There are Trillions At Stake.   There is no upper limit to what congress is willing to do to stop President Trump from turning off the lobbyist funding.  Without influence in DC there can be no affluence in DC.  That’s why McConnell cancelled the recess.

If the president continues to remain focused exclusively on what is in the U.S. best interests, he must be stopped.  Politicians in DC cannot just sit-by and allow the U.S. economy to be based on the interests of Americans; it would mean the destruction of years of central planning by DC Lobbyists, multinational banks, Wall Street and multinational corporations.

WASHINGTON DC – Senate Majority Leader Mitch McConnell (R-Ky.) said Tuesday that he will not bring up a freestanding bill to push back on President Trump’s trade agenda, but that GOP senators might be able to add it as an amendment to other legislation.

Support among Republicans has grown for legislation backed by Sens. Bob Corker (R-Tenn.) and Pat Toomey (R-Pa.) that would give Congress power to authorize or reject any new tariffs imposed because of national security concerns.

GOP senators says McConnell doesn’t want to risk a confrontation with the president but also wants to be responsive to the concerns of colleagues who think Trump’s trade agenda has run amuck.  (read more)

♦POTUS Trump is disrupting the global order of things in order to protect and preserve the shrinking interests of the U.S.  He is fighting, almost single-handed, at the threshold of the abyss.  Our interests, our position, is zero-sum. Our opposition seeks to repel and retain the status-quo. They were on the cusp of full economic victory over the U.S.

In these economic endeavors President Trump is disrupting decades of financial interests who use the U.S. as a host for their ideological endeavors.  President Trump is confronting multinational corporations and the global constructs of economic systems that were put in place to the detriment of the host (USA) ie. YOU.  There are trillions at stake; it is all about the economics; everything else is chaff and countermeasures.

Familiar faces, perhaps faces you previously thought were decent, are now revealing their alignment with larger entities that are our abusers.

We are already familiar how China, Mexico and ASEAN nations export our raw materials (ore, coking coal, rare earth minerals etc.).  The raw material to manufacture goods are then trans-shipped back into the U.S. for purchase.

It is within this decades-long process where we lost the manufacturing base, and the multinational economic planners (World Trade Organization) put us on a path to being a “service driven” economy.

The road to a “service-driven economy” is paved with a great disparity between financial classes. The wealth gap is directly related to the inability of the middle-class to thrive.

Elite financial interests, including those within Washington DC, gain wealth and power, the U.S. workforce is reduced to servitude, “service”, of their affluent needs.

The destruction of the U.S. industrial and manufacturing base is EXACTLY WHY the wealth gap has exploded in the past 30 years.

With that familiarity, did you think the multinationals would stop with only “DURABLE GOODS”?

They don’t.

They didn’t.

The exact same exfiltration and exploitation has been happening, with increased speed, over the past 15 years with “CONSUMABLE GOODS“, ie food.

Raw material foodstuff is exported to China, ASEAN nations and Mexico, processed and shipped back into the U.S. as a finished product. This is the same design-flow with food as previously exploited by other economic sectors, including auto manufacturing.

Multinational corporations, BIG AG, are now invested in controlling the outputs of U.S. agricultural industry and farmers. This process is why food prices have risen exponentially in the past decade.

The free market is not determining price; there is no “supply and demand” influence within this modern agricultural dynamic. Food commodities are now a controlled market just like durable goods.  The raw material (harvests writ large) are exploited by the financial interests of massive multinational corporations.

Again, if we were to pull out of NAFTA our food bill would drop 25% (or more) within the first year. Further, if U.S. supply and demand were part of the domestic market price for food, we would see the prices of aggregate food products drop by half almost immediately. Some perishable food products would predictably drop so dramatically in price it is unfathomable how far the prices would fall.

Behind this dynamic we find the international corporate and financial interests who are inherently at risk from President Trump’s “America-First” economic and trade platform. Believe it or not, President Trump is up against an entire world economic establishment.

When we understand how trade works in the modern era we understand why the agents within the system are so adamantly opposed to U.S. President Trump.

♦The biggest lie in modern economics, willingly spread and maintained by corporate media, is that a system of global markets still exists.

It doesn’t.

