Lots of differing opinion on the decision by POTUS to cancel a retaliatory strike against Iran. Some praise and some criticize. Here’s President Trump’s reason for cancelling the strike against Iran:
As it relates to the Trump doctrine, CTH would note any current ally of the U.S; and/or any entity engaged with significant economic interests attached to the U.S; including any EU entity who might have previously been skirting the sanctions against Iran (think Turkey); would now be very cautious about appearing on President Trump and Secretary Mnuchin’s proverbial radar.
President Trump announced on Twitter last week about an enhanced immigration enforcement action to remove illegal aliens. National Border Patrol Council president Brandon Judd appears on Fox Business to discuss the upcoming program.
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Interestingly, no-one has wondered why there would be such advanced and public notification of the upcoming enhanced enforcement. Curiouser and curiouser…
QUESTION: Mr. Armstrong; you are the only person who forecasts gold without bias. How will gold respond to the war rattling with Iran?
PD
ANSWER: They will always paint gold as the a never ending bull market in the face of war. Perhaps us old-time traders learned the hard way – buy the rumor but sell the news. If we look at gold’s performance during the first Gulf War in 1990, it rallied upon the Iraq invasion on August 2nd, pulled back on the 3rd testing $377, and then rallied peaking on a closing basis on August 24th, but it hit $420 in just 7 trading days. When it appeared that the West would invade, gold declined and eventually it made its 19-year low in 1999.
It does not yet appear that we are looking at World War III. However, that may change by 2020/2021. We have to see how this interacts with our numbers. We must always approach this from a plain black and white perspective. Trump does not want to send in troops. The problem has been that the Democrats in bashing Trump have used Russia to the point that 70% of Democrats believe Russia is our moral enemy. They have demonized Russia so from a strategic perspective, Russia must back Iran. There will be no choice. Continued confrontation with China risks restoring the Russia-China bond that Richard Nixon broke.
Chairman Xi Jinping arrives in North Korea to support the “correct thinking” within his proxy province and hostage Kim Jong-Un. Magnanimous Panda, and defender of all enlightened Asian progress, exhibited great smiles as nervous Kim worries over the dust on the military shoestrings. WATCH:
(Reuters) BEIJING (Reuters) – The world hopes North Korea and the United States can talk to each other and for those talks to be successful, Chinese President Xi Jinping told North Korean leader Kim Jong Un on Thursday, praising Pyongyang’s efforts toward denuclearization.
Xi is visiting China’s reclusive neighbor North Korea, seeking to bolster a longtime ally hit by U.N. sanctions over its nuclear and missile programs, a week before Xi and U.S. President Donald Trump meet amid a bitter trade dispute.
Xi, whose entourage includes the head of China’s state economic planner, will be in North Korea for two days, the first Chinese leader to visit in 14 years, and could bring fresh support measures for its floundering, sanctions-bound economy.
Kim Jong Un and his wife, Ri Sol Ju, greeted Xi at the airport, Chinese state TV said. Kim’s sister, Kim Yo Jong, and officials who played prominent roles in recent nuclear talks with the United States were also on hand.
Xi was driven through Pyongyang in a convertible car, standing with Kim at his side, and greeted warmly by massed, cheering crowds on his way to the Kumsusan Palace of the Sun, a complex that serves as the mausoleum for North Korea’s founder, Kim Il Sung, the report said.
Xi told Kim he had come to consolidate a traditional friendship and to promote the political process for a resolution of the Korean peninsula issue, it added.
Xi “positively appraised” North Korea’s efforts to safeguard peace and stability on the peninsula and promote denuclearization, state television said.
“The situation on the Korean peninsula concerns regional peace and stability,” the report paraphrased Xi as telling Kim at their formal meeting.
“The international community hopes that North Korea and the United States can talk and for the talks to get results.” (read more)
Magnanimous Panda Chairman Xi appreciates the welcome, and will now show the world the brilliant and purposeful peace that can only be achieved by following the Chinese model of great guidance and enlightenment.
Thank you Magnanimous Panda. The world can never be worthy of your consideration, guidance and great leadership. Peace for the Korean people will be achieved because Magnanimous Panda raises the collective responsibility of all human consciousness.
Thus, we enter a phase of great nuance and subtle signaling where we will need to carefully evaluate the scale of hostage release. Obviously western media -writ large- are oblivious to the multidimensional hostage dynamic; heck, most major western media don’t even acknowledge that China controls North Korea… So we have a front row seat to review the generally coded signals.
In the dynamic of the denuclearization of North Korea, the most likely scenario is Chairman Xi playing the role of magnanimous panda and *guiding* Chairman Kim Jong Un into the world of nations. Hence the op-ed outlined yesterday.
