President Trump is an American and not a globalist, like Obama, Bush 1 and 2 and Clinton. Big difference in dealing with other countries, friend or foe.

Huawei goes back to when they effectively stole Cisco Systems technology in the 1990's. Cisco even sued in court taking years, with Obama effectively telling Cisco to drop the suit in his 1st term (could have been the 2nd term too).

What really drove the issue home from a Chicom National Security issue, is when the U.S. sanctioned ZTE in '16 for violating US Foreign Policy by violating the US imposed economic embargo against Iran, of US goods(finished / unfinished product, components, raw materials) in '12.

I laughed at work (as I had to sever my data com links with ZTE for my employer) saying ZTE will be on line in 2 weeks after Xi Jin Ping calls Obama and reads him the riot act. He did. But then Trump in '17 hit ZTE again and indicated that Huawei's dealings with Iran would be looked in to also.

It was at this point the Chicoms got a lot more serious / aggressive / drastically accelerated the timetable for self-sufficiency in advanced Semiconductor technologies; FPGA's and Die manufacturing equipment.

Remember, folks, U.S. dictating to Japan's foreign policy against China, by embargoing Oil and Iron Ore shipments, that led to a real shooting war. So, how long will China decide to submit to U.S. global foreign policy?

BTW, even the Europeans are not happy, but the U.S. market is 'bigger' than Iran.. Still, they too are 'investigating' work arounds. As long as the USD remains number 1 (the position it took from the Pound Sterling when Brettonwoods Accords were implemented ('45 or '46), the US will be in control of the global financial system (hell, it even has hooks in to SWIFT, which no other government has).

China can fight back, rare earths are such an item. In fact several years back, western firms complained that China was cutting them off. I think China had production issues / product allocation, so China firms received rare earth production first. Once China fixed the production problems on rare earths, western firms began to receive shipments again, but...

How will this impact China and their desire to get Taiwan under it's direct control Big question. China 'could' blockade Taiwan - basically an act of war. But then so is taking down / capturing a US Intel flight in international air space and the US under Bush 1 did - zip.....

Here is were Trump is different - he is an American, where Bush 2 was a globalist........

I do 'not' envision a shooting war - both sides have NUKES, and this means there will be no winner, but a 'negotiated' settlement.

As far as tariff's on Mexico. Good. Perhaps they will now enforce their borders down south to keep passing refugees thru. The road by boat from Central America to North America is much longer and perilous, than the hop from Africa to Europe, that the Europeans have to contend with.

Capitalism has been dead since the early '90. Globalism now rules the globe.

Trade war won't kill small business — it'll make it stronger
BY GENE MARKS, OPINION CONTRIBUTOR — 06/02/19 09:00 AM EDT

THE HILL > https://thehill.com/opinion/fi...tll-make-it-stronger

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

....... " The reality is that most small businesses in this country simply aren’t affected by the China tariffs. Don't believe me? Then look at this survey conducted by Bank of America this past month of more than 1,500 small-business owners.


Fifty-nine percent of those respondents said they “don’t see any impact.” That data was backed up by the recent polling of 1,700 small-business owners from brokerage site BizBuySell. In that study, 57 percent of small-business owners said they weren’t affected by the China tariffs." .......

.......... " So what can small businesses expect if he prevails?

a more-level playing field;
greater opportunities for small manufacturers to make stuff for the American market;
more access to China’s numerous consumers;
less illegal dumping of Chinese products that kill American suppliers;
a crackdown on the bribes, graft and corruption that has always plagued U.S. business dealings with China;
a reduction of cyber-espionage that steals our data and intellectual property; and
no more joint venture "partners" that are required when one wants to do business in or with China." ..........

Trumps State Visit to Britan


>>> https://thehill.com/policy/int...uk-political-turmoil


" The timing of the trip is largely based around the D-Day anniversary, senior administration officials said. Trump will participate in a ceremony in Portsmouth on Wednesday to commemorate the Allied invasion. He will attend a larger event in France the following day.

"We've been planning this for many months, and it's a very important event to commemorate," one official said, adding there will be "many things" for Trump to talk about with May.
==============================================
Among the topics for discussion is the Chinese telecommunications company Huawei. The U.S. has warned that the company's technology is a national security threat and urged allies not to use it. British officials have said they plan to block the company's access to core parts of the country's 5G network while giving it limited access elsewhere.
===============================================

^^^ I am a bit surprised that this subject would rise to the level of mention here..... maybe something significant happening ....
===============================================

They are also likely to talk about trade. Both countries have sought to work out a bilateral deal upon the U.K.’s exit from the European Union.

