Rebranding Kim Jong-un Will Likely Be a Key Part of The Strategy…


Almost everyone understands the term “re branding”. Don’t laugh when you consider the possibility of re-branding Kim Jong-un; and more importantly, as an outcome, the entire geopolitical architecture of North Korea.  Rebranding takes time. This type of re branding takes silent and subtle persuasion.

It’s not a short term process, but look for indicators like this to ever-so-slowly morph. China’s Xi Jinping seeding ploughshares over missiles needs careful and controlled fertilization.

Business suits replacing General’s uniforms would be very good for the people of North Korea. Ultimately that’s an honorable goal.

We’re talking about massive amounts of distrust and psychological misinformation to overcome – because China previously benefited from using/supporting North Korea as a hostile proxy province toward the collective enemy.   That historic approach and use of N-Korea was the winning hand for China.

President Trump has changed the dynamic.

The winning economic hand for China, specifically Chairman/President Xi Jinping now rests on being able to change the direction of the DPRK and Kim Jong-un.

Kim Jong-un’s sense of self and disposition has been defined by rockets, military and such.  His personal currency is ‘loyalty’ and how ‘loved’ he perceives himself to be in the eyes of his audience.

In order for China to generate enough influence (toward the larger objective of shifting away from militaristic endeavors) Chairman Xi Jinping will now need to shift emphasis on what generates Kim Jong-un’s currency.  Loyalty and love must be achieved by alternate methods.  Seeds must be planted, fertilized and nurtured.

Turning rockets into ploughshares is a good strategy.

[…]  “Here in Seoul, architectural wonders like the Sixty-Three Building and the Lotte World Tower — very beautiful — grace the sky and house the workers of many growing industries.

Your citizens now help to feed the hungry, fight terrorism, and solve problems all over the world. And in a few months, you will host the world and you will do a magnificent job at the 23rd Olympic Winter Games. Good luck. (Applause.)

The Korean miracle extends exactly as far as the armies of free nations advanced in 1953 — 24 miles to the north. There, it stops; it all comes to an end. Dead stop. The flourishing ends, and the prison state of North Korea sadly begins.

Workers in North Korea labor grueling hours in unbearable conditions for almost no pay. Recently, the entire working population was ordered to work for 70 days straight, or else pay for a day of rest.

Families live in homes without plumbing, and fewer than half have electricity. Parents bribe teachers in hopes of saving their sons and daughters from forced labor. More than a million North Koreans died of famine in the 1990s, and more continue to die of hunger today.

Among children under the age of five, nearly 30 percent of afflicted — and are afflicted by stunted growth due to malnutrition. And yet, in 2012 and 2013, the regime spent an estimated $200 million — or almost half the money that it allocated to improve living standards for its people — to instead build even more monuments, towers, and statues to glorify its dictators.

What remains of the meager harvest of the North Korean economy is distributed according to perceived loyalty to a twisted regime. Far from valuing its people as equal citizens, this cruel dictatorship measures them, scores them, and ranks them based on the most arbitrary indications of their allegiance to the state.

Those who score the highest in loyalty may live in the capital city. Those who score the lowest starve. A small infraction by one citizen, such as accidently staining a picture of the tyrant printed in a discarded newspaper, can wreck the social credit rank of his entire family for many decades.

An estimated 100,000 North Koreans suffer in gulags, toiling in forced labor, and enduring torture, starvation, rape, and murder on a constant basis.

In one known instance, a 9-year-old boy was imprisoned for 10 years because his grandfather was accused of treason. In another, a student was beaten in school for forgetting a single detail about the life of Kim Jong-un.

Soldiers have kidnapped foreigners and forced them to work as language tutors for North Korean spies.

In the part of Korea that was a stronghold for Christianity before the war, Christians and other people of faith who are found praying or holding a religious book of any kind are now detained, tortured, and in many cases, even executed.

North Korean women are forced to abort babies that are considered ethnically inferior. And if these babies are born, the newborns are murdered.

One womans baby born to a Chinese father was taken away in a bucket. The guards said it did not deserve to live because it was impure.

So why would China feel an obligation to help North Korea?

