew Weissmann and Robert Mueller are gone.  Unfortunately, on the FBI side, Chris Wray, David Bowditch and Dana Boente remain; along with the 40 “rank and file” FBI investigators who participated in the 2016, 2017 and 2018 operations.

Will Attorney General Bill Barr be more willing to allow the IG report to shine a light on DOJ/FBI issues and politically manufactured FISA submissions?

If the intent is to build public confidence in both institutions a third IG report without accountability is not likely to advance the goal.  And, as we see with the Papadopoulos entrapment operation and the recent redactions to the Kavalec report, the corrupt ‘rank and file’ are very clearly still present.

Trey Gowdy Says He Has Seen Exculpatory Transcripts of FBI Spies Engaged With Papadopoulos…


In September 2016 the FBI used a longtime informant, Stefan Halper, to make contact with George Papadopoulos, pay him $3k and fly him to London for consulting work and a policy paper on Mediterranean energy issues.

As part of the spy operation the FBI sent a female intelligence operative (a spy) under the alias Azra Turk to pose as Halper’s assistant and engage Papdopoulos.  A month later the FBI used Papadopoulos as a supplemental basis for a FISA warrant against Carter Page.

Former Chairman of the House Oversight Committee, Trey Gowdy, tells Maria Bartiromo that he has seen transcripts of the Halper/Turk operation, and those transcripts exonerate Papadopoulos.  WATCH:

[Transcript Video 01:10Bartiromo: I’m really glad you brought that up; the FBI agents’ discussion with George Papadopoulos. Because when the FBI sends in informants to someone they’re looking at, typically those conversations are recorded right? Those people are wired?

Gowdy: Yeah, I mean if the bureau is going to send an informant in, the informant is going to be wired; and if the bureau is monitoring telephone calls there’s going to be a transcript of that.

And some of us have been fortunate enough to know whether or not those transcripts exist; but they haven’t been made public and I think one in-particular is going – it has the potential to actually persuade people.  Very little in this Russia probe I’m afraid is going to persuade people who hate Trump, or who love Trump, but there is some information in these transcripts that I think has the potential to be a game-changer if it’s ever made public.

Bartiromo: You say that’s exculpatory evidence and when people see that they’re going to say: wait, why wasn’t this presented to the court earlier?

Gowdy: Yeah, you know, Johnny Ratcliffe is rightfully exercised over the obligations that the government has to tell the whole truth to the court when you are seeking permission to spy, or do surveillance, on an American.  And part of that includes the responsibility of providing exculpatory information, or information that tends to show the person did not do something wrong.  If you have exculpatory information, and you don’t share it with the court, that ain’t good.  I’ve seen it, Johnny’s seen it, I’d love for your viewers to see it.

[End Transcript]

(Page FISA Application)

(HPSCI Memo)

(Downer Operation Link)