South Korean President Moon Jae-in will be positioned as the hero so that Xi doesn’t look like he lost Kim to Trump. However, what we don’t know is how much autonomy Chairman Xi will allow Chairman Kim. It’s the “guiding” part we need to watch closely.
Beijing isn’t going to let Kim go fully antonymous and independent; not when they share a border; and certainly not after generations of strategic influence and control over the DPRK as a proxy province and hedge against the West.
Unfortunately, South Korean President Moon Jae-in will be useless as a counter wedge against the cunning of Xi Jinping in this very important aspect. Moon is essentially the Asian Obama; and has about as much strategic intelligence, foresight and usefulness, as a bag-of-rocks being used as a weather vane.
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Chairman Xi now owns any actions taken by North Korea. Whether Xi releases his hostage, or the more likely scenario, he retains control but the nuclear threat is removed, matters not.
The open engagement by Xi now transfers all DPRK behavior openly to Beijing. North Korea is no more a nuclear threat than China. Technically, this has always been the reality; however, now things are public. China cannot hide or deny their involvement.
Chairman Kim may never be freed, but for U.S. interests the Nuclear threat is gone.
Remember, generally speaking President trump held two connected objectives: (1) removing the threat posed by North Korea by severing the ability of Beijing to use the proxy province as a weapon; and (2) deconstructing the growing economic influence of China.
The first objective has been achieved. President Trump can now go into full economic war against China without the worry of Beijing using Pyongyang to launch rockets.
Justin from Canada travels to the White House for a conversation with President Trump about the USMCA deal, ratification, and a request from Canada for assistance in their conflict with China. The relationship between President Trump and the arrogant Justin from Canada is tenuous at best. [Video and Transcript]
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[Transcript] 12:10 P.M. EDT – PRESIDENT TRUMP: Well, thank you very much. We had some good news. The market hit a all-time high today. The S&P just broke its record, so we’re very happy about that. The stock market continues to do well. Jobs have been literally through the roof. And, speaking of jobs, we have the USMCA with Canada, with Mexico. And we’ve come a long way. It’s a great agreement. As you know, Mexico, yesterday, approved it.
PRIME MINISTER TRUDEAU: Yep.
PRESIDENT TRUMP: — through the very positive vote. And you’re doing very well, I understand, also.
PRIME MINISTER TRUDEAU: We are.
PRESIDENT TRUMP: But it’s an honor to have the Prime Minister of Canada, Justin Trudeau. He’s been a friend of mine. We’ve worked hard together. We worked, in particular, on the USMCA. And we hope to have bipartisan support. I think, Justin, you’re going to be making the rounds at Congress later on?
PRIME MINISTER TRUDEAU: Meeting a few people.
PRESIDENT TRUMP: That’s a terrific thing. But it’s great to have you.
So, we’re going to be talking about that. And, generally, we’ll be talking trade and other things. And we’re then going to have lunch and some meetings. And it’s an interesting day, but it will be, like, a positive day, I think, like usual. That’s the way we want to have it. We want to have very positive days. We only have positive days.
So I want to thank you very much, Justin, for coming to the White House.
PRIME MINISTER TRUDEAU: Thank you, Donald.
PRESIDENT TRUMP: Thank you. Please.
PRIME MINISTER TRUDEAU: Thank you, Donald, for this meeting. It’s an opportunity for us, as you say, to keep talking about how we’ve worked hard to build a great trade deal that’s good for Canadian workers, good for American workers, good for Mexican workers as well.
We’re moving forward on the ratification process aligned with you. Obviously, today, as well, on top of the great news on the Canadian and American economies, we’re continuing to work on a broad range of global issues. Obviously, there’s news today we’re going to be talking about as well.
But this is just a really great opportunity for us to continue to work and to develop and to build on the closest alliance in the world, between Canada and the United States.
PRESIDENT TRUMP: Well, this will be the largest trade deal ever made, and it won’t even be close. If you take a look at the numbers, second is so far away, you don’t even call it second. So it’s very exciting. And very exciting for Mexico; very exciting for Canada.
And I have to also thank the President of Mexico because he’s really been doing a job on the border and a job in Mexico. A lot of very positive things have happened. And the flow has very substantially slowed down. They have 6,000 Mexican troops on their southern border. And it’s been — it’s really been a tremendous difference.
So I want to thank Mexico and the people of Mexico. Now, this has only been for a short period of time. Our country has been asking for this for 45 years, approximately. And they’re doing it now. And we very much appreciate that Mexico is doing that. It’s going to have a big impact. It’s already had a big impact.
