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

A Look Inside the Most Powerful Ships in the U.S. Navy


Published on May 7, 2018

A Look Inside the Most Powerful Ships in the U.S. Navy The U.S. Navy is the most powerful in the world. It has a collection of vessels that would make Poseidon blush and stop a kraken in its tracks. Both new and old, some of these weapons systems are the gold standard for naval ships. Here are the Navy’s most powerful vessels. Only a wise person would know what the most powerful ship is on the last page.

 

U.S. Air Force is upgrading the F-15 to keep its edge on China fighter jets


Published on Oct 9, 2017

U.S. Air Force is upgrading the F-15 to keep its edge on China fighter jets The Air Force is revving up electronic warfare upgrades for its F-15 fighter as a way to better protect against enemy fire and electronic attacks, service officials said. Boeing has secured a $478 million deal to continue work on a new technology called with a system called the Eagle Passive Active Warning Survivability System, or EPAWSS.

 

 

Uncovering the impossible: 6 of the Heaviest Ancient Stones Ever Made


Published on Jan 10, 2018

Ancient people in this region of the World heralded a time of extraordinary achievement, it was the age of the pyramid builders when some of the largest and most sophisticated structures of all time were built, including the last remaining Seven-Wonders of the ancient world. The true age of most of these sites predates 12 thousand years and built by a completely lost Civilization that appears to have spread all across the globe.

 

Climate Emergency – The New Justification for New Taxes


Cities have begun using the term “climate emergency” to justify new taxation. This was the case in the Guelph City Council in Canada where they declared a climate emergency. They have admitted that they “already have an action plan. A very ambitious, robust and doable action plan. We don’t need to re-state that.” The spokesperson continued, “What we do need to state, in my opinion, is that we’re going to fund it. Because an action plan without funding has no meaning and it has no outcome and it won’t be successful.”

Here comes the new justification for more taxes — “climate emergency” — as if a local city can actually change the climate of the world.

DOJ Appears to Block Manafort Transfer to Rikers Island…


An interesting and moderately positive development in the ongoing fiasco surrounding the prosecution of Paul Manafort.  According to the New York Times, Attorney General William Barr’s top deputy, Jeffrey Rosen, sent a letter to New York state prosecutors saying Main Justice was monitoring the planned transfer of Mr. Manafort.

Following the DOJ letter, the decision to transfer Manafort to Rikers Island was reversed.

(Via New York Times) … [L]ast week, Manhattan prosecutors were surprised to receive a letter from the second-highest law enforcement official in the country inquiring about Mr. Manafort’s case. The letter, from Jeffrey A. Rosen, Attorney General William P. Barr’s new top deputy, indicated that he was monitoring where Mr. Manafort would be held in New York.

And then, on Monday, federal prison officials weighed in, telling the Manhattan district attorney’s office that Mr. Manafort, 70, would not be going to Rikers.

Instead, he will await his trial at a federal lockup in Manhattan or at the Pennsylvania federal prison where he is serving a seven-and-a-half-year sentence for wide-ranging financial schemes, according to people with knowledge of the matter. (more)

The decision to transfer Manafort to Rikers Island was yet another transparent effort by political operatives within the justice system to use extreme measures against their political opposition…. Unfortunately, the Obama legacy -via the weaponization of law enforcement- continues.

George Zimmerman, Officer Darren Wilson, The Baltimore Six, Paul Manafort, Mike Flynn and Roger Stone were/are simply targets for political retaliation by career political operatives, political ideologues, now embedded within a severely corrupt justice system.

Perhaps the decision to stop some of the extremism is a small indication U.S. Attorney General Bill Barr is attempting to restore some semblance of justice to a thoroughly corrupt enterprise.

 

State Dept. Suspends $200 Million Enhanced Aid for El Salvador, Guatemala and Honduras Pending Illegal Migration Enforcement…


While previously pledged support for the Northern Triangle region related to Homeland Security and combating organized crime will continue, the State Department suspends any further financial assistance ($200 million) until the migration crisis is resolved.

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[Transcript at 01:28] “Next, I have a quick update for you on U.S. foreign assistance to the Northern Triangle countries of El Salvador, Guatemala, and Honduras. As you know, in March, the President concluded these countries have not effectively prevented illegal migrants from coming to the United States.”

“At the Secretary’s instruction, we continue to implement the President’s direction regarding foreign assistance for El Salvador, Guatemala, and Honduras. We completed a review, and previously awarded grants and contracts will continue with current funding. State Department assistance in support of priorities of the Departments of Justice and Homeland Security priorities to help the Northern Triangle governments take actions that will protect the U.S. border and counter transnational organized crime will also continue.

We will not provide new funds for programs in those countries until we are satisfied the Northern Triangle governments are taking concrete actions to reduce the number of illegal migrants coming to the U.S. border.

Working with Congress, we will reprogram those funds to other priorities as appropriate. This is consistent with the President’s direction and with the recognition that it is critical that there be sufficient political will in these countries to address the problem at its source. As Secretary Pompeo has said, these nations have the responsibility to take care of the immigration problems in their home country.”  (continue reading transcript)

(Tweet Link)

Trump Supporters Camping Out Ahead of Massive Orlando MAGA Rally and Festival…


President Trump will be officially kicking off his 2020 re-election bid tomorrow night in Orlando, Florida, at the Amway center.  While the MAGA rally is scheduled to begin at 8:00pm ET, campaign organizers have had such an overwhelming demand for attendance, they have turned the entire day into a MAGA festival called: “The 45 Fest”.

The Amway center, home to the NBA’s Orlando Magic, will hold between 20,000 to 30,000 depending on layout.  However, jumbo screens are being constructed outside the arena for those who attend the festivities but don’t make it inside.

There will be live music, food booths and trucks, street vendors and a day of MAGA festivity prior to the main event at 8:00pm.  According to local media people began lining up Monday morning and plan to camp out overnight amid a mass of MAGA patriots and supporters.

ORLANDO – With tents, sleeping bags and coolers of water in tow, Donald Trump supporters began lining up early Monday for Tuesday’s campaign rally in Orlando, nearly two full days before the event.

Outside the Amway Center, where President Trump will officially kick off his 2020 re-election bid at 8 p.m. Tuesday, about two dozen people and counting had staked out a spot along Division Street as of Monday morning. The line had grown to about 50 as of 3 p.m.

“This is the big one,” said Jennifer Petito, 54, of Melbourne. “This is the mother of all rallies.” Petitio, who was wearing a pink “Women for Trump” hat and a red-and-white striped fanny pack, was second in line. She said she got there around 2 a.m. — 42 hours before the rally’s start. (read more)

Gordon Chang on 2019 G20: “The Meeting of All Meetings”….


Author of ‘The Coming Collapse of China’, Gordon Chang, appears on Fox Business to discuss the mounting U.S. trade tensions with China, the fallout from the protests against Carrie Lam in Hong Kong, and the announced visit by Xi to North Korea.

Chang also sees the visit by China’s Chairman Xi Jinping to North Korea as a strategic and purposeful moment for Beijing; an attempt to find footing against the overwhelming economic punishment being delivered by U.S. President Donald Trump.