North Korean Vice-Chairman Kim Yong Chol, the second most powerful political official in the DPRK, visited President Trump at the White House today to deliver a letter from North Korean Chairman Kim Jong-un.  The topic was the ongoing dialogue between the U.S. and North Korea in advance of a meeting scheduled June 12th in Singapore.

It is important to note the body language, and the messages conveyed therein, between Kim Yong Chol, the emissary group and the U.S. leadership headed by President Trump and Secretary of State Mike Pompeo (video below).  After their two-hour meeting, President Trump and Secretary Pompeo delivered remarks to the press pool:

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Keep in mind, Kim Yong Chol also participated in meetings between Chairman Kim Jong-un and the primary influence agent, Chinese Chairman Xi Jinping.

President Trump described the session with Kim Yong Chol as a positive, introductory session.”I think that we’re going to have a relationship and it will start on June 12,” the president said.

President Trump also said he did not discuss human rights Friday with Kim Yon Chol, but said he “probably will, and in great detail” during his upcoming meeting with Kim Jong-un.  Trump said North Korean officials asked about sanctions, which Trump said will remain in place.  However, in typical diplomatic form, POTUS Trump also softened the tone toward North Korea, saying “I don’t want to even use the term maximum pressure anymore, because we’re getting along.”  President Trump said the relationship between the U.S. and North Korea “is as good as it’s been in a long time.”

Extended video from Fox10 News shows the exit and body language in greater detail:

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More footage:

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President Trump is providing the first opportunity North Korea has ever encountered in the modern era to establish an authentic version of itself.

Against the backdrop of President Trump’s unapologetic economic muscle flexing, National National Economic Council Director Larry Kudlow appears on CNBC to discuss the latest stunningly positive jobs and economic reports.

The Bureau of Labor Statistics released the May Jobs Report earlier today (pdf here) and has stunned forecasters and economic analysts with incredible results.  Over 223,000 jobs were created in May, and the unemployment rate drops to 3.8%.

As the New York Times is forced to admit, there are not enough words to describe just how good these results are amid the continued growth of the U.S. economy. Accepting the BLS heavily manipulated jobs numbers during the Obama years, the BLS is forced to attempt to reconcile the scale of monthly job gains (223k) and an unemployment rate that has seemingly dropped below the floor of reasonable possibility.  As a result 3.8% is the lowest unemployment rate since April 2000; and if the unemployment rate drops another 0.1% it will be the lowest unemployment number since the 1960s.

Average monthly employment growth in 2018 now averages a whopping 207,000 jobs per month.  These monthly average gains are faster than gains in both 2016 and 2017.  Collectively, the U.S. economy has added nearly 3 million jobs since President Donald J. Trump took office.

White House:  “Job growth has been strong across the board during the first 16 months of this Administration, and the gains in the goods-producing industries (manufacturing, construction, and mining and logging) have been especially robust. After averaging gains of 27,000 jobs per month during President Obama’s second term, these industries have almost doubled the pace of hiring to 46,000 jobs per month since January 2017. Manufacturing gains have picked up even more speed: Monthly gains have averaged 19,000 per month since President Trump took office after increases of only 8,000 per month, on average, during the second term of President Obama.

Increases in manufacturing employment since January 2017 reflect increased confidence among America’s manufacturers, but they also reflect changes in the investment decisions of other American businesses. The Morgan Stanley measure of capital expenditure investment plans shows that these plans are at historically high levels, in part due to the incentives emerging from the Tax Cuts and Jobs Act. According to the second estimate of Q1 real GDP released earlier this week, real business fixed investment grew 9.2 percent at an annual rate during Q1, with strong growth in structures, equipment, and intellectual property investment.  (more)

Total nonfarm payroll employment increased by 223,000 in May, compared with an average monthly gain of 191,000 over the prior 12 months. Over the month, employment continued to trend up in several industries, including retail trade, health care, and construction:

♦In May, retail trade added 31,000 jobs, with gains occurring in general merchandise stores (+13,000) and in building material and garden supply stores (+6,000). Over the year, retail trade has added 125,000 jobs.

♦Employment in health care rose by 29,000 in May, about in line with the average monthly gain over the prior 12 months. Ambulatory health care services added 18,000 jobs over the month, and employment in hospitals continued to trend up (+6,000).

♦Employment in construction continued on an upward trend in May (+25,000) and has risen by 286,000 over the past 12 months. Within the industry, nonresidential specialty trade contractors added 15,000 jobs over the month.

♦Employment in professional and technical services continued to trend up in May (+23,000) and has risen by 206,000 over the year.

♦Transportation and warehousing added 19,000 jobs over the month and 156,000 over the year. In May, job gains occurred in warehousing and storage (+7,000) and in couriers and messengers (+5,000).