So, with that, I thank you very much. And we’re going to get on with our discussions. Thank you.
This is the new —
(A model plane is presented on the table.)
Q Mr. President, how will you respond?
Q On Iran, sir —
PRESIDENT TRUMP: I was going to say this is the new Air Force One, which we ordered, which they’ve been trying to order for a lot of years. We were able to shave $1.5 billion off the price. When I got here, they were going to spend a lot more money than we spent. And I would say the plane basically is an upgrade over that model. We actually are getting things that they didn’t get. We’re saving about $1.5 billion. So it’s going to be terrific. It’s under construction, right now, by Boeing.
Go ahead. Question?
Q Mr. President, how will you respond to Iran?
PRESIDENT TRUMP: Iran made a big mistake. This drone was in international waters, clearly. We have it all documented. It’s documented scientifically, not just words. And they made a very bad mistake. Okay?
Q How will you respond, Mr. President? How will you respond?
PRESIDENT TRUMP: You’ll find out.
Q Does that mean you’re planning to do something?
PRESIDENT TRUMP: You’ll find out. You’ll find out. I mean, obviously — obviously — obviously, you know, we’re not going to be talking too much about it. You’re going to find out. They made a very big mistake.
Q Mr. President, what are your concerns about China and the Canadians who are detained, sir?
PRESIDENT TRUMP: No concerns. We’ll be discussing that. It’ll be one of the issues that I think we’ll be discussing right now with Justin.
Q Mr. President, the Fed made no change to the interest rate.
PRESIDENT TRUMP: Say it?
Q The Fed made no change to the interest rate yesterday.
PRESIDENT TRUMP: Well, I guess they indicated they’re going to be lower. He should’ve done sooner, but what are you going do? Can’t win them all. He should’ve have done it sooner, but you can’t win it all. And, eventually, he’ll do what’s right, perhaps. Let’s see what he does.
Q Do you intend to bring (inaudible)?
PRIME MINISTER TRUDEAU: Obviously, we’re very concerned about the escalation by Iran recently. We have significant presence in the area, including leading on the NATO mission in Baghdad, in Iraq.
We look forward to discussing with our closest ally — their perspectives on this — and how we can move forward as an international community.
Q Will you help Justin Trudeau get a meeting with Xi Jinping at the G20 next week to talk about the detained Canadians?
PRESIDENT TRUMP: Well, I don’t know that he’s trying to meet. Are you trying to get a meeting?
PRIME MINISTER TRUDEAU: We’ve got a lot of things to discuss.
Q He wants one, but Xi won’t meet with him.
PRESIDENT TRUMP: Well, otherwise, I’ll represent him well, I will tell you. We have a meeting set up with President Xi, and it’s obviously on the big transaction that we’re talking about and negotiating. Our people are actually speaking now, and we’ll see what happens with that. But anything I can do to help Canada, I will be doing.
Q Are you planning to bring it up with President Xi when you meet with him?
PRESIDENT TRUMP: Excuse me?
Q Are you planning to bring it up with President Xi when you meet with him?
PRESIDENT TRUMP: I would. At Justin’s request, I will absolutely bring that up.
Q When the USMCA is ratified, sir, will that be the end of tariffs?
PRESIDENT TRUMP: Don’t say “when.”
Q When it is ratified. “If” it is ratified.
PRESIDENT TRUMP: Don’t say “when,” because, so far, I have to get the Democrats to approve it. So, I like your positive thinking. But if — and the “if” is really subject to the Democrats. Let’s see what happens.
But I really believe that Nancy Pelosi and the House will approve it. I think the Senate will approve it rapidly. It’s going to be very bipartisan. It’s great for the farmers, manufacturers. It’s really great for everybody. And unions. It’s great for unions. I mean, we have tremendous union support too. It’s a tremendous — it really is; it shows a partnership between three countries.
And it’s sort of three countries — in a trade sense, we’re competing with the European Union. We’re competing with China. It gives us a bigger dialogue. It gives us a much bigger platform. It’s really good for all three. It’s something that’s very popular. I hope, politically, they can do what they have to do.
Now, a day after the election, it would win with tremendous support. But we have an election coming up. But I think Nancy Pelosi is going to do the right thing.
Q And will that be the end of tariffs on Canada and Mexico?
PRESIDENT TRUMP: Well, we’ll see. I mean, you know, they have to do what they have to do. We understand that. We can’t have big, tremendous shipments of certain products. So we understand that very well.
PRIME MINISTER TRUDEAU: We were very pleased with the lifting of the tariffs on steel and aluminum.