But it's unclear how much the two can accomplish: May is set to resign as party leader within days of Trump's visit, and the future of Brexit remains uncertain.

June 04, 2019

Opening Remarks
Chair Jerome H. Powell

At the "Conference on Monetary Policy Strategy, Tools, and Communications Practices" sponsored by the Federal Reserve, Federal Reserve Bank of Chicago, Chicago, Illinois

>>> https://www.federalreserve.gov.../powell20190604a.htm
============================

" Good morning. I am very pleased to welcome you here today. This conference is part of a first-ever public review by the Federal Open Market Committee of our monetary policy strategy, tools, and communications. We have a distinguished group of experts from academics and other walks of life here to share perspectives on how monetary policy can best serve the public.

I’d like first to say a word about recent developments involving trade negotiations and other matters. We do not know how or when these issues will be resolved. We are closely monitoring the implications of these developments for the U.S. economic outlook and,

as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2 percent objective.

My comments today, like this conference, will focus on longer-run issues that will remain even as the issues of the moment evolve.

While central banks face a challenging environment today, those challenges are not entirely new. In fact, in 1999 the Federal Reserve System hosted a conference titled "Monetary Policy in a Low Inflation Environment." Conference participants discussed new challenges that were emerging after the then-recent victory over the Great Inflation.1 They focused on many questions posed by low inflation and, in particular, on what unconventional tools a central bank might use to support the economy if interest rates fell to what we now call the effective lower bound (ELB). Even though the Bank of Japan was grappling with the ELB as the conference met, the issue seemed remote for the United States. The conference received little coverage in the financial press, but a Reuters wire service story titled "Fed Conference Timing on Inflation Odd, but Useful" emphasized the remoteness of the risk.2 Participants at the conference could not have anticipated that only 10 years later, the world would be engulfed in a deep financial crisis, with unemployment soaring and central banks around the world making extensive use of new strategies, tools, and ways to communicate."......
......

I was pretty proud of President Trump after his announcing of the tariffs.

Usually the kind of shit we here from politicians would be something like "if mexico doest help with stopping the illegals by 2050, were gonna consider talking about drafting a strongly worded letter, threatening a .00125% tariff.

Its very refreshing to have a president with balls.

Trump said, starting in 2 weeks, a 5% tariff, that goes up 5% per month, every month. Long overdue!

quote:

Its very refreshing to have a president with balls.

Solid case hardened steel

quote:

^^^ I am a bit surprised that this subject would rise to the level of mention here..... maybe something significant happening ....

Trump has made a point of going directly to the British government on allowing Huawei to take part in 5G telephone development in the UK. The Chinese government has threatened to cut ChiCom investments in the UK if Huawei doesn't get to be a part of the 5G thing. The Chinese government has also gotten into a kerfuffle with the Canadian government over extradition of a Huawei executive from there to the US, to the point of apparently arresting at least one retired Canadian diplomat as a hostage. IIUC, the Chinese have also been aggressive about "making representations" to the EU. This is a pretty active and high-level dispute, has been for months, and seems to have far more to do with Chinese spying than with trade imbalances.

Pompeo says Huawei is an instrument of the Chinese government
http://www.reuters.com/article...pompeo-idUSKCN1SZ178

Chinese diplomat warns UK ChiComs will cut investment if Huawei is blocked there
http://www.dailymail.co.uk/new...ding-5G-network.html

Huawei CFO is arrested in Canada for extradition to the US
http://www.nytimes.com/2018/12...ada-extradition.html

Canadian diplomat arrested by Chinese as payback/leverage
http://www.foxnews.com/world/c...ex-canadian-diplomat

Chines diplomats talk to the EU about Huawei and the US' concerns
http://www.reuters.com/article...-china-idUSKCN1QZ0SE

JUNE 2019

BLS publishes experimental state-level labor productivity measures

>>> https://www.bls.gov/opub/mlr/2...ctivity-measures.htm

U.S. creates just 75,000 jobs in May and wage growth slows in warning sign for economy
Published: June 7, 2019 8:31 a.m. ET

Unemployment rate remains at 49-year low of 3.6%

Marketwatch > https://www.marketwatch.com/st...mod=mw_theo_homepage

" The U.S. economy is still on track to set a record for longest expansion ever thanks to the strong labor market, but the momentum might be fading
The numbers: The U.S. created just 75,000 new jobs in May and employment gains in the prior two months were scaled back, an ominous turn that points to a slowing economy and is likely to put more pressure on the Federal Reserve to cut interest rates.

