Elder Patriot – We were expecting this following a series of tweets while leaving Japan and the G20 from President Trump:
“So many amazing things happened over the last three days. All, or at least most of those things, are great for the United States. Much was accomplished!”
Today, White House trade advisor Peter Navarro, appeared on CNBC where, despite the efforts of his interviewers Mr. Dour and his sidekick Ms. Negativity, he was able to explain the reasons for our economic growth and why Trump is winning with China:
Ms. Negativity: “How badly do you need to make this deal before the election.”
Navarro: “The president doesn’t do things with the idea towards the election. That’s one of the things I admire about him. He does the right thing for the American people. So we’re gonna get a deal that’s a great deal for America.
“We’re not going to sacrifice anything in order to get a cheap political trick.
There resistance to embrace what they’re seeing unfold by these two CNBC hacks is astonishing.
Two months ago Trump used Twitter to signal where this was going. From the corner China had been painted into, the fact that the president was in no rush because the longer the impasse continued the more China would come to realize their financial situation was only going to worsen.
Trump even told everyone how and why China would be the party hurt most severely and not the U.S. consumer:
Trump had been preparing for negotiations (really a contentious encounter) with China since the early days of his presidency by laying the groundwork for restructuring America’s geopolitical manufacturing alliances.
In 2017, President Trump went on a marathon 10-day tour, meeting face-to-face with the other manufacturing heavyweights of Southeast Asia lining up manufacturing alternatives to China preparing for the anticipated intransigence from China:
Those alliances are now paying dividends as China has begun a slow bleed of U.S. manufacturers seeking less hostile partners. This totally predictable dynamic has forced the Chinese government to subsidize the remaining companies rather than to lose their business completely.
That was anticipated by President Trump which is the reason he has been adamant about not being in any hurry.
“The tariffs paid to the USA have had little impact on product cost.”
Even today, no evidence of rising costs in any financial sector and with inflation almost non-existent, the CNBC resistance team insisted those costs would be borne by the American consumer.
The important point is where we are today. A place that CNBC’s resistance narrators wouldn’t acknowledge even with a scorecard and the game in the latter innings.
The original 150-page agreement that had been negotiated by USTR Robert Lighthizer and Vice-Premier Liu He, has become the starting point for the new round of talks.
The Chinese have returned to the negotiating table with the understanding that the deal, as it had been originally negotiated, the one they walked away from, had been accepted.
Only those who are economically illiterate or who are rooting for America’s demise, can miss what’s happening.