PRESIDENT TRUMP: They’ve been lifted, as you know, and there won’t be, hopefully, transshipping. If there’s transshipping, I’ll call Justin and I’m sure he’ll take care of it. And if he doesn’t take — I’ll probably call him a second time. And if he doesn’t, then we’ll have to talk, right?
PRIME MINISTER TRUDEAU: We’re going to be fine.
PRESIDENT TRUMP: But I think that that situation is very well taken care of. Very important for both countries and for all three countries: the farmers. Very, very important. More so in that case, from us and Canada. But the farmers are really happy with it. The manufacturers are very happy. Mexico is thrilled. You saw the vote. It was a very lopsided — in a positive way — vote. A great vote. And I think it’s going to be something very special.
Again, it’s the largest trade deal, by far, ever entered into. And we’re very close to having it finalized. This means a lot of jobs for our country; a lot of wealth for all three countries. And we’re really competing against the world. You know, we’re not competing with each other so much. This brings us into a position where we’re not competing with each other; we’re competing against the world. And that’s what we’re doing.
We’re competing against big sections of the world, including Asia and including other areas. And I think it’s going to be very special. I think it’s going to end up being a very important deal, but the biggest ever made.
Q Will you invite the Toronto Raptors to the White House, sir?
PRESIDENT TRUMP: Say it?
Q Will you invite the Toronto Raptors to the White House? I’m from the Toronto Star. I have to ask.
PRESIDENT TRUMP: Well, we thought about that. That’s an interesting question. They played phenomenal basketball. I watched a little bit of it. They were really terrific. Congratulations, by the way. That was a great job by a great team. So we’ll think about that. If they’d like to do it, we’ll think about that.
We have a lot of other folks coming. And the presidential medal — I just spoke to him — we’re going to be presenting the Presidential Medal of Freedom to Roger Penske. Roger Penske is a great gentleman who has won 18 Indianapolis 500s. He’s won — just won Daytona. He won Daytona. He won Indianapolis. He won probably more than anybody in the history of racing. I can’t imagine anybody even being close.
But Roger Penske is going to be getting the Medal of Freedom, and he’s very thrilled to be getting it. And that’ll be announced over the next little while, but, I guess, actually, I’m announcing it pretty much now. But they’ll be — (laughter) — they’ll be putting something out. They’ll be putting something out in a little while.
He’s very deserving. He’s a great gentleman. I’ve known him a long time. And a very brilliant guy. When you think of all the countries that want to win Indianapolis and Daytona, and they fight and they spend — even Canada; they spend a lot of money and they —
And, you know, when a man wins Indianapolis, when he wins it 18 times — and he just won the Daytona. And he won many things over the course of years, and he’s become a very successful man.
We talked about electric cars today. I think nobody knows more about that subject, in terms of common sense, than Roger Penske. So Roger Penske will be getting and receiving the Presidential Medal of Freedom.
Q Mr. President, you said Iran is a “different country.” Do you still hold that opinion?
PRESIDENT TRUMP: Oh, absolutely. When I came here, Iran was in 14 to 18 different sites of confliction. They were extremely hostile. They were hostile when they signed the deal. They were screaming, “Death to America.” And I think, probably, Iran made a mistake. I would imagine it was a general or somebody that made a mistake in shooting that drone down.
And, fortunately, that drone was unarmed. It was not — there was no man in it, and there was no — it was just — it was over international waters; clearly over international waters. But we didn’t have a man or woman in the drone. We had nobody in the drone. It would have made a big difference, let me tell you. It would have made a big, big difference.
But I have a feeling — I may be wrong and I may right, but I’m right a lot. I have a feeling that it was a mistake made by somebody that shouldn’t have been doing what they did. I think they made a mistake. And I’m not just talking the country made a mistake. I think that somebody under the command of that country made a big mistake.
Q Are you still open to talking to Iran’s leadership?
PRESIDENT TRUMP: Let’s just see what happens. You just — let’s see what happens. It’s all going to work out.
Q (Inaudible) to strike the drone?
PRESIDENT TRUMP: Say it?
Q Are you saying you think it wasn’t intentional to strike the drone?
PRESIDENT TRUMP: I don’t know. I find it hard to believe it was intentional, if you want to know the truth. I think that it could have been somebody who was loose and stupid that did it. But we’ll be able to report back, and you’ll understand exactly what happened. But it was a very foolish move, that I can tell you.
Q Do you feel like there are members of your administration who are trying to push you into conflict with Iran?
PRESIDENT TRUMP: No, not at all. Not at all. In fact, in many cases, it’s the opposite.
But I will say — look, I said I want to get out of these endless wars. I campaigned on that: I want to get out. We’ve been in Afghanistan for 19 years. As you know, we’ve reduced very substantially in Afghanistan.
