AMLO Punished By Mexican “Deep State”? Lopez Obrador Hit with $10 Million Campaign Fine…

Everything is about the economics.  All politics is about the economics.  The current battles waged are multinationals (economic globalists) fighting to retain their position against an uprising of previously diminished economic nationalists.  Peel all the layered skin from the onion and the core issue is about money; wealth.  Always the money.

As you read this, remember – the Mexican Electoral Tribunal (a political construct similar to the electoral college) has *not* formally declared AMLO President-Elect.

MEXICO CITY (Reuters) – Mexico’s incoming president Andres Manuel Lopez Obrador on Friday slammed a decision by the electoral authority to fine his party $10 million over a campaign financing breach, calling it an “act of vengeance” against his landslide victory.

[…] “This is an act of vengeance,” Lopez Obrador said outside his team’s offices in Mexico City, accusing the INE of behaving “tendentiously” and of overreaching.

“They’re acting this way because they don’t accept the new reality,” the 64-year-old said, resorting to the sort of combative tone he used in the campaign to attack the government.

[…]  As a result, Lopez Obrador said he would not attend a summit meeting of leaders from the Pacific Alliance trading bloc in the western city of Puerto Vallarta next week.

He will, however, meet with Canadian Foreign Minister Chrystia Freeland when she and other ministers from the Canadian Cabinet visit Mexico City on Wednesday, he said. (read more)

Interesting dynamic.  AMLO is rebuking the globalist multinationals who have constructed the Trans-Pacific Partnership (TPP), ie. Wall Street….  and holding economic court with the Canadian Socialists to discuss NAFTA.

“That’s right, crew….  Let’s go get us some pesos.” 





Extensive CNBC Interview With President Trump That Destroys Media Narrative…

President Trump gave CNBC anchor Joe Kernen an extensive interview on Thursday just outside the Oval Office at the White House.  You probably have not seen this interview, because it does not support the media narrative du jour; this interview destroys the narrative(s).

When you watch the interview you’ll see why the media made the decision not to sound-bite-it throughout broadcast, headlines and column inches.  In fact, you’ll probably understand why CNBC didn’t upload the interview content until today.

The conversation with President Trump touched on the state of the U.S. economy; America’s trade reset; the timing of the trade reset juxtaposed against the current value of the U.S. stock market; the president’s news-making remarks about the Federal Reserve’s ongoing interest-rate hikes; and pragmatic insight behind the meeting with Vladimir Putin. Watch it, you’ll see:

Commerce Secretary Wilbur Ross Discusses the White House Workforce Initiative and Trade…

Yesterday U.S. Commerce Secretary Wilbur Ross sat down for a discussion about the White House workforce development program that aims to bridge the skills gap for American workers.  Secretary Ross discusses the initiative and also shares insight to President Trump’s trade agenda.

The important and interesting trade discussion begins at 04:15 and Secretary Ross outlines his initial sense of contact with Mexican President-elect AMLO on NAFTA:


On the “trade-war” meme, I have to laugh at the anonymous interest [07:25] who worries the Wall Street equity markets could lose value at a rate of 23%.  Why laugh?  Here’s my reference point – Yes “equity markets”, ie. “investment markets” will drop while the U.S. economy expands….  Yes. It will happen. Here’s why: Main Street -vs- Wall Street.

Initiative/Executive Order – Expanded HERE

Secretary of State Mike Pompeo and U.N. Ambassador Nikki Haley Discuss North Korea Sanctions With Security Council…

Amid ongoing maneuvers by China and Russia to influence the activity of North Korea; and amid both Chinese and Russian interests in violating ongoing trade and economic sanctions against North Korea; Secretary of State Mike Pompeo and U.N. Ambassador Nikki Haley meet with the U.N. Security Council.


[Transcript] SECRETARY POMPEO: Good afternoon, everyone. First I want to commend my good friend Ambassador Haley and her excellent team here at the United Nations. Her leadership in advancing American interest on North Korea and many other issues has been evident here this morning, and she’s got a great team behind her helping. So thank you, Nikki.

The main reason I came here today was to meet with members of the UN Security Council – South Korea and Japan as well – to convey details of my work on the trip to North Korea earlier this month and the progress that was made there. I also had the opportunity to meet with UN Secretary-General Guterres to discuss the topic and other topics as well.

The countries of the Security Council are united on the need for final, fully verified denuclearization of North Korea, as agreed to by Chairman Kim. Strict enforcement of sanctions is critical to our achieving this goal.

Members of the UN Security Council, and by extension all UN member-states, have unanimously agreed to fully enforce sanctions on North Korea, and we expect them to continue to honor those commitments. When sanctions are not enforced, the prospects for the successful denuclearization are diminished. Right now, North Korea is illegally smuggling petroleum products into the country at a level that far exceeds the quotas established by the United Nations. These illegal ship-to-ship transfers are the most prominent means by which this is happening.

These transfers happened at least 89 times in the first five months of this year and they continue to occur. The United States reminds every UN member-state of its responsibility to stop illegal ship-to-ship transfers, and we urge them to step up their enforcement efforts as well.

We must also crack down on other forms of sanctions evasion, including the smuggling of coal by sea, smuggling by overland borders, and the presence of North Korean guest workers in certain countries. North Korean cyber thefts and other criminal activities are also generating significant revenues for the regime, and they must be stopped.

President Trump remains upbeat about the prospects of denuclearization of North Korea. So do I, as progress is happening. It is the Trump administration’s hope that one day the DPRK could be in our midst here at the United Nations – not as a pariah, but as a friend. Imagine UN Security Council meetings in which the DPRK nuclear and missile programs were not the agenda time and time again. We’ll be able to focus our energy on so many urgent problems that face our world.

I believe this reality is possible, and so does President Trump. But it will take full enforcement of sanctions for us to get there. It will also take Chairman Kim following through on his personal commitments that he made to President Trump in Singapore. The path ahead is not easy; it will take time. But our hopes for a safer world for all of us and a brighter future for North Korea remains our objective, and that hope endures.

Thank you. Ambassador Haley.

AMBASSADOR HALEY: Thank you so much. And I’m very grateful to my friend, Secretary Pompeo, for coming out and meeting with the Security Council today.

This is what we know. Eighteen months ago when I came in, our biggest concern was North Korea. Everyone was wondering when that new test was going to happen, everyone was wondering when the new threat would occur, and the entire international community knew something had to happen. It was a herculean task by the Security Council to pass three massive sanctions packages, getting rid of all exports, 90 percent of their trade, 30 percent of their oil, expelling all labor workers and scheduling that down, making sure all joint ventures stopped. All of that combined with the international community coming together and expelling diplomats and stopping communication, and with the President’s tough stance, all of that was really the combination that brought North Korea to the table.

Now, North Korea and the U.S. have started to have talks. And as those things are happening, we and the Security Council and the international community have to support those talks. And the best way we can support those talks is to not loosen the sanctions. And what we have been seeing is certain countries wanting to do waivers, certain countries saying, “Let’s lift sanctions,” certain countries wanting to do more. And what – I appreciate Secretary Pompeo coming up and what we continue to reiterate is we can’t do one thing until we see North Korea respond to their promise to denuclearize. We have to see some sort of action. And so until that action happens, the Security Council’s going to hold tight, the international community – we ask you to hold tight as we go forward.

The problem that we are encountering is that some of our friends have decided that they want to go around the rules. You saw that there was violations of the oil ban. We have, as Secretary Pompeo said, seen 89 times where that has happened. We have photographs of proof of ship-to-ship transfers. And our friends, what we decided was let’s come together and let’s make sure that this stops. So the U.S. put yesterday a halt to all additional refined petroleum shipments to North Korea. China and Russia blocked it.

Now for China and Russia to block it, what are they telling us? Are they telling us that they want to continue supplying this oil? They claim they need more information. We don’t need any more information. The sanctions committee has what it needs. We all know it’s going forward. We put pressure today on China and Russia to abide and be good helpers through this situation and to help us continue with denuclearization.

And so I think this was a day of very frank talk between the Secretary, the foreign minister of South Korea, our Japanese friends as well, as well as the Security Council to say: If we want to see success, we have to see a response from Chairman Kim, and we have to continue to hold the line until that happens. And so very successful day, again, promising that the Security Council has remained united and continuing to put pressure on our members to not fall through on that process. Thank you.

QUESTION: Mr. Secretary —

MS NAUERT: Three quick – three quick questions. Rich Edson, Fox News.

QUESTION: Thank you. Mr. Secretary, UN Ambassador Haley mentioned that Russia isn’t being all that helpful to sanctions enforcement. The President mentioned after his meeting with President Putin that President Putin was going to help on North Korea. Is Russia reneging on an agreement that it made with the President? And is – what else did the two presidents agree to when they met?

SECRETARY POMPEO: So enforcement of sanctions is a continuing process. There are many places where the Russians have been helpful. Certainly since the very beginning of the time of the UN Security resolutions the Russians have done many things to enforce these sanctions, and we’re deeply appreciative of that. What we need now, though, is we need to continue that. We need to make sure that the world doesn’t begin to see this – this is not an American demand for the North Koreans to denuclearize; it is the world’s demand and we need the world to continue to participate.

And so where we find issues where any country, whether it’s Russia or another one, not doing their part to enforce it, we’re going to make sure that we provide the information to them so they can all see it and the world can see it, and we’re going to demand that every country in the world do their part.

MS NAUERT: Kylie from CBS News.

QUESTION: Just following up, Mr. Secretary, on a question about Russia, because that’s kind of what everyone in Washington is talking about today. Why is it a good idea for the President to invite Vladimir Putin to the White House? What does the U.S. have to gain from that visit?

SECRETARY POMPEO: Yeah, I’m happy that the two leaders of two very important countries are continuing to meet. If that meeting takes place in Washington, I think it’s all to the good. Those conversations are incredibly important. We have our senior leaders meeting all across the world with people where we have deep disagreements with. It is incredibly valuable to the people of the United States of America that President Putin and President Trump continue to engage in dialogue to resolve the difficult issues that our countries face between each other. I think this makes enormous sense, and I’m very hopeful that that meeting will take place this fall.

MS NAUERT: And final question, Michelle from Reuters.

QUESTION: Thank you. Mr. Secretary, what concrete steps do you need to see North Korea take now to show that they are committed to denuclearization? And on Russia, the Russian defense ministry said this morning that they’ve sent proposals to Washington about the return of millions of Syrian refugees. They said it’s based on an agreement that was reached by President Putin and President Trump. Have you seen those proposals, and what is this agreement that they’ve reached?

SECRETARY POMPEO: So I’ll take the second one first. So lots of discussion taking place. There was a discussion between President Trump and President Putin about the resolution in Syria and how we might get the refugees back. The President shared with me the conversations that they’d had. It is important to the world that at the right time, through a voluntary mechanism, these refugees are able to return to their home country. It’s what we’ve all been working on. It’s what the UN has been working on with Staffan de Mistura working on that very same problem set. And President Putin and President Trump did discuss that. There’s lots of work to do to figure out how to implement that, but the United States certainly wants to be part of help achieving that resolution in Syria, make no mistake about it.

Your first question was about what we need to see. It’s really pretty straightforward, right? And it’s not my – it’s not my description of what needs to take place. Chairman Kim made a promise. Chairman Kim told not only President Trump, but President Moon that he was prepared to denuclearize. The scope and scale of that is agreed to. The North Koreans understand what that means. There’s no mistake about what the scope of denuclearization looks like.

So what do we need to see? We need to see Chairman Kim do what he promised the world he would do. It’s not very fancy, but it’s the truth.

MS NAUERT: All right. Thank you. Thank you.

[Transcript Link]

Ivanka Trump Recaps MAGAnomic Workforce Initiative Launch…

[White House]  The economy has come roaring back to life under President Trump. In May, unemployment fell to 3.8 percent—its lowest level in nearly 50 years. Optimism among employers, particularly manufacturers and small businesses, has reached historic highs in the 6 months since tax reform became law.

Many economists expect the winning streak to continue, predicting second quarter GDP growth to exceed 4 percent.  This high-energy growth environment presents both a challenge and an opportunity. The challenge is that companies must find more workers with specific skill sets to fill an increasing number of open jobs. The opportunity is that with more affordable, relevant training, many American workers will now have the chance to move into better jobs that deliver bigger paychecks:

President Trump promised to make Government work for ordinary Americans, and support for workforce training is key to that vision. “For decades the government has had more than 40 workforce-training programs in more than a dozen agencies, and too many have produced meager results,” Advisor to the President Ivanka Trump wrote this week.

It’s time to fix that. In its first 500 days, the Trump Administration has already taken action to expand apprenticeships; increase access to high-quality Science, Technology, Engineering, and Math (STEM) education for K–12 students; and encourage companies to invest more of what they earn in American workers and American production.

Now, President Trump has signed an Executive Order to establish the National Council for the American Worker. Comprised of senior Administration officials, the Council is charged with developing a National strategy for training and retraining the workers needed across high-demand industries. The group will convene voices from the public, private, education, labor, and not-for-profit sectors to enhance employment opportunities for Americans of all ages.

Most important, they will focus on getting results. That task begins by asking companies and trade groups to sign a new Pledge to America’s Workers.

Today, more than 20 companies and associations were the first to sign that pledge at the White House. They committed to creating new opportunities over the next five years for American students and workers, including through apprenticeships and work-based learning, continuing education, on-the-job training, and reskilling.

“By signing the Pledge to America’s Workers, these great companies . . . are affirming their commitment to train American workers for American jobs,” President Trump said. “Because America’s strength, America’s heart, and America’s soul is found in our people.”

One of the initial areas of focus for the Council will be finding ways to increase access to available job data, including data on which regions offer the most opportunities. Unlike piling burdensome regulations on employers, this focus on transparency helps the economy, allowing students and workers alike to make informed decisions about education, job selection, and career paths.

Growing America’s workforce is an important goal. To help achieve it, the Council will develop a national campaign to raise awareness of workforce issues, such as the urgency of the skills crisis and the importance of STEM education. It will also create a plan for recognizing companies that demonstrate excellence in workplace education, retraining, and workforce investment.  (link)

President Trump Pledge To America’s Workers…

Action oriented.  Yesterday President Trump introduced the workforce initiative to develop American workers to support the dynamic economic resurgence.  A group of private employers signed a pledge to help train and develop over 3.8 million workers for the 21st century American economy.

However, no plan, no pledge and no promise, can succeed without: 1) establishing clear goals; 2) evaluating progress; and 3) measuring the effectiveness in the results.  President Trump introduces the results-oriented business action plan to the public sector.


[Executive Order] By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to provide a coordinated process for developing a national strategy to ensure that America’s students and workers have access to affordable, relevant, and innovative education and job training that will equip them to compete and win in the global economy, and for monitoring the implementation of that strategy, it is hereby ordered as follows:

♦Section 1. Purpose. Our Nation is facing a skills crisis. There are currently more than 6.7 million unfilled jobs in the United States, and American workers, who are our country’s most valuable resource, need the skills training to fill them. At the same time, the economy is changing at a rapid pace because of the technology, automation, and artificial intelligence that is shaping many industries, from manufacturing to healthcare to retail.

For too long, our country’s education and job training programs have prepared Americans for the economy of the past. The rapidly changing digital economy requires the United States to view education and training as encompassing more than a single period of time in a traditional classroom. We need to prepare Americans for the 21st century economy and the emerging industries of the future.

We must foster an environment of lifelong learning and skills-based training, and cultivate a demand-driven approach to workforce development. My Administration will champion effective, results-driven education and training so that American students and workers can obtain the skills they need to succeed in the jobs of today and of the future.

♦Sec. 2. Policy. It shall be the policy of the executive branch to work with private employers, educational institutions, labor unions, other non-profit organizations, and State, territorial, tribal, and local governments to update and reshape our education and job training landscape so that it better meets the needs of American students, workers, and businesses.

♦Sec. 3. Establishment and Composition of the President’s National Council for the American Worker. (a) There is hereby established the President’s National Council for the American Worker (Council), co-chaired by the Secretary of Commerce, the Secretary of Labor, the Assistant to the President for Domestic Policy, and the Advisor to the President overseeing the Office of Economic Initiatives (Co-Chairs).

(b) In addition to the Co-Chairs, the Council shall include the following officials, or their designees:

(i) the Secretary of the Treasury;

(ii) the Secretary of Education;

(iii) the Secretary of Veterans Affairs;

(iv) the Director of the Office of Management and Budget;

(v) the Administrator of the Small Business Administration;

(vi) the Assistant to the President and Deputy Chief of Staff for Policy Coordination;

(vii) the Director of the National Economic Council;

(viii) the Chairman of the Council of Economic Advisers;

(ix) the Director of the National Science Foundation; and

(x) the Director of the Office of Science and Technology Policy.

♦Sec. 4. Additional Invitees. As appropriate and consistent with applicable law, the Co-Chairs may, from time to time, invite the heads of other executive departments and agencies (agencies), or other senior officials in the White House Office, to attend meetings of the Council.

♦Sec. 5. Council Meetings. The Co-Chairs shall convene meetings of the Council at least once per quarter.

♦Sec. 6. Functions of the Council.

(a) The Council shall develop recommendations for the President on policy and strategy related to the American workforce, and perform such other duties as the President may from time to time prescribe.

(b) The Council shall develop recommendations for:

(i) a national strategy for empowering American workers, which shall include recommendations on how the Federal Government can work with private employers, educational institutions, labor unions, other non-profit organizations, and State, territorial, tribal, and local governments to create and promote workforce development strategies that provide evidence-based, affordable education and skills-based training for youth and adults to prepare them for the jobs of today and of the future;

(ii) fostering close coordination, cooperation, and information exchange among the Federal Government, private employers, educational institutions, labor unions, other non-profit organizations, and State, territorial, tribal, and local governments as related to issues concerning the education and training of Americans; and

(iii) working with agencies to foster consistency in implementing policies and actions developed under this order.

♦Sec. 7. Initial Tasks of Council. Within 180 days of the date of this order, the Council shall:

(a) develop a national campaign to raise awareness of matters considered by the Council, such as the urgency of the skills crisis; the importance of science, technology, engineering, and mathematics education; the creation of new industries and job opportunities spurred by emerging technologies, such as artificial intelligence; the nature of many careers in the trades and manufacturing; and the need for companies to invest in the training and re-training of their workers and more clearly define the skills and competencies that jobs require;

(b) develop a plan for recognizing companies that demonstrate excellence in workplace education, training, and re‑training policies and investments, in order to galvanize industries to identify and adopt best practices, innovate their workplace policies, and invest in their workforces;

(c) examine how the Congress and the executive branch can work with private employers, educational institutions, labor unions, other non-profit organizations, and State, territorial, tribal, and local governments to support the implementation of recommendations from the Task Force on Apprenticeship Expansion established in Executive Order 13801 of June 15, 2017 (Expanding Apprenticeships in America), including recommendations related to:

(i) developing and increasing the use of industry‑recognized, portable credentials by experienced workers seeking further education, displaced workers seeking skills to secure new jobs, students enrolled in postsecondary education, and younger Americans who are exploring career and education options before entering the workforce;

(ii) increasing apprenticeship, earn-and-learn, and work-based learning opportunities;

(iii) expanding the use of online learning resources; and

(iv) increasing the number of partnerships around the country between companies, local educational institutions, and other entities, including local governments, labor unions, workforce development boards, and other non-profit organizations, in an effort to understand the types of skills that are required by employers so that educational institutions can recalibrate their efforts toward the development and delivery of more effective training programs.

(d) consider the recommendations of the American Workforce Policy Advisory Board (Board) established in section 8 of this order and, as appropriate, adopt recommendations that would significantly advance the objectives of the Council. The Council shall continue to consider and, as appropriate, adopt the Board’s recommendations beyond the initial 180‑day period provided by this section;

(e) recommend a specific course of action for increasing transparency related to education and job-training program options, including those offered at 4‑year institutions and community colleges. The Council shall also propose ways to increase access to available job data, including data on industries and geographic locations with the greatest numbers of open jobs and projected future opportunities, as well as the underlying skills required to fill open jobs, so that American students and workers can make the most informed decisions possible regarding their education, job selection, and career paths. The Council shall also propose strategies for how best to use existing data tools to support informed decision making for American students and workers;

(f) develop recommendations on how the public sector should engage with the private sector in worker re-training, including through the use of online learning resources. In developing these recommendations, the Council shall examine existing private sector efforts to re‑train workers or develop them professionally, and consider how investments in worker training and re-training programs compare to investments in other human-resource related areas, such as recruitment, health benefits, and retirement benefits; and

(g) examine public and private-sector expenditures, including tax expenditures, related to providing Americans with knowledge and skills that will enable them to succeed in the workplace at various stages of life (such as during primary and secondary education, postsecondary education, continuing professional development, and re-training), consider the effectiveness of those expenditures, and make suggestions for reforms in order to serve American workers and students better.

