Leverage – EU Pledges Increased U.S. Investment in Effort to Avoid U.S. Auto Tariffs…


Funny stuff amid headlines discussing the likelihood of President Trump postponing a 25% tariff on European autos.  What the pundits are missing is how President Trump has positioned a myriad of trade dynamics that make EU action unavoidable.   This is the fun stuff, so let’s enjoy the details.

The current headlines surround President Trump “postponing” a 25% tariff on EU automobiles as an outcome of the major EU manufacturers (mostly Germany) promising increased investment in their U.S. operations.  By itself this would be considered a win for President Trump, but that’s not the whole picture, not even close.

What the more broad trade and manufacturing dynamic includes will explain what EU economists are only just now starting to realize.  Yes, the major European auto-makers will put more investment into the United States (thereby lessening the EU industrial economy); however, the auto decision is not because they are presenting a magnanimous benefit of sorts, but rather it is a foregone conclusion; an unavoidable reality due to a previous trade agreement construct.

Within the USMCA agreement President Trump negotiated a win-win-win for Mexico, Canada and the U.S. through a requirement that 75 percent of North American auto content must originate from manufacturing within North America.  Failure to reach that threshold means the auto company will be subject to a 25 percent tariff to bring the product to the U.S. market.

Example: Seeking to exploit the previous NAFTA loophole BMW recently opened a $2 billion assembly plant in Mexico.  However, as soon as the USMCA was announced; and once they saw the loophole closure; BMW also had to announce they would open up a new engine and transmission manufacturing/production facility in the United States.

The USMCA deal meant BMW could not bring German transmissions and engines into Mexico for assembly.  The origination requirements changed the dynamic of their production plan; and as a consequence their investment plan.

Keep in mind the steel and aluminum tariffs already exist.  Most trade partners with the U.S. are operating under exemptions, waivers, provided by President Trump and his trade team.  Those waivers can be withdrawn at any time.

The only time the Steel and Aluminum tariffs are gone permanently, is when the nation signs into an official trade agreement with the United States. [Keep this nugget in mind]  All U.S. trade agreements also forbid the partner country from participating in transnational shipping of steel and aluminum.

Additionally, President Trump instructed USTR Lighthizer and Commerce Secretary Ross to use the leverage created within the USMCA (auto sector), in combination with the Steel and Aluminum tariffs, as pressure points -leverage- in all trade agreements with Korea, Japan, China and the EU.  [Auto sector 232 tariffs]

Does it work?

Well, two examples: (1) South Korea opened up the KORUS deal to renegotiation specifically to avoid those tariffs (think Hyundai and Kia).  The new KORUS deal positioned greater benefit to the US.  (2) Japan opened up their market to U.S. agriculture exports in large part to avoid those tariffs (think Nissan, Toyota, Mazda etc.); and that became the framework for the recently signed U.S-Japan trade agreement.

So yes, it works.

That same leverage principle is at play with the EU.  Germany must avoid U.S. auto tariffs at all costs.  Additionally, Germany and the EU industrial companies, writ large, want to keep their waivers from Steel and Aluminum tariffs. However, Germany cannot avoid the tariff structure within the USMCA. President Trump has the EU over a barrel.

As an outcome of the USMCA, Germany was already going to have to manufacture content in the U.S. in order to avoid auto tariffs.  Germany is not going to be able to bring German parts into the U.S. and assemble in U.S. made vehicles. They are going to have to produce more auto parts inside the U.S.   The issue is a matter of timing.

As soon as the USMCA is ratified, Germany is going to have to make their U.S. investment.  However, with the USMCA not yet ratified, President Trump has deployed the 25% auto tariff threat directly.  This forces the EU to make their already unavoidable auto investment in U.S. manufacturing faster than they would like.

So there’s some nuggets of truth within the New York Times article:

The president has not yet announced a decision, and there is no guarantee that dangling new investments will stop him from imposing levies. Mr. Trump has repeatedly criticized Europe for flooding the American market with cars while limiting imports of United States vehicles.

[…]  Some analysts say Mr. Trump and his advisers are more interested in the leverage the specter of auto tariffs creates than in actually imposing the levies. They have been willing to threaten tariffs to extract concessions in negotiations with Japan, South Korea and Europe.

Mr. Trump could decide to try to preserve his leverage by extending the deadline to make a decision. That would be frustrating for European officials, who say the trade war’s uncertainty has been dragging down economic growth. Germany, whose economy depends on car making, is on the brink of recession. (read more)

EU Begins Accepting Serious Consequences From U.S. Economic and Trade Position…


The major industrial economies of the European Union (U.K., France, Germany) have been the beneficiaries of a decades-long system which allowed one-sided benefits -via tariffs- against U.S. products.

With President Trump demanding reciprocity, and with less industrial purchasing from China, the EU is now starting to contemplate a dramatically different economic future.

(Reuters) – Persistent weakness in euro zone manufacturing raises the risk of other sectors of the economy being infected, extending the currency bloc’s recent downturn, European Central Bank policymaker Yves Mersch said on Monday.

“The longer the weakness in manufacturing persists, the greater the risk that other sectors of the economy will be affected by the slowdown as well,” Mersch told a conference.

“Risks to the growth outlook remain on the downside overall.” (read more)

I think it is safe to say the majority of American voters have no idea how deeply the global economy is dependent on systems of trade that are based on the U.S. trade deficits.