The horror of life in North Korea is so complete that citizens pay bribes to government officials to have themselves exported aboard as slaves. They would rather be slaves than live in North Korea.

To attempt to flee is a crime punishable by death. One person who escaped remarked, “When I think about it now, I was not a human being. I was more like an animal. Only after leaving North Korea did I realize what life was supposed to be.”

And so, on this peninsula, we have watched the results of a tragic experiment in a laboratory of history. It is a tale of one people, but two Koreas. One Korea in which the people took control of their lives and their country, and chose a future of freedom and justice, of civilization, and incredible achievement. And another Korea in which leaders imprison their people under the banner of tyranny, fascism, and oppression. The result of this experiment are in, and they are totally conclusive.

When the Korean War began in 1950, the two Koreas were approximately equal in GDP per capita. But by the 1990s, South Koreas wealth had surpassed North Korea’s by more than 10 times. And today, the Souths economy is over 40 times larger. You started the same a short while ago, and now you’re 40 times larger. You’re doing something right.

Considering the misery wrought by the North Korean dictatorship, it is no surprise that it has been forced to take increasingly desperate measures to prevent its people from understanding this brutal contrast.

Because the regime fears the truth above all else, it forbids virtually all contact with the outside world. Not just my speech today, but even the most commonplace facts of South Korean life are forbidden knowledge to the North Korean people. Western and South Korean music is banned. Possession of foreign media is a crime punishable by death. Citizens spy on fellow citizens, their homes are subject to search at any time, and their every action is subject to surveillance. In place of a vibrant society, the people of North Korea are bombarded by state propaganda practically every waking hour of the day.

North Korea is a country ruled as a cult. At the center of this military cult is a deranged belief in the leaders destiny to rule as parent protector over a conquered Korean Peninsula and an enslaved Korean people.

The more successful South Korea becomes, the more decisively you discredit the dark fantasy at the heart of the Kim regime.

In this way, the very existence of a thriving South Korean republic threatens the very survival of the North Korean dictatorship.

This city and this assembly are living proof that a free and independent Korea not only can, but does stand strong, sovereign, and proud among the nations of the world. (Applause.)

Here, the strength of the nation does not come from the false glory of a tyrant. It comes from the true and powerful glory of a strong and great people — the people of the Republic of Korea — a Korean people who are free to live, to flourish, to worship, to love, to build, and to grow their own destiny.

In this Republic, the people have done what no dictator ever could — you took, with the help of the United States, responsibility for yourselves and ownership of your future. You had a dream — a Korean dream — and you built that dream into a great reality.

In so doing, you performed the miracle on the Hahn that we see all around us, from the stunning skyline of Seoul to the plains and peaks of this beautiful landscape. You have done it freely, you have done it happily, and you have done it in your own very beautiful way.

This reality — this wonderful place — your success is the greatest cause of anxiety, alarm, and even panic to the North Korean regime. That is why the Kim regime seeks conflict abroad — to distract from total failure that they suffer at home.

Since the so-called armistice, there have been hundreds of North Korean attacks on Americans and South Koreans. These attacks have included the capture and torture of the brave American soldiers of the USS Pueblo, repeated assaults on American helicopters, and the 1969 drowning [downing] of a U.S. surveillance plane that killed 31 American servicemen. The regime has made numerous lethal incursions in South Korea, attempted to assassinate senior leaders, attacked South Korean ships, and tortured Otto Warmbier, ultimately leading to that fine young man’s death.

All the while, the regime has pursued nuclear weapons with the deluded hope that it could blackmail its way to the ultimate objective. And that objective we are not going to let it have. We are not going to let it have. All of Korea is under that spell, divided in half. South Korea will never allow what’s going on in North Korea to continue to happen.

The North Korean regime has pursued its nuclear and ballistic missile programs in defiance of every assurance, agreement, and commitment it has made to the United States and its allies. It’s broken all of those commitments. After promising to freeze its plutonium program in 1994, it repeated [reaped] the benefits of the deal and then — and then immediately continued its illicit nuclear activities.

