Tag Archives: North Korea

Apr 29 2017

Report: Secretary T-Rex Begins Reducing State Dept. Bureaucrats…


Re-Posted from the Conservative Tree House on April 28, 2017 by

A report from Bloomberg highlights the anxiety within the professional state department apparatus as Secretary Tillerson begins substantive cuts in the number of pontificating elitist bureaucrats.  It’s amazing how the ankle-biters never seem to recognize these consequential shifts in policy and approach toward dismantling the bureaucracy.

The State Department is the cornerstone of Deep State operations. It is a massively bloated institution filled with some of the most entrenched political globalists and ideologues.

(Via Bloomberg) The State Department plans to cut 2,300 U.S. diplomats and civil servants — about 9 percent of the Americans in its workforce worldwide — as Secretary of State Rex Tillerson presses ahead with his task of slashing the agency’s budget, according to people familiar with the matter.

The majority of the job cuts, about 1,700, will come through attrition, while the remaining 600 will be done via buyouts, according to the people, who asked not to be identified because the decision hasn’t been publicly announced. William Inglee, a former Lockheed Martin Corp. official and policy adviser in Congress, is overseeing the budget cuts and briefed senior managers on the plan Wednesday, the people said.

The personnel cuts, which may be phased in over two years, represent the most concrete step taken by Tillerson as he seeks to reverse the expansion the department saw under former President Barack Obama’s administration and meet President Donald Trump’s demand — outlined in an executive order signed last month — to cut spending across federal agencies. A draft budget outline released in March for the year that begins Oct. 1 seeks a 28.5 percent reduction in State Department spending from fiscal 2016.  (read more)

He is moving “forward” at speeds Obama could not even dream of.

You and I will be anti-Trump trolls one day and MAGA heroes the next. Get used to it. Trump speed is the new normal. Some will call it flip-flopping, but that’s not what it is. Trump is dodging and weaving through reality faster than the reality can react to disrupt his plans.

I was explaining this to my wife. This is a roller-coaster now. Trump is no longer waiting for people to keep up. He is taking his bewildering art-of-the-deal campaign schtick into geopolitics, and for a lot of people who can’t keep up or hold on, it will be a rough ride.

Trump is no longer playing only with evil and cunning players who are still predictable, easily beatable dopes, like Hillary. He is playing against killers, with his own team of killers, and all the while he has scheming creeps like Hillary, BGI, SPLC, and the neocons gunning for him. Snake Ryan ready to bite when nobody is looking. “Warhead” McCain screaming for Russian blood. Psycho Kim and Samoa Obama plotting some kind of intrigue to take him down. And THOSE are the lightweights.

This is the majors now. Trump has to outwit world-class adversaries and “frenemies” by defining the deals that they will agree to. One minute they will think Trump is their friend – the next minute, a cunning, bitter foe.

And he has to do this with evil cheerleaders like Warhead, Linderace, Dipsy Dowd, Maggie Haterman, and Fake Yapper trashing him or praising him alternately, no matter which way he goes. They can’t keep up, either.

Neither can many around him. I think that half of the problem with advisers crashing into each other is they don’t realize what Trump is doing.

And people will trash you, and they will trash me. Get used to it. I’ve already caught plenty of people mocking me. Well, just wait a week in Trump time. Look stupid and conned by Trump one minute, and you look like a sage three days later.

Trump will not find perfect solutions. He will find OPTIMAL solutions. We cannot ask for more. Trump has stood by and watched Perfect murder Good for 8 years – maybe longer. He’s not gonna do it. He’s going to deliver the best outcome possible, and he’s not waiting for us to feel relaxed about it.

Best presidency ever! Just hang on. More winning is coming, but a lot of people are going to scream that it’s all over at EVERY turn.

The best way through this is to define viewpoints, not people, because people will shift as they change position and velocity in Trump gravity. Bash the neocon, warmonger, and dopey globalist positions – not the people who are going to hold them one moment and come loose from them later.

Trump is Jupiter moving through the asteroid belt. He is going to pull people into his orbit. A few will get slung off into space, but most will come along for the ride of their lives.

I am ON the Trump Train for good, even if I scream that I want off and can’t take it.