We beat the caliphate. We took back 100 percent of the caliphate. When it was 99 percent, Justin, I said, “We’re going to get out. We’re going to start peeling back.” And everybody went crazy because it was 99. So I said, “All right. So we’ll finish it up.” So we got 100 percent, and we’re pulling that back, out of Syria. We’re pulling a lot of people back.
But this is something — this is a new wrinkle. This is a new fly in the ointment, what happened shooting down the drone. And this country will not stand for it, that I can tell you.
Thank you very much.
Q (Inaudible.)
PRESIDENT TRUMP: I can’t hear you.
Q (Inaudible) Hicks testifying yesterday?
PRESIDENT TRUMP: No, she was terrific. I heard she was terrific. Really great. She’s a great — she’s a great person, and I heard she was terrific yesterday.
Iran didn’t just shoot down a simple ‘drone’, Iran used a surface-to-air missile to shot down one of the most technologically advance U.S. aircraft costing $123 million; more than the price of an F-35 stealth fighter jet.
The targeted aircraft was a US Navy Broad Area Maritime Surveillance (BAMS-D); a RQ-4A Global Hawk high-altitude long endurance (HALE) drone, flying in international airspace over the Gulf of Oman.
“The RQ-4 flies at upwards of 65,000 feet,” Tyler Rogoway, the editor of The War Zone, wrote. “So this would have been a sophisticated radar-guided surface-to-air missile that shot the aircraft down, not a shoulder-fired, heat-seeking missile.”
(Business Insider)The US military called the incident “an unprovoked attack on a US surveillance asset in international airspace” over the Strait of Hormuz, the entrance to the Persian Gulf. The Iranians have accused the US drone of entering Iranian airspace, an allegation Central Command characterized as completely false.
Iran didn’t just shoot down a simple ‘drone’, Iran used a surface-to-air missile to shot down one of the most technologically advance U.S. aircraft costing $123 million; more than the price of an F-35 stealth fighter jet.
The targeted aircraft was a US Navy Broad Area Maritime Surveillance (BAMS-D); a RQ-4A Global Hawk high-altitude long endurance (HALE) drone, flying in international airspace over the Gulf of Oman.
“The RQ-4 flies at upwards of 65,000 feet,” Tyler Rogoway, the editor of The War Zone, wrote. “So this would have been a sophisticated radar-guided surface-to-air missile that shot the aircraft down, not a shoulder-fired, heat-seeking missile.”
(Business Insider)The US military called the incident “an unprovoked attack on a US surveillance asset in international airspace” over the Strait of Hormuz, the entrance to the Persian Gulf. The Iranians have accused the US drone of entering Iranian airspace, an allegation Central Command characterized as completely false.
Earlier today President Donald Trump presented the Presidential Medal of Freedom to Dr. Arthur Laffer in the Oval Office. [Video and Transcript]
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[Transcript] – 5:16 P.M. EDT – THE PRESIDENT: Well, this is a big day. Very important for a very important subject. Today it’s my privilege to award our nation’s highest civilian honor to the father of supply-side economics: Dr. Arthur Laffer. (Applause.)
I know Art has been to the Oval Office, unlike most people, many times. But this is a very special time for you. This is a tremendous award. You have the Congressional Medal of Honor on the military side, which, of course, is something incredibly special. And the presidential medal is — I just want to congratulate you. There’s nothing like it, right?
DR. LAFFER: Nothing.
THE PRESIDENT: Thank you very much, Art.
Joining us for this momentous ceremony are Art’s six children. Thank you very much. Congratulations. (Applause.) And we’re also grateful to be joined by Vice President Mike Pence. We just got back from Florida. (Applause.) Had a big night. That was a big night in Orlando, Mike. Right?
Secretary Steve Mnuchin, Alex Acosta, Elaine Chao, and Ben Carson, thank you very much for being here. And our top economic advisor and a great friend — of all of us, actually. I hear that voice and I just say “money, money, money.” Larry Kudlow. (Laughter.) Right? Larry. Thank you, Larry.
MR. KUDLOW: Thank you, sir.
THE PRESIDENT: Few people in history have revolutionized economic thought and policy like Dr. Art Laffer.
He developed a brilliant theory, shaped unprecedented economic reforms, and helped turn a severe recession into a remarkable boom. He proved that the most powerful way to grow the economy and raise government revenue was not to increase tax rates but to adopt strong incentives that unleash the power of human freedom and innovate, create jobs, and deliver greater opportunity to all Americans. And he’s proved it over and over again.
