It's important to keep the goal in mind, and to separate strategy from tactics.

The goal is reduced trade barriers.

The strategy is to demonstrate to trade partners that we are serious in asking them to play fair. In fact, we demand they play fair.

They (the trade partners) cannot be faulted for initially laughing us off. It has been years since we held anyone's feet to the fire. What's different now?

So, Trump needs to demonstrate a) that he's serious, b) he's got the tools to both reward and punish with, or without, an obstructionist and/or navel-gazing Congress, and c) he's got the political will to use the tools.

The current tariffs are just demonstrations, not the end goal. Once trade partners understand the threats aren't idle, deals will get done.

quote:

Originally posted by joel9507:
It's important to keep the goal in mind, and to separate strategy from tactics.

The goal is reduced trade barriers.

The strategy is to demonstrate to trade partners that we are serious in asking them to play fair. In fact, we demand they play fair.

They (the trade partners) cannot be faulted for initially laughing us off. It has been years since we held anyone's feet to the fire. What's different now?

So, Trump needs to demonstrate a) that he's serious, b) he's got the tools to both reward and punish with, or without, an obstructionist and/or navel-gazing Congress, and c) he's got the political will to use the tools.

The current tariffs are just demonstrations, not the end goal. Once trade partners understand the threats aren't idle, deals will get done.

YES!!!! That is my assessment as well.

Trump swipes at Fed during trip to Japan
BY JESSE BYRNES - 05/25/19 08:06 AM EDT

.......
.."The Federal Reserve announced earlier this month that it would keep interest rates unchanged. The board said it would keep the federal funds rate at a 2.25 to 2.5 percent range given data showing that the U.S. economy remains strong despite concerns of a global slowdown.

Trump has long lashed out at the Fed for raising interest rates, arguing that a cut in rates would help the U.S. secure a win in his trade war with China.

"China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing. If the Federal Reserve ever did a “match,” it would be game over, we win! In any event, China wants a deal!" he tweeted last week.

During his remarks at a reception with Japanese business leaders on Saturday night local time, Trump said that he hopes a bilateral trade deal with Japan will "address the trade imbalance, remove the barriers to United States exports and ensure fairness and reciprocity in our relationship."......
...........

THE HILL > https://thehill.com/homenews/a...during-trip-to-japan
=================================================

Too much criticism of the Fed could lead to them dragging their feet when we really do need rates to come down. I wish DJT would ease off a little.

Bloomberg sees a scary boogie man!!!

- I call B.S.
===============================================
Technology
Trump’s Throttling of Huawei Could Backfire on U.S. Tech
Disrupting intricate global supply chains would be painful for companies and economies.

By Molly Schuetz and Edwin Chan
May 25, 2019, 3:00 AM MST

BLOOMBERG >> https://www.bloomberg.com/news...nies?srnd=markets-vp
==============================================
"The Trump administration widened its dragnet this week on Chinese companies barred from selling to the U.S. or buying components from American firms in a push to slow China’s technological advances. After crippling Huawei Technologies Co., China’s biggest telecommunications company, the administration followed up by threatening to cut off U.S. components or software to five Chinese video surveillance firms.

But the plan might backfire, because U.S. companies are so inextricably involved in the global technology supply chain. Concerns over Washington’s punitive measures and possible retaliation by the Chinese rattled markets throughout the week, hammering chipmakers and Apple Inc.

It's 5G that embodies most of Washington’s fears -- by powering a wealth of upcoming technologies from self-driving cars to advanced medical procedures, the new wireless standard is set to be the backbone of the modern economy. Until recently, it seemed like Huawei, the world's biggest purveyor of communications networking gear and the second-largest smartphone maker, was leading in supplying that infrastructure.

By cutting off the Chinese tech giant, the U.S. will only slow the expansion of 5G. That’s bad news for some of the most important U.S. companies, particularly component makers, that were banking on it for a major surge in orders starting this year.".........
,
,
"“I don’t think it’s good for the U.S. economy,” said Minyuan Zhao, an associate professor of management at the Wharton School at the University of Pennsylvania. “With its strong institutions, the U.S. has long been an assuring force in the global supply chain. People don’t always trust China, but they consider the U.S. a trustworthy partner, if not guardian, of the global economic system.” If supply chains can be arbitrarily interrupted and that trust disappears, countries will start to develop individual systems and the result will be inferior and more expensive."......
.
.
" The crackdown on Huawei and other tech companies has spread from the U.S.-China trade war, which has been going on for months. Trump has targeted technology companies due to suspicion that Chinese firms help Beijing spy on foreign governments and steal U.S. intellectual property. It’s a risky move."