The $500+ billion annual trade deficit the U.S. was running with China was the primary vault Beijing used to purchase industrial goods from the EU.  With President Trump reversing the outflow of dollars into China, the EU economy has been hit hard.

Simultaneously, President Trump has begun the process of confronting EU tariffs against U.S. products that have existed since the 1948 Marshall Plan was enacted.  Under the Trump administration USTR Robert Lighthizer and Commerce Secretary Wilbur Ross have put the EU on notice that U.S. trade agreements will no longer accept the one-sided benefit; the current U.S. position is reciprocity without compromise.

Against both standards of diminished Asian purchases and diminished protectionism for their collective economy, the EU is entering into a phase of severe economic consequence.

The social spending within the EU is heavily reliant on their ability to capture U.S. wealth through exports (China) and trade tariffs against the U.S.   As the EU central bank is starting to realize, a diminished influx of money into their system will likely have significant consequences that extends far beyond the simple lost revenue from global industrial purchases.

Combine that financial reality with a significant loss in revenue from the U.K. via Brexit; and then overlay the generous social payments to the mass influx of migrants; and you can see a storm cloud appearing that seems unavoidable.

NATO General Secretary Jens Stoltenberg is coming to the White House this week, and we can be sure his visit is directly related to this EU reality.

Interesting times…

Bannon on Trump, populism and Cambridge Analytica | Financial Times


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Steve Bannon, Donald Trump’s former chief strategist, talks to FT editor Lionel Barber at the FT Future of News conference about a new Trump Tower style of management in the White House, the rise of populist nationalism around the world and the Cambridge Analytica scandal.

President Trump Impromptu Presser Departing Joint Base Andrews – China/Impeachment – Video and Transcript…


President Trump held an impromptu presser prior to departing JBA for Alabama.  This is one of those mini-pressers that reveals important aspects to the *direction* of the U.S-China trade discussion from the POTUS perspective.  The financial pundits always miss these little tell-tale remarks.  President Trump is managing the trade and economic program at a granular level; this is his priority… every little part of it, he is directing.

President Trump notes the value of the tariff strategy, and infers (not so subtle) that no deal is preferred within his ongoing plan: “you’ll see what I’m going to be doing.”  This is what the financial pundits ignore. President Trump has gamed this out, he’s stringing the process slowly to keep boosting the stock market…. but his goal does not include a deal.

[Video and Transcript below]

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[Transcript] – THE PRESIDENT: I look forward to seeing a lot of things. But on Monday, in particular, our stock market has just broken another record, as you see. Our economy is doing phenomenally well. Our jobs numbers just broke yet another record. They’re higher than ever before. Our country is doing better than it’s ever done. Our military is rebuilt. It was a mess when I took over.

And a lot of good things are happening, and now I’m going to watch Alabama-LSU, and that’ll be a lot of fun. So, we look forward to it.

Do you have a question? Go ahead.

Q Mr. President, what’s your next step for China trade talks? There were some —

THE PRESIDENT: They’re moving along. They’re moving along. They’ve moved slowly. Much too slowly for me. But they want to make the deal much more than I do. But the trade talks with China are moving along, I think, very nicely. If we make the deal that we want, it’ll be a great deal. And if it’s not a great deal, I won’t make it.

But the trade deal is moving along, and China wants to be there.

Q And do you want to lift tariffs then? They said that there had been a —

THE PRESIDENT: Well, there was a lot of incorrect reporting, but you’ll see what I’m going to be doing.

Q Can you clarify that?

THE PRESIDENT: But we’ve taken in tens of billions of dollars of tariffs. I gave $28 billion — 16 and 12 — to our farmers. And it’s been pretty amazing what we’ve done. Our farmers are very happy. We have to make the right deal for the farmers, manufacturers, for everybody. And if we don’t make that right deal, we’re not going to make a deal.

Q But if you get the phase one deal, will some tariffs be lifted?

THE PRESIDENT: Well, you’ll see. There’s a difference on tariffs, but we’re going to always get tariffs. We never got anything. Just so you understand, China, forever, never paid us 10 cents. Now we have — literally, we will soon have, literally, hundreds of billions of dollars coming in from China. We never got anything from China. So, a lot of very positive things are happening. I think that people will be amazed.

Just to say, again: I’d like to make a deal, but it’s got to be the right deal. China very much wants to make a deal. They’re having the worst year they’ve had in 57 years. Their supply chain is all broken, like an egg. They want to make a deal. Perhaps they have to make a deal. I don’t know. I don’t care. That’s up to them.

But the reports were incorrect.

Q How about lifting tariffs?

THE PRESIDENT: The level of tariff lift is incorrect.

Q You said the impeachment hearings should not be held behind closed doors, but now you say you don’t want them to be public. So —

THE PRESIDENT: No, no. I don’t care if they’re public; they should be public. What I said — it was misreported, as usual. What I said is very simple: There shouldn’t be anything. There shouldn’t be impeachment hearings, is what I said. So maybe they misconstrued it.

But what I say is: Read the transcript. It’s all about the transcript. They’re having people — I never even heard of some of these people; I don’t know who they are. And, by the way, it’s all third-hand knowledge. But regardless of what anyone says, read the transcript.

Now, they want to have a transcript of the other call, the second call. And I’m willing to provide that. We’ll probably give it to you on Tuesday. Monday being a holiday, we’ll probably give it to you on Tuesday. But we have another transcript coming out, which is very important. They asked for it, and I gladly give it. There’s never been a President who’s been so transparent. This is a witch hunt at the highest level, and it’s so bad for our country.

