AG William Barr on DOJ/FBI Conduct in 2016: “Things are just not jiving” – Full Interview and Transcript…


U.S. Attorney General Bill Barr gave a 48 minute interview to CBS on a variety of issues related to recent events. The interview is packed with insight about the ongoing DOJ investigations of prior DOJ and FBI conduct in the 2016 election.

Rather than post the edited excerpts of the interview as broadcast, the full audio and transcript is below. Very interesting. [Hit orange play arrow to begin]:

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[Transcript] JAN CRAWFORD: Mr. Attorney General, thank you very much for sitting down with us. So, obviously we saw the special counsel yesterday make that statement, he analyzed 11 instances where there were possible obstruction and then said that he really couldn’t make a decision- conclusion on whether or not the president had in fact committed obstruction because of the existing OLC opinion in the legal counsel’s office. Do you agree with that interpretation that that legal opinion prevented him from making a conclusion?

WILLIAM BARR: I am not sure he said it prevented him. I think what he said was he took that into account plus a number of other prudential judgments about fairness and other things and decided that the best course was not for him to reach a decision. I personally felt he could’ve reached a decision but–

JAN CRAWFORD: Was there anything that would’ve stopped him in the regulations or in those…that opinion itself, he could’ve — in your view he could’ve reached a conclusion?

WILLIAM BARR: Right, he could’ve reached a conclusion. The opinion says you cannot indict a president while he is in office but he could’ve reached a decision as to whether it was criminal activity but he had his reasons for not doing it, which he explained and I am not going to, you know, argue about those reasons but when he didn’t make a decision, the Deputy Attorney General Rod Rosenstein and I felt it was necessary for us as the heads of the Department to reach that decision. That is what the Department of Justice does, that is why we have the compulsory powers like a grand jury to force people to give us evidence so that we can determine whether a crime has committed and in order to legitimate the process we felt we had to reach a decision.

JAN CRAWFORD: Well, I mean, he seemed to suggest yesterday that there was another venue for this and that was Congress.

WILLIAM BARR: Well, I am not sure what he was suggesting but, you know, the Department of Justice doesn’t use our powers of investigating crimes as an adjunct to Congress. Congress is a separate branch of government and they can, you know, they have processes, we have our processes. Ours are related to the criminal justice process we are not an extension of Congress’s investigative powers.

JAN CRAWFORD: Now you have testified that when you met with Mueller at the Justice Department, you had that meeting, that you were surprised that he told you then that he was not going to reach a conclusion on obstruction.

WILLIAM BARR: Yes, Rod and I were both surprised by that.

JAN CRAWFORD: Did you ask him, look, we need you to make a conclusion on this? You should make a conclusion.

WILLIAM BARR: I wouldn’t say I really pressed him on it. I was interested in his thinking on it and he explained his position, said he was still thinking it through and- and- but I didn’t really press him nor did Rod.

JAN CRAWFORD: So, but you left that meeting thinking that he wasn’t going to have a conclusion?

WILLIAM BARR: That’s right.

JAN CRAWFORD: Do you feel because he didn’t do that, did he fulfill his responsibility as special counsel? If you look at regulations, it seems to anticipate that you would get a confidential report explaining why he made a decision to either prosecute or decline to prosecute. He didn’t do that, seems to me.

WILLIAM BARR: Right, but on the other hand he did provide us a report and what he viewed to be the relevant facts. And that allowed us as the, as the leaders of the department to make that decision.

JAN CRAWFORD: What is the fundamental difference? Why…I mean, he said he couldn’t exonerate the president. That he had looked at the evil there – these 11 instances of possible obstruction. He couldn’t exonerate the president, if he could he would’ve stated so. You looked at that evidence and you did. I mean, what is the fundamental difference between your view and his?

WILLIAM BARR: Well, I think Bob said that he was not going to engage in the analysis. He was, he was not going to make a determination one way or the other. And he also said that he could not say that the president was clearly did not violate the law, which of course is not the standard we use at the department. We have to determine whether there is clear violation of the law and so we applied the standards we would normally apply. We analyzed the law and the facts and a group of us spent a lot of time doing that and determined that both as a matter of law, many of the instances would not amount to obstruction.

JAN CRAWFORD: As a matter of law?

WILLIAM BARR: As a matter of law. In other words, we didn’t agree with the legal analysis- a lot of the legal analysis in the report. It did not reflect the views of the department. It was the views of a particular lawyer or lawyers and so we applied what we thought was the right law but then we didn’t rely on that. We also looked at all the facts, tried to determine whether the government could establish all the elements and as to each of those episodes we felt that the evidence was deficient.

JAN CRAWFORD: Before you became attorney general you wrote a memo to the justice department looking at the — the question and the legal standards for obstruction and suggesting that the president has the authority to say back off of the Flynn investigation and could have fired James Comey under his executive authority, how much – I mean when you’re talking about, can you explain that a little more. When you’re talking about your judgment that no obstruction occurred based on the evidence that Mueller produced and your understanding of the law, can you explain a little more why wasn’t that obstruction?

WILLIAM BARR: Well let’s take the firing of Comey for example I think we would have said as a matter of law, and I’m not relying on my – my legal memo that I wrote as a private citizen but really on the views within the department of the people who think about these things and are responsible for framing the views of the department, and I think we would have said that as a matter of law the obstruction statutes do not reach facially valid exercise of core presidential authority or official authority even, decisions by the attorney general in administering the executive branch or litigation.

But we didn’t rely on that, we then looked at that issue let’s take the again the firing of Comey. One of the elements is that you have to show that the act objectively speaking will have the probable effect of obstructing a proceeding and we don’t believe that the firing of an agency head could be established as having the probable effect, objectively speaking, of sabotaging a proceeding. There was also we would have to prove corrupt intent, the report itself points out that one of the likely motivations here was the president’s frustration with Comey saying something publicly and saying a different thing privately and refusing to correct the record. So that would not have been a corrupt intent. So for each of these episodes we thought long and hard about it, we looked at the facts and we didn’t feel the government could establish obstruction in these cases

JAN CRAWFORD: When you see some of the criticism and you’ve gotten quite a bit of it that you’re protecting the president that you’re enabling the president, what’s your response to that?

WILLIAM BARR: Well, we live in a hyper-partisan age where people no longer really pay attention to the substance of what’s said but as to who says it and what side they’re on and what it’s political ramifications are. The Department of Justice is all about the law, and the facts and the substance and I’m going to make the decisions based on the law and the facts and I realize that’s intention with the political climate we live in because people are more interested in getting their way politically. so I think it just goes with the territory of being the attorney general in a hyper-partisan period of time.

JAN CRAWFORD: The four page summary that you wrote, did you ask in that March 5th meeting for the special counsel to kind of redact all the grand jury material?

WILLIAM BARR: Yes, not redact it but highlight it so we could redact it, we would, so, you know, the report was over 400 pages, I knew that it was voluminous and coming our way in a few weeks. My intent was to get out as much as I could as quickly as I could. To do that I would have to, as a matter of law, make sure that grand jury material was redacted because regardless of the political posturing that’s going on it’s not lawful for me to just make that public.

JAN CRAWFORD: Not even to Congress?

WILLIAM BARR: Not even–

JAN CRAWFORD: So you could even give Congress, which of course is demanding that and threatening to hold you in contempt because you’re not giving them the full report

WILLIAM BARR: That’s right, and so–

JAN CRAWFORD: But by law you can’t?

WILLIAM BARR: Right, and so because we were not involved in the investigation we would have no way looking at the report of determining what was grand jury material and what wasn’t, so we had for a period of weeks been asking the special counsel’s office to highlight the stuff so we could quickly process it for release and I guess–

JAN CRAWFORD: For a period of weeks you had asked for this material?

WILLIAM BARR: Yeah even before the March 5 meeting we had asked or raised the subject–

JAN CRAWFORD: And what was the response?

WILLIAM BARR: And then at the March 5 meeting I made it explicit and then after the March 5th meeting we asked..

JAN CRAWFORD: And what was the response?

WILLIAM BARR: We thought it was being– we thought it was being done and I do believe they were putting in more footnotes in that would be necessary ultimately in identifying the material but whether the wires were crossed or whatever it didn’t come in a form that identified the 6E material.

JAN CRAWFORD: And that was a surprise to you when you got the report?

WILLIAM BARR: Yes.

JAN CRAWFORD: It was.

WILLIAM BARR: And it immediately meant that you know it was going to be a period of weeks before we could get the report out if I had my druthers I would have liked to get the report out as quickly as possible.

JAN CRAWFORD: So instead, you turned this four page summary?

WILLIAM BARR: Right, because I didn’t think the body politic would allow us to go on radio silence for four weeks. I mean, people were camped outside my house and the department and every- there was all kinds of wild speculation going on. Former senior intelligence officials who were purporting to have it- or intimating that they had inside information were suggesting that the president and his family were going to be indicted and so forth–

JAN CRAWFORD: And saying that publicly?

WILLIAM BARR: Saying that publicly. There was all kind of wild and–

JAN CRAWFORD: And you knew that to be false?

WILLIAM BARR: Yes, and it was wild and irresponsible speculation going on which the very–

JAN CRAWFORD: Wild and irresponsible. The former intelligence officials’ speculation–

WILLIAM BARR: Right, and talking heads and things like that, and these things affect the United States’ ability to function in the world. We have an economy. It could affect the economy. It can affect – it can affect our foreign relations during very delicate period of time with, you know, serious adversaries in the world. So I felt- that in order to buy time, in order to get the report out, I had to state the bottom line just like you’re announcing a verdict in a case. My purpose there was not to summarize every jot and tittle of the report and every, you know, angle that – that Mueller looked into. But, just state the bottom line which I did in the four page memo.