In the end, I only want to scream “TOO MUCH WINNING!!!”  (link)

….”And we will win, and you will win, and we will keep on winning… Believe me. And we will win so much, you will get tired of winning; and you will say: please Mr. Trump, we can’t take all of this winning… And I will say to you, NO. …We will win more, and we will keep winning,.. and we will win, and we will keep on winning…. I love you”…

~ President Donald Trump

Apr 29 2017

Kim Jong-un The Kid Whose Father Never Spanked – Why 2017 Is The Crisis Year For Korea


Armstrong Economics Blog/War

Re-Posted Apr 29, 2017 by Martin Armstrong

Kim Jong Un

QUESTION: Kim Jong-un is clearly a mad-kid, not even a man. You have said the danger with him is he thinks he could actually win against the United States and South Korea. Now Trump want’s South Korea to pay $1 billion for a missile defense system. That does not seem to be a lot of money these days. Would it have any impact on this kid who seems to have never been spanked?

Thanks

YG

ANSWER: I agree. Kim Jong-un is just insane. He is far more dangerous than Syria or Putin. You have to understand 2017 is the start of an increased volatility with Korea – 72 years from the birth of North Korea. Kim Jong-un is very desperate to maintain control of his country for the economic internally are going against him all the way into 2020. The only way for him to maintain his rule right now is by relying on his development of nuclear weapons and intercontinental ballistic missiles. But this is the external paranoia. The danger he faces is internal.

It really depends upon the second-tier of command. If we move to a state of war being eminent, will someone step up and assassinate him to save their country? At least as they tried with Hitler. However, it is the wave of deflation that is even hitting China that become a contagion spreading to North Korea. That economy is contracting and with that contraction comes more rhetoric because he is losing his grip on power. He is not doing this boasting from a position of strength. This is a position of weakness.

Missile defense systems are fine, but honestly just one Ohio-class submarine will do the job. We have the ultimate doomsday weapon already. Kim Jong-un perhaps should do some research. But the boasts are coming from weakness – not strength. One does not boast in a position on strength. You do that to convince the other party you are stronger than you are.

The Ohio-class submarines are armed with twenty-four Trident II D5 ballistic missiles. These weapons have a range of 7,000 miles and are capable of very accurate strikes, which means they can be a first-strike weapon. These twenty-four Trident II ballistic missiles can be fired from underwater. As this missile reenters the atmosphere at speeds of up to Mach 24, it then splits into up to eight independent reentry vehicles each with a separate nuclear warhead. In other words, firing off all 24 missiles which can be launched in less than one minute, would unleash up to 192 nuclear warheads. Just one Ohio-class sub can wipe out  twenty-four cities and North Korea is gone. This is a real weapon of the apocalypse.

The whole logic of nuclear deterrence has been that a first strike could wipe out a country’s land-based missiles and nuclear bombers. This sub has missiles that are not pretargeted so they can be targeted within minutes as needed. Therefore, the Ohio-class subs are the ultimate doomsday machine firing a battery of ballistic-missiles that can take out 24 targets in minutes. There is no stopping these missiles. They are too fast to track. The deterrent remains that there is no victory so we do not go to nuclear war.

Anyone with any sense of reality, ought to know that if North Korea can make its intercontinental missile so it can hit the USA, there is no possible way North Korea would be able to prevent a launch from just one Ohio-class sub. This is a deterrent to Russia and China, it does not seem to be effective with North Korea. So yes, he is a madman who acts like a spoiled kid in need of a spanking. His latest statement:

“Should the US imperialists and the south Korean puppet forces open even a single fire into the inviolable territorial land, waters and air of the DPRK, its revolutionary armed forces will promptly mount annihilating strike and wipe out the aggressors to the last man.”

Kim Jong-un is clearly incapable of building an economy. He prefers to starve his people and be draconian to hold on to power for personal ego. Traditionally, throughout history, such people are overthrown by their own generals. When there is the slightest sign of weakness, Kim Jong-un will be assassinated, which is what history suggests for the reason it repeats is simply that the passions of man never change. It’s always the same play, just change the names and the century.

When Korea was split in 1945 into communist North against the South, the terrain has always dictated the situation. About 65% of Korea’s heavy industry was located in the north, but, due to the harshness of the terrain, only 37% of its agriculture existed in the North. This is why the North often has bouts with famine.

ECM-Dynamic

I have warned that the Economic Confidence Model has three distinct components. There is the main wave frequency based upon Pi of 8.6 years which builds into 6 waves forming the major wave of 51.6 years which seems to be the generational shifting wave that manifests in political changes between public and private trends.