♦Sec. 8. Establishment of the American Workforce Policy Advisory Board.

(a) There is hereby established the American Workforce Policy Advisory Board.

(b) The Board shall be composed and function as follows:

(i) The Board shall be composed of the Secretary of Commerce and the Advisor to the President overseeing the Office of Economic Initiatives, and up to 25 members appointed by the President from among citizens outside the Federal Government, and shall include individuals chosen to serve as representatives of the various sectors of the economy, including the private sector, employers, educational institutions, and States, to offer diverse perspectives on how the Federal Government can improve education, training, and re-training for American workers;

(ii) The Board shall be co-chaired by the Secretary of Commerce and the Advisor to the President overseeing the Office of Economic Initiatives;

(iii) Members appointed to the Board shall serve for a term of 2 years. If the term of the Board established in subsection (a) of this section is extended, members shall be eligible for reappointment, and may continue to serve after the expiration of their terms until the appointment of a successor;

(iv) The Board shall advise the Council on the workforce policy of the United States. Specific activities of the Board shall include, to the extent permitted by law, recommending steps to encourage the private sector and educational institutions to combat the skills crisis by investing in and increasing demand-driven education, training, and re-training, including through apprenticeships and work-based learning opportunities;

(v) Members of the Board shall serve without any compensation for their work on the Board. Members of the Board, while engaged in the work of the Board, may be allowed travel expenses, including per diem in lieu of subsistence, to the extent permitted by law for persons serving intermittently in Government service (5 U.S.C. 5701-5707), consistent with the availability of funds;

(vi) The Board shall terminate 2 years after the date of this order, unless extended by the President; and

(vii) Insofar as the Federal Advisory Committee Act, as amended (5 U.S.C. App.), may apply to the Board, any functions of the President under that Act, except for those in section 6 and section 14 of that Act, shall be performed by the Secretary of Commerce, in accordance with the guidelines issued by the Administrator of General Services.

♦Sec. 9. Administrative Provisions.

(a) The Department of Commerce shall provide the Council and the Board with funding and administrative support as may be necessary for the performance of their functions.

(b) The Secretary of Commerce, in consultation with the Co-Chairs of the Council, shall designate an official to serve as Executive Director, to coordinate the day-to-day functions of the Council.

(c) To the extent permitted by law, including the Economy Act (31 U.S.C. 1535), and subject to the availability of appropriations, other agencies may detail staff to the Council, or otherwise provide administrative support, in order to advance the Council’s functions.

(d) Agencies shall cooperate with the Council and provide such information regarding its current and planned activities related to policies that affect the American workforce as the Co-Chairs shall reasonably request, to the extent permitted by law.

♦Sec. 10. Termination of Council. The Council shall terminate 2 years after the date of this order, unless extended by the President.

♦Sec. 11. General Provisions.

(a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.


Senator Rand Paul Discusses Comrade Trump Derangement Syndrome…

Senator Rand Paul talks about the ridiculous Russia, Russia, Russia nonsense that infects the current DC body politic.

Trade Gaslighting – Every Financial Pundit/Writer Misleads or Omits Key NAFTA Construct Issue…

There is a key issue in every NAFTA discussion that is omitted purposefully.  The issue always hidden is that NAFTA is not a North American “Trade Bloc”.

Most people mistakenly equate NAFTA with other multi-nation trade partnerships like the EU (European Union).  The NAFTA partnership is nothing like the EU trade bloc; it is not even close.

Within the EU example, each nation is committed to only trade with outside nations on terms of agreement within the trade bloc.  All trade parameters must meet and comply with the terms within the EU trade agreements.  The terms of trade inside the group are connected to the same terms outside the group. It is an agreement between themselves and their commerce toward all other external nations.

However, in NAFTA, the Canadian and Mexican trade ministers can negotiate freely with outside nations.  There are no restrictive parameters on their independent decisions.  NAFTA is more similar to an access agreement with *only* terms of internal trade and commerce between the U.S., Canada and Mexico subject to the agreement. NAFTA is only an agreement between the U.S., Canada and Mexico and does not extend to external nations.