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JAN CRAWFORD: You didn’t say in that four-page memo that the report would not exonerate the president on obstruction. That line–

WILLIAM BARR: I said that, yes. In the- in the- in my four-page memo, I said that Mueller did not reach a decision. He gave both sides and that- and then I quoted that sentence which is, while we didn’t find a crime, we didn’t exonerate the president. That was in the four-page letter.

JAN CRAWFORD: The- did not- we would so clearly state the preface to that.

WILLIAM BARR: Yeah.

JAN CRAWFORD: That, that was not in there, and there was some criticism that in the summary, and the attorney- I mean, the special counsel himself wrote the letter saying, People are misunderstanding. There’s been some confusion, that the summary had caused some confusion–

WILLIAM BARR: Right, right.

JAN CRAWFORD: That perhaps, and he didn’t say this, but the- the response was that you were too soft on the president, that actually the special counsel was a little sharper on obstruction.

WILLIAM BARR: Well again, I wasn’t trying to provide all the flavor and nooks and crannies of the report. I was just trying to state the bottom line, and the bottom line was that Bob Mueller identified some episodes. He did not reach a conclusion. He provided both sides of the issue, and he- his conclusion was he wasn’t exonerating the president, but he wasn’t finding a crime either. And, for the purposes of the point, I think that that was what was required for the body politic because actually most of the letter then goes on to explain how Rod Rosenstein and I reached a decision and the criteria we applied in finding no obstruction.

JAN CRAWFORD: He wrote the letter taking issue, saying there caused- you had caused confusion. Did that catch you off guard?

WILLIAM BARR: Yeah, sure. I was surprised he just didn’t pick up the phone and call me given our 30 year relationship, but–

JAN CRAWFORD: Why didn’t he?

WILLIAM BARR: I don’t, I don’t know, but, as I said it in the hearing, I thought it was- the letter was a little snitty and staff-driven–

JAN CRAWFORD: Staff-driven?

WILLIAM BARR: Yeah. I personally felt, but we had a good conversation–

JAN CRAWFORD: Because otherwise you would have picked up the phone?

WILLIAM BARR: Right, well, which I did, and we had a good conversation. And I think, I think the matter is now been fully vetted, and I think he was concerned that there should be more context and texture to his work given, and that in the absence of that, the vacuum had been filled with media reports that were then causing confusion, and he wanted it clarified by putting more of an explanation of his reasoning out. And I said that I didn’t want to put out dribs and drabs, I wanted the whole report out. And then I wrote a letter again to Congress saying, look, I didn’t- this is not intended to be a full summary. Bob’s thinking is reflected in the report. Everyone’s going to have access to it. They should look at that to determine, you know, what Bob’s reasoning was. So that’s where we let it sit till the report was released.

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JAN CRAWFORD: You said that you had wanted to release the report in full, and you largely have with the grand jury material being, of course, the exception.

WILLIAM BARR: Right. And in the second volume that’s one tenth of one percent of the report has been taken.

JAN CRAWFORD: You, I just want to be clear on this. How long and how many, you expected the special counsel’s office to redact that material, so to point out what should be redacted —

WILLIAM BARR: Right. Right.

JAN CRAWFORD: So the four-page summary would have been unnecessary?

WILLIAM BARR: Correct.

JAN CRAWFORD: You expected, could you just tell us again, you expected to get the report with the grand jury material identified and then what was your plan?

WILLIAM BARR: My plan was to figure out how long it would take us to redact what had to be redacted.

JAN CRAWFORD: And what did you anticipate that would be?

WILLIAM BARR: And if we could readily, if we could readily identify the 6E material, I thought we could do it in a you know less than a week. And if I had been looking at a matter of days like that, then I probably would have just told people what the timeline is do people knew when it would be coming out when they would see it, but once I realized it was going to take 3 or 4 weeks, I felt I had to say something in the interim.

JAN CRAWFORD: But if you had had that material pointed out this would have all been different, you wouldn’t have written the four-page summary?

WILLIAM BARR: Probably not, no.

JAN CRAWFORD: I guess just to finish up on this topic then, when we saw the special counsel yesterday, you put out the statement that there wasn’t really any kind of discrepancy in some of things that you had been saying.

WILLIAM BARR: Yeah, we both put out the statement.

JAN CRAWFORD: Was that the first time there had been a joint statement?

WILLIAM BARR: Yes.

JAN CRAWFORD: And why —

WILLIAM BARR: I believe so.

JAN CRAWFORD: — And why was that necessary?

WILLIAM BARR: Well, because I think there was some people who let the facts interfere with their narrative and were trying to suggest that there was a difference of opinion about the role played by the OLC opinion, which simply wasn’t true.

JAN CRAWFORD: The difference is your views on obstruction and–

WILLIAM BARR: — Well the difference was this so —

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JAN CRAWFORD: I understand what you’re saying and I guess, I guess you focused on the role the OLC memo, opinion played–

WILLIAM BARR: –Right–

JAN CRAWFORD: –In the statement?

WILLIAM BARR: The so-called discrepancy was that I had, I had testified earlier that Bob had assured me that he had not reached a decision that there was a crime committed but was not willing to pursue it simply because of the OLC opinion and that remains the fact. That’s what his position is. That’s consistent with what he said yesterday. And it certainly is consistent with the joint release we put out. The confusion arose because what Bob Mueller’s position was was that the OLC opinion coupled with other things as a prudential matter made him feel that he shouldn’t even get into the analysis of whether something was a crime or not and that’s a different question than —

JAN CRAWFORD: Right, because you…just because there’s evidence of obstruction or crime was committed doesn’t mean the person is going to be charged or indicted or found to have committed that crime.

WILLIAM BARR: Right and he didn’t’ even get into that analysis. In other words, what I was discussing earlier was, was Bob, did Bob make a decision there was a crime and the only reason he wasn’t saying that was because of the OLC opinion. The fact is Bob did not make a decision that there was a crime. He didn’t get into the analysis at all. Part of the reason for that was his judgment about the OLC opinion coupled with other things he just didn’t think it was proper exercise of his authority. So it’s a totally different issue and that’s why, that’s why both us feel that this idea that there’s been a discrepancy over the OLC opinion is simply wrong.

JAN CRAWFORD: Did you watch him give the statement yesterday?

WILLIAM BARR: I watched a re-run of it, yeah.

JAN CRAWFORD: Anything new or different?

WILLIAM BARR: No I mean to me it was a reiteration of some of the key elements of his report. I think he wanted to stress a number of things that were in the report. There had been a lot of commentary about his work. I had made some critical remarks about it. So I think it’s quite understandable he wanted to hammer home a few of the key points that were in the report and I thought that that was fine.

JAN CRAWFORD: He said he’s not going to be testifying.

WILLIAM BARR: That’s right.

JAN CRAWFORD: Do you think he should?

WILLIAM BARR: You know, I think as I said, you know, it’s up to Bob, but I think the line he’s drawing which is that he’s going to stick what he said in the report is the proper line for any Department official.

JAN CRAWFORD: But you’ve testified under oath, answered questions under oath. He took no questions yesterday. Is that sufficient?

WILLIAM BARR: Yes, I think it’s sufficient because, you know, he was handling a specific investigation and normally we don’t, we allowed our prosecutors and have them interrogated about how they handled a particular case. I think —

JAN CRAWFORD: But you wouldn’t have objected if he wanted to testify?

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WILLIAM BARR: I wouldn’t have objected if he wanted to testify. I do think that his view that he should stick to what is in the report is consistent with the department’s views of these things.

JAN CRAWFORD: So the last thing that he said yesterday was to remind us that Russia tried to sway our election. He said there were multiple systematic efforts to interfere and that deserves the attention of every American. How’s the Justice Department working now to ensure this doesn’t happen again in 2020?

WILLIAM BARR: Yes, we do have. I think an increasingly robust program that is focusing on foreign influence in our election process. The FBI obviously has the lead in that and I’ve been briefed on it on a regular basis and I think it’s a very impressive effort but, we are ramping up. I talked recently to the director of the FBI about putting together a special high-level group to make sure we’re totally prepared for the upcoming elections.

JAN CRAWFORD: And the high level group would be? Who would that include?

WILLIAM BARR: Well, it would include the FBI, the Department of Justice, DHS and intelligence agencies.

JAN CRAWFORD: Do you think enough was done in 2016?

WILLIAM BARR: Enough was done in 2016? Probably not. You know, I think Bob Mueller did some impressive work in his investigation, you know, identifying some of the Russian hackers and their influence campaign and you sort of wonder if that kind of work had been done starting in 2016, things could have been a lot different.

JAN CRAWFORD: Right because it’s just hard to understand why it wasn’t taken more seriously.

WILLIAM BARR: Right.

JAN CRAWFORD: Why do you think it was not?

WILLIAM BARR: I have no idea. That’s one of the things I’m interested in looking at you know–

JAN CRAWFORD: –As part of the review?

WILLIAM BARR: Yes. In other words, you know, there are statements being made that people were warned back in April–

JAN CRAWFORD: –of 2016–

WILLIAM BARR: Right and I don’t have any reason to doubt that, but I’m wondering what exactly was the response to it if they were alarmed. Surely the response should have been more than just, you know, dangling a confidential informant in front of a peripheral player in the Trump Campaign.

JAN CRAWFORD: I want to talk to you about the investigation. Um, because your, that’s suggesting that was obviously inadequate, but when you talk to Director Wray about appointing this high level group and efforts to ensure that this doesn’t happen again in 2020, has he expressed any concern to you that the kind of review that you are now going to undertake, or this investigation of the investigation, that that could hamper these efforts in 2020?

WILLIAM BARR: We’ve discussed how important it is that that not be allowed to happen and we are both very cognizant of that and–

JAN CRAWFORD: —You have discussed that with him?

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WILLIAM BARR: Oh yes, and I think he is being very supportive and we’re working together on, you know, trying to reconstruct what happened. People have to understand, you know, one of the things here is that these efforts in 2016, these counter-intelligence activities that were directed at the Trump Campaign, were not done in the normal course and not through the normal procedures as a far as I can tell. And a lot of the people who were involved are no longer there.

JAN CRAWFORD: So when we are talking about the kind of the– well you have used the word spy. You have testified that you believe spying occurred.

WILLIAM BARR: Yes.

JAN CRAWFORD: Into the Trump campaign.

WILLIAM BARR: Yes.

JAN CRAWFORD: You’ve gotten some criticism for using that word.

WILLIAM BARR: Yeah, I mean, I guess it’s become a dirty word somehow. It hasn’t ever been for me. I think there is nothing wrong with spying, the question is always whether it is authorized by law and properly predicated and if it is, then it’s an important tool the United States has to protect the country.

JAN CRAWFORD: On using the word, I mean, do you understand, and I know that some of the, some former intelligence chiefs have said that the president has made that word somewhat pejorative, that there is spying, this is a witch hunt, this is a hoax, and so your use of that word makes it seem that you are being a loyalist.

WILLIAM BARR: You know, it’s part of the craziness of the modern day that if a president uses a word, then all of a sudden it becomes off bounds. It’s a perfectly good English word, I will continue to use it.

JAN CRAWFORD: You’re saying that spying occurred. There’s not anything necessarily wrong with that.

WILLIAM BARR: Right.

JAN CRAWFORD: As long as there’s a reason for it.

WILLIAM BARR: Whether it’s adequately predicated. And look, I think if we — we are worried about foreign influence in the campaign? We should be because the heart of our system is the peaceful transfer of power through elections and what gives the government legitimacy is that process. And if foreign elements can come in and affect it, that’s bad for the republic. But by the same token, it’s just as, it’s just as dangerous to the continuation of self-government and our republican system, republic that we not allow government power, law enforcement or intelligence power, to play a role in politics, to intrude into politics, and affect elections.

JAN CRAWFORD: So it’s just as dangerous- So when we talk about foreign interference versus say a government abuse of power, which is more troubling?

WILLIAM BARR: Well they’re both, they’re both troubling.

JAN CRAWFORD: Equally?

WILLIAM BARR: In my mind, they are, sure. I mean, republics have fallen because of Praetorian Guard mentality where government officials get very arrogant, they identify the national interest with their own political preferences and they feel that anyone who has a different opinion, you know, is somehow an enemy of the state. And you know, there is that tendency that they know better and that, you know, they’re there to protect as guardians of the people. That can easily translate into essentially supervening the will of the majority and getting your own way as a government official.

JAN CRAWFORD: And you are concerned that that may have happened in 2016?

WILLIAM BARR: Well, I just think it has to be carefully look at because the use of foreign intelligence capabilities and counterintelligence capabilities against an American political campaign to me is unprecedented and it’s a serious red line that’s been crossed.

JAN CRAWFORD: Did that happen?

WILLIAM BARR: There were counterintelligence activities undertaken against the Trump Campaign. And I’m not saying there was not a basis for it, that it was legitimate, but I want to see what that basis was and make sure it was legitimate.

JAN CRAWFORD: So–

WILLIAM BARR: That’s one of the, you know, one of the key responsibilities of the Attorney General, core responsibilities of the Attorney General is to make sure that government power is not abused and that the right of Americans are not transgressed by abusive government power. That’s the responsibility of the Attorney General.

JAN CRAWFORD: You know the- I guess- we’ve spent the last two years or more talking about and hearing about Russian interference into the elections and what occurred there. And so now we’re shifting to talking about actually investigating, reviewing that investigation and the people who did that. So I guess in making this turn can you help us understand, I mean what’s- what is the concern? What have you seen, what’s the basis for that?

WILLIAM BARR: Well I don’t want to get you know, too much into the facts because it’s still under review. But I think it’s important to understand what basis there was for launching counterintelligence activities against a political campaign, which is the core of our second amendment- I’m sorry, the core of our first amendment liberties in this country. And what was the predicate for it? What was the hurdle that had to be crossed? What was the process- who had to approve it? And including the electronic surveillance, whatever electronic surveillance was done. And was everyone operating in their proper lane? And I’ve selected a terrific career prosecutor from the department who’s been there over thirty years, he’s now the U.S. attorney.

WILLIAM BARR: But he has, over the years, been used by both Republican and Democratic attorney generals to investigate these kinds of activities. And he’s always gotten the most laudatory feedback from his work. So there’s no doubt in my mind that he’s going- he’s going to conduct a thorough and fair review of this. And we’re working closely with the intelligence agencies, the bureau and the agency and others to help us reconstruct what happened. And I want to see, what were the standards that were applied. What was the evidence? What were the techniques used? Who approved them? Was there a legitimate basis for it?

JAN CRAWFORD: The Inspector General is looking at only, it is my understanding, a small part of this? Is that correct? the FISA warrant?

WILLIAM BARR: Yeah, I wouldn’t say small but he’s looking at a discrete area that is- that is you know, important, which is the use of electronic surveillance that was targeted at Carter Page.

JAN CRAWFORD: And could he have… could you have just said I want to expand this investigation? Why did you feel it was necessary to turn to John Durham?

WILLIAM BARR: Well the inspector general at the department, Mike Horowitz, who you know is a superb government official he has limited powers. He doesn’t have the power to compel testimony, he doesn’t have the power really to investigate beyond the current cast of characters at the Department of Justice. His ability to get information from former officials or from other agencies outside the department is very limited

JAN CRAWFORD: So he wouldn’t have been able to go and try to speak with some of the former officials who are making these decisions, necessarily?

WILLIAM BARR: Right

JAN CRAWFORD: If they are not in the department anymore.

WILLIAM BARR: Right

JAN CRAWFORD: Um, what’s the status of Huber’s investigation in Utah? I think the former Attorney General Sessions had asked him to look at this.

WILLIAM BARR: Right, so Huber had originally been asked to take a look at the FISA applications and the electronic surveillance but then he stood back and put that on hold while the Office of Inspector General was conducting its review, which would’ve been normal for the department. And he was essentially on standby in case Mr. Horowitz referred a matter to him to be handled criminally. So he has not been active on this front in recent months and so Durham is taking over that role. The other issues he’s been working on relate to Hillary Clinton. Those are winding down and hopefully we’ll be in a position to bring those to fruition.

JAN CRAWFORD: So he won’t be involved in this really at all then?

WILLIAM BARR: No.

JAN CRAWFORD: This is his role, it’s done?

WILLIAM BARR: Right.

JAN CRAWFORD: And now Durham is going to pick up–

WILL BARR: Yes, right.

JAN CRAWFORD: –this. So again, just to go, just so that I think so people can more fully understand this, I mean have you, and I know it’s early in the investigation, but when we are talking about the basis for this and why you think it is important and obviously any kind of government abuse of power, I mean, you were in the CIA in the ’70s. You can see how that can have….

WILLIAM BARR: Right, when I, when I joined the CIA almost 50 years ago as an intern and this was during the Vietnam, civil rights era and there had been a lot…there were a lot of pending investigations of the CIA and there the issues were what was- when was it appropriate for intelligence agencies, the FBI too was under investigation.

You know, the penetration of civil rights groups because at the time there was concerns about contacts with, you know, communist funded front groups and things like that and you know how deeply could you get into civil rights groups or anti-Vietnam war groups. A lot of these groups were in contact with foreign adversaries, they had some contact with front organizations and so forth and there were a lot of rules put in place and those rules are under the attorney general.

The attorney general’s responsibility is to make sure that these powers are not used to tread upon first amendment activity and that certainly was a big part of my formative years of dealing with those issues. The fact that today people just seem to brush aside the idea that it is okay to you know, to engage in these activities against a political campaign is stunning to me especially when the media doesn’t seem to think that it’s worth looking into. They’re supposed to be the watchdogs of, you know, our civil liberties.

JAN CRAWFORD: What have you seen? What evidence? What makes you think, I need to take a look at this? I mean, what have you seen in the summer of 2016?

WILLIAM BARR: Well, I’ll say at this point is that it, you know, I- like many other people who are familiar with intelligence activities, I had a lot of questions about what was going on. I assumed I’d get answers when I went in and I have not gotten answers that are well satisfactory, and in fact probably have more questions, and that some of the facts that- that I’ve learned don’t hang together with the official explanations of what happened.

JAN CRAWFORD: What do you mean by that?

WILLIAM BARR: That’s all I really will say. Things are just not jiving, and I’m not saying at this stage that–

JAN CRAWFORD: Was it a timeline?

WILLIAM BARR: There was a timeline, there’s some timeline–

JAN CRAWFORD: I mean, there’s a concern that this may have happened before we realized that the investigation was initiated in July. I mean, what…

WILLIAM BARR: I don’t want to get into those details at this point. I would just say that, you know…

JAN CRAWFORD: But you said there’s a timeline concern.

WILLIAM BARR: Well I won’t, I won’t confirm that, but I’ll just say that, you know, there’s some questions that I think have to be answered, and I have a basis for feeling there has to be a review of this.

JAN CRAWFORD: You’ve said, you’ve said the time frame between the election and the inauguration, you’ve said this publicly, was kind of strange. Some strange things may have happened. What concerns you there? Specifically, the meeting at Trump Tower.

WILLIAM BARR: I don’t want to- I don’t want to get into that.

JAN CRAWFORD: Okay. Yes. So kind of going back to what we were talking about with Director Wray, I mean obviously you’ve seen this like the people are raising concerns that this is going to undermine FBI morale. The rank and file- what are we saying here- but you said in recent Senate testimony, “this is not launching an investigation of the FBI frankly to the extent there were any issues at the FBI, I do not view it as a problem that’s endemic to the FBI. I think there was probably a failure among a group of leaders there at the upper echelon.”