But here’s the deal: Read the transcript. You’ll see the call. Now I’ll give you a second transcript, because I actually had two calls with the President of Ukraine. So you’ll read the second call and you’ll tell me if you think there’s anything wrong with it. But never in history has anybody gone through this. It’s a witch hunt, and it should never happen to another President.

Thank you. Thank you.

END 12:55 P.M. EST

I’ve said it before and I’ll emphasize it again, the global trade and economic reset is President Trump’s number one priority.  Everything else, including impeachment, is chaff and countermeasures… deployed to stop his priority.

President Trump knows the ‘impeachment’ agenda is a means to an end. His opposition, the sum total of his opposition, needs to stop him from deconstructing a global economic system that was created over decades to the benefit of an elite ruling class.

The Big Club, the multinational system, is throwing everything at him in an effort to stop his ‘America First’ economic program; but incredibly, Trump retains a focus on the big picture and keeps taking apart the globalist system bit-by-bit.  It is remarkable how focused President Trump is on this objective.

BIG CHEERS for President Trump and Melania Trump in Alabama…


A crowd of more than 100,000 football fans give a warm greeting to President Trump and First Lady Melania Trump at the start of the Alabama -vs- LSU football game in Tuscaloosa.

The President and First Lady stand waving from a luxury box near midfield. Fans cheered loudly, some chanting “USA”. WATCH:

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Another angle:

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President Trump sings the national anthem:

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Washington Examiner

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President Trump Delivers Remarks Departing the White House….


President Trump delivers remarks departing the White House for a trip to Tuscaloosa, AL, to attend the Louisiana State University Tigers vs. Alabama Crimson Tide Football Game. [Video and transcript below]

[Transcript] “So the stock market hit an all-time high yesterday. The country is doing really well. The witch hunt continues. A lot of witch hunt continues. The Republicans have never been so united, and I think the people of our country have never been so united.

We’re going Alabama. We’re going to watch the Alabama game versus LSU, two great teams. I think it’s going to be very interesting, and on Monday we have a very big parade in New York, so that’ll be good. Have a good time.

This is the strongest economy we’ve ever had, number one.  Thank You.”

Y Times Poll: Trump Beats Top Democrats in Swing States On Path to 2020 Victory


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Go now to The Patriot Post: America’s News Digest http://bit.ly/2MUReTN —– The New York Times polls battleground states like Pennsylvania, Michigan and Florida and finds President Donald Trump beating leading Democrats Joe Biden, Elizabeth Warren and Bernie Sanders — despite Trump’s punishing disapproval rating, and other polls that show him trailing nationwide. Jonathan Chait, in New York Magazine, says Trump could lose the so-called national vote by an even larger margin, and still win the actual 2020 election, because he’s winning where it matters. Bill Whittle Now with Scott Ott comes to you five times each week thanks to the Members at https://BillWhittle.com . Visit our website to watch the entire archive. Become a Member to unlock new levels of engagement with people like you.

 

Transcript of President Trump Chopper Presser on Multiple Issues and Current Events…


Earlier today President Trump held an extensive chopper presser with the White House press pool on a variety of topics.  Here is the REAL NEWS transcript:

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[Transcript] – THE PRESIDENT: I just told them, “I’ve got to come over and see the fake news.” Let’s go. What do you have, John?

Q Mr. President, what do you think of the testimony of the deposition that has been released so far? And are you concerned about public hearings next week?

THE PRESIDENT: I’m not concerned about anything. The testimony has all been fine. I mean, for the most part, I’ve never even heard of these people. I have no idea who they are. They’re some very fine people; you have some Never-Trumpers. It seems that nobody has any firsthand knowledge. There is no firsthand knowledge. And all that matters is one thing: the transcript. And the transcript is perfect.

Mark Levin, last night, on television — who is a great constitutional lawyer — he broke it down. He said, “What Trump said…” And he was respectful, he said, “President Trump.” “What President Trump said was perfect on the transcript. What he said on that telephone call with the President of Ukraine was perfect.” He said, “No other — nothing else matters. And what he said was perfect.” And he analyzed it — every line, every paragraph. It was not complex; it was perfect. Nothing else matters.

With that being said, every one of those people cancel themselves out. So what they do is they go all over Washington, “Let’s find 10 people that hate President Trump the most, and let’s put them up there.” Now, in some cases, they really turned out to be very much honest and fair. But in no cases have I been hurt. In no cases, that I see, have I been hurt.

Q And what do you expect for the public hearings next week?

THE PRESIDENT: Well, they shouldn’t be having public hearings. This is a hoax. This is just like the Russian witch hunt. This is just a continuation. When you look at the lawyer for the whistleblower, I thought it ended when they found out that the lawyer was so compromised. I mean, the lawyer is a bad guy. So, you look at that. I thought that was the end of it. No, this is just a continuation of the hoax. It’s a disgraceful thing.

In the meantime, we’ve got the best markets we’ve ever had — stock markets. We have the best unemployment numbers we’ve ever had. We have the best employment numbers we’ve ever had. We have almost 160 million people — we’ve never been even close to that. So we’re doing it — but unfortunately, you people don’t want to talk about that.

Q On China, can you tell me whether a tariff rollback will be part of the phase-one China deal?

THE PRESIDENT: Well, they’d like to have a rollback. I haven’t agreed to anything. China would like to get somewhat of a rollback — not a complete rollback, because they know I won’t do it.

But we’re getting along very well with China. They want to make a deal. Frankly, they want to make a deal a lot more than I do. I’m very happy right now. We’re taking in billions of dollars. I’m very happy. China would like to make a deal much more than I would.

Q Mr. President, will you endorse Jeff Sessions in his Alabama Senate run?

THE PRESIDENT: Well, I haven’t gotten involved. I saw he said very nice things about me last night, but we’ll have to see. I’ll have to see.

Q Have you forgiven him for —

THE PRESIDENT: I haven’t made —

Q — recusing himself?

THE PRESIDENT: I haven’t made a determination.

Q Have you forgiven him for recusing himself from recusing himself from the Russia investigation?

Q Have you forgiven him for recusing himself from the Russia investigation?

THE PRESIDENT: I don’t even think about it.

Q Mr. President, so what do you say to the millions of people who just don’t believe you, that you have something and that your transcript shows that you did something wrong? What do you tell them?

THE PRESIDENT: Well, I’ll tell you what, it’s a very simple thing. I had a very good call with the President of Ukraine. I assume that’s what you’re talking about. The call was perfect.

Now, they’re after — I have a second call, which nobody knew about, and I guess they want that call to be produced also. You’ve heard that, John.

So I have a second call — I had a second call with the President, which actually, I believe, came before this one. And now they all want that one. And if they want it, I’ll give it to them. I haven’t seen it recently, but I’ll give it to them.

But I had a call before this one with the President of Ukraine. I understand they’d like it, and I have no problem giving it to them. I have no problem giving it.

Q Mr. President, on the Bidens, did you ask Bill Barr or anyone in your Department of Justice to investigate the Bidens? And if not — if you didn’t ask them — why would you ask the President of Ukraine to do something you weren’t willing to ask your own Justice Department to do?

THE PRESIDENT: We are looking for corruption. We’re giving hundreds of millions of dollars, and we’re looking for corruption. And all you have to do is take a look at Biden, and you’ll see tremendous corruption, because what he did is quid pro quo times 10.

Q Did you ask your DOJ?

THE PRESIDENT: And let me just tell you —

Q Did you ask —

THE PRESIDENT: Be quiet.

Q — your DOJ?

THE PRESIDENT: Quiet.

Q Did you ask your DOJ?

THE PRESIDENT: Quiet.

Q It’s a simple question. Did you ask —

THE PRESIDENT: Quiet.

Q — your DOJ?

THE PRESIDENT: Are you ready?

Q Yes, sir.

THE PRESIDENT: I never spoke to him about anything. It’s up to Bill Barr. Bill Barr can do whatever he wants to do. But I saw the same tape on television. And the tape shows that Joe Biden is a crook. He’s 100 percent crooked. And the fake news, which is you and you — you don’t want to do anything about it.

Q We reported it.

THE PRESIDENT: His son walked out with millions of dollars from Ukraine, millions of dollars from China. He doesn’t know anything. He walked away with a stash. It’s a corrupt deal. It’s a corrupt enterprise. And if the press did it right, it’s a hell of a story.

Q Have you figured out where you’re going to sign the phase-one trade deal yet? Do you have a location yet?

THE PRESIDENT: Well, we’re looking at different — assuming we get it. You know, I never like to talk about things until we have them. But it could be Iowa or farm country or someplace like that. It will be in our country, but it could be — it could be someplace like that, John.

Q Mar-a-Lago?

THE PRESIDENT: No, I don’t think so. I think we’d go more in the farm belt.

Q Will you campaign against Jeff Sessions?

THE PRESIDENT: No, I won’t. I’ll see how it all goes. You have some very good candidates. Look, Alabama is a place where my approval numbers are very good. I think I won by 42 points. I love Alabama. I’m going to go watch a very good football game on Saturday, which is tomorrow, with LSU. That’s going to be great.

We’ll see what happens. He’s got — he’s got tough competition. I mean, you have — the football coach, Tommy, is doing very well. You have some — you have some good people running in Alabama. Let’s see what happens.

Q Do you have a date yet — do you have date yet, sir, for your meeting with Xi Jinping? Is it definitely going to be this year?

THE PRESIDENT: We’ll see what happens. Okay? We’ll see what happens. We’re getting along very well. They want to make the deal far more than I do. I will tell you, they want to make it far more than I do, but we’ll see what happens.

We’re taking in, right now — and you know — as a reporter of finance, you know what I’m saying. They’ve devalued their currency and they ate this tariff. We’re taking in billions of dollars in tariff money from China. I like our situation very much. They want to make a deal much more than I do, but we could have a deal.

Q Billionaire Leon Cooperman said this week that if you can’t change your behavior, you probably shouldn’t run again in 2020. What do you say to that, sir?

THE PRESIDENT: Well, no, you’ve really shaped my behavior. Because from the day I came in here, I’ve had problems with phony stuff — like a phony dossier that turned out to be false, like false investigations that I’ve beaten. So a lot of my behavior was shaped by the fake news and by the other side. That was a lot of my behavior.

The fact is that we’ve created the greatest economy in the history of our country. With all of that stuff going on behind me, nobody else could have done it. Rush Limbaugh said he doesn’t know a man in the world that could have done what Trump did.

I don’t know Leon Cooperman, but whoever Leon Cooperman is — I know of him — he can have his own view. But in the meantime, I’m making him rich and I’m making a lot of other people rich, including the working man and woman. They’ve never done so well as they’ve done right now.

Our jobs are the best they’ve ever been. Everything about our economy is just about the best it’s ever been, including unemployment.

So I think, in light of all of the things going on — and you know what I mean by that: the fake news, the Comeys of the world, all of the bad things that went on. It’s called the “swamp.” And you know what happened and you know what I did? A big favor. I caught the swamp. I caught them all. Let’s see what happens. Nobody else could have done that but me. I caught all of this corruption that was going on, and nobody else could have done it.

On top of that, we have the best economy — the greatest economy we’ve ever had; the best job numbers we’ve ever had. African American, Asian American, Hispanic — the best ever. So, I think we’ve done a great job.

And tell Leon — who I’ve seen, but I don’t know — tell him congratulations, because he did very well with Trump.

Q Sir, how is the trade deal with India going on?

THE PRESIDENT: We’re dealing with India on a lot of different things. Prime Minister Modi is a very good friend of mine. You saw me at — in Houston. You saw me at the event — 55,000 people. It was great. And we have a lot of things happening with India. We have a very good relationship with India.

Q Are you planning to travel to India sometime?

THE PRESIDENT: He wants me to go there. I will be going, at some point, to India.

Q Sir, the people you —

Q Why did you acknowledge that your charity was using money for your personal and political purposes?

THE PRESIDENT: My charity was great. I gave a lot of money away. I was sued because, in New York, it’s a hornet’s nest, and they sue you for anything. And yet, on a really bad thing — if you look at that Clinton charity — they left her alone. That’s one of the reasons people leave New York.

I gave away $19 million. I took no expense. I took no rent. I took no fees. I took no nothing. A hundred percent of that money was given away, and I had to actually go through a process, for years, with New York. Because you know why? New York is a corrupt state. It’s a corrupt state. It’s a shame.

I gave $19 million away. And what happened is, instead of saying, “thank you, great,” they hit me with a lawsuit. And it was started by a man who had to get out because he beat up women. That’s the kind of a place it is.

Q Have you made a decision on vaping?

THE PRESIDENT: We’re going to be coming out with a very important position on vaping. We have to take care of our kids, most importantly. So we’re going to have an age limit of 21 or so.

But we’ll be coming out with something next week, very important, on vaping. We have a lot of people to look at — including jobs, frankly, because, you know, it’s become a pretty big industry. But we’re going to take care of it.

Now, there’s also — you know, when you mention vaping, you’re talking about e-cigarettes, you’re talking about a lot of different things. But we’re coming out with a big paper next week.

Q Does that mean that you may dial back on this idea of banning flavors, and instead raise the age?

THE PRESIDENT: We’re talking about the age. We’re talking about flavors. We’re also talking about keeping people working. And, you know, there are some pretty good aspects. But we’re coming out and we’re very close to a final report, John, and we’ll be giving it next week.

Q Because the industry does support raising the age, but they don’t like the banning of the flavors.

THE PRESIDENT: Yeah, we’re going to be raising the age. We will be doing that.

Q And can I just come back to — did the first transcript of the call with Zelensky from April 21st — it’s my understanding that the White House Counsel isn’t particularly keen to release that. Will you overrule him?

THE PRESIDENT: The — well, they don’t want to give all this information on a scam. It’s a witch hunt. I’m okay with releasing; it doesn’t bother me. I know what I said. It was fine.

But, no, they do want to have the second call, which is really the first call — the one before this. I had a call. I’m sure it was fine. I mean, you know, I have to — I make a lot of calls. But I have no problem releasing it. I’m very transparent.

Q So why not just release it?

THE PRESIDENT: Nobody is more transparent than I am. And if I wasn’t, and if I didn’t release it, it would’ve been a problem. Because the fake whistleblower said something about the call — many things that were wrong.

When the whistleblower came forward, he talked about this horrible call. It turned out to be a perfect call, as I say. Mark Levin said this was a perfect call. So, they lied. They lied. The whole thing is a scam. This is scam by the Democrats to try and win an election.

Now they want —

Q Mr. President —

THE PRESIDENT: Now they want my first call. I have no problem giving it to them, other than I don’t like giving calls to the media when I’m dealing with foreign nations. But I will give it if they want it.

Q One more point: Gordon Sondland said that at — Gordon Sondland said, at the beginning of September, he presumed there was a quid pro quo. Then there was a telephone call to you on September the 9th. Had he ever talked to you prior to that telephone call about what you wanted in Ukraine?

THE PRESIDENT: Let me just tell you, I hardly know the gentleman. But this is the man who said there was no quid pro quo, and he still says that —

Q He said that he presumed there was.

THE PRESIDENT: — and he says that I said that. And he hasn’t changed that testimony.

So this is a man that said, as far as the President is concerned, there was no quid pro quo. Everybody that has testified — even the ones that are Trump haters — they’ve all been fine. They don’t have anything.

But now they want the first call with the President of Ukraine. If they want it, I’ll probably give it to them. But they really want it badly. If they want it, I will probably give it to them.

I don’t like doing it because it sets a bad precedent, John. Because every time President Xi calls or somebody calls from China, if I speak to Kim Jong Un — are they worried about me giving the call? But in this case, because the press has been duped into a hoax — and, in some cases, they’ve really started the hoax — I will give the letter if they want it.

Q Mr. President —

THE PRESIDENT: But I do say this about that call: I think that’s a very revealing call.

Q Mr. President, you’ve been invited to Russia for the May Day parade. The Russians are eagerly awai- — are you going?

THE PRESIDENT: That’s right. I was invited. I am thinking about it. It’s right in the middle of our campaign season. But I am thinking — I would certainly think about it. President Putin invited me to the —

Q May Day parade.