♦Manufacturing employment continued to expand over the month (+18,000). Durable goods accounted for most of the change, including an increase of 6,000 jobs in machinery. Manufacturing employment has risen by 259,000 over the year, with about three-fourths of the growth in durable goods industries.

♦Mining added 6,000 jobs in May. Since a recent low point in October 2016, employment in mining has grown by 91,000, with support activities for mining accounting for nearly all of the increase.

The economic engine is firing with seemingly unstoppable momentum. Today started off with a payrolls report showing a gain of 223,000, well above market expectations of 188,000 – and with the unemployment rate hitting an 18-year low of 3.8 percent, things only look better.

The ISM Manufacturing Index registered a 58.7 reading — representing the percentage of businesses that report expanding conditions — that also topped Wall Street estimates. Finally, the construction spending report showed a monthly gain of 1.8 percent, a full point higher than expectations.  This data is helping to fuel expectations the GDP growth in the 2nd, 3rd, and 4th quarter will defy all expectations.

CNBC – Already, the Atlanta Fed’s GDPNow tracker sees the second quarter rising by 4.8 percent. […] Andrew Hunter, U.S. economist at Capital Economics, said the ISM number alone is consistent with GDP growth of better than 4 percent, though he thinks the second quarter will be in the 3 percent to 3.5 percent range. (link)

The pundits are gobsmacked:

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Grab your winnamins and hide the Ju-Ju bones. I thought this was going to be an issue when Prime Minister Trudeau publicly told reporters the content of a private conversation between Vice-President Mike Pence and himself.  With incredibly bad diplomatic form, Justin from Canada has not only cemented the Steel and Aluminum tariffs as permanent – but Trudeau has likely destroyed any hope of the U.S. remaining in NAFTA.

The White House has delivered a statement to the media, with a request to ensure authorship is directly and personally cited from President Donald J Trump:

The United States has been taken advantage of for many decades on trade. Those days are over. Earlier today, this message was conveyed to Prime Minister Justin Trudeau of Canada: The United States will agree to a fair deal, or there will be no deal at all. (link)

For those unfamiliar; this is about as close to an ultimatum as President Donald Trump generally delivers to his adversaries.   Look back on his history and you’ll note rarely does Donald J Trump deliver ‘either this / or that’ approaches; it’s just not his style…. He doesn’t bluff.  However, when Trump has decided to walk away from a deal, any deal, he delivers the “either/or” right before walking to the door.  The final terms hang in the air providing the opposition with a few fleeting moments to reflect prior to exit.

Once DJT exits the room, no deal. Even if the counter-party chases him down the hall with full agreement of terms; doesn’t matter.  Once Trump exits, it’s done. Over.

During his public remarks earlier today, Prime Minister Trudeau said a DC meeting with President Trump didn’t occur earlier this week because Vice President Mike Pence told the prime minister if they were going to discuss saving NAFTA he must allow a five-year sunset clause to be included in the trade agreement in order for the meeting to even happen. Trudeau called the condition “completely unacceptable” and didn’t go to DC.

NAFTA is as close to dead as it has ever been.

Need more winnamins.

Consumer Alert: Currently unlawful to dispense, in Canada.

WHITE HOUSE –  Today, President Donald J. Trump issued an Executive Grant of Clemency (Full Pardon) to Dinesh D’Souza, an accomplished author, lecturer, and scholar.

Mr. D’Souza was, in the President’s opinion, a victim of selective prosecution for violations of campaign finance laws. Mr. D’Souza accepted responsibility for his actions, and also completed community service by teaching English to citizens and immigrants seeking citizenship.

In light of these facts, the President has determined that Mr. D’Souza is fully worthy of this pardon.(link)

Focusing a lot of today’s information on the economic front and the implementation of the U.S. America-First trade discussion because this is the very heart of the Trump MAGA initiatives.  Everyone who voted for President Trump should be grinning ear-to-ear today at how steadfast POTUS has been – against all economic adversaries foreign and domestic.

White House Trade Council Director Peter Navarro discusses the implementation of countervailing U.S. duties; the transshipment issues, NAFTA and the intended trade reset therein. “Economic Security is National Security“!

Justin from Canada presents one of the most ridiculous contexts for the U.S. 232 Steel and Aluminum tariff decision. Justin proclaims the imposition of countervailing duties by the U.S. indicates that President Trump considers Canada a national security threat. Seriously, I’m not kidding, that’s what he is stating – watch.  Additionally, his feelings are hurt.

Apparently Justin from Canada cannot draw a distinction between an industry being lost, and that loss being a national security risk, and the hurt feelings of the Canadian Prime Minister. Intensely ridiculous… even for Justin. Obviously the irrational liberals in both the U.S. and Canada will likely draw the same ridiculous and illogical conclusions.