WILLIAM BARR: That’s right.

JAN CRAWFORD: So there was probably a failure among a group of leaders there at the upper echelon?

WILLIAM BARR: Correct. In other words, I don’t believe this is a problem you know, rife through the bureau.

JAN CRAWFORD: What suggests to you there was a failure in the upper echelon at the FBI?

WILLIAM BARR: Because I think the activities were undertaken by a small group at the top which is one of the- probably one of the mistakes that has been made instead of running this as a normal bureau investigation or counterintelligence investigation. It was done by the executives at the senior level. Out of head quarters–

JAN CRAWFORD: And you’re talking about James Comey, McCabe?

WILLIAM BARR: I’m just not going to get into the individual names at this point. But I just view that- I don’t view it as a bureau wide issue. And I will say the same thing for other intelligence agencies. And they’re being very cooperative in helping us.

JAN CRAWFORD: They’re being cooperative?

WILLIAM BARR: Yes.

JAN CRAWFORD: You’re working with the DNI, the head of CIA. I want to ask you about something- just declassification. But the president has tweeted and said publicly that some in the upper echelon, Comey, McCabe, etc., committed treason. I mean do you agree with that?

WILLIAM BARR: Well, I- as a lawyer I always interpret the word treason not colloquially but legally. And you know the very specific criteria for treason- so I don’t think it’s actually implicated in the situation that we have now. But I think what he–

JAN CRAWFORD: Legally.

WILLIAM BARR: Right.

JAN CRAWFORD: You don’t think that they’ve committed treason?

WILLIAM BARR: Not as a legal matter, no.

JAN CRAWFORD: But you have concerns about how they conducted the investigation?

WILLIAM BARR: Yes but you know, when you’re dealing with official government contact, intent is frequently a murky issue. I’m not suggesting that people did what they did necessarily because of conscious, nefarious motives. Sometimes people can convince themselves that what they’re doing is in the higher interest, the better good. They don’t realize that what they’re doing is really antithetical to the democratic system that we have. They start viewing themselves as the guardians of the people that are more informed and insensitive than everybody else. They can- in their own mind, they can have those kinds of motives. And sometimes they can look at evidence and facts through a biased prism that they themselves don’t realize.

WILLIAM BARR: That something objectively as applied as a neutral principle across the board really you know, shouldn’t be the standard used in the case but because they have a particular bias they don’t see that. So that’s why procedures and standards are important and review afterward is an important way of making sure that government power is being conscientiously and properly applied. It doesn’t necessarily mean that there are people- you know, that people have crossed lines have done so with corrupt intent or anything like that.

JAN CRAWFORD: But it seems like you have a concern that there may have been a bias by top officials in the FBI as they looked at whether to launch and conduct this investigation?

WILLIAM BARR: Well it’s hard to read some of the texts with and not feel that there was gross bias at work and they’re appalling. And if the shoe were on the other–

JAN CRAWFORD: Appalling.

WILLIAM BARR: Those were appalling. And on their face they were very damningand I think if the shoe was on the other foot we could be hearing a lot about it. If those kinds of discussions were held you know when Obama first ran for office, people talking about Obama in those tones and suggesting that “Oh that he might be a Manchurian candidate for Islam or something like that.” You know some wild accusations like that and you had that kind of discussion back and forth, you don’t think we would be hearing a lot more about it?

JAN CRAWFORD: You- I guess when you said that there were things done that were not the typical run of business, ad hoc, small group, it’s not how these counterintelligence operations normally work. I think that maybe Comey and others might say well this was such an extraordinary thing we had to keep it so closely held. So we had to do it differently what’s your response to that? Is that legit?

WILLIAM BARR: Well it might be legit under certain circumstances but a lot of that has to do with how good the evidence was at that point. And you know Mueller has spent two and half years and the fact is there is no evidence of a conspiracy. So it was bogus, this whole idea that the Trump was in cahoots with the Russians is bogus

JAN CRAWFORD: So did you ask the president for authority to declassify?

WILLIAM BARR: Yes.

JAN CRAWFORD: You asked the president?

WILLIAM BARR: Yes and also you know, the direction of the intelligence agencies to support our efforts.

JAN CRAWFORD: So did you discuss this with the DNI and head of the CIA?

WILLIAM BARR: Yes.

JAN CRAWFORD: And what’s their response?

WILLIAM BARR: That they’re going to be supportive.

JAN CRAWFORD: And so you won’t will you declassify things without reviewing it with them it seems like you have the authority to do that?

WILLIAM BARR: Well in an exceptional circumstance I have that authority but obviously I intend to consult with them. I’m amused by these people who make a living by disclosing classified information, including the names of intelligence operatives, wringing their hands about whether I’m going to be responsible in protecting intelligence sources and methods.

I’ve been in the business as I’ve said for over 50 years long before they were born and I know how to handle classified information and I believe strongly in protecting intelligence sources and methods. But at the same time if there is information that can be shared with the American people without jeopardizing intelligence sources and methods that decision should be made and because I will be involved in finding out what the story was I think I’m in the best decision to make that decision

JAN CRAWFORD: I know you’ve seen some of the criticism and the push back on- on this. Do you have any concerns that doing this investigation, talking about de-classifying certain materials- that that’s undermining your credibility or the credibility of the department?

WILLIAM BARR: No I- I don’t. I think it’s- actually the reaction is somewhat strange. I mean normally–

JAN CRAWFORD: Strange?

WILLIAM BARR: Sure.

JAN CRAWFORD: Their reaction?

WILLIAM BARR: Well the media reaction is strange. Normally the media would be interested in letting the sunshine in and finding out what the truth is. And usually the media doesn’t care that much about protecting intelligence sources and methods. But I do and I will.

JAN CRAWFORD: You are only the second Attorney General in history who’s served twice. I think the first one was back in 1850.

WILLIAM BARR: Right.

JAN CRAWFORD: But you are working for a man who is- I mean you are an establishment figure in a way. You’ve had a long career in Washington but you are working for a man who is not establishment. And some of his tweets about officials and the rule of law, how do you react when you see those? Are you on Twitter? Do you read his tweets?

WILLIAM BARR: No, I am not on Twitter and every once in a while a tweet is brought to my attention but my experience with the president is, we have- we have a good working, professional working relationship. We, you know, we talk to each other and if he has something to say to me I figure he’ll tell me directly. I don’t look to tweets for, you know, I don’t look at them as directives or as official communications with the department.

JAN CRAWFORD: But when you came into this job, you were kind of, it’s like the US Attorney in Connecticut, I mean, you had a good reputation on the right and on the left. You were a man with a good reputation. You are not someone who is, you know, accused of protecting the president, enabling the president, lying to Congress. Did you expect that coming in? And what is your response to it? How do you? What’s your response to that?

WILLIAM BARR: Well in a way I did expect it.

JAN CRAWFORD: You did?

WILLIAM BARR: Yeah, because I realize we live in a crazy hyper-partisan period of time and I knew that it would only be a matter of time if I was behaving responsibly and calling them as I see them, that I would be attacked because nowadays people don’t care about the merits and the substance. They only care about who it helps, who benefits, whether my side benefits or the other side benefits, everything is gauged by politics. And as I say, that’s antithetical to the way the department runs and any attorney general in this period is going to end up losing a lot of political capital and I realize that and that is one of the reasons that I ultimately was persuaded that I should take it on because I think at my stage in life it really doesn’t make any difference.

JAN CRAWFORD: You are at the end of your career, or?

WILLIAM BARR: I am at the end of my career. I’ve you know–

JAN CRAWFORD: Does it, I mean, it’s the reputation that you have worked your whole life on though?

WILLIAM BARR: Yeah, but everyone dies and I am not, you know, I don’t believe in the Homeric idea that you know, immortality comes by, you know, having odes sung about you over the centuries, you know?

JAN CRAWFORD: So you don’t regret taking the job?

WILLIAM BARR: No.

JAN CRAWFORD: Not even today?

WILLIAM BARR: I’d rather, in many ways, I’d rather be back to my old life but I think that I love the Department of Justice, I love the FBI, I think it’s important that we not, in this period of intense partisan feeling, destroy our institutions. I think one of the ironies today is that people are saying that it’s President Trump that’s shredding our institutions. I really see no evidence of that, it is hard, and I really haven’t seen bill of particulars as to how that’s being done. From my perspective the idea of resisting a democratically elected president and basically throwing everything at him and you know, really changing the norms on the grounds that we have to stop this president, that is where the shredding of our norms and our institutions is occurring.

JAN CRAWFORD: And you think that happened even with the investigation into the campaign, potentially?

WILLIAM BARR: I am concerned about that.

[Transcript End]

Rep. Collins Identifies Peter Strzok as Likely FBI Official Who Leaked Grand Jury Information and Prosecution Declined…


This is rather stunning.  In letters from Representative Doug Collins to Inspector General Horowitz and AG Bill Barr, Collins identifies Deputy Asst. Director Peter Strzok as the official who leaked grand jury information to the media and yet the DOJ refused to prosecute.  Incredible.

WASHINGTON — Rep. Doug Collins (R-Ga.), Ranking Member of the House Judiciary Committee, today sent letters to the attorney general [HERE]  and inspector general [HERE] regarding the Office of the Inspector General’s investigation summary into misconduct by a former FBI deputy assistant director. The letter to the inspector general raises questions about the identity of the deputy assistant director in question, and the letter to the attorney general inquires about the status of criminal referrals made by the inspector general to the Justice Department. (link)

Here’s the original notification from the OIG noting the media leaks and the DOJ decision to decline prosecution.

Citing the ongoing internal investigation of FBI leaks to media, from the 2018 OIG report on FBI conduct, on Wednesday May 29, 2019, the Office of Inspector General outlined a preponderance of evidence against a corrupt FBI Deputy Asst. Director.  However, the DOJ is refusing to prosecute:

Press Secretary Sarah Sanders: “Mexico Has To Step Up”…


White House Press Secretary Sarah Sanders discusses the urgent need for action to solve the crisis at the southern border.  The Chamber of Commerce Decepticon Club (Grassley etc.) is not happy with tariffs on Mexican goods.

Mexican President Lopez-Obrador Asks for Emergency Meeting Friday…


AMLO knows there is no way for Mexico to begin retaliating against the U.S. after President Trump demanded they step-up migration travel enforcement or face U.S. tariffs on Mexican imports.  There’s no way for Mexico to take on Trump economically; and they would be foolish to try…  All business interests in Mexico will take a financial hit as soon as the stock market opens tomorrow: [Tweet Link]

No doubt Mexican Foreign Minister Jesus Seade will reach out to Jared Kushner for relief/assistance; but don’t look for President Trump to change on this issue until he sees substantive actions taking place.  Trump knows AMLO has a tendency to play political games with immigration; he’s made hollow promises before; and now Jesus Seade is in a very tenuous position.

(Reuters) […] The announcement rattled investors who feared that worsening trade frictions could hurt the global economy. The Mexican peso, U.S. stock index futures and Asian stock markets tumbled on the news, including the shares of Japanese automakers who ship cars from Mexico to the United States.

“We’re in a good moment building a good relationship (with the United States) and this comes like a cold shower,” said Mexico’s deputy foreign minister for North America, Jesus Seade.

U.S. officials said 80,000 people are being held in custody with an average of 4,500 arriving daily, overwhelming the ability of border patrol officials to handle them.A senior White House official said Trump was particularly concerned that U.S. border agents apprehended a group of 1,036 migrants as they illegally crossed the border from Mexico on Wednesday. Officials said it was the largest single group since October.

[…] Mexico’s Seade said it would be disastrous if Trump goes through with his threat to impose the tariffs. Calling Trump’s move “extreme,” Seade said a normal response would be for Mexico to “mirror” the U.S. tariffs but that would lead to a trade war.

[…] White House acting chief of staff Mick Mulvaney, asked in a conference call with reporters which products from Mexico could be affected by the tariffs, said: “All of them.”

Mulvaney added, “This is an urgent problem. We are interested in seeing the Mexican government act tonight, tomorrow.”

Shares in Toyota Motor Corp, Nissan Motor Co and Honda Motor Co all fell around 3% or more, while Mazda Motor Co fell nearly 7%. All four automakers operate vehicle assembly plants in Mexico.  (read more)

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FLASHBACK June 2018 …  Interestingly, people now started to take notice because AMLO is openly telling his fellow countrymen they must flood the U.S. border.

(From the Daily Caller) […] “And soon, very soon — after the victory of our movement — we will defend all the migrants in the American continent and all the migrants in the world,” Obrador said, adding that immigrants “must leave their towns and find a life in the United States.”  He then declared it as “a human right we will defend.”

Most political observers read this and think it sounds crazy. They make comparisons to a U.S. presidential candidate telling Americans to flee to Canada (Daily Wire example). That type of perspective shows a disconnect.  The paradigm, and frame of reference, is entirely wrong.

What AMLO was saying in 2018 was not a surprise, nor is it an ideological proclamation; there is an actual strategic policy behind these statements.  This has been AMLO’s strategy for years, and no-one was paying attention.   Andrés Manuel López Obrador has long proposed a key economic plan for Mexico to become wealthy. However, his idea has only recently gained broad mainstream Mexican understanding.

Conservative U.S. media have no idea; but Democrats, activists and far-left immigration radicals certainly do. AMLO has thought this through, and he has seen the mistakes made by allies in Cuba and Venezuela.

AMLO has an economic plan where hundreds-of-thousands of his fellow Mexicans flood the Southern U.S. border region; overwhelm the system and essentially create an initial border economy; then, with the door and pathway created, begin a process of exfiltration of U.S. economic wealth directly into Mexico.

Andrés Manuel López Obrador is not crazy; he has a pretty ingenious strategy.

Through overwhelming the Southern border regions, the nation of Mexico will be able to influence local U.S. laws and overwhelm the local U.S. political structures.  The Ameri/Mex zone penetrates into the U.S. and provides a borderless opening for migration, trade, commerce and the education of Mexican citizens through the utilization of U.S. social and economic systems.

All of the long-held grievances of Mexican nationals toward the disparity of their level of poverty and the wealth within the United States can be fixed through this plan.

Within the plan AMLO envisions the U.S. training, educating, employing and eventually paying for a growing standard-of-living for Mexico.  It is a fast way for Mexico to gain wealth; as opposed to the long process of building out an entire societal system of education, investment, infrastructure and commerce.

It would take Mexico several decades to achieve a level of wealth even close to the U.S., and they have no structural (political) systems in place to form the foundation of such an approach.  So, AMLO’s faster plan is to use migration into the U.S. to break down barriers, collapse the economic dam and allow the natural flood of U.S. wealth to flow into Mexico.

From the Mexican perspective this is a pretty solid economic approach that just might work; and they have open-border comrades within the progressive, democrat, republican and corporate political systems (all over the U.S) who already support such a strategy.

So when you see the headlines about the Mexican President telling his people to leave; and when you see him telling government officials to formulate plans and policies to expedite entry into the U.S., don’t laugh them away.  It is a viable plan with just as much possibility of success as any other.

 

 

Rep Doug Collins Discusses Border Crisis and Tariff Approach…


As Wall Street’s Big Club politicians go bananas over the pending tariffs on Mexico, House Judiciary Committee ranking member Doug Collins appears on Fox morning to discuss his own visit to the border, the growing crisis and the political intransigence in DC.

Devin Nunes Discusses Robert Mueller’s National Impeachment Address…


House Intelligence Committee ranking member Representative Devin Nunes responds to Robert Mueller’s national impeachment address:

.

It sure would be great if someone, anyone, could get Robert Mueller to publicly testify and face questioning… Unfortunately the UniParty rules the swamp.

Background Briefing in Advance of U.K. State Visit…


The White House gave some advanced information about President Trump and First Lady Melania Trump’s upcoming state visit to the United Kingdom; which includes trips to Ireland and France.  [Trip Date: June *3rd, 4th, 5th and 6th.]

[*Anticipate Pelosi announcing “impeachment inquiry” on Monday June 3rd]

[White House] PRESS OFFICER: Good afternoon, everyone. Thank you very much for joining us for this background call on the President’s upcoming trip to the UK, Ireland, and France. This will be on background, attributable to a senior administration official.

Joining us today is [senior administration officials]. They will provide a brief trip overview at the start, and then we’ll be able to take your questions.

So at this point, I’ll turn it over to [senior administration official].

SENIOR ADMINISTRATION OFFICIAL: Thank you so much. I’ll just make a couple of brief remarks and then turn over to my colleague for some of the details.

As everyone is aware, this is a very important trip to United Kingdom for several reasons. The timing is obviously pretty crucial. It gives evidence to the fact that the special relationship between the U.S. and the UK is real and enduring. As the President himself has said, “It’s a bond like no other.”

And given the fact that we’re commemorating the 75th anniversary of D-Day, this is a key time to honor our shared sacrifice and our shared service, both during World War Two, and in the many years since in all the endeavors that we’ve shared together.

The President and First Lady have a pretty packed schedule and my colleague will give you now some of the details. Thank you.

SENIOR ADMINISTRATION OFFICIAL: Thanks. So the President and First Lady will arrive in London on June 3rd. The Queen will host them at Buckingham Palace for an arrival ceremony there, where they will have the opportunity to meet some other members of the Royal Family and Royal (inaudible).

They will also have an opportunity to visit Westminster Abbey later that day. They will plan to lay a wreath at the grave of the Unknown Warrior.

Later that evening, the Queen will host a state dinner in honor of the President.

On June 4th, the President will have a bilateral meeting with Prime Minister May. They also will have an opportunity to have an interaction with American and British business leaders.

And that evening, the President will host a dinner at Winfield House, which is the ambassador’s residence in London.

On the 5th of June, the President will travel to Portsmouth to participate in a 75th commemoration to mark the 75th anniversary of D-Day and to honor the service and sacrifice of so many Americans and our allies there.

Then, later that day, he will travel to Ireland. In Ireland, he’ll have an opportunity to have a bilateral meeting with the Taoiseach, the Prime Minister of Ireland, Leo Varadkar.

Then, the following day, on June 6th, the President will travel to Normandy where he will participate in a commemoration of the 75th anniversary of D-Day at the Normandy American Cemetery. And he also will have a bilateral meeting with President Macron.

SENIOR ADMINISTRATION OFFICIAL: Yeah, I just — not to wrap up before hearing your questions, but there is no better time to have a state visit to the United Kingdom than the 75th anniversary of D-Day. It’s also very special to be able to commemorate the events of D-Day on both sides of the English Channel, in Portsmouth and then in Caen, in Normandy.

We’ll be there in both instances with many of the allies who shared the sacrifices of those important operations. So the D-Day landings on all of the Normandy beaches and all the (inaudible) set off in Portsmouth.

And this, obviously, honors the special relationship but also this very deep history — a very personal history for some of the people who are in attendance in the presidential delegation. And some of our senior leadership have family members who participated in D-Day. I think that will be on all sides, actually, not just the UK and the U.S., but with some of the other allies who will join in Portsmouth and (inaudible).

So we share a deep history, and it was in the case of the of the United Kingdom that called the relationship with the United States as solid and strong. And this is what we want to demonstrate with this state visit and also the continued cooperation on global and regional security issues, which we will be discussing in the bilateral meeting and in many of the other events.

So thank you for joining us. And again, this is a preview of all of the events that will be happening next week, but we’d be happy to answer whatever questions you might have at this stage. Thank you.

Q Emily Purser from Sky News. Thanks for this for this call. Could I ask if there have been any contacts or discussions with Boris Johnson and his team, and Nigel Farage and his team, for a meeting in the President’s private time whilst in the London?

SENIOR ADMINISTRATION OFFICIAL: Not that we’re aware of, no.

Q Hi, this is Patsy Widakuswara with Voice of America. Thank you for taking my call. So my question is to [senior administration official]. You mentioned that the timing is crucial and gives evidence to support the special relationship. Other than to commemorate D-Day, can you explain what you mean by that, given that the Prime Minister is resigning on June 7, and the British public is so absorbed in their own political turmoil as well as Brexit?

SENIOR ADMINISTRATION OFFICIAL: Well, I think actually that that underscores why this timing is crucial, because the relationship isn’t just based on personalities. It’s based on the long-shared service and shared sacrifice. And that’s — you know, what 75 years of D-Day really underscores.

I mean, obviously, it was the case during World War Two that those personal relationship between Roosevelt and Churchill played an important role. But beyond that, this is really an enduring alliance.

And the dates for D-day are pretty fixed. This is the 75th commemoration, and we felt — all of us — that is extremely important. The President has said this over and over again about the unshakeable bond between the two countries.

But even in the most difficult times, where you may have political upheaval and uncertainty, that we need to stand together shoulder to shoulder. And that’s what we will be demonstrating in Portsmouth and during the meetings that we’ll have here in London.

Q Hi, this is Heather Timmons from Quartz. Can you tell us a little bit more about the size of the presidential delegation, and particularly which of his family members are going and how long they’ll be going for?

SENIOR ADMINISTRATION OFFICIAL: I mean, I’m not entirely sure, at this point, about how long everyone else is staying here. And the delegation was, I think, already officially issued, and an announcement was made.

But I would refer you down to the White House Press as we move forward into this. And, I mean, you’ll see, you know, for yourselves when everybody arrives here on Monday.

Q Hi, (inaudible) from BBC News. Is it possible that Boris Johnson and Nigel Farage have been invited to the ambassador’s banquet that he’s hosting at Winfield House?

SENIOR ADMINISTRATION OFFICIAL: I don’t actually have the invitation list or the details for this. So, again, let’s wait until we have the official announcements from our press office and from the embassy about the list. I mean, these are fairly closely held at this moment.

Q Sure. But will we get the names of the invitees to the banquet?

SENIOR ADMINISTRATION OFFICIAL: Yeah, I’m honestly not sure about that. I’m afraid that’s not information that we have here. Again, I would just refer you back to the White House Press Office.

Q Has there been any interest in the (inaudible) meeting? Has the White House expressed any interest in meeting Boris Johnson or Nigel Farage, when they’re over in London?

SENIOR ADMINISTRATION OFFICIAL: I mean, (inaudible) somebody asked about this in his interview yesterday. And I think, you know, he expressed his views and opinions on both those gentlemen and many others when he was pressed in the interview. So I think we’ll just let the President’s comments about that stand.

Q Hello, this is Alexei (inaudible) with RIA Novosti, Russian News Agency. I just would like to ask whether White House knows of any invitation to Russia to take part in the festivities in Normandy. And, if so, whether President Trump plans to have any interaction with President Putin. Thank you.

SENIOR ADMINISTRATION OFFICIAL: We’re not aware of any invitation that was extended by the French government, so I’d have to refer you to them on that. And we have not made any preparations for any kind of meeting between the presidents in Normandy — that being President Putin and President Trump, just to clarify. There will be a bilateral with President Macron, however, in Normandy.

Q Hi. Emily (inaudible) with DailyMail.com. I want to follow up on some of the schedule for the Trump family. Specifically, is Ivanka Trump going to join the President and the Prime Minister at the business leaders’ breakfast on Tuesday? And does she have any separate meetings scheduled? And also, does the First Lady have any separate events scheduled from the President?

SENIOR ADMINISTRATION OFFICIAL: I don’t have further detail to announce here or to share here about other members of the family and what other meetings that they may or may not have. Similarly, you know, we’re not going to detail the list of individuals who are going to participate in each of the President’s meetings. We can — we’ll leave it with an overview of the meeting that the President will have and the events that he will attend and engage in.

Q So we’re not — can’t get any details on what the President’s kids will be doing during this visit?

SENIOR ADMINISTRATION OFFICIAL: That, I would refer you to the White House press team for further — possible further details that they may or may not be able to share about President Trump’s family.

Q Hi, this is Dmitry Kirsanov from TASS. I believe I have a question for [senior administration official]. I just wanted to ask if you could tell us a bit more about the agenda of the meeting between President Trump and President Macron. For instance, if they’re going to discuss Russia, Syria, Ukraine. Do we expect any deliverables out of that? Thank you.

SENIOR ADMINISTRATION OFFICIAL: Just to be clear that this is obviously a bilateral meeting on the size of an important commemoration of a major anniversary, so we’ve kept the schedule for this quite light. We can imagine that there will, you know, at least touching upon some of the major issues that are on our bilateral agenda. But at this point, we don’t have any further details.

Q Hi, this is Francesca Chambers from DailyMail.com. I just wanted to ask a couple of logistical questions in addition to that question. I didn’t hear anything about a press conference with either Theresa May or with Emmanuel Macron. So if you could confirm that there is no press conference, that would be really helpful for us.

But also, if you could just talk a little bit more about the relationship between Theresa May and President Trump. You said that there was no better time to hold this meeting. But her last day will be just two days after President Trump will be there. And so I’m wondering why perhaps this wasn’t put off until there was a new prime minister.

SENIOR ADMINISTRATION OFFICIAL: Well, you can’t really put off D-Day and the commemoration. So — and again, you know, we’ve been planning this for many months. And it’s a very important event to commemorate, and that’s what we mean by that there’s no better time. And the President himself said this at his own press interview yesterday. And he also expressed his deep respect for Theresa May.

And, you know, there are many things for them to still talk about, whether it will be (inaudible) on the bilateral agenda between the U.S. and the United Kingdom.

There’s going to be press — on your other question — at the various events and at their meeting. And I think, again, our White House press colleagues will be able to give you more details as we get closer to the President’s departure.

But understand that we’re very careful about the details (inaudible) for security reasons.

Q Hey, this is Ryan Kessler from ABC News. When you ran through some of the logistics, I did not hear you mention on Tuesday if the President and Theresa May are holding a joint news conference. Is that still taking place?

SENIOR ADMINISTRATION OFFICIAL: The answer is the same as I made before: that we will have press availability at the various events and at the meeting. And again, we’ll let our colleagues at the White House Press give you more details at we get closer.

Q Hello, this is (inaudible) WATV. We’re wondering if Meghan will be in attendance.

SENIOR ADMINISTRATION OFFICIAL: Who will be? I’m sorry, I didn’t catch you.

Q The Dutchess. The Dutchess, Meghan. If she will be attendance.

SENIOR ADMINISTRATION OFFICIAL: Oh, I’m afraid we’re not really sure at this particular stage about who will be attendance from the UK side. I mean, again, that would be better addressed, I think, to the UK government and to perhaps the Buckingham Palace press people.

Q Okay, thank you.

Q Hello, it’s Brian O’Donovan here from Irish TV station RTE. Just a couple of questions about the Irish leg of the journey. Can you confirm that the bilateral with the Taoiseach is the only public event in Ireland? Can you give us any color on what they might be likely to discuss? How long is Donald Trump likely to stay in Ireland? And is he going to try and get a round of golf while he’s at his golf resort in County Clare? Thank you.

SENIOR ADMINISTRATION OFFICIAL: The bilateral meeting between the President and the Taoiseach is the only public event that we have to announce at this time.

Obviously, they will have a range of bilateral issues to discuss, as well as shared international interests and priorities. And I won’t speculate on whether or not the President will have an opportunity to get into a round of golf.

SENIOR ADMINISTRATION OFFICIAL: Just a quick flag, as well, that the President and the Taoiseach saw each other in March, so they’ll probably pick up on some of the issues they discussed then when the Taoiseach was over for the annual St. Patrick’s Day commemorations and a (inaudible) bilateral there with the President.

Q Yes, good afternoon. Thank you very much for doing this call. This is Anne Guerin with the Washington Post. Also a couple of logistical matters. Is it correct that there’s no longer a carriage procession planned in London? And can you tell us a bit about that? Is that due to protest? What is your view of the protests planned for London? Is this at all concerning? Or does the President feel insulted by it?

And then, separately, on the Normandy part, is the President not staying for the evening program? It’s not clear to me that he’s going to be there on into the evening for Macron’s large event around dinnertime. Thank you.

SENIOR ADMINISTRATION OFFICIAL: So, for the arrival ceremony, there will be an arrival ceremony at Buckingham Palace. You know, the exact details I won’t get into — get into that. But there will be an arrival ceremony at Buckingham Palace as was seen in some previous state visits of U.S. presidents to the UK.

With respect to Normandy — so, the President will be participating in the commemoration at the Normandy American Cemetery, which will take place midday. And he will have a bilateral meeting with President Macron. And that’s all that we have to announce about the President’s schedule.

If there’s a question about what else the French government might be organizing, we’d have to refer you to them.

Q Yes, but my question wasn’t so much about what the French government is organizing. I mean, other leaders are attending this evening program. Will President Trump be among them?

SENIOR ADMINISTRATION OFFICIAL: I don’t believe he is attending the evening program.

But again, just to emphasize, the whole event is structured around the American Cemetery. And it was very important for the President to be able to commemorate the sacrifice of U.S. servicemen as well as the Allies during D-Day.