THE PRESIDENT: That’s a very big — it’s a very big deal — celebrating the end of the war, et cetera, et cetera. It’s a very big deal. So I appreciate the invitation.

It is right in the middle of political season, so I’ll see if I can do it. But I would love to go if I could.

Q Bill Barr and the DOJ are not denying that you asked him to have a press conference to say that —

THE PRESIDENT: Well, they’re not saying anything. Let me tell you: I never asked —

Q (Inaudible.)

THE PRESIDENT: Listen. I never asked him for a press conference. It’s fake news by the Washington Post, which is a fake newspaper. It’s fake. It’s made up.

And if I ask Bill Barr to have a press conference, I think he’d do it. But I never asked him to have a press conference. Why should I? You know why I wouldn’t do it? Because the phone call was perfect. Just read the transcript of the phone call. Nobody has to have a press conference.

I think if I asked him, and we — by the way, we confirmed. I never asked him. I think if I did ask him — I haven’t said this yet, and I don’t think I will; I’m sure I won’t. But if I asked him to have a press conference, I think he would.

With that being said, it’s fake news. They wrote a fake story. We’ve told them that before they wrote the story. But today, when you tell the press something, it’s meaningless because they write whatever — it’s all fiction. And I’ll tell you, they don’t have sources. You know what they do? They make it up. Not everybody — not John, not everybody. But they make it up.

Q (Inaudible.)

THE PRESIDENT: (Inaudible.)

Q Are you going to release the Pence — are you going to release the Pence transcript?

THE PRESIDENT: What?

Q You say, “Read the transcript.” Are you going to release the Pence transcript as well, sir?

THE PRESIDENT: What they want is they want my first phone call. I had another phone call, and it’s a very important phone call. And it came to my attention last night that they want the first phone call.

Now, the problem I have in releasing the first phone call — because that was actually the second phone call. And it’s —

Q The one we saw is the second phone call?

THE PRESIDENT: Yeah. And it’s a perfect call. But they found out there’s another phone call. And that’s the first phone call. And they want it released and we’re considering that.

Q How about the Pence phone calls?

THE PRESIDENT: Which one?

Q The Mike Pence phone calls.

THE PRESIDENT: That I don’t know. I don’t know about any calls. I mean, I would — I have no problem. It’s up to Mike, but I have no problem.

Q Mr. President, you keep calling this a “coup” rather than an — you’re calling this a “coup” rather than an impeachment. So if it’s a coup —

THE PRESIDENT: Well, you know what it is, really? It’s a crooked deal. This is like the fake dossier. This is like everything else.

These are crooked people. They lost an election and they lost it big. It was really a landslide, from the Electoral College standpoint. And they lost it big and they still haven’t recovered. And they’re going to lose again. And what they’re trying to do is weaken me, but it’s actually made me stronger.

And interestingly, if you look at the polls that just came out, my polls are up, the fundraising is through the roof. It’s never been this high. We just set fundrai- — because people are angry about it. And it’s made Republicans and people that vote for me — not just Republicans — really angry. They’ve really become angry, because it’s a hoax.

And I’ll tell you, the whistleblower — I call him the “fake whistleblower.” He gave a fake report of my phone call. And when I did it — all of a sudden, when I released that call, all of a sudden, everybody disappeared. The whistleblower disappeared.

What ever happened to the second whistleblower? Why isn’t the first whistleblower going to testify anymore? You know why? Because everything he wrote in that report, almost, was a lie. Because he made a phony phone call. My phone call was perfect. He made it sound bad. That’s why I had to release.

Now they — so the whistleblower is a disgrace to our country. A disgrace. And the whistleblower, because of that, should be revealed. And his lawyer — who said the worst things possible, two years ago — he should be sued, and maybe for treason. Maybe for treason. But he should be sued. His lawyer is a disgrace. A disgrace.

And then ask him this: Where is the second whistleblower? Right? Where is the witness that gave the whistleblower the information? They all disappeared because Adam Schiff is a corrupt politician. He’s corrupt. He made up a speech and he put my voice in it. He made up a speech. It had nothing to do with what I said. Adam Schiff is a corrupt politician that’s not giving us due process, not giving us lawyers. And despite all that, we’re kicking their ass.

Q Mr. President, why do Bill Taylor and Alexander Vindman still work for you?

THE PRESIDENT: Every one of those people testified absolutely fine for me. They’ve gone out, and they’ve gone out of their way to find the people that hate Donald Trump — President Trump — the most. They put them up there; everybody has been absolutely fine.

And they have — you know, I don’t even know most of these people. Many of these people, I’ve never even heard of. So what Crooked Schiff is doing — he’s a corrupt politician. What this corrupt politician does is he looks all over, tries to find people that don’t like Trump, and he puts them up.

We are winning so big. My polls are the highest they’ve ever been. I’m leading in all of the states — every swing state. The fundraising numbers just came in; they’re the highest, I think, in history. I don’t think anybody’s ever had — and I’ll tell you what, we are winning so big because we’re going along.

These are corrupt politicians, and that includes Nancy Pelosi. She’s a corrupt politician. She should go back to her district, which is horrible. It’s filthy. It’s drug-infested. Their stuff is being flown out to the ocean. It’s being wiped out to the ocean through their drainage system. You got to see what happening in San Francisco. Nancy Pelosi ought to focus on her district.

But these are corrupt politicians.