In 2005, after years of diplomacy, the dictatorship agreed to ultimately abandon its nuclear programs and return to the Treaty on Non-Proliferation. But it never did. And worse, it tested the very weapons it said it was going to give up. In 2009, the United States gave negotiations yet another chance, and offered North Korea the open hand of engagement. The regime responded by sinking a South Korean Navy ship, killing 46 Korean sailors. To this day, it continues to launch missiles over the sovereign territory of Japan and all other neighbors, test nuclear devices, and develop ICBMs to threaten the United States itself. The regime has interpreted Americas past restraint as weakness. This would be a fatal miscalculation. This is a very different administration than the United States has had in the past.

Today, I hope I speak not only for our countries, but for all civilized nations, when I say to the North: Do not underestimate us, and do not try us. We will defend our common security, our shared prosperity, and our sacred liberty.

We did not choose to draw here, on this peninsula — (applause) — this magnificent peninsula — the thin line of civilization that runs around the world and down through time. But here it was drawn, and here it remains to this day. It is the line between peace and war, between decency and depravity, between law and tyranny, between hope and total despair. It is a line that has been drawn many times, in many places, throughout history. To hold that line is a choice free nations have always had to make. We have learned together the high cost of weakness and the high stakes of its defense.

America’s men and women in uniform have given their lives in the fight against Nazism, imperialism, Communism and terrorism.

America does not seek conflict or confrontation, but we will never run from it. History is filled with discarded regimes that have foolishly tested Americas resolve.

Anyone who doubts the strength or determination of the United States should look to our past, and you will doubt it no longer. We will not permit America or our allies to be blackmailed or attacked. We will not allow American cities to be threatened with destruction. We will not be intimidated. And we will not let the worst atrocities in history be repeated here, on this ground, we fought and died so hard to secure. (Applause.)

That is why I have come here, to the heart of a free and flourishing Korea, with a message for the peace-loving nations of the world: The time for excuses is over. Now is the time for strength. If you want peace, you must stand strong at all times. (Applause.) The world cannot tolerate the menace of a rogue regime that threatens with nuclear devastation.

All responsible nations must join forces to isolate the brutal regime of North Korea — to deny it and any form — any form of it. You cannot support, you cannot supply, you cannot accept. We call on every nation, including China and Russia, to fully implement U.N. Security Council resolutions, downgrade diplomatic relations with the regime, and sever all ties of trade and technology.

[…] It is our responsibility and our duty to confront this danger together — because the longer we wait, the greater the danger grows, and the fewer the options become. (Applause.) And to those nations that choose to ignore this threat, or, worse still, to enable it, the weight of this crisis is on your conscience.

I also have come here to this peninsula to deliver a message directly to the leader of the North Korean dictatorship: The weapons you are acquiring are not making you safer. They are putting your regime in grave danger. Every step you take down this dark path increases the peril you face.

North Korea is not the paradise your grandfather envisioned. It is a hell that no person deserves. Yet, despite every crime you have committed against God and man, you are ready to offer, and we will do that — we will offer a path to a much better future. It begins with an end to the aggression of your regime, a stop to your development of ballistic missiles, and complete, verifiable, and total denuclearization. (Applause.)

A sky-top view of this peninsula shows a nation of dazzling light in the South and a mass of impenetrable darkness in the North. We seek a future of light, prosperity, and peace. But we are only prepared to discuss this brighter path for North Korea if its leaders cease their threats and dismantle their nuclear program.

The sinister regime of North Korea is right about only one thing: The Korean people do have a glorious destiny, but they could not be more wrong about what that destiny looks like. The destiny of the Korean people is not to suffer in the bondage of oppression, but to thrive in the glory of freedom. (Applause.)

What South Koreans have achieved on this peninsula is more than a victory for your nation. It is a victory for every nation that believes in the human spirit. And it is our hope that, someday soon, all of your brothers and sisters of the North will be able to enjoy the fullest of life intended by God.

~ U.S. President Donald Trump (Nov 8, 2017)

This speech was delivered in Seoul, South Korea.  However, the most important audience was in Beijing China.

USA Media Ignores Historic Prime Time Broadcast of Official Beijing Welcome For President Trump…


In 1989 the communist regime of China delivered one of the more infamous authoritarian displays of brutality in modern history. The Tiananmen Square protests of 1989, commonly known in mainland China as the June Fourth Incident, were student-led demonstrations in Beijing, the capital of the People’s Republic of China. In response the communist regime crushed the student uprising and hundreds were massacred.