The increase in new jobs was way below the 185,000 MarketWatch forecast.

The unemployment rate was flat at 3.6%.

The average wage paid to American workers rose 6 cents to $27.83 an hour. Yet the 12-month rate of hourly wage gains slowed to 3.1% from 3.2%.

Before the employment report, premarket trading pointed to a slightly higher opening for the stock market, but the meager gains in May are likely to disappoint investors.

Read: Weak unions, globalization not to blame for shrinking slice of income pie for workers

What happened: Hiring rose modestly in professional and business services and health care, but it was weak everywhere else. Retailers and government cut jobs,

The government also revised the increase in new jobs in April down to 224,000 from a preliminary 263,000. March’s gain was cut to 153,000 from 189,000.

Big picture: The pace of hiring has slowed since the end of last year, and even after the poor May report, the labor market is still healthier than it’s been in several decades.

Still, the economy appears to have been shaken by festering trade tensions with China and a slowdown in the key manufacturing sector. If the labor market or other indicators shows further weakness, the Fed would almost certainly cut interest rates to help shore up the economy.

Read: Economy grew at ‘moderate pace’ in late spring, more upbeat Fed Beige Book finds

Market reaction: The Dow Jones Industrial Average DJIA, +0.71% and S&P 500 SPX, +0.61% had risen for three straight sessions after Federal Reserve Chairman Jerome Powell indicated an openness to a cut in U.S. interest rates. How stocks react Friday will likely depend on whether Wall Street thinks the Fed will act soon.

Read: Fed’s Bullard says FOMC may have to cut rates soon due to trade wars, low inflation

The 10-year Treasury yield TMUBMUSD10Y, -2.70% rose slightly to 2.12%."

Small-business optimism rises to pre-shutdown levels
Published: June 11, 2019 8:05 a.m. ET

> Marketwatch > https://www.marketwatch.com/st...-2019-06-11?mod=bnbh

"The numbers: The index of small-business optimism from the National Federation of Independent Business rose to 105.0 in May. Economists surveyed by Econoday had forecast a 102.0 reading.

What happened: Six of ten survey components increased, three were unchanged, and only one fell in May. Nearly two-thirds, or 62%, reported hiring or trying to hire, a 5-point increase from April, but 54% reported “few or no qualified applicants for the positions they were trying to fill,” also up five points during the month. And 64% reported spending on capital equipment, a 6-point gain and the best since February 2018.

Meanwhile, respondents saying they’re raising their selling prices fell to a net 10%, and slightly fewer plan to raise prices than in April.

Big picture: After surging to an all-time high after the 2016 presidential election, the NFIB index slid to its lowest since 2016 earlier this year. Still, the small-business lobby called May’s reading “historically high.”

Wholesale prices barely rise in May, PPI shows, and inflation poses little threat
Published: June 11, 2019 8:30 a.m. ET


Yearly increase in producer price index slows to 1.8% from 2.2%

Marketwatch > https://www.marketwatch.com/st...-2019-06-11?mod=bnbh

"Big picture: The U.S. faces little threat from inflation, paving the way for the Federal Reserve to cut interest rates if the economy gets any weaker."

I'm watching interest rates like the LIBOR fall too. Before my re-fi my primary mortgage was based on the LIBOR.

Did anyone notice anyone besides stock traders and border goods and shipping brokers raise hell about the proposed Mexican tariffs? I didn't, and the same seems to be the case with China tariffs. If the only people concerned are those who make their money off of a series of short-term transactions then its hard to see how there's a fundamental problem.

Consumer Price Index Summary


Transmission of material in this release is embargoed until
8:30 a.m. (EDT) June 12, 2019 USDL-19-0947

Technical information: (202) 691-7000 cpi_info@bls.gov www.bls.gov/cpi
Media Contact: (202) 691-5902 PressOffice@bls.gov

CONSUMER PRICE INDEX – MAY 2019

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1
percent in May on a seasonally adjusted basis after rising 0.3 percent
in April, the U.S. Bureau of Labor Statistics reported today. Over the
last 12 months, the all items index increased 1.8 percent before seasonal
adjustment.