Every element of global economic trade is controlled and exploited by massive institutions, multinational banks and multinational corporations. Institutions like the World Trade Organization (WTO) and World Bank control trillions of dollars in economic activity. Underneath that economic activity there are people who hold the reigns of power over the outcomes. These individuals and groups are the stakeholders in direct opposition to principles of America-First national economics.

The modern financial constructs of these entities have been established over the course of the past three decades. When you understand how they manipulate the economic system of individual nations you begin to understand understand why they are so fundamentally opposed to President Trump.

In the Western World, separate from communist control perspectives (ie. China), “Global markets” are a modern myth; nothing more than a talking point meant to keep people satiated with sound bites they might find familiar. Global markets have been destroyed over the past three decades by multinational corporations who control the products formerly contained within global markets.

The same is true for “Commodities Markets”. The multinational trade and economic system, run by corporations and multinational banks, now controls the product outputs of independent nations. The free market economic system has been usurped by entities who create what is best described as ‘controlled markets’.

U.S. President Trump smartly understands what has taken place. Additionally he uses economic leverage as part of a broader national security policy; and to understand who opposes President Trump specifically because of the economic leverage he creates, it becomes important to understand the objectives of the global and financial elite who run and operate the institutions. The Big Club.

Understanding how trillions of trade dollars influence geopolitical policy we begin to understand the three-decade global financial construct they seek to protect.

That is, global financial exploitation of national markets.

FOUR BASIC ELEMENTS:

♦Multinational corporations purchase controlling interests in various national outputs (harvests an raw materials), and ancillary industries, of developed industrial western nations.  {example}

♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.  (*note* in China it is the communist government underwriting the purchase)

♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).

♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

Against the backdrop of President Trump confronting China; and against the backdrop of NAFTA being renegotiated, likely to exit; and against the necessary need to support the key U.S. steel industry; revisiting the economic influences within the modern import/export dynamic will help conceptualize the issues at the heart of the matter.

There are a myriad of interests within each trade sector that make specific explanation very challenging; however, here’s the basic outline.

For three decades economic “globalism” has advanced, quickly. Everyone accepts this statement, yet few actually stop to ask who and what are behind this – and why?

Influential people with vested financial interests in the process have sold a narrative that global manufacturing, global sourcing, and global production was the inherent way of the future. The same voices claimed the American economy was consigned to become a “service-driven economy.”

What was always missed in these discussions is that advocates selling this global-economy message have a vested financial and ideological interest in convincing the information consumer it is all just a natural outcome of economic progress.

It’s not.

It’s not natural at all. It is a process that is entirely controlled, promoted and utilized by large conglomerates, lobbyists, purchased politicians and massive financial corporations.

Again, I’ll try to retain the larger altitude perspective without falling into the traps of the esoteric weeds. I freely admit this is tough to explain and I may not be successful.

Bulletpoint #1: ♦ Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.

This is perhaps the most challenging to understand. In essence, thanks specifically to the way the World Trade Organization (WTO) was established in 1995, national companies expanded their influence into multiple nations, across a myriad of industries and economic sectors (energy, agriculture, raw earth minerals, etc.). This is the basic underpinning of national companies becoming multinational corporations.

Think of these multinational corporations as global entities now powerful enough to reach into multiple nations -simultaneously- and purchase controlling interests in a single economic commodity.

A historic reference point might be the original multinational enterprise, energy via oil production. (Exxon, Mobil, BP, etc.)

However, in the modern global world, it’s not just oil; the resource and product procurement extends to virtually every possible commodity and industry. From the very visible (wheat/corn) to the obscure (small minerals, and even flowers).

Bulletpoint #2 ♦ The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.

During the past several decades national companies merged. The largest lemon producer company in Brazil, merges with the largest lemon company in Mexico, merges with the largest lemon company in Argentina, merges with the largest lemon company in the U.S., etc. etc. National companies, formerly of one nation, become “continental” companies with control over an entire continent of nations.

…. or it could be over several continents or even the entire world market of Lemon/Widget production. These are now multinational corporations. They hold interests in specific segments (this example lemons) across a broad variety of individual nations.

National laws on Monopoly building are not the same in all nations. Most are not as structured as the U.S.A or other more developed nations (with more laws). During the acquisition phase, when encountering a highly developed nation with monopoly laws, the process of an umbrella corporation might be needed to purchase the targeted interests within a specific nation. The example of Monsanto applies here.