Q What’s your message to black voters? What’s your message to black voters? You’re going to Atlanta. What is your message to black voters?

THE PRESIDENT: We’re going to Atlanta. We have a, as you call it, black vote. But this is really — we’re doing very well with African American. I think a big factor is the fact that they’re having the best economic year they’ve ever had in the history of our country.

And we’re going there. We’ve been invited. And it’s going to be — I think it’s going to be fantastic.

Q What’s your reaction to Bloomberg entering the race?

Q Are you worried about Bloomberg? Can you beat Michael Bloomberg? He’s a real billionaire.

THE PRESIDENT: I’ve known Michael Bloomberg for a long time. If you go back early on, he had — he said a lot of great things about Trump. But I know Michael. He became just a nothing. He was really a nothing. He’s not going to do well, but I think he’s going to hurt Biden, actually. But he doesn’t have the magic to do well.

Little Michael will fail. He’ll spend a lot of money. He’s got some really big issues, he’s got some personal problems, and he’s got a lot of other problems.

But I know Michael Bloomberg fairly well — not too well, fairly well — well enough. He will not do very well. And if he did, I’d be happy. There is nobody I’d rather run against than Little Michael, that I can tell you.

Q The Democrats say that by keeping White House officials from going up to give deposition, that’s evidence that the White House is obstructing and could lead to an article of impeachment on obstruction.

THE PRESIDENT: Well, they’re making it up. First of all, this whole thing is a phony deal. It’s a phony setup. When you look at the lawyer that got it started — the whistleblower lawyer, he got it started. It’s a phony deal. These Democrats are corrupt. Nancy Pelosi is a corrupt politician.

Shifty Schiff is a double corrupt politician. He took my words on the phone call — and they were so good. He totally changed them. He went before Congress. He made his speech before Congress. And in the speech, John, he said things that were horrible. It bore no relationship to the call. And then, later on, he was embarrassed.

Let me tell you something: Schiff is a corrupt politician, and our people know it. And they know it too, by the way.

Just so you know, we have the highest poll numbers. We have the most energy. I was with Mitch McConnell and a whole group of people last night, and I was with — actually, I was with leaders of faith and evangelical leaders. They said they have never — all of them — they have never had the energy that we’ve had and we have now in the Republican Party and beyond the Republican Party — people that were Democrats and they’re for Trump. And we’ve never had the poll numbers (inaudible).

Q But can — can you explain — can you explain, just so that people understand, why you are not allowing people like Mick Mulvaney and others to comply with subpoenas?

THE PRESIDENT: Because I don’t want to give credibility to a corrupt witch hunt. I’d love to have Mick go up, frankly. I think he’d do great. I’d love to have him go up. I’d love to have almost every person go up, when they know me.

What I don’t like is when they put all these people that I never met before — when they put the head of the Never Trumpers on the stand. And even those people were okay. They were fine. Those are the people. People I never even heard of. The people that I know, I would love to have them go up.

Now, the rest is up to the lawyers. I have to do what the lawyers say, to a certain extent. Not always, but, you know, to a certain extent.

THE PRESIDENT: Was it about privilege?

THE PRESIDENT: But — but I will tell you, I like to have the people go up. Except one thing: It validates a corrupt investigation. Adam Schiff — he’s a corrupt politician. He’s as corrupt as you’ll ever see — when he makes up my words, and reads fake words to Congress, and he acts so innocent. He’s a corrupt politician.

Okay. Thank you.

END 10:20 A.M. EST

President Trump Dismisses Reports of China Tariff Rollback…


As we warned yesterday, about taking the propaganda of the Beijing panda mask…

Well, today President Trump pummels that narrative when he was asked about it during an impromptu press conference at the White House:

Q On China, can you tell me whether a tariff rollback will be part of the phase-one China deal?

THE PRESIDENT: Well, they’d like to have a rollback. I haven’t agreed to anything. China would like to get somewhat of a rollback — not a complete rollback, because they know I won’t do it.

But we’re getting along very well with China. They want to make a deal. Frankly, they want to make a deal a lot more than I do. I’m very happy right now. We’re taking in billions of dollars. I’m very happy. China would like to make a deal much more than I would. (link)

[…]  Q Have you figured out where you’re going to sign the phase-one trade deal yet? Do you have a location yet?

THE PRESIDENT: Well, we’re looking at different — assuming we get it. You know, I never like to talk about things until we have them. But it could be Iowa or farm country or someplace like that. It will be in our country, but it could be — it could be someplace like that, John.

Q Mar-a-Lago?

THE PRESIDENT: No, I don’t think so. I think we’d go more in the farm belt.

[…] Q Do you have a date yet — do you have date yet, sir, for your meeting with Xi Jinping? Is it definitely going to be this year?

THE PRESIDENT: We’ll see what happens. Okay? We’ll see what happens. We’re getting along very well. They want to make the deal far more than I do. I will tell you, they want to make it far more than I do, but we’ll see what happens.

We’re taking in, right now — and you know — as a reporter of finance, you know what I’m saying. They’ve devalued their currency and they ate this tariff. We’re taking in billions of dollars in tariff money from China. I like our situation very much. They want to make a deal much more than I do, but we could have a deal.

Beijing is proposing acceptance of U.S. demands, but only if that acceptance also delivers a removal of the tariffs that created their diminished status.

USTR Lighthizer isn’t stupid, he’s not going to give back two-years of hard won position.

While they hate it, Beijing internally also understands the U.S. position, this is why they consider Trump such a formidable adversary.

