The big-eared British guy wearing Linus’s T-Shirt does have a point; and asks the same question CTH has pondered before: Why do foreign governments need lobbyists?

If there was a five-click dial available as a severity meter between the U.S. and China, something happened internally in Beijing, over the last 72 hours, because that dial just triggered movement from 3 to 4… Keep watching everything in the world of geopolitics with a mental 360° radar sweep looking for Chinese influence/interests.

Nuance and subtlety is everything in China. Culturally harsh tones are seen as a sign of weakness and considered intensely impolite in public displays between officials; especially within approved and released statements by officials representing the government.

Therefore, when we see China publicly use strong language – it indicates a level of internal disposition beyond the defined western angst. Big Panda becomes Red Dragon; there is no mid-status or evolutionary phase.

SHANGHAI (Reuters) – China’s state media on Monday lashed out at the policies of U.S. President Donald Trump in an usually direct attack, accusing him of “starring in his own carefully orchestrated street fighter-style deceitful drama”.

Trump’s wish for others to play along with his drama is “wishful thinking,” the ruling Communist Party’s People’s Daily newspaper said in an editorial.

The editorial said the United States had escalated trade friction with China, and turned international trade into “zero-sum game”.

“Governing a country is not like doing business,” the editorial said, arguing that Trump’s actions imperiled the national credibility of the United States.  (link)

Historic Chinese geopolitical policy, vis-a-vis their totalitarian control over political sentiment (action) and diplomacy through silence, is evident in the strategic use of the space between carefully chosen words, not just the words themselves.

Each time China takes aggressive action (red dragon) China projects a panda face through silence and non-response to opinion of that action;…. and the action continues. The red dragon has a tendency to say one necessary thing publicly, while manipulating another necessary thing privately.  The Art of War.

President Trump is the first U.S. President to understand how the red dragon hides behind the panda mask.

There is no doubt in my mind that President Trump has a very well thought out long-term strategy regarding China. President Trump takes strategic messaging toward the people of china very importantly. President Trump has, very publicly, complimented the friendship he feels toward President Xi Jinping; and praises Chairman Xi for his character, strength and purposeful leadership.

It is specifically because Trump understands Panda is a mask that President Trump messages warmth toward the Chinese people, and pours vociferous praise upon Xi Jinping, while simultaneously confronting the geopolitical doctrine of the Xi regime.

In essence Trump is mirroring the behavior of China while confronting their economic duplicity.

China has no cultural or political space between peace and war; they are a historic nation based on two points of polarity.  They see peace and war as coexisting with each other.

China accepts and believes opposite or contrary forces may actually be complementary, interconnected, and interdependent in the natural world, and they may give rise to each other as they interrelate to one another.  Flowing between these polar states is a natural dynamic to be used -with serious contemplation- in advancing objectives as needed.

Peace or war. Win or lose. Yin and Yang. Culturally there is no middle position in dealings with China; they are not constitutionally capable of understanding or valuing the western philosophy of mutual benefit where concession of terms gains a larger outcome.  If it does not benefit China, it is not done. The outlook is simply, a polarity of peace or war.  In politics or economics the same perspective is true.  It is a zero-sum outlook.

The only way to change the behavior of Red Dragon is to control the outcomes; to position an economic benefit for China IF a change in direction is taken.  There must be a visible upside, a highly visible upside, to initiate any Chinese contemplation for a change in direction.

If the confrontation only includes the avoidance of economic pain, China does not have the capability to negotiate from that reference point.  If the terms are only avoidance, Beijing will fight, even to their own economic extinction if needed, to retain their current position.

In the Eastern mindset there must be an upside for China where they can reconcile, mentally, logically and intellectually, the change in course.  No upside equals no change.

Because the framework for these negotiations are based on the zero-sum disposition, President Trump also will not back down from his position.  The U.S. holds most of the trade leverage and the economic issue must be addressed.  President Trump has waited three decades for this moment.  President Trump will also not delay this confrontation for the political comfort of those around him.

This specific President entered office without any IOU’s for the multinational business community, and his entire team are entirely prepared for this.  The question is: are we?

The United States is  finally confronting the geopolitical Red Dragon, China!

The Olive branch and arrows denote the power of peace and war. The symbol in any figure’s right hand has more significance than one in its left hand. Also important is the direction faced by the symbols central figure. The emphasis on the eagles stare signifies the preferred disposition. An eagle holding an arrow also symbolizes the war for freedom, and its use is commonly referred to the liberation fight of righteous people from abusive influence. The eagle on the original seal created for the Office of the President showed the gaze upon the arrows.

The Eagle and the Arrow – An Aesop’s Fable

An Eagle was soaring through the air. Suddenly it heard the whizz of an Arrow, and felt the dart pierce its breast. Slowly it fluttered down to earth. Its lifeblood pouring out. Looking at the Arrow with which it had been shot, the Eagle realized that the deadly shaft had been feathered with one of its own plumes.

Moral: We often give our enemies the means for our own destruction.

U.S. Trade Representative Robert Lighthizer and a delegation of out-going and in-coming Mexican trade officials have been conducting intensive NAFTA negotiation talks for the past several weeks.  The out-going Mexican officials, led by Ildefonso Guajardo, are optimistic terms of agreement can be reached with the U.S; the incoming Mexican officials led by AMLO’s Jesus Seade, not so much.

The key issue is still the NAFTA fatal flaw that allows both Canada and Mexico to exploit their access to the U.S. market as brokers for imported Asian parts, assembled in Mexico/Canada, and the finished goods shipped into the U.S.  That structural issue remains unresolved; hence the impasse.

Meanwhile, Canadian Foreign Minister Chrystia Freeland wants to reenter the trade discussion after being shut out since the beginning of May.

(Reuters) – Canada is “very keen” on concluding negotiations to renew the North American Free Trade Agreement as soon as possible, Foreign Minister Chrystia Freeland said on Saturday, amid signs of progress after months of delays.

Talks to modernize the 1994 trade pact started in August 2017 but have dragged on much longer than expected as Canada and Mexico pushed back against far-reaching U.S. demands for reform. President Donald Trump has said he will walk away from NAFTA unless major changes are made.

In a renewed push, Mexican and U.S. cabinet ministers held a series of meetings in Washington over the past week in a bid to work out their differences. One Mexican official expressed optimism that some kind of agreement could be reached by the end of the month.

“I and Canada are very, very keen to get it done as quickly as possible,” Freeland told reporters on a conference call. She did not answer directly when asked whether the end of August was a realistic deadline.

Mexican and U.S. officials are due to meet again next week to work on contentious issues such as wages and rules governing how much North American produced content an automobile must contain to qualify for duty-free status.

Freeland said she was ready to join the talks at any time but did not give details. Canadian officials dismiss speculation that she is being sidelined.  (read more)

Ever since the end of Round #6 (January 2018) USTR Robert Lighthizer has not cared for the Canadian team, and who can blame him.  Princess Rainbow Sparkles Chrystia Freeland has demanded the addition of trans-gender native equity rights, climate issues and the ability to exploit access to the U.S. markets in all Canadian bi-lateral trade constructs.

Previously Lighthizer responded:

“Free trade agreements are essentially grants of preferential treatment to other countries in exchange for an approximately equal grant of preferential treatment in their economy. Thus, it is reasonable from time to time to assess whether the bargain has turned out to be equitable.”

[…] “I would like to comment on two proposals by the Canadians, one of which has been in the press quite a bit, and that is a presumed compromise on rules of origin.

We find that the automobile rules of origin idea that was presented, when analyzed, may actually lead to less regional content than we have now and fewer jobs in the United States, Canada, and likely Mexico. So this is the opposite of what we are trying to do.

In another proposal, Canada reserved the right to treat the United States and Mexico even worse than other countries if they enter into future agreements. Those other countries may, in fact, even include China, if there is an agreement between China and [Canada].

This proposal, I think if the United States had made it, would be dubbed a “poison pill.” We did not make it, though. Obviously, this is unacceptable to us, and my guess is it is to the Mexican side also.

Finally, I would like to refer, because I think it fits into this context to an unprecedented trade action that Canada brought against the United States very recently. It constitutes a massive attack on all of our trade laws. If it were successful, it would lead to more Chinese imports into the United States and likely fewer Canadian goods being sold in our market.

Now we understand that countries often challenge specific actions taken by another country in the context of trade laws. This is normal and what we expect. But this litigation essentially claims that 24 years ago, the United States effectively gave away its entire trade regime in the Uruguay Round. Of course, we view this case as frivolous, but it does make one wonder if all parties are truly committed to mutually beneficial trade. It also underscores why so many of us are concerned about binding dispute arbitration. What sovereign nation would trust to arbitrators or the flip of a coin their entire defense against unfair trade?  (more from the end of round #6)

When President Trump withdrew the U.S. from the intensely short-sighted JCPOA (Iran deal), there was a period of preparation for our allies and partners prior to the re-institution of the first round of U.S. sanctions against Iran.   The transition period ends tomorrow as the sanctions begin August 6th, 2018.