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China, the EU, Canada and Mexico have been exploiting weak U.S. trade policy for years. Through the effective utilization of targeted tariffs, with multiple opportunities -and warnings- to avoid the outcome, President Trump and Wilbur Ross cut the Gordian Knot.

The Big Club, driven almost entirely by the U.S. Chamber of Commerce and Tom Donohue are going bananas….. They can’t believe Trump actually did it. He actually followed through. The Wall Street consortium of multinationals are apoplectic.

Decades of economic gaslighting upon the U.S. electorate; massive manipulative multinational corporate influences; hundreds of millions spent purchasing U.S. politicians; and POTUS has just punched it all square in the face.

Amid ongoing trade stalemates with NAFTA and the EU, Commerce Secretary Wilbur Ross announced the U.S. Commerce Department will no longer provide exemptions for the European Union, Canada or Mexico on Steel/Aluminum tariffs.

In addition, a week ago, President Trump “instructed Secretary Ross to consider initiating a Section 232 investigation into imports of automobiles, including trucks, and automotive parts to determine their effects on Americas national security.

Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862) authorizes the Secretary of Commerce to conduct comprehensive investigations to determine the effects of imports of any article on the national security of the United States. As often stated by President Trump, Treasury Secretary Mnuchin and Commerce Secretary Wilbur Ross: “economic security is national security.”

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

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?

All nuanced trade-sector issues put aside, the larger issue is 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.] President Trump, Secretary Wilbur Ross and U.S.T.R. Lighthizer well understand this structural problem. ONLY Trump, Ross, Mnuchin and Lighthizer were willing to confront this problem. If Trump had lost the election, Clinton would have joined the multinationals and U.S. workers would have suffered greatly.

The issue of Canada/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 could not adequately be resolved while U.S. remains connected to NAFTA. With the tax reform benefits, 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 timing for President Trump/Sec Ross making the announcement today.

The Automobile Sector is one of the biggest points of contention within varying trade negotiations. In the NAFTA discussion the auto-sector, via rules of origin, runs at the heart of NAFTA’s fatal flaw. The fatal flaw = use of Asian, mostly Chinese, auto components within auto manufacturing. Mexico and Canada arguing to allow more Chinese auto parts in North American manufacturing; and President Trump demanding more North American parts for North American auto manufacturing.

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

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

Current trade negotiations with the EU, China and NAFTA reached a loggerhead status around these core issues. Multinational ‘Wall Street’ corporations unwilling to lose their prior multi-billion investments and take a new ‘America-First’ approach. POTUS Trump is rightly angered by many of them because he specifically offset any investment losses with a new U.S. corporate tax structure.

All of that said, the issues with the auto-sector have now rippled out into other trade sectors with discussions coming to a standstill until the auto issues are resolved. Enter President Trump and Commerce Secretary Wilbur Ross with the plan.

Knowing all of the outlier, generally lesser, trade sectors are being impacted over the Chinese auto component issue, President Trump cuts the Gordian Knot and tells Commerce Secretary Wilbur Ross to consider a Section 232 review of auto industry as it pertains to imports.

Additionally, amid ongoing trade stalemates with NAFTA and the EU, Commerce Secretary Wilbur Ross has announced the U.S. Commerce Department will no longer provide Steel and Aluminum tariff exemptions for the European Union, Canada or Mexico. During a telephone briefing with reporters today Secretary Ross announced at midnight tonight the 25% steel, and 10% aluminum, tariffs on imported goods will begin.

Australia, Brazil and South Korea (KORUS) have completed trade agreements with the U.S. and will remain exempt from any countervailing steel and aluminum duty. However, Canada and Mexico (NAFTA), as well as the EU, have been unwilling to reach reciprocal and balanced trade agreements with the U.S. and will now be subject to the tariff.

White House:

“The United States was unable to reach satisfactory arrangements, however, with Canada, Mexico, or the European Union, after repeatedly delaying tariffs to allow more time for discussions.”

The U.S. Chamber of Commerce representing Wall Street multinational interests are going bananas. DC politicians, and the multinational media, who are fully purchased by the U.S. CoC lobbyists are attacking the Trump administration….. all predictable.

U.S. Secretary of State Mike Pompeo and North Korea Vice-Chair Kim Yong-chol have concluded two days of discussions and meetings surrounding an agreement for the DPRK to eliminate all nuclear weapons and retreat from their nuclear ambitions.

Secretary Pompeo and Vice-Chairman Kim Yong-chol continue working toward a possible meeting between President Trump and North Korean Chairman Kim Jong-un in Singapore on June 12th.   After their meetings Secretary Pompeo held a press conference:

President Trump spoke briefly about the ongoing negotiations: