President Trump Invites Nancy Pelosi and Chuck Schumer to Discuss Border Security…

President Donald Trump invites the media to stick around and watch as he highlights the resistance between his administration and democrats on border security.

Democrat leader Nancy Pelosi and Senator Chuck Schumer are very uncomfortable allowing the media to hear their resistance discussion.

Canada Grants Bail to Huawei Chief Financial Officer Meng Wanzhou…

The CFO of Huawei has been released on bail pending her extradition hearing to the United States. Ms. Meng will have to wear and ankle monitor and travel with security agents until her next hearing on February 6th.

(Via NBC) A Vancouver judge set a $10 million CAD bail ($7.5 million U.S.) for Huawei Chief Financial Officer Meng Wanzhou Tuesday, capping a week of increasing trade tensions and strong market reactions around the dispute between the Department of Justice and one of China’s largest hardware companies.

The United States had asked the Vancouver court to deny bail for Meng, whose father is a billionaire and a founder of Huawei, calling her a flight risk. Canada has been expected to extradite Meng to the United States over charges that the company improperly took payments from Iran in violation of sanctions against the country.

Meng’s next moves will be closely watched, but it is likely with her corporate and family connections that she will be able to make bail. The $10 million CAD includes $7 million CAD cash and $3 million CAD more from five or more guarantors, presented by Meng and her attorney’s as sureties that she would remain in the country.

As conditions of the bail agreement, Meng must surrender her passports, wear a GPS tracking device and be accompanied by security detail whenever she leaves her residence.

“We have every confidence that the Canadian and U.S. legal systems will reach a just conclusion in the following proceedings,” Huawei said in a statement following the bail hearing. “As we have stressed all along, Huawei complies with all applicable laws and regulations in the countries and regions where we operate, including export control and sanction laws of the UN, U.S. and EU.”  (read more)

President Trump Signs HR 390 and Delivers Remarks to the Media…

President Trump signs H.R. 390: The “Iraq and Syria Genocide Relief and Accountability Act of 2018,” which authorizes assistance to entities engaged in aiding individuals and communities in Iraq or Syria who are being, or are likely to be, targeted for genocide, crimes against humanity, or war crimes.

After signing the bill [@03:00] President Trump took questions from the media.

Panda Plays: China Lowers Auto Trade Tariffs – The Dance Continues….

Early this morning China transmitted and interesting tweet position that was/is a transparent display of their panda mask. In essence the panda play was a call for team USA to drop the zero-sum outlook and seek a win/win. Given the historic nature of Chinese negotiations the tweet was rather funny. However, it does highlight the dance.

Additionally, a few hours later President Trump tweeted about ongoing U.S-China trade discussions and something to watch for:

Moments ago we received the first indications of Chairman Xi’s panda play:

(Via Wall Street Journal) China agreed to reduce tariffs on U.S. autos to 15%, down from 40% currently, during a phone call with U.S. officials that opened the latest round of trade talks aimed at settling a trade dispute festering between the world’s two largest economic powers, according to a person familiar with the matter.

Chinese Vice Premier Liu He informed Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer of the move in a phone call late Monday, according to the person. It wasn’t clear when the change would take effect, but Washington is pushing Beijing to make concessions as soon as possible.  (read more)

Here’s the precursor tweet from China.  For those who are interested in following the dance, it is important to note this message was transmitted *after* the phone call between Premier Liu, Secretary Mnuchin and USTR Lighthizer.

Obviously those who follow standard negotiation tactics from China will note the transparent panda mask message behind this tweet.  China doesn’t do win/win, they never have.  Historically Beijing has no concept of win/win negotiations where each party gains a benefit; it is not part of their DNA strain to even fathom such an approach.  For China the negotiation strategy is simple: if it doesn’t benefit China, it is not done. Period.

China requesting a win/win is simply the dragon putting on a cunning panda mask and messaging to enhance their position through the utility of their purchased Wall Street multinational allies inside the U.S. [People like CoC President Tom Donohue]

However, here’s where it gets really interesting….. and also how we can reconcile the 25 minute lead-off discussion from Chairman Xi at the G20 dinner in Buenos Aires.

President Donald Trump outmaneuvered Chairman Xi and the ruling Chinese communist party over North Korea. Through a well executed -and profoundly unorthodox- strategy, President Trump severed the influence of Beijing over Kim Jong-un.

President Trump did not confront Chairman Xi on this directly, instead he led China down a path where Trump controlled all the options.  Now that the Korean relationship is moving toward reunification there is no way for China to put their influence back into play.

South Korea’s Moon Jae-in and North Korea’s Kim Jong-un are essentially united.

This was all done by President Trump smartly taking a unique approach and removing the Beijing influence.

President Trump then communicated directly with Kim Jong-un; and that meant no turning back.  As a direct result China lost their primary geopolitical weapon against U.S. economic policy.

Many people saw what happened in North Korea; and most recognized Trump had established a paradigm shift in the trilateral relationship; however, few expanded their review of Trump’s DPRK strategy to contemplate: what he achieved was only one phase toward the president’s primary objective – a full and comprehensive U.S-China reset.

The geopolitical and economic confrontation with China is President Trump’s legacy initiative.  This is his signature objective; everything else is less-than.

Chairman Xi has now witnessed the cunning strategy of his adversary.  China can no longer underestimate the strategy.  It is critical to understand how incredibly out-played China was over the North Korean issue.  President Trump neutered decades of Chinese duplicity.  Chairman Xi, and by extension, communist China, was outmatched.

Simultaneously, Chairman Xi got a taste of his own medicine.  In the DPRK contest President Trump mirrored the panda mask approach.  Trump praised Xi to a level that his approach was routinely criticized by U.S. media as over indulgent; but that criticism didn’t matter – it actually played directly into Trump’s strategy.

Chairman Xi could not initially fathom an opponent that would use criticism as a weapon and allow the appearance of domestic weakness as an international strategy.  Beijing was caught off guard, and Xi allowed his perspective of Trump to be clouded by historic standards therein.  Additionally, Chairman Xi watched as POTUS initiated trade conflicts with his own allies over steel, aluminum, soft-wood lumber, and even washing machines.

As Xi looked out his window, surely Trump was bluffing against South Korea, Japan, the EU (writ large), Canada and Mexico…. but Trump doesn’t bluff.  If Trump was willing to walk through the firestorm of western allied criticism (over his trade policy) what would this same person do in trade conflict against a geopolitical foe?

Trump walked away from TPP. Trump walked away from the Paris Treaty.  Trump walked away from the G7 communique in Canada.  Trump walked away from the G20 climate communique in Buenos Aires.  Hell, Trump withstood the firestorm of criticism over Kashoggi and leveraged Saudi Arabia into increased OPEC oil production which hurts all of China’s strategic allies (Russia, Iran, Venezuela etc).

How do you think Chairman Xi reflected upon the mounting demands from an economic adversary (Trump) knowing what Xi was witnessing from this independent Trump toward his own economic allies? See the scale of shifting perspective?

Not only is this U.S. president willing to go to the trade mattresses, he was willing to go to these damned mattresses while simultaneously executing a DPRK strategy that removed the primary arrow from Panda’s quiver.

Chairman Xi, and his economic council of advisors writ large, have to accept that President Trump -through his eagle talon action- actually wants the conflict with China, while he simultaneously praises them in public.

Hundreds of years worth of China’s well-honed cunning negotiation strategy is being used against them.

Do they feel rucky?

Jared Kushner Discusses Ongoing White House Agenda Items…

A relatively rare interview with a key senior advisor and emissary for President Trump, Jared Kushner. Topics include: the upcoming chief of staff position; federal prison reform and the first-step act; and the ongoing dialogue in the middle east.

MAGAnomic Report: Job Openings Still Growing 7+ Million Jobs Available…

The Bureau of Labor Statistics (BLS) has updated the data for the number of jobs that are available in the U.S. economy.  More than 7 million jobs are available for an estimated unemployed labor force (job seekers) of approximately 6 million.

Additionally, what is interesting to note is the sectors where the rate of available jobs is increasing the most. [See Table A – as below]  What you can clearly see is the rate of highest job openings is within the Main Street economy (blue and white collar).

To consider the state of the economy; and contrast the punditry opinion of the economic strength therein; it is important to look at what types of jobs are growing.

Ex. as we can see the “manufacturing” sector available jobs continues to grow at a rate higher than the companies within the industry can hire workers to fill them.

Additionally, and importantly, another sector with expanded job openings is “retail”.  This is a key indicator of downstream consequences from economic growth. People have money to spend, and retailers need workers to support the shopping demand.

When considering the current health and future expansion of the U.S. economy it is an excellent sign that durable goods makers are continuing to add jobs.  More and more manufacturing capacity is coming on-line each month and that means more jobs.

The bottom line is the U.S. Main Street economy is very healthy; wage rates are increasing as a natural outcome of supply/demand within the labor market; and there’s no indication that dynamic is going to change anytime soon.

MAGAnomics makes a balanced economy.

The Trump economic policy simply works.

Jobs, jobs, jobs.

7,000,079 jobs currently available!

Mark Meadows Leading Contender for President Trump Chief-of-Staff?…

Lots of speculation around the DC circuit about who will replace President Trump’s outgoing chief of staff John Kelly.  However, one name seems to be gaining considerable consensus, congressman Mark Meadows (R-NC).

According to a statement from Mr. Meadows office:

“Serving as Chief of Staff would be an incredible honor. The President has a long list of qualified candidates and I know he’ll make the best selection for his administration and for the country.”

Sunday Talks: IMF’s Christine Lagarde Discusses Global Economy in Era of Trump…

I hope y’all are hanging in there with me today because each of these Sunday posts is essentially an audio-video chapter in one singular book.  A stunningly deep book that explains the entire purpose of Trump from his/our perspective.

Here is an absolutely perfect, and in many ways jaw-dropping, interview with the head of the International Monetary Fund Christine Legarde.   It would be easy to write 10,000 background words on this singular interview alone. Decades of advanced globalist monetary/trade policy -vs- the recent uprising in economic nationalism.  THAT is the significant backstory at work here.

As her homeland France erupts in turmoil, elitist Legarde represents the personification of why those flames are present.  Freedom -v- Serfdom, with messaging from a control agent of the cloistered class.  However, here’s the stunner… pay real close attention at 04:34 of this interview where Legarde outlines the analysis (IMF economic model) where the IMF is forecasting U.S. GDP growth….  what number does she share?  WATCH:


Did you hear that?

3.7% GDP growth for the U.S. is projected by the international financial community [global bankers].   This is the head financial liberal for the global elitist class admitting Trump has more than doubled the growth rate of the U.S. economy in two years.   Remember, simultaneous to this, when adjusted for inflation, the rest of the world is stagnant to shrinking in the same measure.

How is it possible that Trump is doubling the U.S. economic growth rate, and the rest of the planet is stagnant or shrinking?

3.7% GDP growth on an economy of $22 trillion is more than $700 billion.

President Trump is growing the U.S. economy at a rate greater than $700 billion per year.

Think about that.

Think about the scale of that.

Think about the scale of that in relation to the scale of all nation’s GDP.

President Trump is expanding the U.S. economy, each year, by an amount larger than the entire economy of Saudi Arabia.

Put another way – U.S. President Trump’s MAGAnomic policies are enlarging the U.S. economy, every year, at a rate that compares to approximately half of Canada’s entire economy and two-thirds of Mexico.

How is this possible in an era when all other developed countries show signs of stagnation and lack of growth?

The simple answer cuts to the core of why those nations, and the multinational benefactors within them, are aligned against Donald Trump….

…He is stopping the export of American wealth.

President Trump is the first U.S. president in history, to start dismantling the process that exports U.S. wealth to the benefit of all other nations.

After World War II, the U.S. allowed our economic trade models to be used to help rebuild Europe and Japan.  The tariffs put on U.S. goods helped both rebuild their economies; however, once rebuilt – the tariffs never came off.

Our politicians allowed the one-way economic benefit to remain in place even after our “allies” got back on their feet.   Those nations then started bribing (lobbying) our politicians to retain that process indefinitely.

President Donald Trump, through the execution of his policies and the global trade reset, is saying: “No More“!!

He is confronting them head-on, and they are going bananas.

Cue the visual…

The biggest flaw that people make is thinking POTUS Trump cares about the DC swamp enough to confront it, or expend energy on it….. in my humble opinion, he doesn’t.