“The more that we continually conflate economic warfare with national security interests, then we start to look at everything as national security,” said Evanna Hu, CEO of Omelas, a security software firm based in Washington. “When you have a hammer, everything looks like a nail.”

So far U.S. chipmakers have probably suffered the most from Washington’s actions. Intel, Qualcomm, Xilinx and Broadcom have said they will cut off supplies to Huawei until further notice, according to people familiar with their actions. While their move hamstrings Huawei, it also means the companies will lose revenue.

"China has threatened to retaliate. ``This is wrong behavior, so there will be a necessary response,’’ Zhang Ming, China’s envoy to the EU said in an interview in Brussels. Such a move could be devastating for Apple. Rising nationalistic, pro-Huawei sentiment could make Apple’s already troubled business in China more difficult, hobbling iPhone sales and disrupting the company’s supply chain, according to analysts.

Apple could lose nearly a third of its profit if China retaliated by banning its products, Goldman Sachs analysts estimated this week. But so far there isn’t any evidence that China is planning to do so. Dan Ives, an analyst at Wedbush Securities, said 3% to 5% of iPhone sales in China may disappear over the next 12 to 18 months because of the U.S. ban on Huawei.

As the global markets have begun to imagine a new Cold War-era between China and the U.S., President Donald Trump said Thursday that Huawei could “be included in some kind of trade deal” with China, without offering any details. The president also added that “Huawei is something that’s very dangerous. You look at what they’ve done from a security standpoint, from a military standpoint, it’s very dangerous.”


==============================================

China's use of their surveillance technology to spy on the U.S. and elsewhere as well has resulted in this defensive move by Trump. China has been conducting a cold war with the U.S. for decades - the pace is accelerating, and reaching a threshold of serious capabilities to impact our critical infrastructure.

Trump is correct in squashing their efforts. Huawei and others of their ilk cannot be allowed to spy on us.

OK - AAPL may loose 3% - 5% of their sales on phones if China retaliates . . boo hoo.

XLNX, INTC, QCOM, BRCM, MU, NVDA, AMD etc. will all shake out through redistribution of supply and demand as more G5 manufacturing is shifted to U.S.
INTC has recently said they plan to retreat from 5G chip manufacturing because profit margins there cannot meet INTC goals [primarily due to Chinese unfair trade practices I think].

So INTC will benefit from increased value of the 5G manufacturing spinoff - or they may even decide to stay in the business they see margins rising to acceptable levels.

It all shakes out - the boogy man is in the mind of the left leaning news media, the real world operates on established economic principles.

G5 will be alive and well with control and manufacturing shifted more toward U.S.

I heard one moron on NPR state this will hurt 5G deployment/developement....

Um...ok, I can personally attest to that not being the case.
https://www.sdxcentral.com/art...-12-markets/2018/12/

I have mentioned this before but I consulted for Huawei to teach them network deployment and project management in E. Africa.

What I experienced there taught me they are absolutely an arm of the Chinese Gov...right down to having Commissars watch their employees and that they will steal anything not nailed down. We finally stopped sending any of our documentation as they would rebrand it 2 days later. They were asking me for documentation and policies 2 months after I left the project.

quote:

Originally posted by T-Boy:

quote:

Originally posted by joel9507:
It's important to keep the goal in mind, and to separate strategy from tactics.

The goal is reduced trade barriers.

The strategy is to demonstrate to trade partners that we are serious in asking them to play fair. In fact, we demand they play fair.

They (the trade partners) cannot be faulted for initially laughing us off. It has been years since we held anyone's feet to the fire. What's different now?

So, Trump needs to demonstrate a) that he's serious, b) he's got the tools to both reward and punish with, or without, an obstructionist and/or navel-gazing Congress, and c) he's got the political will to use the tools.

The current tariffs are just demonstrations, not the end goal. Once trade partners understand the threats aren't idle, deals will get done.

YES!!!! That is my assessment as well.

That is the best concise explanation I've read to date.

quote:

I don't quote Bill Clinton often, but "It IS the economy, Stupid."

That was James Carville.

quote:

Originally posted by Jager:

quote:

I don't quote Bill Clinton often, but "It IS the economy, Stupid."

That was James Carville.