Bulletpoint #3 ♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).

With control of the majority of actual lemons the multinational corporation now holds a different set of financial values than a local farmer or national market. This is why commodities exchanges are essentially dead. In the aggregate the mercantile exchange is no longer a free or supply-based market; it is now a controlled market exploited by mega-sized multinational corporations.

Instead of the traditional ‘supply/demand’ equation determining prices, the corporations look to see what nations can afford what prices. The supply of the controlled product is then distributed to the country according to their ability to afford the price. This is essentially the bastardized and politicized function of the World Trade Organization (WTO). This is also how the corporations controlling WTO policy maximize profits.

Back to the lemons. A corporation might hold the rights to the majority of the lemon production in Brazil, Argentina and California/Florida. The price the U.S. consumer pays for the lemons is directed by the amount of inventory (distribution) the controlling corporation allows in the U.S.

If the U.S. lemon harvest is abundant, the controlling interests will export the product to keep the U.S. consumer spending at peak or optimal price. A U.S. customer might pay $2 for a lemon, a Mexican customer might pay .50¢, and a Canadian $1.25.

The bottom line issue is the national supply (in this example ‘harvest/yield’) is not driving the national price because the supply is now controlled by massive multinational corporations.

The mistake people often make is calling this a “global commodity” process. In the modern era this “global commodity” phrase is particularly nonsense.

A true global commodity is a process of individual nations harvesting/creating a similar product and bringing that product to a global market. Individual nations each independently engaged in creating a similar product.

Under modern globalism this process no longer takes place. It’s a complete fraud. Massive multinational corporations control the majority of production inside each nation and therefore control the global product market and price. It is a controlled system.

EXAMPLE: Part of the lobbying in the food industry is to advocate for the expansion of U.S. taxpayer benefits to underwrite the costs of the domestic food products they control. By lobbying DC these multinational corporations get congress and policy-makers to expand the basis of who can use EBT and SNAP benefits (state reimbursement rates).

Expanding the federal subsidy for food purchases is part of the corporate profit dynamic.

With increased taxpayer subsidies, the food price controllers can charge more domestically and export more of the product internationally. Taxes, via subsidies, go into their profit margins. The corporations then use a portion of those enhanced profits in contributions to the politicians. It’s a circle of money.

In highly developed nations this multinational corporate process requires the corporation to purchase the domestic political process (as above) with individual nations allowing the exploitation in varying degrees. As such, the corporate lobbyists pay hundreds of millions to politicians for changes in policies and regulations; one sector, one product, or one industry at a time. These are specialized lobbyists.

EXAMPLE: The Committee on Foreign Investment in the United States (CFIUS)

CFIUS is an inter-agency committee authorized to review transactions that could result in control of a U.S. business by a foreign person (“covered transactions”), in order to determine the effect of such transactions on the national security of the United States.

CFIUS operates pursuant to section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007 (FINSA) (section 721) and as implemented by Executive Order 11858, as amended, and regulations at 31 C.F.R. Part 800.

The CFIUS process has been the subject of significant reforms over the past several years. These include numerous improvements in internal CFIUS procedures, enactment of FINSA in July 2007, amendment of Executive Order 11858 in January 2008, revision of the CFIUS regulations in November 2008, and publication of guidance on CFIUS’s national security considerations in December 2008 (more)

Bulletpoint #4 ♦ With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

The process of charging the U.S. consumer more for a product, that under normal national market conditions would cost less, is a process called exfiltration of wealth. This is the basic premise, the cornerstone, behind the catch-phrase ‘globalism’.

It is never discussed.

To control the market price some contracted product may even be secured and shipped with the intent to allow it to sit idle (or rot). It’s all about controlling the price and maximizing the profit equation. To gain the same $1 profit a widget multinational might have to sell 20 widgets in El-Salvador (.25¢ each), or two widgets in the U.S. ($2.50/each).

Think of the process like the historic reference of OPEC (Oil Producing Economic Countries). Only in the modern era massive corporations are playing the role of OPEC and it’s not oil being controlled, thanks to the WTO it’s almost everything.

Again, this is highlighted in the example of taxpayers subsidizing the food sector (EBT, SNAP etc.), the corporations can charge U.S. consumers more. Ex. more beef is exported, red meat prices remain high at the grocery store, but subsidized U.S. consumers can better afford the high prices.

Of course, if you are not receiving food payment assistance (middle-class) you can’t eat the steaks because you can’t afford them. (Not accidentally, it’s the same scheme in the ObamaCare healthcare system)

Agriculturally, multinational corporate Monsanto says: ‘all your harvests are belong to us‘. Contract with us, or you lose because we can control the market price of your end product. Downside is that once you sign that contract, you agree to terms that are entirely created by the financial interests of the larger corporation; not your farm.

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.).

This corrupt economic manipulation/exploitation applies over multiple sectors, and even in the sub-sector of an industry like steel. China/India purchases the raw material, coking coal, then sells the finished good (rolled steel) back to the global market at a discount. Or it could be rubber, or concrete, or plastic, or frozen chicken parts etc.

The ‘America First’ Trump-Trade Doctrine upsets the entire construct of this multinational export/control dynamic. Team Trump focus exclusively on bilateral trade deals, with specific trade agreements targeted toward individual nations (not national corporations).

‘America-First’ is also specific policy at a granular product level looking out for the national interests of the United States, U.S. workers, U.S. companies and U.S. consumers.

Under President Trump’s Trade positions, balanced and fair trade with strong regulatory control over national assets, exfiltration of U.S. national wealth is essentially stopped.

This puts many current multinational corporations, globalists who previously took a stake-hold in the U.S. economy with intention to export the wealth, in a position of holding contracted interest of an asset they can no longer exploit.

Perhaps now we understand better how massive multi-billion multinational corporations and institutions are aligned against President Trump.

RELATED:

♦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

Senate Majority Leader Mitch McConnell has cancelled the August recess.

(LINK)

Co-Dependent No More

The Supreme Court ruled 7-2 today in support of a Christian Colorado baker who declined to make a wedding cake for a gay couple.  (full pdf below)  The majority of the justices’ decision revolved around the severity of anti-religious bias displayed by the Colorado Civil Rights Commission when it originally ruled against the baker Jack Phillips.  According to the ruling the commission violated Mr. Phillips’ rights under the First Amendment.

The court did not rule upon whether Mr. Phillips held a first amendment right to refuse to bake the cake; the court ruled Mr. Phillips first amendment rights, religious liberty, was actually violated by the Colorado Civil Rights Commission itself.  Much irony here.

Due to the severity of discrimination, exhibited by the Colorado Commission, against the first amendment right of the baker to hold and express Christianity as a foundational moral value, the Supreme court ruled against Colorado to support the rights of the Mr. Phillips.

(Via AP) […] Justice Anthony Kennedy said in his majority opinion that the larger issue “must await further elaboration” in the courts. Appeals in similar cases are pending, including one at the Supreme Court from a florist who didn’t want to provide flowers for a same-sex wedding.

The disputes, Kennedy wrote, “must be resolved with tolerance, without undue disrespect to sincere religious beliefs, and without subjecting gay persons to indignities when they seek goods and services in an open market.”  (read more from AP)

As Amy Howe summarized for SCOTUS Blog: […] “the critical question of when and how Phillips’ right to exercise his religion can be limited had to be determined, Kennedy emphasized, in a proceeding that was not tainted by hostility to religion. Here, Kennedy observed, the “neutral and respectful consideration to which Phillips was entitled was compromised” by comments by members of the Colorado Civil Rights Commission. At one hearing, Kennedy stressed, commissioners repeatedly “endorsed the view that religious beliefs cannot legitimately be carried into the public sphere or commercial domain, implying that religious beliefs and persons are less than fully welcome in Colorado’s business community.” And at a later meeting, Kennedy pointed out, one commissioner “even went so far as to compare Phillips’ invocation of his sincerely held religious beliefs to defenses of slavery and the Holocaust.” “This sentiment,” Kennedy admonished, “is inappropriate for a Commission charged with the solemn responsibility of fair and neutral enforcement of Colorado’s anti-discrimination law—a law that protects discrimination on the basis of religion as well as sexual orientation.” Moreover, Kennedy added, the commission’s treatment of Phillips’ religious objections was at odds with its rulings in the cases of bakers who refused to create cakes “with images that conveyed disapproval of same-sex marriage.”

Here, Kennedy wrote, Phillips “was entitled to a neutral decisionmaker who would give full and fair consideration to his religious objection as he sought to assert it in all of the circumstances in which this case was presented, considered, and decided.” Because he did not have such a proceeding, the court concluded, the commission’s order – which, among other things, required Phillips to sell same-sex couples wedding cakes or anything else that he would sell to opposite-sex couples and mandated remedial training and compliance reports – “must be set aside.”  (read more)

Here’s the full ruling:

https://www.scribd.com/embeds/380984090/content?start_page=1&view_mode=&access_key=key-pjWFfhOti7HwHpLpe5i7

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The essential argument made by Prime Minister Justin Trudeau during this interview was already addressed in the preview segment prior to broadcast – SEE HERE –  However, here is the full interview as broadcast on NBC Meet The Press with Chuck Todd.

The interview is a typical narrative engineering attempt by Chuck Toad; however, beyond the narrative, for those who pay close attention to the economic issues, there are some key elements which deserve attention:

• @04:05 Trudeau admits the problem with corporate transshipment of Chinese Steel into the U.S. market – through Canada via the NAFTA loophole.  While Justin from Canada frames the issue from their own national efforts to stop the practice, you’ll note how he avoids taking ownership…. it’s called ‘willful blindness‘.
• More importantly at @08:17 the topic of NAFTA surfaces. Pay close attention.  Not only does Trudeau speak in past tense (reinforcing the reality that all parties have accepted that NAFTA is essentially dead), but moments later @09:00 he admits the Canadian trade and manufacturing economy is set up as a brokerage (ie. multinational corporate investment) dependent, exclusively dependent, on access to the U.S. market.

WATCH:

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Once you see the strings on the marionettes, you can never go back to a time when you didn’t notice them.

This ridiculously absurd politicization of the reasoning for U.S. steel and aluminum tariffs, and the political narrative now being pushed by Trudeau is further evidence that NAFTA is now a “dead-man-walking” trade deal. Stick a fork in it, and conduct your financial affairs accordingly, because NAFTA is dead.

If there was any possibility of a renewed deal, and/or if Justin from Canada wasn’t told of the pending doom by his advisers therein, he would never get himself so far out in direct opposition to U.S. President Donald Trump.

The only thing missing is the official U.S. announcement withdrawing from NAFTA… But don’t worry, that announcement is coming. Both Canada and Mexico are fully aware #NAFTA is dead. Their political positioning is now entirely framed around blame casting.

Unfortunately for the politically-minded Justin Trudeau and Foreign Minister Chrystia  Freeland what they both don’t understand is that President Trump doesn’t care about their delicate sensibilities and blame-casting maneuvers. POTUS Trump was elected specifically because he doesn’t apply a political prism in front of economic or national security decisions.

NAFTA is dead, all three countries know it, and the aspect that both Canada and Mexico have only recently become aware of is Trump is in no rush to announce it. President Trump is in no rush to announce it because the effects of withdrawal are already well underway. Investors are not going to invest in Canada and Mexico while the looming uncertainty of a U.S. NAFTA exit looms in the air.

As previously shared, prior to joining the administration NEC Chairman Larry Kudlow knew businessman Donald Trump tangentially. However, now that Kudlow’s got a front row seat to Trump’s trade and economic policy, he too has realized President Trump means what he says.

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What PM Trudeau doesn’t mention [nor FM Chrystia Freeland ] is that most exported Canadian Steel is actually supply chain U.S. steel as a result of U.S. auto-sector steel being shipped just across the border into Canada to be used in U.S. owned manufacturing plants in Canada and returned to the U.S. in finished goods (vehicles).  Take that away and the entire “Canada exporting steel to the U.S.” narrative is lost.

Canada doesn’t make much steel and aluminum, because the Trudeau-minded do-gooder environmentalists in Canada have killed off their heavy manufacturing industrial base. Which is exactly what President Trump is attempting to ensure doesn’t happen in the United States.

RAW DATA:

White House Director of Trade Policy Peter Navarro appears on Fox News with Maria Bartiromo to discuss U.S. trade policy, steel and aluminum tariffs.