A Yale graduate, Art went on to earn his PhD in Economics from Stanford University. He became the youngest-ever tenured professor at the University of Chicago. Oh, that’s good. That wasn’t too long, was it? (Laughter.) He’s very deceiving. He’s a little older than he looks. He looks like he’s in his forties. (Laughter.) He’s a little older than that. Just a little bit, right?
DR. LAFFER: A lot.
THE PRESIDENT: Don’t talk about it. (Laughs.)
In 1970, Art served as the very first chief economist at the Office of Management and Budget, where he designed an economic model that is still used today to forecast tax revenue and accurately predict economic growth.
Art then returned to the University of Chicago. At the start of the Ford administration, our nation’s economic situation was becoming dire indeed. We remember.
In 1974 alone, 2 million Americans joined the unemployment lines, and inflation hit 11 percent. Right now, we have inflation at almost nothing. (Applause.) I like that better. Don’t you? It’s good to read this because we read this and we realize how well we’re doing right now.
The consensus in Washington, on both sides of the aisle, was that the government could tax, inflate, and regulate its way to prosperity. But Art had a different idea. Right? You did have a different idea. I’d have you tell it. It would be much more interesting, huh?
In 1974, Art came to dinner with the White House Chief Staff — Chief of Staff Don Rumsfeld; Deputy Chief of Staff Dick Cheney — who’s been, by the way, a tremendous supporter, and we appreciate Dick very much; and Wall Street Journal reporter Jude Wanniski.
The dinner has since become very, very legendary in many minds. Art drew on his napkin a series of lines and a curve that changed history. With the now famous “Laffer Curve” — still, a very, very highly respected economic curve — Art showed that if tax rates are too high, people stop spending and they stop investing.
The result is less growth and lower tax revenues. On the other hand, at the certain point on the curve, lower tax rates spur investment, economic growth, and raise government revenue.
I think Steve Forbes agrees with that. (Laughter.) Where’s Steve? I’ve heard you for a long time talking about that. Very much agree.
Prominent academics called this theory “insanity,” “totally wacky,” and “completely off the wall.”
With optimism, confidence, and exceptional intellect, Art would go on to prove them all wrong. He proved them wrong on a number of occasions.
In 1978, California Governor Jerry Brown asked Art to help him implement Proposition 13, which the people had overwhelmingly enacted to dramatically reduce the state property tax. I think they could use it again out there, by the way. They should do that immediately. The results were so successful that job creation soon grew at twice the nationwide rate. Within two years, 43 states adopted similar reforms.
During that same period, Art also advised Ronald Reagan, and helped shape his low-tax, pro-growth agenda. After President Reagan’s election, Art served on the President’s Economic Policy Advisory Board. He played a vital role in both the 1981 and 1986 tax rate cuts, which ultimately lowered the top marginal tax rate from 70 percent to 28 percent. That’s not bad. That’s a pretty big reduction, I would say.
The Reagan economy soared, creating sustained economic growth, shrinking poverty, expanding incomes, and dramatically increasing federal revenue. Sounds very familiar. Sounds very, very familiar, actually. Our economy has never, ever been stronger than it is today. (Applause.) It’s true.
Dr. Laffer’s policies not only expanded opportunity for our citizens; they spurred economic reforms around the world and helped lift untold millions out of poverty. Art has advised many world leaders, including former UK Prime Minister Margaret Thatcher — a great one.
Staying true to the pro-growth vision that Dr. Laffer helped develop, in 2017, we passed historic tax cuts and reforms into law. Now, unemployment has reached its lowest level in over 51 years, with fast-growing wages, low inflation, and real GDP. And this is GDP growth that’s higher than anybody ever thought possible. First quarter was 3.2. And everybody said the first quarter is not going to be so good because the first quarter is never very good for us. But it was not only good; it was double and even triple what people expected. And we’re going to see some other very pleasant surprises, especially when the trade deals are all worked out. And they’re coming along very well, Art, as you know.
Our tax cuts and reforms also created Opportunity Zones in distressed communities, another idea that Dr. Laffer helped develop early in his career.
In 1999, TIME magazine named Dr. Laffer one of the greatest minds of the 20th century. Former Wall Street Journal reporter Jude Wanniski wrote, “In studying public finance, there is nothing more important than an appreciation of the Laffer Curve.” I’ve heard and studied the Laffer Curve for many years in the Wharton School of Finance. It’s a very important thing that you’ve done, Art. Very important.
Dr. Laffer helped inspire, guide, and implement extraordinary economic reforms that recognize the power of human freedom and ingenuity to grow our economy and lift families out of poverty and into a really bright future.