===============================================
Jager, you are right. Actually, according to my source Carville made a sign with the quote on it which hung in the Clinton headquarters.... this was apparently the first origin of the phrase.

I fixed it. Thanks

You have to ask, "How did they catch up with us in the technology area?"

The first was the satellite technology given to them by Loral thanks to Bill Clinton:

https://www.nytimes.com/1998/0...hina-on-rockets.html

I have read that Microsoft looses $10B a year due to pirating of their software.

This is one weapon that China has considering their huge reserves of the various minerals. IIRC, they and Afghanistan have the largest known reserves of the rare earths in the world.

quote:

With a simple visit to an obscure factory on Monday, Chinese President Xi Jinping has raised the specter that China could potentially cut off supplies of critical materials needed by huge swaths of the U.S. economy, underscoring growing concerns that large-scale economic integration is boomeranging and becoming a geopolitical weapon.

With the U.S.-China trade war intensifying, Chinese state media last week began floating the idea of banning exports of rare-earth elements to the United States, one of several possible Chinese responses to U.S. President Donald Trump’s decision to jack up tariffs on hundreds of billions of dollars’ worth of Chinese goods and blacklist telecoms maker Huawei.

U.S. oil refiners rely on rare-earth imports as catalysts to turn crude oil into gasoline and jet fuel. Permanent magnets, which use four different rare-earth elements to differing degrees, pop up in everything including ear buds, wind turbines, and electric cars. And China dominates their production.

“It would affect everything—autos, renewable energy, defense, and technology,” said Ryan Castilloux, the founding director of Adamas Intelligence, a strategic metals consultancy. China supplies about 80 percent of the rare-earth elements imported by the United States, which are used in oil refining, batteries, consumer electronics, defense, and more.

https://foreignpolicy.com/2019...source=pocket-newtab

NEW LEGISLATION TO PROTECT 5G NETWORKS: Rep. Abigail Spanberger (D-Va.) and five other House members on Tuesday introduced a bill meant to protect U.S. telecommunications networks from national security threats from companies such as the Chinese firm Huawei.

The bipartisan proposal calls for the creation of a national strategy to protect 5G wireless technology from security threats.

What the bill says: The Secure 5G and Beyond Act would require the administration to create an "unclassified national strategy" to protect the U.S. consumers and allies from threats to 5G systems. This strategy would include language on ways to encourage research and development by U.S. companies around maintaining access to 5G for all Americans, and on protecting the "competitiveness" of U.S. companies, along with the privacy of American consumers, against foreign political influence.

Spanberger is spearheading the bill with co-sponsors that include Reps. Susan Brooks (R-Ind.), Tom O'Halleran (D-Ariz.), Francis Rooney (R-Fla.), Elissa Slotkin (D-Mich.), and Elise Stefanik (R-N.Y.).

More on the bill here.
http://click1.email.thehill.co...ygtcdcrrnrtktlm.html

Huawei files motion to expedite lawsuit against US: report
BY TAL AXELROD - 05/28/19 11:15 PM EDT

The Hill > https://thehill.com/policy/tec...it-against-us-report

........ "The goal of the maneuver appears to be to speed up the process to avoid a hearing scheduled for Sept. 19. Lawyers for the U.S. could ask the court to reject the motion.".....

BEA News: Gross Domestic Product, 1st quarter 2019 (second estimate); Corporate Profits, 1st quarter 2019 (preliminary estimate)

The U.S. Bureau of Economic Analysis (BEA) has issued the following news release today:
Real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the first quarter of 2019, according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.2 percent.
The full text of the release on BEA's website can be found at: https://www.bea.gov/news/2019/...-profits-1st-quarter

I support him 100%. He's doing what needs to be done.

quote:

Originally posted by kramden:
I support him 100%. He's doing what needs to be done.

===========================================

I also believe he is on the correct path to improving the economy - - -but we are going to have some pain in the process.

Today we will see the market reaction to Trump's new Tariff Threat to Mexico. It ain't going to be pretty .

The Dow Industrial Average is Forecast to open down 300 + points. We will hear a lot of experts blabbing about how wrong this move is.

Weekend Fake News productions will be all negative on this.

Trump's threat is in my opinion an attempt to force Mexico to assist in the illegal migrant problem as advertised - but also I think to force the Fed to ease and force the Congress to address the wall and lame immigration laws.

