THE WHITE HOUSE IS IN CIVIL WAR THIS WEEKEND:
President Donald Trump has told his voter block and the American People that:
- China is a currency manipulator subsidizing world trade illegally
- China is conducted unfair trade with the USA and everyone else
- China has been sticking it to the USA and that abuse is going to STOP
Enter Cohn adviser from Goldman and paid by – CHINA and companies that trade with China big public companies that pay Cohn’s bonus. So Cohen of my Wall Street INVESTMENT BANKING TRIBE that I understand so well having been a CEO of a PUBLIC investment banking institution – where his bible is WHAT IS GOOD FOR GOLDMAN “IS” GOOD FOR THE USA. That view has to be accomodated and is not naive either.
The majority of Trump’s team has a new set of box top rules:
- Trade must be fair
- Trade imbalances are NOT fair trade
- Abuse of the USA must STOP in 2017 period
- AMERICA FIRST in the new box top rules
- China’s decades of CHINA FIRST are done and past
So the CIVIL war got to screaming – storming out – side bars – sulking and more. As the DEAL MAKER let his kids have a temper tantrum and then as DADDY brought the “family” back together again. Will the FAMILY FUED now in huge FOLLOW THE BILLIONS AND BILLIONS that swing on POLICY in final form here – hold? What changes or moderation can Trump deal with China upon – noting a committee runs China and the factions include a majority that does not trust the USA and who holds a CHINA FIRST POLICY against the interest of AMERICA in future fair trade. The moderates do not have the votes to make a deal with Trump. The majority can not survive a crash in China as the breakdown of an order given 87% are NO LONGER MEMBERS of the COMMUNIST PARTY and the COMMUNIST knows their life or death grasp on power is in 2017 LIFE & DEATH for THEM. Because:
COMMUNISM IS ALWAYS A FAILED ECONOMIC MODEL
Without feeding by trillions of dollars after world war II and my Father providing Demming like Training for the CHINA factory reformation in the 1950’s and 1960’s – China would not be the force and influence it is today. However, by spending 300% more than it makes, by manipulating prices in all asset classes, worldwide, China planners seeking to maintain stability ( politics lead economics versus economics lead politics ) wherein – given the decades of China pure fiscal system and credit ABUSE – the SUPER BUBBLE China has brought the world now at its zenith must come SUPER CRASHING down. Nothing personal just economics 101. The only issue in China terms is when and how global will the SUPER CRASH be when it hits – without ANY WARNING and panic spreads like a black fog over the entire marketplace of the planet.
So the risk is greater than anytime since Hitler and World War II as China is desperate and so is Russia and both influence North Korea and Iran ( againsat the USA ) to monopolize thier own economic sphere trade and influence zones against the USA. Trump’s team consider all these realities. The degree of economic desperation building since the crash of 2008 is what is NEW TODAY. Urgency to get this all RIGHT for the people of ALL NATIONS.
I have written as an investment banker economist the ONE HOPE to fix all this – which includes the issue of a new class of BOND we call SUPER BONDS for sovereign nation exclusive utility. The framework for the SUPER BOND market must be worked out but was not a discussion ( yet ) in the WHITE HOUSE CIVIL WAR this weekend. Super Bonds is well written about this year in my earlier blog postings for those wishing to research that solution dynamic.
Of all Trump Policies, the one that affects the markets, the world and the future the most, will be the ASIA POLICY. THE NEW BOX TOP RULES FOR FAIR TRADE BY ASIA WITH AMERICA.
it remains fascinating to see how this all plays out with some very smart folks up in arms with EACH OTHER in the WHITE HOUSE this weekend over how to develop a common outcome. For the highest best good of us all including the Chinese people.
The problem remains – competition and politics – competitive political systems versus cooperative political systems – work where politics lead economics versus sanity where economics lead politics for the good of all humanity.
Berny Dohrmann – Helping you FOLLOW THE MONEY
PS: President Trump is being the BOSS and PRESIDENTIAL and if you could see it – all of you would be more proud than not. As Press Correspondent with NEWWIRE I GET A LOT OF INSIDE information as background for your blog reading current to the minute.
— March 12, 2017