The food index rose 0.3 percent in May after declining in April, with the
food index accounting for nearly half of the May seasonally adjusted all
items monthly increase. The energy index fell 0.6 percent in May, with the
gasoline index falling 0.5 percent and the indexes for electricity and
natural gas also declining in May.

The index for all items less food and energy increased 0.1 percent for the
fourth consecutive month. The indexes for shelter, medical care, airline
fares, education, household furnishings and operations, and new vehicles
all rose in May. The indexes for used cars and trucks, recreation, and
motor vehicle insurance were among those that declined over the month.

The all items index increased 1.8 percent for the 12 months ending May.
The index for all items less food and energy rose 2.0 percent over the last
12 months, and the food index also rose 2.0 percent. The energy index
decreased 0.5 percent over the past year.

U.S. IMPORT AND EXPORT PRICE INDEXES - MAY 2019

Prices for U.S. imports declined 0.3 percent in May, the U.S. Bureau of Labor Statistics reported today,
following an increase of 0.1 percent the previous month. Lower fuel and nonfuel prices contributed to the
May decline in import prices. U.S. export prices fell 0.2 percent in May, after advancing 0.1 percent in
April, 0.8 percent in March, and 0.6 percent in February.
>>>> https://www.bls.gov/news.release/ximpim.nr0.htm

"Free" trade, when it's fair trade, and all parties recognize and enforce each other's IP, etc works great. It maximizes economic efficiency - this also means labor rates will equalize between the systems. (And, in a way, this is working. The West has an issue with wage stagnation, mainly due to people being stupid in job choices/a lack of increase in productivity/governmental stupidity and profligacy, but a billion people have come out of poverty in the rest of the world - which means more consumers, and if we get them educated, more producers and creators.)

The issue is the thieves get a short term gain, at the expense of crashing the system - same as Socialism.

This can be modeled by the "Liars Game" on game theory.

If Trump can lower the barriers of entry to the capital market, paired with trying to forcer "somewhat" fair trade, the economy will really take off, and Big Sister's stranglehold will wither, quickly.

However, this would have to be paired with forcing trading houses to only selling stock they actually own.

You cannot expect other governments to be honest. Thus, free/fair trade will never work.

I say, tariff the hell out of the sonsabitches, and if they don't like it, well..fire up all those shuttered factories and put thousands of Americans back to work.

June Survey of Current Business released by BEA:

>> https://apps.bea.gov/scb/

drill down to details by clicking on the various subjects.

Headliner: First Quarter Real GDP increased 3.1 percent, reflecting positive contributions from consumer spending, inventory investment, exports, state and local government spending, and nonresidential fixed investment. [PDF]

Deficits are exploding – and neither party seems to care
Alex Pappas By Alex Pappas | Fox News

Fox News > https://www.foxnews.com/politi...-party-seems-to-care

Kicking the can down the road is becoming more dangerous. The astronomical debt is growing at a fast rate.

I know, the Republicans have to give earmarks to the Democrats to get what they want, and vice versa.

I know, some of the spending now is very strategic and must be done now.

But, this monster has to be addressed. If we ran our households like this we would all be broke long ago. The full faith and credit of the United States of American is eroding ...

Tick, tick, tick.

House approves $383 billion spending package
BY NIV ELIS - 06/25/19 02:50 PM EDT 0

The Hill > https://thehill.com/homenews/h...ion-spending-package

"House Democrats on Tuesday passed a $383 billion spending package, finishing work on three-quarters of the annual appropriations bills on its docket ahead of the July 4th recess.

The package of five funding bills passed in a vote of 227-194, largely along party lines. It includes funds for Commerce and Justice; Agriculture, Interior and Environment; Military Construction and Veterans Affairs; and Transportation, Housing and Urban Development.

The legislation's passage means Democrats have successfully completed work on nine of the 12 annual appropriations bills in their chamber. They are set to pass a 10th bill, covering financial services and general government, this week.

ADVERTISEMENT
The other two, however, will likely come in July. The legislative branch funding bill, usually among the least controversial of the pack, was stripped out of an earlier "minibus" spending package due to disagreements over whether or not Congress should increase its own pay.

The final bill, on homeland security, deals with some of the most toxic issues between Republicans and Democrats: immigration and President Trump's proposed border wall. That bill was at the center of the historic 35-day shutdown earlier this year.

While the House will just miss its goal of moving all 12 bills in June, it remains months ahead of the Senate, which has yet to unveil a single spending bill. ".......
......