Then there is the volatility wave component. This is what causes one 8.6 year wave to be more pronounce than another. The volatility component has a frequency of 6 years which is a slower moving wave taking 12 unit waves to build into the ultimate volatility peaks.

The Schema Frequency I do not reveal. To put this in context, it is the DNA wave of a coded pattern throughout time. This will be the last thing I ever reveal if I decide to do so. The jury is still out.

On August 8th, 1945 (1945.602), the Soviet Union declared war on Japan. Soviet troops advanced and the US government feared Russia would occupy the whole of Korea. On August 10th, the US government proposed the 38th parallel division.

Therefore, the 72 year of volatility comes now this summer – 2017.602. The 51.6 year cycle from 1945 (1997.202) marked the start with the 1997 Asian Currency Crisis. Then the next 8.6 year wave marked the turning up in the war cycle – 2014.402. Kim Jong-un became the Supreme Leader on December 28th, 2011 (2011.991). North Korea says it has conducted five successful nuclear tests: in 2006, 2009, 2013 and in January and September 2016. The 2006, 2009 and 2013 tests were all atomic bomb tests. North Korea claimed that its January 2016 test was of a hydrogen bomb. There was a change in development since Kim Jong-un came to power. He may have medium-range missiles capable of striking American military bases in the Pacific within a couple years, experts say, but he is claiming he will be able to strike the USA directly. Some believe Pyongyang may be able to hit the western U.S. as early as 2020. With this guy, Hollywood would probably be a symbolic target for him. He does not think beyond symbols like the World Trade Center was not a military or economic target, it was symbolic.

 

Apr 28 2017

Vice President Pence Swearing-In Ceremony For Secretary of Labor Alex Acosta…


Re-Posted from the Conservative Tree House on April 28, 2017 by

Earlier today Vice President Mike Pence participated in the final presidential commission ceremony for a cabinet member of the President Trump cabinet, Labor Secretary Alex Acosta.

.

The Senate finally voted 60-38 yesterday to confirm Alex Acosta to the post. Acosta accepts the presidential commission and becomes the 27th labor secretary. The son of Cuban immigrants will lead a sprawling agency that enforces more than 180 federal laws covering about 10 million employers and 125 million workers.

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Apr 27 2017

Democrat Congressional Leadership Now Demand Trump Administration “Punish” China…


Re-Posted from the Conservative Tree House on April 26, 2017 by

It was only a few months ago when congressional democrat leadership were clutching their pearls because President-elect Trump held a phone call with the political leadership of Taiwan.  House and Senate Democrats rose to defend the honor of China around the precept of the Obama administrations’ acquiescence to the “one china” policy, and Trump’s audacity to call it into question.

Then something weird happened.

President Trump took office January 20th, and after many diplomatic contacts within the administration and their Chinese counterparts, President Trump and President Xi Jinping began to formulate a friendship.

April 5th/6th President Trump and President Xi Jinping met in Mar-a-lago for two days and the outcome has been historic and stunning cooperation between the U.S. and China.  China began pressuring North Korea to stop the military drum-beating.

President Trump obviously held a long strategy and outlook toward China and how the geo-political landscape could be remolded to benefit the U.S. if a new era of mutually beneficial action could begin [SEE HERE].

Quick, new talking points are needed.

House Minority Leader Nancy Pelosi, Senate Minority Leader Chuck Schumer along with lesser house and senate leadership underlings tell their political operatives the new Democrat narrative demands that China must be attacked – because Trump.  Even if it means war, or something.

In a hilariously transparent 180° change in direction, the full Trump Derangement Syndrome took over immediately amid the Democrats.  China went from being a country worthy of the U.S. and Obama’s respect, to a country that is now the arch enemy and personification of all things anti-American.   This actually happened in the span of about two weeks.

Today the severity of the TDS was full frontal as Democrat Senator Chris Van Hollen demanded the Trump administration begin “punishing” China, and called for “strong economic sanctions” against China to “force North Korea” to heel.

Following the briefing by Rex Tillerson (State), James Mattis (Defense) and Dan Coats (ODNI) of the full senate, many politically obedient democrats were quick to the microphones to demand more aggression by the White House toward China, because Trump.