Almost thirty years later, it’s now 2017, and in the exact same place, on the exact same streets, the Chinese government played the U.S. national anthem while broadcasting -for the first time ever- to their own country:  the welcoming ceremony of a state visit by a U.S. President and First Lady at the Grand Hall of the People’s Republic of China.

During prime time TV viewing (8:30pm EST) you would think this historic moment, this historic contrast (liberty crushed / liberty celebrated), should easily garner U.S. media attention.  You might think that, but you would be wrong.

Actual trumpets sounded the regalia as a U.S. President exited the limousine in front of the Great Hall; but not a single U.S. network, broadcast or cable, showed the historic moments of the ceremony when President Trump and First Lady Melania Trump arrived.

Thirty years ago, China was controlling broadcasts and hiding uncomfortable events on that location. In 2017 it’s the U.S. media apparatus doing the hiding. Has the worm turned 180°?

Central Beijing 1989 – Look closely at the front of the tank column.

It has been almost a generation, and those under 40-years-of-age might not remember, but the incredible events in Tiananmen square captured the attention of the world (mostly from smuggled footage).  June 1989 also provided one of the most iconic images of the struggle for freedom in history: “Tank Man”.

So it was stunning last night to see that same roadway and central square in front of the Great Hall of the People’s Republic filled with the sounds of trumpets, the Star Spangled Banner, joyful children and the arrival of a U.S. President actually broadcast LIVE on Chinese State TV.

The significance was not lost on international viewership outside the U.S.

WATCH:

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Ferguson Riots Have Another Face – Police Raise 23% of Revenue in Fines


The town of Ferguson made headlines as riots appeared. Who will not forget the police with military gear acting like an invading army. Many supported the police and much of the Black Lives Matter movement began there. The story nobody wanted to tell was that the police of Ferguson have a real attitude problem that sparked the riot. That is because they are trained to raise money for the town. Ferguson uses police and the Courts to prey on its residents to raise money and 23% of its entire budget is based upon writing tickets and handing out the maximum fines. They then jail people who can’t pay.

Ferguson expects to raise $3.09 million of projected $13.26 in revenue from fines and fees. They use the police to raise money. For example, an unmowed lawn in Ferguson will be fined between $77 and $102, though in some other cities it’s a $5 offense. Take a 2-week vacation, and you have a ticket when you come home.

This is the entire problem. No government should be allowed to fine people PERIOD! You should be ordered to pay to a charity of your choice – but not to the government. Remove the “money” from their incentive and we will return the rule of law to what it should be – justice.

Spain Invades Catalonia – Nullifies the Democratic Vote


The Spanish Police have invaded Catalonia and the rigged high court of Spain nullifies its independence. It really is astonishing when you compare these actions to Russia and Crimea. At least Crimea the population were Russian speaking and not Ukrainian. Here we have Catalonia has had its own language from before the existence of Spain and have always regarded itself as separate and autonomous.

The action of Madrid are hailed and the constitution is the entire basis for the denial of human rights in Catalonia. Politicians have been carving the world and declaring borders for power. They have ignored language, race, religion and everything else for political power. Nobody ever says that is somehow wrong.

This is what is going on in Europe. Brussels is determined to eliminate borders, federalize Europe, and they hope in one or two generations, they will surrender language and culture to a central power.

Tucker Carlson Expands on Podesta Source Story – Shares Podesta Group Threats Against Him….


Against the backdrop of the Paul Manafort indictment, Fox News host Tucker Carlson expanded on his exclusive source insight (from a former employee) into the Podesta Group and the lobbying activity on behalf of Russian interests.

Additionally, Mr. Carlson shares the legal threats he and his broadcast have recently received from lawyers representing Tony and John Podesta and the DC Lobbying Group they founded.