He’s working on generational issues that are much bigger and consequential than the administrative state. The DC deep state is downstream from where POTUS is working.

Donald Trump is, well, essentially, John Galt.

Dutchman: […] “ALL this attack on DJT, the man, candidate and President, is NOT because of his demeanor, etc. It is BECAUSE he is taking on China, Globalists and D.C. swamp.

POTUS is largely focusing on China and trade, because if successful, the d.c. swamp becomes irrelevant.

As the economic engine switches from Wall st. to Main street, the swamp will realign its priorities.

On the other hand, putting a bunch of swamp creatures in jail, while leaving China and the globalist system in place, wouldn’t really accomplish anything of substance.

A new generation of swamp creatures would move up, and the behavior would continue.”

Sunday Talks: USTR Robert Lighthizer -vs- Margaret Brennan…

President Trump is the first U.S. President to confront Beijing directly -head on- and the Chinese respect him immensely for it. It is an inherently adversarial relationship; but it is also a conflict where opponents respect their enemy because the outcome is victory or death. Ultimately, this, from the perspective of China, is a zero-sum contest.

President Trump is also the first U.S. President to: (1) understand how the red dragon hides behind the panda mask; and (2) be willing to directly confront that dynamic. That’s where U.S. Trade Representative Robert Lighthizer comes in.


Ambassador Lighthizer is willing to go to the mattresses because he knows that ultimately his kids future, and his bosses’ grand-kids future, are entirely dependent on victory.  Freedom or serfdom, those are the alternatives.  Yes, this is that big a deal.  The biggest of all big deals (pun intended) in the last century.

There is also no doubt in my mind that President Trump has a very well thought out long-term strategy regarding China.

President Trump takes strategic messaging toward the people of china very importantly. President Trump has, very publicly, complimented the friendship he feels toward President Xi Jinping; and praises Chairman Xi for his character, strength and purposeful leadership. President Trump knows how to play their panda/dragon games.

Nuance and subtlety is everything in China. Culturally harsh tones are seen as a sign of weakness and considered intensely impolite in public displays between officials; especially amid adversaries. Respect is earned through strength and cunning.

To build upon a projected and strategic message – President Trump seeded the background by appointing Ambassador Terry Branstad, a 30-year personal friend of President Xi Jinping.

To enhance and amplify the message – and broadcast cultural respect – U.S. President Trump used Mar-a-Lago as the venue for their visit, not the White House. And President Trump’s beautiful granddaughter, Arabella, sweetly serenaded the Chinese First Family twice in Mandarin Chinese song showing the utmost respect for the guests and later for the hosts.

Why the constant warm messaging?

What is the purpose?

What does all this have to do with a trade confrontation?


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

Each time China takes aggressive action (red dragon) China projects a panda face through silence and non-response to opinion of that action;…. and then the action continues.

The red dragon has a tendency to say one necessary thing publicly, while manipulating another necessary thing privately. The Art of War.

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

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

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

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

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

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

If it does not benefit China, it is not done !

Therefore the economic battle must be carefully waged to deliver a series of alternative thoughts in the mind of Beijing.  They must view specific action as their best interest.  Any reversal in the current standard of benefit is viewed as a loss; the Chinese will not cede to any losses.

To challenge those who hold this zero-sum position, you must first change the standard.

This means China must lose first before the negotiations can begin.  The baseline within the negotiation must be reset.  Once the baseline position is reset, then negotiation can be viewed by the Chinese as a gain.  This is the only way to get the Chinese to agree to any terms.

If the baseline losses to China are not currently firmed, meaning Beijing and Xi Jinping see their current position as the standard, then President Trump and Bob Lighthizer need to wait longer before engaging.

Big Panda must see their diminished bamboo forest as the natural, current, and diminishing forecast status.  Only then will Panda engage in negotiations.  China must be in a seemingly perpetual stasis of losing before they will contemplate their need to achieve gains.

This is an economic and geopolitical battle that requires nerves of steel and an incredible amount of cunning and strategy.  As Trump resets the baseline, China will make multiple simultaneous moves to counter any potential losses.

President Trump, Secretary Ross and U.S.T.R. Lighthizer must think well ahead of China (they have); and make moves early in the conflict (they have); long before China realizes they are being confronted (they did).   {Go Deep}

As we saw with the DPRK showdown Trump was several moves ahead of Xi, and blocked the counter-offense position of the Red Dragon before it was deployed.