These Democrat knuckleheads, who previously hailed China as a wonderful strategic ally, would have us go to war with China simply because President Trump is being much more successful diplomatically than the previous Obama administration.

Thankfully the Trump administration is not driven by such insane political ideology:

STATE DEPT – Past efforts have failed to halt North Korea’s unlawful weapons programs and nuclear and ballistic missile tests. With each provocation, North Korea jeopardizes stability in Northeast Asia and poses a growing threat to our Allies and the U.S. homeland.

North Korea’s pursuit of nuclear weapons is an urgent national security threat and top foreign policy priority. Upon assuming office, President Trump ordered a thorough review of U.S. policy pertaining to the Democratic People’s Republic of Korea (D.P.R.K.).

Today, along with Chairman of the Joint Chiefs of Staff Gen. Joe Dunford, we briefed Members of Congress on the review. The President’s approach aims to pressure North Korea into dismantling its nuclear, ballistic missile, and proliferation programs by tightening economic sanctions and pursuing diplomatic measures with our Allies and regional partners.

We are engaging responsible members of the international community to increase pressure on the D.P.R.K. in order to convince the regime to de-escalate and return to the path of dialogue.

We will maintain our close coordination and cooperation with our Allies, especially the Republic of Korea and Japan, as we work together to preserve stability and prosperity in the region.

The United States seeks stability and the peaceful denuclearization of the Korean peninsula. We remain open to negotiations towards that goal. However, we remain prepared to defend ourselves and our Allies.  (link)

 

 

Apr 27 2017

BREAKING: NAFTA Call With President Trump, President Nieto (Mexico) and PM Trudeau (Canada)


Re-Posted from the Conservative Tree House on April 26, 2017 by

Art of the deal glaringly visible in less than one-half of a single day’s media cycle.  Simply amazing.  These phone calls are also further evidence of how much leverage the U.S. carries in the entire NAFTA Trade construct.  [White House Press Release]

Readout of President Donald J. Trump’s Call With President Peña Nieto of Mexico and Prime Minister Trudeau of Canada

Late this afternoon, President Donald J. Trump spoke with both President Peña Nieto of Mexico and Prime Minister Trudeau of Canada.  Both conversations were pleasant and productive.

President Trump agreed not to terminate NAFTA at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the NAFTA deal to the benefit of all three countries.

President Trump said: “it is my privilege to bring NAFTA up to date through renegotiation. It is an honor to deal with both President Nieto and Prime Minister Trudeau, and I believe that the end result will make all three countries stronger and better.”   ###

 

Apr 27 2017

Citing New Soft Wood Import Tariff, Maine Lumber Mill to Add Jobs and Second Shift…


Re-Posted from the Conservative Tree House  on April 26, 2017 by

President Trump has a simple economic platform: “Buy American and Hire American“; toward that goal all economic and fiscal policies are now directed to assist U.S. manufacturing companies and retain U.S. workers.  Period.

Two days ago Commerce Secretary Wilbur “Wilburine” Ross announced a 20% tariff, countervailing duties, on imported Canadian soft wood lumber.  Today, Pleasant River Lumber Co. in Jackman Maine announces their wood mills will now expand as a direct result of the beneficial impacts of even trade practices.

This is a big deal for this community.

MAINE – The Dover-Foxcroft-based Pleasant River Lumber company is expanding its Jackman sawmill in anticipation of increased demand for American lumber amid the U.S. government’s plans to levy tariffs on Canadian softwood.

In a media release Tuesday, Pleasant River Lumber said it is expanding its Moose River spruce mill in Jackman to add drying capacity this summer and hire up to 20 new workers for a second shift starting this fall.

“We have confidence with the recent tariff announcement a level playing field will exist that will allow us to invest in and expand our facilities in Maine,” said Jason Brochu, co-president of the family-owned Pleasant River Lumber.

The company employs 300 workers at its spruce and pine sawmills in Dover-Foxcroft, Jackman, Hancock and Sanford. The company acquired the Moose River Mill in Jackman in 2015, and it now produces about 85 million board feet of dimensional lumber a year.  (read more)

Some people might think this is not that big a deal in the grand scheme of things.  However, it is a very big deal to that community; it is a very big deal to those families; it is a very big deal to those who will now have good paying jobs.

Once upon a time, there was an old man who used to go to the ocean to do his writing. He had a habit of walking on the beach every morning before he began his work. Early one morning, he was walking along the shore after a big storm had passed and found the vast beach littered with starfish as far as the eye could see, stretching in both directions.