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Tucker Carlson and Jonathan Turley (George Washington University Law School) discuss Special Counsel Robert Mueller, his ongoing investigation, the indictments from earlier today, and both ultimately come to the same conclusion CTH shared earlier,

Being intellectually honest it appears that Mueller is focused on the bigger, and more dangerous, dynamic surrounding foreign lobbying efforts and payments to DC politicians therein to shape U.S. policy.  Toward eliminating those lobbyist payments, the legal cases against Paul Manafort and Tony Podesta are tools to send the Swamp a message to stop.

Spain Invades Barcelona & EU Shows Its Fascist Character


 

Spain has invaded Barcelona sending in an army of 16,500 as pretend riot police to effectively suppress and intimidate the people. Armed police have seized almost 10 million ballots for the referendum to shut down any democratic process showing the entire world that Spain is still fascist and that is really supported by Brussels. The Spanish police have beaten citizens as if this were some third world dictatorship demonstrating the democracy is truly dead in Europe.

Catalonia represents a fifth of Spain’s 1.1-trillion-euro ($1.32 trillion) economy and enjoys wide self-government, although key areas such as infrastructure and taxes are in the hands of central authorities. The region has about 5.5 million eligible voters.

 

The Spanish police have raided several print works and newspaper offices in Catalonia hunting for voting papers, ballot boxes and leaflets to be used in an October 1st independence referendum which Madrid vehemently opposes. Madrid has revealed its true nature to the entire world on center stage and this is starting to show up in our models for Europe.  The Global Market Watch picked up patterns yesterday warning that there is trouble in the wind.

Thousands have taken to the streets in protest of what is clearly a full blown restoration of Spanish fascism. Meanwhile, shorting Spanish bonds has been outlawed. The free markets have been utterly destroyed. The ECB is buying all Spanish debt trying to pretend that confidence in Spain is strong. Clearly, any institution holding Spanish debt at this point should sell it to the ECB before it is too late.

The EU is starting to shape up as you can check in, but you cannot check out. This is certainly more of a fascist system than democratic. This is reflecting the serious political issues for the EU looking into the next few years.

The Confusion in Gold


QUESTION #1: [_____] says that the dollar will collapse because with the debt ceiling gone – no more buyers of Treasuries in the markets and only the Fed Reserve buying – inflation goes to the wazoo. All over USA. care to comment?

ANSWER: Total nonsense. The USA debt of $20 trillion is a tiny fraction of global debt at $160 trillion. This entire theory does not hold up. Just where is all the money going to run? Gold? Institutions do not buy gold and cannot function with gold, which is not legal tender for even paying your taxes. The only thing that matters is the general public confidence. When the average person on the street no longer trusts government, that is the tipping point.

There is a whole series of people given a choice between a bar of chocolate and a bar of silver. They take the chocolate. Kids line up in Starbucks and pay with their phone – not even cash. Not until you shake the confidence of these people will you see the explosion in markets. That is what took place in the late 1970s. I was there. OPEC created the image of wholesale inflation. People were hoarding toilet paper.

QUESTION #2: What will Fed Balance Sheet Shrinkage do to Gold?

ANSWER: The opposite of what people think. Shrinking the Balance Sheet will be anti-inflationary to the standard reasoning and thus gold should collapse with deflation. However, the Fed has turned away from QE because pension funds are at serious risk. They have run off to emerging markets and bought very long-term paper desperately trying to get their yields up. As the stock market rises because there is no alternative, the Fed politically will be forced to raise rates. They will end up creating inflation with rising rates that will blow interest expenditure through the roof.

QUESTION #3: Since we bounced off the reversal again, obviously this still does not negate a break of $1k and then the slingshot up. But it just seems as if gold is on its deathbed. If nuclear war could not get it to exceed last year’s high, is there anything left in this bag of fundamentals we have been hearing about forever?

ANSWER: I understand. This is what the Reversal System is good at. We stopped within a dime of that number. What will be will be. We are running out of fundamentals to keep buying gold. It’s like the fake news about the storm in Florida that a 15 foot wall of water would destroy the coast. It never came and many people are really angry at the media. How many times can they do this before people no longer listen. Gold is a confidence game – plain and simple. This number is just incredibly important far more than most people dare to consider. I will be doing the gold report soon. It is very critical at this point.