Today, our nation is stronger, our people more prosperous, and the world a much better place because of the brilliance and boldness of Dr. Arthur Laffer.
And it’s now my profound honor to ask the military aide to come forward as I present Dr. Laffer with the Presidential Medal of Freedom. It’s my great honor. Thank you. (Applause.)
MILITARY AIDE: Arthur B. Laffer, the Father of Supply-Side Economics, is one of the most influential economists in American history. He is renowned for his economic theory, “The Laffer Curve,” which establishes the strong incentive effects of lower tax rates that spur investment, production, jobs, wages, economic growth, and tax compliance.
Among other accomplishments during his distinguished career, Dr. Laffer was the first chief economist of the Office of Management and Budget and a top economic advisor to President Ronald Reagan.
The United States proudly recognizes Arthur B. Laffer for his public service and his contributions to economic policy, which have helped spur prosperity for our nation.
(The Medal of Freedom is presented.) (Applause.)
DR. LAFFER: Oh, my gosh. (Laughter.) When your staff said, “Keep it short,” I didn’t know that’s what they meant. (Laughter.) No, I’m just joking.
THE PRESIDENT: This is your day.
DR. LAFFER: Thank you very much.
Let me, if I can: Sincerity and brevity — or so they say — go hand in hand. And in that vein, Mr. President, I want to thank you from the top, the middle, and the bottom of my heart. Thank you.
Good economic policy is a team effort. And goodness knows my fellow teammates are the best ever: Larry Kudlow, my friend forever and ever and ever. Steve Moore. Where are you, Steve? Steve Moore. Steve Forbes. Steve Forbes canceled his trip abroad to be here today. Is David Malpass here? Kevin Hassett. Team players, Steven Mnuchin, wherever — there you are. You’re way back there. Steven. You don’t get a better team than that, ever. I mean, this is the team of all teams.
And I just want to reflect for a second on some of my past colleagues and working with other administrations. For example, in the past, my colleagues included Nobel Laureate and dear friend Bob Mundell; the legendary editorial page editor, Bob Bartley, of the Wall Street Journal; Jude Wanniski, the crazy, wild revolutionary for supply-side economics; Milton Friedman, of course; my godfather and dearest supporter, Justin Dart; George Schultz, my mentor who has hired me four times and not gotten tired of it yet, I guess; Jack Kemp, who we called, “The Weapon” — he’s delivered it; and my classmate at Yale, and my dear friend, a guy named Dick Cheney. It’s just really wonderful to have — each of whom deserves a lot of praise.
By the way, just for the record, Bob Bartley, Milton Friedman, Justin Dart, George Schultz, Jack Kemp, and Dick Cheney all received the President Medal of Freedom. Isn’t that amazing? I’m in great, great company, let me tell you. I’m awed by that.
But to get over the — to get the ball over the — to get the ball over the goal line, committed leadership is the sine qua non for this. And we had President Kennedy, President Reagan, Prime Minister Margaret Thatcher, and of course, you, Mr. President, Donald Trump, to really make it all happen. Without the leaders — (applause) — and all I can say is, wow.
I mean, you know, President Kennedy established the current Presidential Medal of Freedom, and both President Reagan and Margaret Thatcher were recipients.
My business partner is here. My business partner’s friends and fellow dreamcatchers — a number of whom are here today, by the way — have allowed all of this to happen for me, and I am eternally grateful. They are the salt of the Earth. And, in fact, they actually lived the lives that we economists just talk about. They actually do it. And it is for them that we do what we do. They have kept, do keep, and will keep America prosperous.
And my final shout-out, if I may, is to my family — my wonderful family. All six of my children are here today, as well as Mike Madzin and Mike Stabile. I’m missing my 13 grandchildren and my 4 great-grandchildren, for which I am sure the White House staff is eternally grateful. (Laughter.)
My family makes me very, very proud and gives me a reason every morning to get up and get to work. Thank you. (Applause.)
The construct of the USMCA was always anticipated to sail through ratification in Mexico because, well, quite frankly, the USMCA is specifically structured to provide great benefit toward Mexico. It’s not because the language within the USMCA favors Mexico, but rather the rules are centered around deregulating industry, and lifting wages.
The rules-of-origin, in combination with mandated minimum wage rates attached to the manufacturing sector; and the fact that Mexico has the lowest current wage rates in North American; specifically means that Mexican workers stand to get the biggest financial benefits… and that’s ok. Trump, Lighthizer and Ross designed it that way.