And he made it very clear, and he said this in some of this interviews, that he wanted to keep his focus less on, you know, larger events with other leaders and more on the actual servicemen themselves.

So we have kept our events very much focused on the cemetery, and then, of course, (inaudible). And there’s a lot to discuss with President Macron, to have a bilateral with him as well.

Q And on the protests? Is that worrisome to you all?

SENIOR ADMINISTRATION OFFICIAL: We haven’t talked about this at all, to be frank. But it hasn’t been (inaudible) by our UK host either.

Q Hi, it’s Margaret Talev at Bloomberg. Thank you for doing the call. I’m wondering if we can touch on two issues. Huawei — what you’re expecting. Or will press — given May’s sort of timetable, how much you intend to press for a commitment or a stance from the UK?

And trade writ large — can you really get anything done, or not, until Brexit?

And I also want to go back one more time to Anne’s question, which is to say we’re all writing stories about the protesters. And I know this is probably a politically delicate question for you guys, but hoping you can answer. Is the President upset by protestors? Or does he think that’s sort of a vibrant part of democracy and whatever? He had a taste of that at the last visit with the big floating balloon. Are you — is he cool with that? Or does he have issues with that? They may be at the airport, at Shannon, for the bilat. They may be all over the city. How does he actually feel about this?

SENIOR ADMINISTRATION OFFICIAL: Well, I think the President can speak for himself, (inaudible) have on previous occasions. And, you know, can you can ask him as he’s leaving. But he hasn’t made any — certainly any comments that we’ve seen that show any particular concern about this issue.

In terms of the other issues you described about trade, that’s obviously going to be on the agenda. But you have to also remember that the President’s discussions with Prime Minister May come against the backdrop of a continuous set of engagements and interactions between U.S. and UK counterparts.

And so, although they will obviously discuss these issues, we’ve already been thoroughly exploring them over the course of several months now. So I don’t think that this is going to be some major earth-shattering breakthrough on any of the issues that you described. But we’ll be discussing the broader end of international, as well as our bilateral issues during the meeting. And then, obviously, setting the stage for continued discussions with whoever succeeds the Prime Minister over the next several months.

Q Have you guys advised the President on whether or not it’s appropriate to weigh in on who the next PM should be? Or will he stay out of it?

SENIOR ADMINISTRATION OFFICIAL: The Prime Minister — sorry, I mean, the President was already asked about those questions yesterday in his press conference, and I think he made his position clear on that, that he wasn’t going to be drawn into any speculation.

Q Hi, this is (inaudible). Can I just check, with May, will he be discussing Huawei and the issues about Huawei, especially with the UK saying it is allowing Huawei to operate? And in France, will we be sure that Trump is going to be make it to the cemetery? The last time he was here, he actually didn’t make it (inaudible) cemetery.

SENIOR ADMINISTRATION OFFICIAL: I’m sorry, I didn’t hear the last point there. But in terms of the trade issues, you know, obviously there will be a full-ranging discussion here. And we can’t, obviously, prefigure how the details — nature of the call is going to be in advance. But, you know, we have a full agenda that’s being prepared on both sides. So, you know, we’ll be able to — obviously, you’ll be able to ask questions about this after the meeting as well, in the various press opportunities.

Q And will there be more pressure piled onto the UK? We’ve heard that there’s potential threats that there won’t be any information sharing. Is that something that the President is going to use in his leverage to try and get the UK to block out Huawei?

SENIOR ADMINISTRATION OFFICIAL: Again, we’re getting ahead of ourselves in discussions, but we continue to have very serious and in-depth discussions with our UK colleagues on this and all these other topics as well. They’re very frank. And the UK has every ample opportunity to lay out its positions and — for a full exchange. So I don’t think we need to over-dramatize this in any way.

Q Hi, this is Sally Bronson (ph) with NBC News. You’ve mentioned a few times that the President did an interview yesterday where he discussed aspects of the trip. Could you speak further about that? Was that was UK or French press? And is that — who specifically? And is that something that is going — is it still under embargo? Is it going to be released? I was just a little confused about that, so I’m wondering if you could clarify, please.

SENIOR ADMINISTRATION OFFICIAL: Well, I think we’d have to turn that over to White House staff. We saw, ourselves, kind of a quick review of some of this. It was a Q&A that he gave in press. So there was a number of things. I think some of it has come out on the White House Press. Perhaps our colleagues can comment on that.

Q So there was nothing specific — no interview at least that you’re aware of — that he gave specifically to UK or French press that has not yet been released?

SENIOR ADMINISTRATION OFFICIAL: (Inaudible) in the United States, I don’t believe there was anything on French press. I’d have to defer to our colleagues at the NSC and White House Press if there was anything additional that you’re referring to. But this is in a various Q&A that he’s given with other press outlets yesterday.

PRESS OFFICER: I know one of the references that my colleague mentioned earlier were comments that the President made at a press gaggle. So if there are other things coming out, you’ll see them in the press. But we don’t have anything else to announce regarding that at this time.

Q Okay, understood. There were a few references to interviews, and I just wanted to make sure we had all of that. So, thank you.

SENIOR ADMINISTRATION OFFICIAL: That’s because I’m not a (inaudible), so I incorrectly referred to interviews because I was thinking about the Q&A and the press gaggle. I guess I’ll have to get — I think these guys are going to have to kick me into shape into using the right terminology. So I apologize for any confusion there.

Q All good. Thank you very much for answering.

END TRANSCRIPT

Huge Emergency Action – President Trump Announces Escalating Tariff Program for “All Mexican Goods” Until Illegal Central American Migration is Stopped…


Jumpin’ ju-ju bones, President Trump has just announced an emergency tariff program on all Mexican goods that begins on June 10th at 5% and continues to increase monthly until Mexico takes action to halt illegal Central American migration.

Tariff Schedule: ♦5% effective June 10th ♦10% effective July 1st ♦15% effective August 1st ♦20% effective September 1st ♦25% effective October 1st, and continuing therein until Mexico takes action to stop the flow of Central American migrants.

Details from the White House: As everyone knows, the United States of America has been invaded by hundreds of thousands of people coming through Mexico and entering our country illegally.

This sustained influx of illegal aliens has profound consequences on every aspect of our national life—overwhelming our schools, overcrowding our hospitals, draining our welfare system, and causing untold amounts of crime. Gang members, smugglers, human traffickers, and illegal drugs and narcotics of all kinds are pouring across the Southern Border and directly into our communities. Thousands of innocent lives are taken every year as a result of this lawless chaos. It must end NOW!

Mexico’s passive cooperation in allowing this mass incursion constitutes an emergency and extraordinary threat to the national security and economy of the United States. Mexico has very strong immigration laws and could easily halt the illegal flow of migrants, including by returning them to their home countries. Additionally, Mexico could quickly and easily stop illegal aliens from coming through its southern border with Guatemala.

For decades, the United States has suffered the severe and dangerous consequences of illegal immigration. Sadly, Mexico has allowed this situation to go on for many years, growing only worse with the passage of time. From a safety, national security, military, economic, and humanitarian standpoint, we cannot allow this grave disaster to continue.

The current state of affairs is profoundly unfair to the American taxpayer, who bears the extraordinary financial cost imposed by large-scale illegal migration. Even worse is the terrible and preventable loss of human life. Some of the most deadly and vicious gangs on the planet operate just across our border and terrorize innocent communities.

Mexico must step up and help solve this problem. We welcome people who come to the United States legally, but we cannot allow our laws to be broken and our borders to be violated. For years, Mexico has not treated us fairly—but we are now asserting our rights as a sovereign Nation.

To address the emergency at the Southern Border, I am invoking the authorities granted to me by the International Emergency Economic Powers Act. Accordingly, starting on June 10, 2019, the United States will impose a 5 percent Tariff on all goods imported from Mexico.

If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed. If the crisis persists, however, the Tariffs will be raised to 10 percent on July 1, 2019.

Similarly, if Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019. Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.

Workers who come to our country through the legal admissions process, including those working on farms, ranches, and in other businesses, will be allowed easy passage.

If Mexico fails to act, Tariffs will remain at the high level, and companies located in Mexico may start moving back to the United States to make their products and goods. Companies that relocate to the United States will not pay the Tariffs or be affected in any way.

Over the years, Mexico has made massive amounts of money in its dealings with the United States, and this includes the tremendous number of jobs leaving our country.

Should Mexico choose not to cooperate on reducing unlawful migration, the sustained imposition of Tariffs will produce a massive return of jobs back to American cities and towns. Remember, our great country has been the “piggy bank” from which everybody wants only to TAKE. The difference is that now we are firmly and forcefully standing up for America’s interests.

We have confidence that Mexico can and will act swiftly to help the United States stop this long-term, dangerous, and deeply unfair problem. The United States has been very good to Mexico for many years. We are now asking that Mexico immediately do its fair share to stop the use of its territory as a conduit for illegal immigration into our country.

The cartels and coyotes are having a greater and greater impact on the Mexican side of our Southern Border. This is a dire threat that must be decisively eliminated. Billions of dollars are made, and countless lives are ruined, by these ruthless and merciless criminal organizations. Mexico must bring law and order to its side of the border.

Democrats in Congress are fully aware of this horrible situation and yet refuse to help in any way, shape, or form. This is a total dereliction of duty. The migrant crisis is a calamity that must now be solved—and can easily be solved—in Congress. Our broken asylum laws, court system, catch-and-release, visa lottery, chain migration, and many other loopholes can all be promptly corrected. When that happens, the measures being announced today can be more readily reduced or removed.

The United States is a great country that can no longer be exploited due to its foolish and irresponsible immigration laws. For the sake of our people, and for the sake of our future, these horrendous laws must be changed now.