GCNYNF-GMW 9-16-2017

COMMENT: Marty, thank you so much for the past several years of WEC. You have taught me to keep my head in times like this. I bought the gold on the GMW and then sold it against the reversal with a stop just above as you did with the yen in 1998. I had two friends who were buying at the high expecting gold to breakout when I was selling. It was two against one. The majority must be wrong.

Thanks!

See you in Orlando.

ANSWER: The number of long positions verse net shorts in gold reached about 5:1 and you saw what happened – it simply bounced off of the reversal and did not exceed last year’s high. I am always amazed at how people get so bullish and say I am wrong and then within 2 days they lose their shirt. As they say, you can lead a horse to water, but you cannot make him drink. Some people judge the next 10 years by a few days of price movement. That is how the market separates traders from fools

U.S. Chamber of Commerce Admits No Common Ground With Trump on Immigration – Chamber Demands Open-Ended Immigration Must Be Maintained… ion


The open border position of the crony-capitalistic U.S. Chamber of Commerce is only one of the issues that showcases the hidden agenda of their heavily lobbied influence upon Republicans in Congress.  The CoC spends hundreds of millions writing legislation and paying off the UniParty to deliver on their multinational corporate agenda.

In an interview today the Chamber admits their immigration agenda has no common ground with the President Trump administration.  CTH has pointed out this issue for many years, however more people are awake now.

WASHINGTON DC – The Chamber of Commerce admitted Thursday that it is struggling to find common ground with President Trump on immigration, and so far hasn’t been able to find a “sweet spot” on the controversial issue.

“We don’t have a policy paper on immigration. It’s a controversial area,” Randy Johnson, the Chamber’s senior vice president for labor and immigration policy, said at a press briefing Thursday. “We’re trying to figure out where our interests align with the Trump administration.”

He added later that, “Immigration across the board, with some limitations, is a benefit to this country and that is the position of the Chamber.” In contrast, the Trump administration has sought not only to stop illegal immigration but has backed a plan to cut legal immigration in half.

Johnson said the Chamber, the national largest business trade association, was nevertheless “ready to engage with the Trump administration” on the subjects such a merit-based immigration. The chamber would not budge on family-based immigration though, he said.

Johnson said he hoped the president did not end the Deferred Action for Childhood Arrivals policy that allowed children who were brought to the country illegally to remain, though he said the legal principles behind the policy were shaky. (read more)

“Family-based immigration” is code-speak for open borders.  Under the principles behind family migration, once a single family member arrives in the U.S. they can then bring every member of their family, even extended family by marriage, into the U.S.

This process is also called “chain migration”, because there is essentially no end to the unlimited access brought about by relationship.

On DACA (Deferred Action for Childhood Arivals), the U.S. CoC is a big proponent of amnesty and open borders.  The CoC wrote, and then spent hundreds of millions paying congress for, the 2013 “Gang-of-Eight” bill within the Senate.  The CoC held the same position on DAPA (the DACA parents).

However, DAPA was found to have been unconstitutional executive branch overreach by the U.S. Supreme Court.  If DAPA was an illegal Obama executive action, DACA is also.  The difference between outcomes is simply that DAPA was challenged successfully by states; DACA has yet to be challenged in court.

Angela Merkel is being Called a Traitor for the Refugee Crisis


The EU has abandoned Italy while simultaneously demanding that the refugees must be taken care of. Nearly 100,000 refugees have arrived in Italy since the start of this year alone. The Italian government cannot cope with the refugee crisis and Brussels said they cannot exempt them from the restraint of busgets. That means that money for Italians must be diverted to the refugees and they keep coming.

Italy is being pushed to the limit and cannot possible cope with this burden alone while Brussels refuses to compensate them. Let any country refuse to accept refugees and Brussels is quick to condemn them, but wont pay for them itself.

German Chancellor Angela Merkel is solely responsible for the refugee crisis. She is starting to be greeted with shouts of “traitor” by discontent German protesters. Nevertheless, Merkel continues to defend her decision to allow hundreds of thousands of refugees into the Germany.

Merkel only received 16,233,642 votes during the 2013 election which was  37.2% of the popular vote of Germany. So the majority of Germans are really not supporting Merkel. Because they get to form collation governments, that someone who received less that any President in the political history of the USA gets to run Euorpe. Even Donald Trump won  46.1% of the American popular vote. So someone who would never get into office under the USA system gets to dominate Europe.

