Trade and Manufacturing Advisor Peter Navarro Discusses “Next Step” Chinese Trade Tariffs…


White House trade and manufacturing policy advisor Peter Navarro appears on Fox News to discuss the status of the U.S-China trade negotiations and the reason for a USTR delay on some product tariffs.

Peter Navarro confirms what we noted from the office of USTR Robert Lighthizer yesterday.  On December 15th “the tariffs will go on.”   While the statement flies over the head of Stuart Varney, Navarro confirms the “next step” process that Lighthizer implied.

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More below

The U.S. stock market continues reacting to an unusual dynamic. 50% of all companies manufacturing in China are U.S. owned multinational corporations. Those companies don’t want tariffs to succeed in disrupting their supply chain. As a consequence those Wall St. Corps also don’t want lower U.S. Fed interest rates designed to combat China’s currency devaluation.

Normally Wall St. would like lower rates (cheap money), but in this dynamic the U.S. multinationals are against it. Wall Street is schizophrenic. Domestic U.S. companies benefit from the lower rates; however, now, lower rates are adverse to the interests of the multinational companies.

It was Albert Einstein who aptly stated:

“The significant problems we have cannot be solved at the same level of thinking with which we created them.”

The same basic principle applies to those who are trying to understand and evaluate current economic activity yet failing to disengage themselves from their historic economic frames of reference.

Minds who are framed around thirty years of financial/monetary political policy; intended to influence the U.S. economy and created by vested interests who were building out the legislative priorities based on Wall Streets’ best interests; will struggle to understand the new landscape which is entirely formulated to benefit Main Street.

There are two economic engines: Wall Street and Main Street.

The two economic engines are divergent and detached. Time (30+ years), along with monetary focus only on Wall Street interests (multinationals), pushed those two economic engines further apart. The same monetary policies which worked in the immediate past will not work in the immediate future.

We are now in the economic space between both engines. The traditional cause and effect (Fed) is now uncoupled.  The administrators of the economy are perplexed; this is unfamiliar terrain.

The exact same areas of the country which have gone through three decades of economic contraction are now seeing economic expansion and revitalization. The Fed policy which influences Wall Street was not, and is not, domestic centric. The fed policy was corporate driven monetary policy and globalist in influence.

Until the two economies gain parity in value – any fed activity, taken as a consequence to their familiar traditional measurements (interest rates etc.), will have minimal to negligible impact on Main Street.

Senator John Cornyn

@JohnCornyn

Overlooked on economy? Rising paychecks for blue-collar workers are shrinking the wage gap

We need more emphasis on blue-collar trades. There’s more than one path to a solid paycheck, especially given demographic and workplace trends.

usatoday.com

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