Europe and NATO allies are under pressure to discontinue any trade action/terms with Iran as the U.S. sanctions will also apply toward any nation that engages in economic transactions with the Iranian regime.

Representative Peter King (NY) discusses the agenda of the Trump administration and the mid-term elections with Maria Bartiromo.

Ms. Bartiromo notes how the accomplishments of the President are only highlighted when President Trump draws attention to them. The positive news is considerable and the economic policy success is off-the-charts, but the MSM focus on narrative engineering.

Representative Jim Jordan is the no-nonsense personification of the ‘git-r-done’ spirit that runs through the scruffy and beloved heart of MAGA.  An authentic guiding spirit that cannot be faked, scripted or duplicated.  Ya’ either have it…. or ya’ don’t; it’s that simple.

In another example for the keen political instincts of President Trump; he can tell from the automatic vibe that jumped in the air when he said the name “Jim Jordan”; the President calls Jordan to the stage…. and another authentic MAGA moment happens spontaneously.

Remember, Jim Jordan said in an interview just a few weeks ago that he had never met President Trump, and had never personally talked to him.  However, when POTUS Trump senses the crowds response to the words “Jim Jordan” he immediately identifies the importance and value.  WATCH the instinctual evolution:

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This is why POTUS travel and MAGA events are so valuable. Prior to today…. prior to this exact moment…. by custom and political tradition -as well as input from the circle around the office- President Trump was likely to support Kevin McCarthy as a natural SoH predecessor.

Not any more.

McCarthy doesn’t inspire that response.

POTUS Trump was just introduced to the MAGA inspirational and aspirational value of Speaker Jordan. Remember this moment; it matters.

See that look right there in that last picture? Watch it again if needed. Look at that moment closely.

What that is… is POTUS Trump seeing a Diamond in a coal mine.

There’s a spirit, a sense, a guiding force, that put that moment in Ohio together…. And it will have long, bigly, ramifications within MAGA and our nation… watch, you’ll see.

Republican state senator Troy Balderson winning Ohio’s 12th district is important; but Speaker of The House Jim Jordan is far more valuable to the historic needs of President Trump.

Guess what?….

He just noticed.

And he doesn’t miss this stuff…

It’s right there:

Providence!

We have angels on our shoulders.

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President Donald J. Trump holds a MAGA campaign rally at Olentangy Orange High School in Lewis Center, OH.  President Trump is speaking at the campaign rally days before the August 7th special election for Ohio’s 12th district. The congressional election is a tense race between Republican state senator Troy Balderson and Democrat Danny O’Connor.  Media are framing the contest as a referendum on President Trump.

Anticipated start time for President Trump is 6:30pm EST with pre-rally festivities ongoing.  There are also jumbo TV screens set-up outside the venue:

RSBN Livestream Link – Fox News Livestream Link – NBC Livestream Link

PHASE II – President Trump tweeted earlier today about the ongoing geopolitical contest that is priority #1 in defending U.S. interests and retaining our economic strength.

Do not be surprised if North Korea launches another provocative missile test soon. Watch China, not N.Korea. It’s Chairman Xi’s people in the DPRK who are taking action. Kim Jong-Un is an expendable proxy regime. The war is the U.S. -vs- China trade and economic confrontation. North Korea is the Potemkin backdrop for the Beijing puppeteer.

(LINK)

As POTUS Trump and the U.S. trade team target ever increasing tariff pressure upon Beijing to change their behavior, keep a close eye on North Korea. Given the zero-sum approach of the Chinese; and their history of weaponizing the DPRK; we could expect to see Beijing roll out nuclear antagonism again in an overt effort to gain concessions.

Larry Kudlow has fully immersed himself in MAGA.  The evolution from supporter to believer likely comes from the increase in proximity to President Trump and the resolve therein.   Good stuff.

In this segment the Chairman of the National Economic Council discusses the background of the U.S. -v- China trade reset and the long-term goal of open global markets with Zero tariffs, Zero non-trade barriers and Zero subsidies.

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Everyone has a role to play…

National Economic Council Chairman Larry Kudlow discusses the July jobs report with Fox News host Stuart “Grumbles” Varney.

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Stuart “Grumbles” Varney and Neil “Eeyore” Cavuto are cut from the same GOPe Wall Street cloth:

Neil Cavuto and Stuart Varney