If France wanted to negotiate trade with China on a specific product -or sector- they have to comply with, and go through, the EU trade group.  China would have to apply the same terms to France as all other nations within the trade bloc.   However, if Mexico wants to negotiate with China on a specific product, they do not need to check with the U.S., they can cut any deal they want.  This is the basic issue underlining the NAFTA ‘fatal flaw’.

If the U.S. wanted to apply a tariff to Chinese cars the Chinese can work around the issue.

Chinese cars could be trans-shipped into Mexico and/or Canada for delivery under NAFTA to the U.S. market.  The only way to block this issue is to apply auto tariffs to Mexico and Canada.   This is currently the reason why Canada and Mexico are facing steel and aluminum tariffs.

As a consequence of NAFTA not being a trade-bloc, it has been exploited exclusively for access to the U.S. market.  Over the past 30 years Canada and Mexico have structured their manufacturing economy based on unlimited access to the U.S. market.  Mexico and Canada assemble foreign products shipped to them as parts, then send the finished products into the U.S. market.  Hence, Canada and Mexico demand high content of cheap foreign parts in any internal NAFTA manufacturing agreement. There is zero benefit to the U.S. worker or manufacturing base under this structure.

This exploitative approach, a backdoor to the U.S. market, was the primary reason for massive foreign investment in Canada and Mexico; it was also the primary reason why candidate Donald Trump, now President Donald Trump, wanted to shut down that loophole and renegotiate NAFTA.  However, with hundreds-of-billions already invested by the multinational banks and corporations – they are fighting to retain the status quo.

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

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

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

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

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

All nuanced trade-sector issues put aside, the larger issue 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.]

Now, watch the gaslighting:


President Trump Establishes Council for The American Worker – 3:00pm Livestream…

Begin, with the end in mind:…  A critical component of MAGAnomic need:

A skilled American Workforce.

In anticipation of; and in preparation for; the Trumpian manufacturing, innovation, and industrial-era resurgence, today President Trump is hosting the “Pledge to America’s Workers” event.  He has to get tens of millions trained and developed for our future.

President Donald Trump will sign an executive order “outlining immediate steps to address the vocational crisis” on developing new opportunities and set up a workforce council. The president will call upon industry leaders and the private sector to sign a pledge on helping advance workforce development.  Anticipated start time 3:00pm EST

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MAGAnomics: Jobless Claims in U.S. Lowest Level Since 1969 – As Predicted POTUS Trump Focused on Workforce Development…

Begin, with the end in mind….  More than two years ago CTH began discussing the ramifications to a new emphasis on the economy outlined as a possibility of candidate Donald Trump’s economic policy outlook. Within the overall discussion we walked through the anticipated changes possible if A.) Trump won the election, and B.) Trump began instituting Main Street economic policy ahead of Wall Street policy (the past 30+ years).  Today is the two year anniversary of that MAGAnomic prediction.

We discussed the new dimension that would occur between two economic engines (Main Street -vs- Wall Street) as three decades of policy shifted. CTH outlined statistical and measurable KPI’s that would become visible in the space between the policy shifts:

July 2016 – […] The demand for labor increases, and as a consequence so too does the U.S. wage rate which has been stagnant (or non-existent) for the past three decades.

As the wage rate increases, and as the economy expands, the governmental dependency model is reshaped and simultaneously receipts to the U.S. treasury improve. More money into the U.S Treasury and less dependence on welfare programs have a combined exponential impact. You gain a dollar, and have no need to spend a dollar. That is how the SSI and safety net programs are saved under President Trump. (link)

So let’s take a look at the measurable KPI’s via the Labor Department and the Federal Reserve (beige book) today in 2018:

“Unemployment lines across the U.S. last week were the shortest since December 1969, according to a Labor Department report Thursday that showed an unexpected drop in filings for jobless benefits. […] The Federal Reserve’s Beige Book, released Wednesday, showed momentum is building in the nation’s job market. “All districts reported that labor markets were tight and many said that the inability to find workers constrained growth,” it said.”  (read more)

(Full Labor Report PDF Here)

In the week ending July 14, the advance figure for seasonally adjusted initial claims was 207,000, a decrease of 8,000 from the previous week’s revised level. This is the lowest level for initial claims since December 6, 1969 when it was 202,000.