Off in the distance, the old man noticed a small boy approaching.  As the boy walked, he paused every so often and as he grew closer, the man could see that he was occasionally bending down to pick up an object and throw it into the sea.  The boy came closer still and the man called out, “Good morning!  May I ask what it is that you are doing?”

The young boy paused, looked up, and replied “Throwing starfish into the ocean. The tide has washed them up onto the beach and they can’t return to the sea by themselves,” the youth replied. “When the sun gets high, they will die, unless I throw them back into the water.”

The old man replied, “But there must be tens of thousands of starfish on this beach. I’m afraid you won’t really be able to make much of a difference.”

The boy bent down, picked up yet another starfish and threw it as far as he could into the ocean. Then he turned, smiled and said, “It made a difference to that one!”

[SOURCE]

Apr 26 2017

More Visible Dots The Media Ignore In Trump’s Strategy Against North Korea…


Re-Posted from the Conservative Tree House on April 26, 2017 by

Hours before the Trump administration briefed 100 senators today on the issues surrounding North Korea, a more consequential announcement was made.

The jaw dropping announcement (hidden by U.S. media) appears to show just how long President Trump has been putting the North Korea strategy together.  However, before discussing that aspect, we review the Senate Briefing at the White House:

Today Defense Secretary Jim Mattis, Secretary of State Rex Tillerson, Director of National Intelligence Dan Coats and Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, presided over a meeting meeting to brief Senators.

The details of that meeting have not been made public because of their classification and sensitivity.  The meeting lasted about one hour and discussed various financial and military options available for pressuring North Korea to end its nuclear program. (link)

Here’s where it gets really interesting.

For months the media have, at random, ridiculed President Trump for not distancing himself from Philippine President Rodrigo Duterte.  President Duterte has been cracking down on Filipino drug gangs in his country and his approach has been severe and extremely tough.  Indeed Duterte’s zero tolerance approach has been brutal.

However, shortly after his election, December 3rd 2016, President Trump chose not to refute Duterte for his approach toward confronting the Filipino drug gangs and drug epidemic.  The media were apoplectic.   Duterte responded by calling President Trump “a deep thinker“. Duterte said he was greatly pleased with the “rapport” he has established with the newly elected U.S. president.

Instead of President Trump calling out President Duterte for the severity of his approach, President Trump moderated any criticism and said he understood that Duterte was confronting the problem the best way he knew how for his country.

That was in December of 2016.

Well, guess who is now the rotating (every year) Chairman of the Association of South East Asian Nations (ASEAN)?

Yup, Philippine President Rodrigo Duterte.

And just yesterday, after a visit last week from Vice-President Pence, ASEAN announced:

Southeast Asian nations would adopt a softer than usual tone about South China Sea disputes at a leaders’ summit on Saturday in Manila, and exclude references to militarization or island-building, according to a draft of the chairman’s statement.

Although some Association of South East Asian Nations (ASEAN) leaders will express “serious concern” over the “escalation of activities” in the disputed sea, ASEAN will drop references, or even allusions, to China’s construction of artificial islands and the military hardware it has placed on them, according excerpts of the draft seen by Reuters. (link)

China has been expanding its seven man-made islands in the Spratlys (South China Sea) for several years, and the action has been a considerable point of angst for the region and for U.S. geo-political strategists in the former Obama administration.

However, despite the activity, and despite the protestations by the Obama White House and Obama State Department, the general consensus has been there’s nothing any nation can do about it because China exerts tremendous economic leverage in the entire region.  Additionally, the man-made Islands are too far along for any substantive international efforts to thwart them. 

The horse giant panda is now fully out of the barn.

There’s no President Trump policy capable of reversing the position of China in this action.  Done is done.  However, the international view of legitimacy around these islands still carries some major political leverage if applied toward a greater regional need of similar consequence.

Enter the need for the international community, and ASEAN specifically, to see North Korea pull-back from their doomsday nuclear ambitions…. and President Trump understanding that given the nature of entire issue – it all comes down to leveraging China, using complex terms of political currency, valuation and international legitimacy, against North Korea.

The Giant Panda can eliminate the problem that is Kim Jong Un.

