Chopper pressers are the best pressers.  Earlier today President Trump paused to talk to the press pool prior to departing the White House for the NATO summit in the U.K. [Video and Rough Transcript Below]

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[Rough Pool Transcript] – President Trump … we’re fighting for the American people. It has not been a fair situation for us because we pay far too much as you know. Secretary Stoltenberg said we were responsible — I was responsible — for getting over $130 billion extra from other countries that we protect, that weren’t paying. They were delinquent. So we’ll be talking about that. We’ll be talking about a lot of things.

We are leading the world now on the economy, and we have been almost since I became president. But we are substantially ahead of anybody else. Nobody’s even close. You know that very well. And I look forward to having a number of very, very productive days for our country. We’ll be working hard. Do you have a question?

[Inaudible question about Hong Kong and China deal]

Well it doesn’t make it better but we’ll see what happens.

[Inaudible question about Wednesday’s impeachment hearing]

So the Democrats, the radical-left Democrats, the do-nothing Democrats, decided when I’m going to NATO — this was set up a year ago — that when I’m going to NATO, that was the exact time. This is one of the most important journeys that we make as president. And for them to be doing this and saying this and putting an impeachment on the table, which is a hoax to start off with. If you notice, there was breaking news today.

The Ukrainian president came out and said very strongly that President Trump did absolutely nothing wrong. That should be case over. But he just came out a little while ago and said President Trump did absolutely nothing wrong and that should end everything. But it will never end it because they want to do what they want to do. They’re getting killed in their own districts. I think it’s going to be a tremendous boon for the Republicans.

Republicans have never, ever been so committed as they are right now and so United. So it’s really a great thing in some ways but in other ways it’s a disgrace. It’s a disgrace for our country.

[Inaudible question about Afghanistan trip]

I loved going to Afghanistan. It was great meeting with — as you know, we had some good meetings with a lot of people including Ghani, you know that, right? And he was terrific. It was great meeting with him. But my trip to Afghanistan was very successful. Now we’re going to London and it will be NATO, and we’re meeting with a lot of countries, and they’re going to have to do a little more burden-sharing.

QUESTION: Is a China trade deal still possible this year?

The Chinese are always negotiating … [unclear words] … we are, and frankly I could be other places that I could do all by myself and be even happier, and you understand what that means. But the Chinese want to make a deal. We’ll see what happens.

[Inaudible question about his Brazil tariff tweet]

Well, Brazil has really discounted — if you take a look at what’s happened with their currency, they’ve devalued their currency very substantially by 10 percent. Argentina also. And I gave them a big break on tariffs but now I’m taking that break off because it’s very unfair to our manufacturers and very unfair to our farmers. Our steel companies will be very happy, and our farmers will be very happy.

QUESTION: Why don’t you send one of your lawyers to represent your point of view before the House impeachment inquiry?

Because the whole thing is a hoax. Everybody knows it. All you have to do is look at the words of the Ukrainian president that he just issued, and you know it’s a hoax. It’s an absolute disgrace what they’re doing to our country. Thank you. Thank you very much.

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Whenever we discover a financial analyst who understands the new dimension in U.S. economics (rare) it is worth revisiting them from time-to-time. Allianz chief economic adviser Mohamed El-Erian was one of the first MSM pundits to: (a) accept the disconnect between Wall Street and Main Street via de-globalization; and (b) begin to explain why that matters in the era of Trump.

El-Erian appeared this morning on Fox Business News to discuss President Trump’s re-imposition of steel and aluminum tariffs on Brazil and Argentina. Additionally El-Erian discusses trade tensions, market outlooks, consumer strength, recession fears, and the drag the rest of the world is placing in the U.S. economy.

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The U.S. economy is strong; all the fundamentals are solid. However, the multinationals on Wall Street -invested overseas- are more exposed. There is nothing that China and the EU can do to stop the de-globalization process; and efforts to stimulate their economy, more quantitative easing (pumping money) while the global supply chains are being shifted, are futile… they need “structural reform.”  The multinationals are holding cash, waiting to see how it plays out.

The more a nations’ economy is dependent on exports, the more exposure they have to the inherent downsides of de-globalization. U.S. companies that are invested in these nations will naturally see diminishing returns on investment over time; some rapidly. President Trump’s trade policy is controlling the speed of that investment contraction.

The exposure of the multinationals keeps the stock market twitchy, yet the Main Street USA economy is thriving.

China’s economy is dependent on selling products to the U.S. in order to receive dollars. China takes those dollars and then purchases industrial goods from Europe. If China gets less dollars they purchase less from Europe. In essence both China and the EU are dependent on receiving dollars from a maintained trade imbalance. President Trump has begun resetting that imbalance… that is the current status of the global economic flux.

So what is the “structural reform” El-Erian is discussing?  This is where the EU needs to accept their economic model will no longer work if the global economy is changed.

Specifically:

♦The EU has benefited from their one-way tariff system against U.S. industrial goods.  They have also used non-tariff barriers to keep their position.  Now they need to change their perspective and embrace reciprocity in new trade agreements; or else Trump will use the strength of the U.S. market to pummel them with tariffs.

♦The EU has used their one-sided tariff and trade system as a key part of their overly generous social and worker benefits.  If they don’t change the level of social payments and begin to ‘structurally’ change their social benefits, again they will suffer when the one-sided financial benefits are removed.  They won’t be able to afford their social system without the one-sided trade benefit.

♦The EU has over-regulated their industrial base and attached themselves to burdensome regulatory standards; specifically worsened by their Paris climate treaty and changes within their energy programs.  The compliance standards in combination with the increased costs and less global income is a perfect storm for contracting economic growth.

These are the types of EU reforms that are needed in an era where President Trump has purposefully stalled the process of globalization and is resetting global supply chains.  The Trump policies that bring massive amounts of wealth back into the United States has created the dynamic where the EU must adapt or contract.

In essence Titan Trump is engaged in a process of: (a) repatriating wealth (trade policy); (b) blocking exfiltration (main street policy); (c) creating new and modern economic alliances based on reciprocity (bilateral deals); and (d) dismantling the post WWII Marshal plan of global trade and one-way tariffs (de-globalization).

Remember a few paragraphs above when we noted: “President Trump’s trade policy is controlling the speed of that global investment contraction”…. well, here’s an example:

Commerce Secretary Wilbur Ross appears on Fox Business to discuss the status of the U.S-China trade “negotiations” :::nudge-nudge, wink-wink::: and highlights the ‘phase-1’ fulcrum is China committing to the $50b Ag purchase without condition.  Secretary Ross also notes the December 15th date just happens to be “good timing” if the U.S. team is “forced” to put more tariffs on China.  LOL.

Additionally, Mr. Ross notes the challenge of a strong dollar as it relates to allied nations who are stimulating their own economy by sending us even cheaper stuff, ie. Brazil.

Oh my gosh.  First Lady Melania Trump introduces the 2019 Christmas Holiday decorations, and they are spectacular.

Visit the White House Advent Calendar HERE