At the same time, Mexico cannot allow hundreds of thousands of people to pour over its land and into our country—violating the sovereign territory of the United States. If Mexico does not take decisive measures, it will come at a significant price.

We therefore look forward to, and appreciate, the swift and effective actions that we hope Mexico will immediately install.

As President of the United States, my highest duty is the defense of the country and its citizens. A nation without borders is not a nation at all. I will not stand by and allow our sovereignty to be eroded, our laws to be trampled, or our borders to be disrespected anymore.

[White House Link]

Donald J. Trump

Donald J. Trump

….at which time the Tariffs will be removed. Details from the White House to follow.

23.9K people are talking about this

I can’t stop laughing when I think about BMW and the German ‘splodey heads.

German automaker BMW invested $2 billion in Mexico (plant recently finished) as part of a prior plan/strategy to utilize the NAFTA loophole and gain access to the U.S. market.  They are building cars there.  Can you imagine how much a BMW will cost with another 25% added to the price of the finished product.  LOL…

Hell, the Germans might end up being the South Mexico border patrol.

 

Vice-President Mike Pence Holds Joint Press Conference With Justin From Canada…


Vice-President Mike Pence traveled to Canada today as an emissary of the Trump administration to support Canadian passage of the USMCA trade agreement.

According to Reuters media reports the vice-president was focused on the importance of a strong North American economic alliance, and how a united tri-lateral agreement can form a geopolitical hedge against influence from communist China and socialist ideologies in Cuba and Venezuela. Justin from Canada expressed his perspectives over diminished women’s rights, U.S. abortion laws, the important contributions of a transgender workforce, climate change and the NBA championship playoffs…. Yes, really:

.

Meanwhile in Mexico: “The Senate, controlled by Lopez Obrador’s National Regeneration Movement (MORENA) and its allies, should approve the United States-Mexico-Canada Agreement (USMCA) once it has passed through congressional committee, the president said.” (link)

Compare and contrast…

The Canadian window is short, if they don’t ratify the USMCA trade pact by the end of June, the Canadian parliament will go into legislative recess until after the general elections October 21st, 2019.  Justin and Chrystia demand to be courted…

Meanwhile in Mexico:

[…] The Mexican Senate is not currently in session, but the government said special periods would be held to pass USMCA.

Lopez Obrador said he was “optimistic” the trade deal, which U.S. President Donald Trump had pushed for, would be approved in the U.S. Congress. The Mexican president said he did not expect major difficulties to arise in its U.S. passage. (link)

It will be interesting to watch what happens.

Factually and ideologically, throughout the entire trade discussion, the Trudeau administration has put anti-Trump politics ahead of the Canadian economy.  The economic stagnation in Canada is a direct result.

On-one-hand Princess Freeland and Prince Sparkle Socks need to get their economy back on track; however, that means proceeding with ratification of the USMCA which is against their ideological interests.

On-the-other-hand Freeland and Trudeau do not want to support President Trump in any manner or form. The hatred of Trump is palpable and visible. Their hatred of Trump, and public pronouncements therein, is also part of their re-election strategy.  They want to run for re-election using the “orange-man-bad” resistance approach.

However, with the scale of investment withdrawal from Canada if they don’t ratify the USMCA Trudeau won’t have much of an economy left to manage…. And that becomes a problem for Justin/Freeland and their ideological best friend Nancy Pelosi.

After all the 2017 and 2018 shenanigans pulled by Freeland and Trudeau; and specifically after their G7 stunt last year; President Trump is essentially done with them – I doubt President Trump would even take a call from Justin from Canada.  And forget about USTR Robert Lighthizer…. he’s a thousand times more angry than Trump.

The U.S. relationship with Canada is fundamentally fractured, destroyed, unrecoverable, so long as Trudeau/Freeland are present and pushing their elitist, globalist, multinational agenda. The relationship is so bad, if a hostile nation was to threaten Canada, it would take some convincing to get President Trump to express any intent to defend.

Speaker Nancy Pelosi doesn’t want to give Trump a win.  Trudeau and Freeland don’t want to give Trump a win.  However, if Trudeau and Freeland don’t quickly ratify the USMCA they’re screwed come October (elections). As a result, ratification in Canada will put Pelosi in a pressured pickle…. and would likely lead to the U.S. House taking up similar ratification.

Amid all the chaos, there’s an apex predator who thrives in the fray.  His world-leading economy is firing on twenty-trillion cylinders…. and he’s lining up tankers of boost.

The U.S. economy is expanding at a rate more than double all other nations; the U.S. unemployment rate is 3.6%, half all other nations; U.S. inflation is barely above one percent, and average U.S. wage rate growth is 3.4 percent and climbing.

Funny that.

 

MAGAnomics – Despite Tariffs and Growing Economy, Inflation Nonexistent – Economists and Financial Class Perplexed…


Today is a very good day.  Despite the professional punditry and their doomsayer predictions of Trump tariffs driving up costs for consumers, exactly the opposite is happening.

Despite large growth in the Main Street USA economy; and despite large wage gains by U.S. blue-collar workers; inflation remains low and mysteriously detached from the Fed monetary policy.

WASHINGTON (Reuters) – U.S. inflation was much weaker than initially thought in the first quarter amid a sharp slowdown in domestic demand, which could cast doubts on the Federal Reserve’s view that the benign price pressures were largely because of temporary factors.

The personal consumption expenditures (PCE) price index excluding the volatile food and energy components increased at a 1.0% rate last quarter, the government said. The so-called core PCE price index, which is the Fed’s preferred inflation measure, was previously reported to have risen at a 1.3% pace.

The increase last quarter was the smallest in four years and pushed inflation further below the Fed’s 2% target. (read more)

They just don’t get it.  For over three years CTH has been explaining how President Trump’s maganomic policy will reverse three decades of stagnant Main Street economic growth.  Today the Bureau of Economic Analysis (BEA) once again confirms our earlier predictions, and releases the data showing inflation is essentially nonexistent.

Since the mid-to-late 1980’s the U.S. economy split into two divergent economic engines. One traditional engine powered by Main Street, and a second engine powered by Wall Street.  For thirty-plus years the distance between those engines was growing as federal monetary policy provided low interest rate support for investment, but the end destination for the investment was NOT in the U.S. [Hence, globalism]

For more than 30 years monetary policy has been driven by Wall Street influence.  FED interest rates made borrowing cheap, but the money -the actual investment itself- flowed out of the United States.  The end product from the investment, steered by multinationals, created products overseas.  Within this flow of capital there was no benefit to Main Street.

President Trump’s America-First policy has reversed the dynamic.   As a result of his focus and demand, the end product(s) from capital investment are now here in the U.S.A.

The MOUSE is money or investment. The CHEESE is end products, manufactured stuff.

Rather than beg the Wall Street investment mouse to change direction in the manufacturing maze, president Trump has simply moved the cheese to Main Street.  The mouse’s travel changed accordingly.

(BEA Table 4 – pdf)

The price index for gross domestic purchases increased 0.7 percent in the first quarter, compared with an increase of 1.7 percent in the fourth quarter (table 4). The PCE price index increased 0.4 percent, compared with an increase of 1.5 percent. Excluding food and energy prices, the PCE price index increased 1.0 percent, compared with an increase of 1.8 percent. (link)

As companies reevaluate the best place for investment (highest return), and they see that Trump’s policies (corp taxes, tariffs, material and labor costs) focus on greatest benefit being inside the U.S, then companies return to Main Street.  This is what has been happening since Trump took office; and it continues through today.

The prices of highly consumable goods (food, fuel, energy) is kept low by Trump policies  that increase energy production and return a genuine supply-side dynamic to domestic production prices. [The battle with Big AG]

Meanwhile multinationals, and some foreign governments, fight to keep their footing abroad (original investment) by keeping down the price of durable goods manufactured overseas.  This is done by increase productivity, adjusted supply chains and retention incentives afforded by the benefiting nation.  This is done to offset Trump tariffs which are designed to influence a shift in the manufacturing process.

The end result of both production dynamics, domestic and abroad, is low inflation.

This price dynamic is happening at the location of output, internally to the operations that are determining the output price, based on their determination of what U.S. market prices will absorb.

Key Point – The pricing is NOT a result of decision-making on new investment; and therefore the pricing dynamic is not able to be impacted or influenced by FED monetary policy.

Only when the majority of manufacturing investment fully returns to the U.S. will FED policy have any significant bearing on manufacturing prices.  This is the parity point where Main Street’s economic engine is recoupled to inflation.

There was 30 years of distance in the FED disconnect, and it will take more than a few years for the recoupling of Main Street to FED monetary policy.

This dynamic is the basic thesis behind THE THEORY HERE.

DECEMBER 2016 – […] Additionally, inflation on durable goods will be insignificant – even as international trade agreements are renegotiated.  Why?  Simply because the originating nations of those products are going to go through the same type of economic detachment described above.

Those global manufacturing economies will first respond to any increases in export costs (tariffs etc.), by driving their own productivity higher as an initial offset, in the same manner American workers went through in the past two decades.  The manufacturing enterprise and the financial sector remain focused on the pricing.

♦ Inflation on imported durable goods sold in America, while necessary, will ultimately be minimal during this initial period; and expand more significantly as time progresses and off-shored manufacturing finds less and less ways to be productive.   Over time, durable good prices will increase – but it will come much later.

♦ Inflation on domestic consumable goods ‘may‘ indeed rise at a faster pace. However, it can be expected that U.S. wage rates will respond faster, naturally faster, than any monetary policy because inflation on fast-turn consumable goods become re-coupled to the ability of wage rates to afford them.

The fiscal policy impact lag, caused by the distance between federal monetary action and the domestic Main Street economy, will now work in our favor.  That is, in favor of the middle-class.

Within the aforementioned distance between “X” and “Y”, a result of three decades traveled by two divergent economic engines, is our new economic dimension….

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