National Economic Council Chairman Larry Kudlow appears on Fox News with swamp guardian Chris Wallace to discuss North Korea, trade, tariffs and stunningly good economic and jobs results.

Canadian Prime Minister Justin Trudeau and Foreign Minister Chrystia Freeland begin a U.S. media grievance tour to frame a narrative around the recent Steel and Aluminum tariffs.

The Canadian duo intentionally conflate a U.S. objective to secure the Steel and Aluminum industrial base into a narrative that the U.S. is targeting Canada as a security threat.  Despite this shamefully obtuse argument the majority of Canadians and the vast majority of Americans can see right through this nonsense.  Trudeau and Freeland should be ashamed (but they won’t be), watch:

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Canada and Mexico have both structured their international trade deals around their ability to provide access to the coveted $20 trillion U.S. market. Rather than fix the fatal flaw in NAFTA, which would cost them billions, both nations have doubled down with demands that their dependency model be allowed to continue. They are both about to discover the catastrophic consequences to that decision. Their economic losses will now be exponentially larger as an outcome of their entrenched ideology.

Unfortunately for the politically-minded Justin Trudeau and Foreign Minister Chrystia  Freeland what they both don’t understand is that President Trump doesn’t care about their delicate sensibilities and blame-casting maneuvers. POTUS Trump was elected specifically because he doesn’t apply a political prism in front of economic or national security decisions.

NAFTA is dead, all three countries know it, and the aspect that both Canada and Mexico have only recently become aware of is Trump is in no rush to announce it. President Trump is in no rush to announce it because the effects of withdrawal are already well underway. Investors are not going to invest in Canada and Mexico while the looming uncertainty of a U.S. NAFTA exit looms in the air.

What PM Trudeau doesn’t mention [nor FM Chrystia Freeland ] is that U.S. steel is actually U.S. auto-sector steel being shipped just across the border to be used in U.S. owned manufacturing plants in Canada. Take that away and the entire steel narrative is lost.  [Steel Statistics]

Canada doesn’t make much steel and aluminum, because the Trudeau-minded do-gooder environmentalists in Canada have killed off their heavy manufacturing industrial base. Which is exactly what President Trump is attempting to ensure doesn’t happen in the United States.

https://www.scribd.com/embeds/380893748/content?start_page=1&view_mode=&access_key=key-qpmsWOMnmq4gee6FZvrY

(pdf Link available HERE)

Learn more about World Steel Production Here

The essential problem with NAFTA was an evolution over time.  In its current form NAFTA became an exploited doorway into the coveted U.S. market.  Asian economic interests, large multinational corporations, invested in Mexico and Canada as a way to work around any direct trade deals with the U.S.

By shipping parts to Mexico and/or Canada; and by deploying satellite manufacturing and assembly facilities in Canada and/or Mexico; China, Asia and to a lesser extent EU corporations exploited a loophole.  Through a process of building, assembling or manufacturing their products in Mexico/Canada those foreign corporations can skirt U.S. trade tariffs and direct U.S. trade agreements.  The finished foreign products entered the U.S. under NAFTA rules.

Why deal with the U.S. when you can just deal with Mexico, and use NAFTA rules to ship your product directly into the U.S. market?

This exploitative approach, a backdoor to the U.S. market, was the primary reason for massive foreign investment in Canada and Mexico; it was also the primary reason why candidate Donald Trump, now President Donald Trump, wanted to shut down that loophole and renegotiate NAFTA.

This loophole was the primary reason for U.S. manufacturers to relocate operations to Mexico.  Corporations within the U.S. Auto-Sector could enhance profits by building in Mexico or Canada using parts imported from Asia/China.  The labor factor was not as big a part of the overall cost consideration as cheaper parts and imported raw materials.

If you understand the reason why U.S. companies benefited from those moves, you can begin to understand if the U.S. was going to remain inside NAFTA President Trump would have remained engaged in TPP.

As soon as President Trump withdrew from TPP the problem with the Canada and Mexico loophole grew.  All corporations from TPP nations would now have an option to exploit the same NAFTA loophole.

Why ship directly to the U.S., or manufacturer inside the U.S., when you could just assemble in Mexico and Canada and use NAFTA to bring your products to the ultimate goal, the massive U.S. market?