ASEAN Chairman, Philippine President Rodrigo Duterte, modifying the confrontational tone of Asian nations toward China is yet another useful carrot by U.S. President Trump to stimulate China’s increased pressure upon North Korea.

That’s a really big ‘get’ for President Xi Jinping.

“Complicated business folks, ….Complicated business”…  

Again, a review of the activity timeline reveals a long-term strategic approach: 

♦February 10th – President Trump hosted Japanese Prime Minister Abe at the White House and at Mar-a-Lago, w/both spouses, to discuss regional issues (including N-Korea).

♦February 27th – President Trump and Chinese State Councilor Yang Jiechi meet in the White House Oval Office to discuss regional issues (including N-Korea).

♦March 15th – Secretary of State Rex Tillerson visits Japan, South Korea and China to follow up on February’s conversations and discuss the forward path (including N-Korea).

♦April 6th and 7th – President Trump hosts Chinese President Xi Jinping in Mar-a-Lago where they discussed all of the critical bilateral and regional issues (including N-Korea).  President Trump seeded the background by appointing Ambassador Terry Branstad, a 30-year personal friend of President Xi Jinping.

♦April 8th – Secretary Rex Tillerson debriefs the media.  <– CRITICAL READ

WHAT HAPPENED NEXT?

  • For the first time ever, China did not support Russia in a U.N. Security Council veto vote surrounding Syria.   China abstained.
  • China turned around 12 fully loaded cargo ships laden with imported coal from North Korea.  400,000 metric tonnes refused unloading.   China begins an embargo against North Korean coal.  China begins importing coking coal for steel-making from the U.S. coal mines.
  • Additionally, in furtherance of economic sanctions – China halts oil exports to North Korea.
  • Additionally, in furtherance of political isolation – China halts direct flights between Beijing, China and Pyongyang, North Korea.
  • And in the most stunning seismic shift of geo-political alliances, China says it is now open to discussions of a denuclearized North Korea, meaning getting rid of N-Korean nukes, WITHOUT N-Korea being included in the talks. Hello?  China, the United States, Japan, Russia and South Korea discussing how to de-nuke North Korea.  (A new Marshal Plan of sorts)

♦April 14th – President Trump announces policy directive to Treasury Secretary Mnuchin that there’s no need to label China as a currency manipulator.

♦April 15th – Vice President Pence arrived in Asia for a ten day visit (South Korea, Japan, China, Indonesia, Australia); positioned as the steady, stable and reliable administration policy closer (including N-Korea).

♦April 23rd – President Trump followed up on Pence’s visit with personal phone calls to China’s President Xi Jinping and Japanese Prime Minister Shinzo Abe; again, the topic was North Korea.

♦April 24th – U.N. Ambassador Nikki Haley brings the U.N. Security Council to the White House for lunch with President Trump.  The President spoke of the need for the U.N. to fulfill its original charter.

♦April 25th – ASEAN (Philippine President Rodrigo Duterte – rotating ASEAN Chairman) releases policy statement saying Southeast Asian nations agree to go easy on Beijing over South China Sea dispute.

Although some Association of South East Asian Nations (ASEAN) leaders will express “serious concern” over the “escalation of activities” in the disputed sea, ASEAN will drop references, or even allusions, to China’s construction of artificial islands and the military hardware it has placed on them, according excerpts of the draft seen by Reuters.

♦April 26th – President Trump invites all U.S. Senators to the White House for a classified briefing on North Korea.

♦April 28th – (THIS FRIDAY) U.S. Secretary of State Rex Tillerson will be traveling to the U.N. to speak to the Security Council personally.

Apr 26 2017

Commerce Secretary Wilbur Ross Talks To Lou Dobbs….


Re-Posted from the Conservative Tree House on April 25, 2017 by

Ah, the simple joys in life.  Wilburine Ross interviewed by Lou Dobbs… Sip slowly.

The general status of angst created by ordinary swamp review has a tendency to wear down a soul. It’s at the times when we feel surrounded we should reflect upon how lucky we are to have the T’Rex’s and Wilburines on our team. We’ve already won, our opponents just haven’t noticed yet.

Apr 26 2017

White House Responds to Judge Orrick Defunding “Sanctuary City” Injunction…


Re-Posted from the Conservative Tree House on April 26, 2017 by

Apr 26 2017

Does Schäuble want Draghi to Exit the Stage Once & For All?