Hold on to your hat - this is going to be a rough ride for a while. The threat is a threat; it will not necessarily happen as advertised if Trump can keep a poker face and he gets some reasonable support.
===========================================

Here is one news article From The Hill Morning Report:

>> https://thehill.com/homenews/m...hills-morning-report

"Trump trade news … The administration will levy a 5 percent tariff beginning June 10 – and raise it to 10 percent July 1 – on all goods imported from Mexico “until such time as illegal migrants coming through Mexico, and into our Country, STOP,” Trump announced on Twitter Thursday night (The Hill). Some Trump aides attempted to dissuade the president from threatening new tariffs on Mexico at a time when the White House is also lobbying for congressional ratification of the U.S.-Mexico-Canada trade accord (The Washington Post and The New York Times).

Senate Finance Committee Chairman Chuck Grassley (R-Iowa), who has for months urged the president to lift tariffs on goods from Mexico and Canada in order to smooth a congressional path toward ratification of the USMCA, strongly objected to Trump’s announcement (The Hill). "Trade policy and border security are separate issues. This is a misuse of presidential tariff authority and counter to congressional intent," he said in a statement.

If Trump follows through on the escalating new tariffs, analysts anticipate economic upheaval on both sides of the border. “Trade with Mexico is basically all about the supply chain, which essentially is all about cars,” said Torsten Slok, chief economist at Deutsche Bank Securities (The Washington Post)."

===========================================
V.P. Mike Pence was on Fox Business News early this morning trying to mitigate the flak --
He was interviewed on Mornings With Maria. It will probably be on a link to You Tube later.

Department of Commerce,
Bureau of Economic Analysis report:

BEA News: Personal Income and Outlays, April 2019

The U.S. Bureau of Economic Analysis (BEA) has issued the following news release today:
Personal income increased 0.5 percent in April after increasing 0.1 percent in March. Wages and salaries, the largest component of personal income, increased 0.3 percent in April after increasing 0.4 percent in March.
The full text of the release on BEA's website can be found at: https://www.bea.gov/news/2019/...d-outlays-april-2019
The Bureau of Economic Analysis provides this service to you at no charge. Visit us on the Web at www.bea.gov. All you will need is your e-mail address. If you have questions or need assistance, please e-mail customerservice@bea.gov.

Fox News is saying that Mexico is sending a delegation ASAP to meet with WH personnel this evening. They appear to be in a panic.

Good job mister President.

Jim

quote:

Originally posted by Jimbo54:
Fox News is saying that Mexico is sending a delegation ASAP to meet with WH personnel this evening. They appear to be in a panic.

Good job mister President.

Jim

I support this position double, triple, quadruple. I'm sick of bad trade, hatred for America from within, and Democrats. They have gone off the rail, and I'm completely disgusted with every one of them.

quote:

Originally posted by HighZonie:
NEW LEGISLATION TO PROTECT 5G NETWORKS: Rep. Abigail Spanberger (D-Va.) and five other House members on Tuesday introduced a bill meant to protect U.S. telecommunications networks from national security threats from companies such as the Chinese firm Huawei.

The bipartisan proposal calls for the creation of a national strategy to protect 5G wireless technology from security threats.

What the bill says: The Secure 5G and Beyond Act would require the administration to create an "unclassified national strategy" to protect the U.S. consumers and allies from threats to 5G systems. This strategy would include language on ways to encourage research and development by U.S. companies around maintaining access to 5G for all Americans, and on protecting the "competitiveness" of U.S. companies, along with the privacy of American consumers, against foreign political influence.

Spanberger is spearheading the bill with co-sponsors that include Reps. Susan Brooks (R-Ind.), Tom O'Halleran (D-Ariz.), Francis Rooney (R-Fla.), Elissa Slotkin (D-Mich.), and Elise Stefanik (R-N.Y.).

More on the bill here.
http://click1.email.thehill.co...ygtcdcrrnrtktlm.html

These retards in Washington irritate the hell out of me. Most of these morons don't know how Twitter or Farcebook work, or even how emails and texts flow across networks, yet they are going to pen a bill to protect the entire US from cyber attacks and spying via 5G networks. Give me a fricking break.

quote:

Originally posted by Jimbo54:
Fox News is saying that Mexico is sending a delegation ASAP to meet with WH personnel this evening. They appear to be in a panic.

Good job mister President.

Jim

While he has them on the ropes over this new tariff, Trump ought to announce he'll also shut down 'all' personal cash transfers to Mexico if they do not overwhelmingly cooperate in these efforts to stem illegal immigration. The "one/two" financial gut punch.