So the latest position from Beijing is to say “a phased reduction in tariffs”, in exchange for a “phased acceptance” of terms.  From the Chinese position, they view this as their version of how they project the Western mindset of win-win into the negotiations.

None of the principals can say this directly; to make such an admission would be akin to losing face amid a history of thousands of years of specific Chinese strategy.  So they send out spokespersons to promote such a proposal.

Anyone who has an understanding of the Chinese outlook should take all of the media reporting on this with a grain-of-salt.  Beijing uses spokespersons as panda masks, and Team Trump know the distance between the Chinese principal and a Chinese spokesperson is part of their strategy.  The unspoken space between words is more important than the words themselves.  Inside this space is where cunning exists.

Regardless of the proposal, if it doesn’t come directly from a principal it doesn’t exist…. it is a false promise, or more panda mask.

This is what happened when the May 2019 talks collapsed.

Special trade envoy of Chairman Xi, Vice-Premier Liu He, quickly turned from a principal to a panda mask as soon as Beijing weighed in -and rebuked- Liu He’s negotiated terms.

Vice-Premier Liu He was stripped of his “special envoy” designation; and Beijing used the distance they just created with He as the justification for dismissing the May ’19 terms of agreement.  That example was very typically Chinese.

The point is, Beijing does not want to accept any new terms that diminishes their prior one-sided benefit.  China is communist, they don’t have a direct constituent group they are accountable to…. they are willing to incur suffering so long as they don’t lose position.

Losing less is not considered a position of benefit.  China cannot even contemplate such a position; it just isn’t done.  So any and all reporting on the discussions should be viewed through the prism that any deal is almost impossible to assemble unless, somehow, Beijing can view a deal as a win.   That is a deal President Trump is not going to accept.

BenTallmadge@BenKTallmadge

Trump says has not agreed to roll back tariffs on Chinese goods – 🤪

“China would like to get somewhat of a rollback, not a complete rollback, ‘cause they know I won’t do it”

“I haven’t agreed to anything”
https://www.reuters.com/article/us-usa-trade-china/trump-says-has-not-agreed-to-roll-back-tariffs-on-chinese-goods-idUSKBN1XI1TQ 

Trump says has not agreed to roll back tariffs on Chinese goods

President Donald Trump on Friday said he has not agreed to rollbacks of U.S. tariffs sought by China, sparking fresh doubts about when the world’s two largest economies may end a 16-month trade w…

reuters.com

142 people are talking about this

IMF: “U.S. Removing Tariffs on China Will Improve Global Economy”…


The International Monetary Fund (IMF) has a statement out today that underlines why so many global forces are against President Trump: “there are trillions at stake”.

(Reuters) – An interim U.S.-China trade deal that rolls back some tariffs has the potential to improve the International Monetary Fund’s baseline economic forecasts, which show the two countries’ trade war slowing global growth significantly this year, an IMF spokesman said on Thursday. (read more)

The baseline for the position of the IMF is the open secret amid global economic that few will ever discuss openly.  The U.S. economy generates approximately $21 trillion in total activity; roughly 20 percent of total global economic activity.

When the U.S. maintains a $500 billion per year trade deficit with China, essentially we are sending China trade dollars Beijing then uses to purchase industrial products from the EU an other nations.  Any reduction in the U.S-China deficit means China has less dollars to distribute; as an outcome the global economies have access to less U.S. wealth.

The process to retain U.S. dollars inside our own economy, President Trump’s “America First” economic agenda, is the heart of what most call the global economic slowdown.  As a result the position of the IMF is better when the U.S. maintains a deficit, and the position of the IMF is weakened by any process that stops that exfiltration of wealth.

This is why so many countries are pouring money into Washington DC, and into any political activity within the United States, with the intention to derail President Trump’s policy.   By using U.S. proxies, essentially lobbyists, the multinationals are trying to stop President Trump.  There are trillions at stake.

An example would be China -and others- funding the Brookings institute.  The Brookings Institute then funds the activity of the Lawfare group.  Nancy Pelosi, Adam Schiff and Jerry Nadler hiring Lawfare members as contractors for their impeachment effort then boils down to China subsidizing the impeachment process.  This is one example; however, there are many more.

Stopping or stalling ratification of the USMCA is another example.  The USMCA supports more U.S. wealth and weakens U.S. investment in China. It’s all connected.

Simultaneously, from coast to coast those same multinational interests are funneling massive amounts of cash into any election that is part of the domestic “resistance”.

The U.S. Wall Street multinationals, globalists and multinational banks all hold a vested financial interest in stopping President Trump.   The alignment of these interests is what gives rise to candidates like Michael Bloomberg.  It is all connected.

Hundreds of millions from multinational corporations are pouring into the coffers of K-Street lobbyists who are in turn purchasing politicians to maintain the adverse position against President Trump.  [Lobbyist Spending Here]

Once you see the strings on the marionettes you can never go back to the time when you did not see them….

So far, in 2019 (three quarters)SOURCE LINK

U.S. Chamber of Commerce = U.S. Multinationals on Wall Street.  Tom Donohue.

Open Society Policy Center = George Soros.

Amazon = Jeff Bezos, Washington Post, CIA.

Business Roundtable = U.S. Multinationals on Wall Street.

Northrop Grumman = Syria war policy influence.

Boeing Co = Where did DOJ-NSD FISA Lawyer, Tash Guahar, go to work?  {Go Deep}

…”there are trillions at stake”… “it’s all connected”…