Armstrong Economics Blog/European Union

Re-Posted Apr 26, 2017 by Martin Armstrong

Draghi Schauble

Federal Minister of Finance Wolfgang Schäuble of Germany is starting to show signs of rebellion against the elite in Brussels. With the event of BREXIT, the EU is more concerned about trying to punish Britain than they are in reflecting upon what is going so terribly wrong. They will throw their support behind Macron in France fearing that a Le Pen win may be the end of Brussels. Consequently, the EU Commission is trying to punish Britain, and is actually dividing Europe once again. There will be the EU membership, and then there will be the Eurozone within, limited to those countries who surrender their sovereignty to Brussels relinquishing their currency, but not their debt.

Schäuble is clearly attempting to save the Eurozone and make it operational at the same time to protect German exports within Europe. The driving force behind the Euro was to eliminate foreign exchange risk so German manufacturers could sell to all of Europe on a regular basis without currency fluctuation disturbing their sales.

Yet Schäuble is actually looking at reducing the power of the EU for reading between the lines, he has no confidence in the abilities of the EU Commission to manage Europe. Obviously, BREXIT is restructuring the EU only insofar as they seek to punish Britain rather than reform the problems that caused it. That means the Euro zone will be restructured as a block within the EU leaving the institutions, such as the ECB, applicable to the EU. The rules within the Eurozone are by no means clearly defined. This is how Markel opened the gates to refugees without ever going to a vote first in the EU. Thus, the unilateral decisions of Germany have then been applied to all of Europe without any democratic process whatsoever.

Schäuble is looking at the distinction between the EU and the Eurozone and thus reducing the power of the EU Commission to save the Eurozone – a second Europe within Europe, of which Britain was never a member. Schäuble attacked the ECB and Mario Draghi saying: “The ultralock money policy that exists in many regions is not helpful.”  Schäuble said this opening on his trip to Washington. The ECB, Schäuble argues, is creating risks such as asset price bubbles with its negative interest rate policy. This is the clash of philosophies with Schäuble’s view on AUSTERITY.

Schäuble demanded a change of direction from Mario Draghi. He warned that Draghi was increasing the risk of creating a whole new crisis rather than lessening it. The Federal Reserve reverse course right after 2015.75 on the ECM that targeted October 1st, 2015 with the first rate hike in December 2015. Schäuble remarked that it “would not be a bad idea if the European Central Bank and other central banks followed” the course of the Fed. Schäuble has clashed with Draghi who still considers his stimulus quantitative easing policy of the ECB still necessary. Draghi said on this trip to Washington that a “very significant amount of monetary easing is still needed.”

Schäuble has also proposed that the basic structure of the Eurozone in the form of budgetary policy must be changed. Schäuble remains rightly concerned what happens when Draghi changes course and raises rates. Schäuble is deeply concerned that national debts will then explode with higher interest rates. For this reason, Schäuble wants the euro rescue umbrella ESM in the near future converted to a European Monetary Fund. Schäuble sees this as a European version of the International Monetary Fund (IMF). If a new aid program for a crisis country were to run without the IMF because the IMF has disagreed with the draconian measures imposed upon Greece. Schäuble wants to replace the IMF to impose austerity. Apparently, Schäuble has also convinced Chancellor Angela Merkel of this proposal since the IMF disagrees with the austerity ideas of Schäuble.

Troika-Unelected

This new European Monetary Fund to replace the IMF, which is a member of the Troika, will then be given the task of budgetary monitoring of Eurozone countries. Therefore, we will have the EU, but a separate system within the EU for the Eurozone all based upon extending austerity. This is obviously a disempowerment of the EU Commission.

Greece is still an unsolved problem – and Schäuble also sees that Greece should exit the Eurozone. Schäuble also sees a better partnership with Russia and an emancipation from the USA. This was really based upon German manufacture having a new market to sell into given the rise of Donald Trump. Then Schäuble wanted a nuclear Europe to stand against America and Russia. Schäuble’s view is that the core of Europe is Germany, France, Belgium, Luxembourg and the Netherlands. It never included Britain. The Franco-German axis was to become the economic engine of the future. To Schäuble, the core is simply the Euro for that evens the playing field for Germany to sell products into Europe. He has embraced the Euro, but never accepting a federal debt for Europe. This is why he has never seen Italy, Spain or Greece as the core of the EU – just vassal states to sell products to.