Report: President Trump To Announce “Section 301” Trade Investigations Against China on Monday…


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.

Historically S-301 trade investigations are considered so scary to the receiving country that almost every nation just complies with USTR requests and the investigations became moot.  The sanctions which follow the 301 investigations are rarely needed.

When trade negotiations are carried out on behalf of lobbyist interests, there’s not much need for strategy and leverage. This is the historic reference for the U.S. in the past 30 years.

In the modern era, almost all U.S. trade agreements have been constructed for political benefit and special interest lobbyists, not necessarily tied to the U.S. economy.

The results of these decades-long special interest approaches are visibly evident across most of the U.S. rust belt states. Additional reference points can be found in the historic North-American Free Trade Agreement (NAFTA – Mexico/Canada), the Trans-Pacific Partnership (TPP – Asia), and Transatlantic Trade and Investment Partnership (TTIP – Europe).

Much to the angst of the lobbying team within the U.S. Chamber of Commerce, President Trump has dispatched both the TPP and TTIP schemes in favor of bilateral trade deals with individual nations; and NAFTA renegotiation starts next week.

Last night President Trump and Chinese President Xi Jinping held a previously scheduled phone call. No doubt the keenly instinctual negotiator President Trump would give the respect of advance notice to Xi Jinping if 301 investigations are going to be announced.

Again, what is often forgotten is that modern China has never seen the U.S. launch a 301 trade investigation against it, or anyone else.  China’s rise to economic power has been within two prior decades where prior U.S. administrations’ were selling out the American economy using the World Trade Organization (WTO), created in 1995.

This is why launching a series of 301 Trade Investigations is such a big deal.  The conclusions are drawn from facts, there’s no way to skewer the data or hide the tariff that China applies to U.S. goods.  If China applies a 35% import tariff on something, Section 301 allows the U.S. to apply the same tariff to the import of that something from China.

When you grasp how much this 301 equalizer can impact trade opponents, and recognize how one-sided our trade deals are with China, you begin to grasp how devastating it will be for China if 301’s are utilized.  This is atomic sledgehammer type unidirectional leverage.  China has nothing they can do, other than the silly threats they have already made.

Now you know why China is using North Korea as their only bargaining chip.

Even the announcement of deploying the S-301 investigations is enough to move markets once the young traders teach themselves what the end ramifications are.

WASHINGTON – […] The ordering of the investigation will not immediately impose sanctions but could lead to steep tariffs on Chinese goods. Trump has expressed frustration in recent months over what he sees as China’s unfair trade policies.

The closely watched announcement appears to have bipartisan support, although Democrats have accused Trump of not being tough enough on trade.

Trump suggested in comments to reporters on Thursday that he might be more lenient on China if officials take more aggressive action to stop North Korea from developing a nuclear weapon that could strike the United States. But it appears his longstanding frustration with China has remained.

Trump told reporters in New Jersey that he would call Chinese President Xi Jinping on Friday night to discuss North Korea. “We have been working very closely with China and with other countries,” he said.

The president was slated to announce the China trade action last week. But the announcement was delayed amid sensitive negotiations with China over the UN sanctions. (more)

BEIJING (Reuters) – The North Korean nuclear issue needs a peaceful resolution, Chinese President Xi Jinping told U.S. President Donald Trump in a telephone call on Saturday, and called on the “relevant side” to exercise restraint, state television said.

Xi told Trump that it was in the joint interests of both China and the United States to achieve the denuclearisation of the Korean peninsula and protect peace and stability there, state television said in a brief report.

“The relevant side must at present exercise restraint, and avoid words and actions that exacerbate tensions on the Korean peninsula,” the report paraphrased Xi as saying.

Resolving the nuclear issue ultimately needs to be done politically via talks, and China is willing to maintain communication with the United States on the basis of mutual respect to push for an appropriate resolution, Xi added.

Chinese state television cited Trump as telling Xi that he fully understands the role China has been playing on the North Korean nuclear issue. (link)

I bet he did…

And I bet he does.