From the POTUS Trump position, NAFTA always came down to two options:

Option #1 – renegotiate the NAFTA trade agreement to eliminate the loopholes.  That would require Canada and Mexico to agree to very specific rules put into the agreement by the U.S. that would remove the ability of third-party nations to exploit the current trade loophole. Essentially the U.S. rules would be structured around removing any profit motive with regard to building in Canada or Mexico and shipping into the U.S.

Canada and Mexico would have to agree to those rules; the goal of the rules would be to stop third-party nations from exploiting NAFTA.  The problem in this option is the exploitation of NAFTA currently benefits Canada and Mexico.  It is against their interests to remove it.  Knowing it was against their interests President Trump never thought it was likely Canada or Mexico would ever agree.  But he was willing to explore and find out.

Option #2 – Exit NAFTA.  And subsequently deal with Canada and Mexico individually with structured trade agreements about their imports.  Canada and Mexico could do as they please, but each U.S. bi-lateral trade agreement would be written with language removing the aforementioned cost-benefit-analysis to third-party countries (same as in option #1.)

All nuanced trade-sector issues put aside, the larger issue was always how third-party nations will seek to gain access to the U.S. market through Canada and Mexico.  [It is the NAFTA exploitation loophole which has severely damaged the U.S. manufacturing base.]

This is not direct ‘protectionism’, it is simply smart and fair trade.

Unfortunately, the U.S. CoC, funded by massive multinational corporations, is spending hundreds of millions on lobbying congress to keep the NAFTA loophole open.

The U.S. has to look upstream, deep into the trade agreements made by Mexico and Canada with third-parties, because it is possible for other nations to skirt direct trade with the U.S. and move their products through Canada and Mexico into the U.S.

The issue of Canada and Mexico making trade agreements with other nations (especially China), while brokering their NAFTA position with the U.S. as a strategic part of those agreements, is a serious issue that cannot adequately be resolved while the U.S. remains connected to NAFTA.

The auto-sector is much more than just complete assembled vehicles. In many ways the core trade issues: part origination, manufacturing and assembly of multiple durable goods sectors, are represented within the auto industry process.

In essence, the auto-sector is representative of much of the manufacturing exploitation by multinational corporations beyond vehicle production. China has supported this approach because they produce the components for multiple sectors (furniture, appliances etc).

So you see, if you just look at the pure economics of the options, and you remember that President Trump is constitutionally antithetical to anyone having influence over U.S. interests other than the American people inside the United States, you can clearly see there is only one-way this entire process ends.

President Trump will end NAFTA.

Withdrawal is not a matter of “if“, it is simply a matter of “when”.

The economic reality drives the “if”, the political reality drives the “when”.

POTUS Trump knows the multinational corporations and multinational banks will trigger their CoC purchased politicians in Washington DC as soon as Trump announces.  The GOPe Republicans and Corporatist Democrats will launch everything they have against him in a public relations effort to stop the exit.  There are trillions at stake.

As the tax reform benefits gain a foothold, American workers are realizing they are getting more money in their paychecks; and as the U.S. economy continues to gain momentum, that’s the backdrop for President Trump making the announcement.

Remember, when  the U.S. team leaves NAFTA, the generally accepted hit to the U.S. stock market will be around 10%. This is due to Wall Street multinational corporations being the largest benefactors of the current status.

If Wall Street multinationals lose the NAFTA loophole benefit, they will initially make less profit until they reposition their investment assets according to the new trade structure.

However, in the past year more companies have shifted capital in preparation for the possibility of NAFTA being fundamentally restructured. So the ramifications are less now than they were mid-year 2017.  In 2018 this overall NAFTA exit possibility is more ‘factored-in’ to the overall market valuation than it was in 2017.  We saw this on June 1st when the Steel and Aluminum tariffs went into effect and the stock market barely moved.

It is common sense that Wall Street having been the biggest benefactor of NAFTA, will stand to lose the most in any NAFTA restructuring.  Conversely, Main Street was the biggest loser in NAFTA, and Main Street will stand to gain the most from NAFTA restructuring which creates equity in trade opportunity.

That ‘America-First’ approach is one of the cornerstones of MAGAnomics.