The U.S. benefits when the Mexican wage rates are raised. Heck, there was a time in the early negotiations, after Canada was kicked out of the room, when Secretary Wilbur Ross was advocating for an $11/hr minimum wage in Mexico, and the Mexicans were like ‘whoa, wait a minute, too high, too high’… [It was quite funny, because Trump was being called racist simultaneous to him trying to give a $85/day pay raise to Mexicans (from $3/day)].
MEXICO CITY (Reuters) – Mexico on Wednesday became the first country to ratify the United States-Mexico-Canada Agreement (USMCA) agreed late last year to replace the North American Free Trade Agreement (NAFTA) at the behest of U.S. President Donald Trump.
By a vote of 114 in favor to 4 against, Mexico’s Senate backed the deal tortuously negotiated between 2017 and 2018 after Trump repeatedly threatened to withdraw from NAFTA if he could not get a better trade agreement for the United States.
Mexican President Andres Manuel Lopez Obrador had already anticipated ratification this week in the Senate, where his leftist National Regeneration Movement (MORENA) and its allies have a comfortable majority in the 128-member chamber.
There has been little parliamentary opposition in Mexico to trying to safeguard market access to United States, by far Mexico’s top export destination, and the trade deal was approved with overwhelming cross-party support in the Senate.
Mexico sends around 80% of its exports to the United States, and Trump last month vowed to impose tariffs on all Mexican goods if Lopez Obrador does not reduce the flow of U.S.-bound illegal immigration from Central America.
Lopez Obrador says he wants to avoid conflict with Trump (read more).
The USMCA deal positions Mexico to retain their current multinational investments; and through a series of sector-by-sector standards on origination the deal simultaneously closes the fatal NAFTA loophole.
The agreement makes an economic manufacturing partnership between the U.S. and Mexico; and for assembly products third parties will have to produce parts and origination material within the U.S. and Mexico.
Here’s a good example in the auto-sector. The new USMCA agreement requires 75% of automobile parts made in North America; and 45% must come from plants with minimum labor costs ($16/hr), or face tariffs upon export to the U.S. Additionally, the total source-origination rate of 75% USMCA product is higher than everyone thought possible.
This 75% country-of-origin level was possible because President Trump cut out the corporations (ie. U.S. Chamber of Commerce) from having any influence over the agreement. Most people probably don’t know, but the USMCA was the first trade deal negotiated without multinational corporations in the room.
Example of downstream consequences/benefits: German auto-maker BMW recently built a $2 billion assembly plant in Mexico (just came on-line). Most of their core parts were coming from the EU (steel/aluminum casting components) and/or Asia (electronics). Now the assembly plant will have to source 75% of the auto-parts from the U.S. and Mexico, with 45% of those parts from facilities paying $16/hr. The Result: BMW will need to modify their supply chain and build auto parts in the U.S. and Mexico. [That’s Exactly What Happened]
Canada doesn’t gain as much benefit because: (1) Canadian environmentalists don’t allow heavy industrial manufacturing; and (2) the new USMCA closes the NAFTA loophole and blocks Canada from brokering their ‘assembly process‘ access to the U.S. market.
However, knowing this, when President Trump applied the global Steel and Aluminum tariffs toward Canada – he created a USMCA benefit for Canada literally out of thin air. In exchange for Canada agreeing to the terms of the USMCA, President Trump has now agreed to drop the Steel and Aluminum tariffs against Canada.
Canada will ratify the agreement because they have no choice if they want to keep access to the U.S. market for their products. I would predict Canadian ratification within a few weeks (before mid July).
Domestically, Nancy Pelosi is playing ‘OrangeManBad’ politics with the agreement; but once Canada ratifies it Pelosi will have to drop her pretense. Don’t worry, it’ll happen.
“Complicated business folks,… complicated business.”
In the 24 hour period surrounding the Trump/Pence 2020 kick-off the RNC is reporting supporters of President Trump raised a whopping $24.8 million.
WASHINGTON – President Trump’s re-election effort raised $24.8 million in under 24 hours, the Republican National Committee said Wednesday morning, announcing new numbers tied to the president’s kickoff rally in Orlando, Fla.
The RNC said the funds were split across the Trump re-election campaign and two joint Trump-RNC fundraising committees, Trump Victory and Trump Make America Great Again Committee.
The Trump campaign and the RNC together raised more than $75 million in the first quarter and had more than $80 million in the bank at the end of March. The next quarterly reports are due in July.
The 24-hour haul underscores Mr. Trump’s fundraising command and how the GOP has coalesced behind him after shunning his unconventional foray into the 2016 presidential primary. His incumbency has enabled him to partner with the Republican Party to seek six-figure individual donor checks. (read more)
“The enthusiasm across the country for this President is unmatched and unlike anything we’ve ever seen!”
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This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
Centinel2012 