President Trump will not back down from his position; the U.S. holds all of the leverage and the issue must be addressed. President Trump has waiting three decades for this moment. This President and his team are entirely prepared for this.

We are finally confronting the geopolitical Red Dragon, China!

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

The Eagle and the Arrow – An Aesop’s Fable

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

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

Sunday Talks: Peter Navarro -vs- Wall Street Sales Lead…

President Trump’s MAGAnomic trade and foreign policy agenda is jaw-dropping in scale, scope and consequence. There are multiple simultaneous aspects to each geopolitical policy objective; however, many have been visible for a long time – some even before the election victory in November ’16.

Maria Bartiromo has a view that stems from 30-years of Wall Street economic advocacy. Bartiromo reflects the most common frame of reference for almost all financial punditry. [Orange-Man-Bad-Tariffs] This perspective stems from the era when Wall Street’s economy was sold as the only model possible for the future of the U.S.  In short they were taught that a U.S. manufacturing and production economy was gone, and the only viable economic model was the “service driven economy”.  Bullshit!

In this interview U.S. Trade Council Director Peter Navarro is affirming policy to the benefit of Main Street not Wall Street. There is an inherent disconnect and conflict.


The words from Peter Navarro will come as no surprise to any CTH reader who is fully engaged and reviewing the multi-trillion stakes, within the Globalist (Wall St.) -vs- Nationalist (Main Street) confrontation.

For several decades Wall Street, through lobbying arms such as the U.S. Chamber of Commerce (Tom Donohue), has structurally opposed Main Street economic policy in order to inflate value and hold power – “The Big Club”. This manipulative intent is really the epicenter of the corruption within the DC swamp.

U.S. National Trade Council Director Peter Navarro discusses how Wall Street bankers and hedge-fund managers are attempting to influence U.S.-China trade talks. He speaks at the Center for Strategic and International Studies in Washington, D.C.  WATCH: outlined a year ago. At the heart of the professional/political opposition the issue is money; there are trillions at stake.

President Trump’s MAGAnomic trade and foreign policy agenda is jaw-dropping in scale, scope and consequence. There are multiple simultaneous aspects to each policy objective; however, many have been visible for a long time – some even before the election victory in November ’16.

If we get too far in the weeds the larger picture is lost. CTH objective is to continue pointing focus toward the larger horizon, and then at specific inflection points to dive into the topic and explain how each moment is connected to the larger strategy.

If you understand the basic elements behind the new dimension in American economics, you already understand how three decades of DC legislative, monetary and regulatory policy was structured to benefit Wall Street and not Main Street. The intentional shift in monetary policy is what created the distance between two entirely divergent economic engines.

REMEMBER […] there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street).

Investments, and the bets therein, needed to expand outside of the USA. hence, globalist investing.

However, a second more consequential aspect happened simultaneously. The politicians became more valuable to the Wall Street team than the Main Street team; and Wall Street had deeper pockets because their economy was now larger.

As a consequence Wall Street started funding political candidates and asking for legislation that benefited their interests.

When Main Street was purchasing the legislative influence the outcomes were -generally speaking- beneficial to Main Street, and by direct attachment those outcomes also benefited the average American inside the real economy.

When Wall Street began purchasing the legislative influence, the outcomes therein became beneficial to Wall Street. Those benefits are detached from improving the livelihoods of main street Americans because the benefits are “global”. Global financial interests, multinational investment interests -and corporations therein- became the primary filter through which the DC legislative outcomes were considered.

There is a natural disconnect. (more)

As an outcome of national financial policy blending commercial banking with institutional investment banking something happened on Wall Street that few understand. If we take the time to understand what happened we can understand why the Stock Market grew and what risks exist today as the monetary policy is reversed to benefit Main Street.

President Trump and Treasury Secretary Mnuchin have already begun assembling and delivering a new banking system.

Instead of attempting to put Glass-Stegal regulations back into massive banking systems, the Trump administration is creating a parallel financial system of less-regulated small commercial banks, credit unions and traditional lenders who can operate to the benefit of Main Street without the burdensome regulation of the mega-banks and multinationals. This really is one of the more brilliant solutions to work around a uniquely American economic problem.

♦ When U.S. banks were allowed to merge their investment divisions with their commercial banking operations (the removal of Glass Stegal) something changed on Wall Street.

Companies who are evaluated based on their financial results, profits and losses, remained in their traditional role as traded stocks on the U.S. Stock Market and were evaluated accordingly. However, over time investment instruments -which are secondary to actual company results- created a sub-set within Wall Street that detached from actual bottom line company results.

The resulting secondary financial market system was essentially ‘investment markets’. Both ordinary company stocks and the investment market stocks operate on the same stock exchanges. But the underlying valuation is tied to entirely different metrics.

Financial products were developed (as investment instruments) that are essentially wagers or bets on the outcomes of actual companies traded on Wall Street. Those bets/wagers form the hedge markets and are [essentially] people trading on expectations of performance. The “derivatives market” is the ‘betting system’.

♦Ford Motor Company (only chosen as a commonly known entity) has a stock valuation based on their actual company performance in the market of manufacturing and consumer purchasing of their product. However, there can be thousands of financial instruments wagering on the actual outcome of their performance.

There are two initial bets on these outcomes that form the basis for Hedge-fund activity. Bet ‘A’ that Ford hits a profit number, or bet ‘B’ that they don’t. There are financial instruments created to place each wager. [The wagers form the derivatives] But it doesn’t stop there.

Additionally, more financial products are created that bet on the outcomes of the A/B bets. A secondary financial product might find two sides betting on both A outcome and B outcome.

Party C bets the “A” bet is accurate, and party D bets against the A bet. Party E bets the “B” bet is accurate, and party F bets against the B. If it stopped there we would only have six total participants. But it doesn’t stop there, it goes on and on and on…

The outcome of the bets forms the basis for the tenuous investment markets. The important part to understand is that the investment funds are not necessarily attached to the original company stock, they are now attached to the outcome of bet(s). Hence an inherent disconnect is created.

Subsequently, if the actual stock doesn’t meet it’s expected P-n-L outcome (if the company actually doesn’t do well), and if the financial investment was betting against the outcome, the value of the investment actually goes up. The company performance and the investment bets on the outcome of that performance are two entirely different aspects of the stock market. [Hence two metrics.]

♦Understanding the disconnect between an actual company on the stock market, and the bets for and against that company stock, helps to understand what can happen when fiscal policy is geared toward the underlying company (Main Street MAGAnomics), and not toward the bets therein (Investment Class).

The U.S. stock markets’ overall value can increase with Main Street policy, and yet the investment class can simultaneously decrease in value even though the company(ies) in the stock market is/are doing better. This detachment is critical to understand because the ‘real economy’ is based on the company, the ‘paper economy’ is based on the financial investment instruments betting on the company.

Trillions can be lost in investment instruments, and yet the overall stock market -as valued by company operations/profits- can increase.

Conversely, there are now classes of companies on the U.S. stock exchange that never make a dime in profit, yet the value of the company increases. This dynamic is possible because the financial investment bets are not connected to the bottom line profit. (Examples include Tesla Motors, Amazon and a host of internet stocks like Facebook and Twitter.) It is this investment group of companies that stands to lose the most if/when the underlying system of betting on them stops or slows.

Specifically due to most recent U.S. monetary policy, modern multinational banks, including all of the investment products therein, are more closely attached to this investment system on Wall Street. It stands to reason they are at greater risk of financial losses overall with a shift in monetary/fiscal policy.

That financial and economic risk is the basic reason behind Trump and Mnuchin putting a protective, secondary and parallel, banking system in place for Main Street.

Big multinational banks can suffer big losses from their investments, and yet the Main Street economy can continue growing, and have access to capital, uninterrupted.

Bottom Line: U.S. companies who have actual connection to a growing U.S. economy can succeed; based on the advantages of the new economic environment and MAGA policy, specifically in the areas of manufacturing, trade and the ancillary benefactors.

Meanwhile U.S. investment assets (multinational investment portfolios) that are disconnected from the actual results of those benefiting U.S. companies, and as a consequence also disconnected from the U.S. economic expansion, can simultaneously drop in value even though the U.S. economy is thriving.