Today’s Campaign Update
(Because The Campaign Never Ends)
Funny how this all works. – The key for being a fan of President Donald Trump’s approach to dealing with China is simple: Stay calm and wait a few days for things to work out before judging any action he takes.
If you’re panic-prone, things looked fairly bleak last Friday. The stock market had a terrible day, with the Dow dropping 600+ points after China announced a new round of tariffs on more American goods. Seemingly making matters worse (at least if you’re panic-prone), the President responded by announcing on Twitter that he would respond to China’s latest provocation by placing new tariffs on Chinese goods and raising already-existing tariffs. Raising the stakes even higher, Mr. Trump also called out China and its President Xi Jinping, for continuing to smuggle deadly fentanyl into the United States, promising harsh consequences if things did not change.
If you obsess over the market futures and other market minutiae, things still looked bad when you went to bed Sunday night, with Dow futures down more than 200 points and falling. Then you got up this morning, turned on CNBC or Fox Business and, presto change-o, the Dow futures were up 170! So what happened while you were sleeping to cause such a major shift in the outlook for Monday?
Well, the first thing was the announcement by President Trump and Japanese Prime Minister Shinzo Abe of a big, shiny new trade deal between our two countries. Next you had Trump and British Prime Minister Boris Johnson discussing the progress of negotiations on a major new trade deal between those two longtime trading partners. Combine those with the new deal with South Korea, the USMCA and ongoing trade negotiations with major trading partners like Brazil and India, and the markets were reminded China is far from the only game in town where the Trump trade agenda is concerned.
What is taking place here is a global resetting of international trade, a 50-years-late ending of the post-WWII Marshall Plan, a plan in which the United States agreed to take it on the chin where international trade was concerned in order to help rebuild the economies of all the countries, like Germany and China and Japan, which had attempted to destroy the free world just a few years earlier.
The original thought process behind the Marshall Plan was that it would remain in effect for about 25 years at most. Here we are 74 years later, and we finally have a President in place who has the intestinal fortitude and negotiating skills necessary to start the Great Unwinding.
Then there’s the ongoing issue of Chinese government-sanctioned smuggling of fentanyl, the greatest deadly drug epidemic of modern times. Late yesterday evening, Mexican officials announced they had seized a Chinese shipment containing 25.75 TONS of fentanyl, a drug that can be lethal with the consumption of just a few grams. The shipment originated in Shanghai, and was headed for Culiacán, Sinaloa, headquarters for the Sinaloa Cartel, whose target market is the United States of America.
Folks, that amount of fentanyl is enough to kill every man, woman, child, dog, cat, and Baltimore rat in the United States many, many times over. That shipment is about as close to an act of outright war any country can commit against another without firing a shot or flying a jet into a skyscraper.
Funny thing: Just a couple of hours after that seizure of Chinese fentanyl was made public, the Chinese government called President Trump and then publicly announced that it was ready to re-start trade negotiations in earnest.
Wow, what a coincidence, huh?
Now, very little of this will make its way into the pages of the New York Times or the air time of CNN or MSNBC or any of the three broadcast networks, all of whom roundly ridiculed President Trump for his “rash” remarks last Friday. But here we sit, just three days later, and he has been proved 100% right and fully justified, yet again, by subsequent events.
It is amazing how consistently this phenomenon happens. Why, it’s almost as if the President of the United States knows things that our fake news media is not privy to. Go figure.
Mark Penn, who is a very smart guy in most ways, has a piece in The Hill this morning in which he correctly notes that the President should keep pushing China but then incorrectly advises him to stay off of Twitter. Penn of course wrote this in a panic over the President’s Friday tweets. Had he waited just half a day longer, he’d have probably noticed that everything Mr. Trump tweeted on Friday had by Monday been borne out and supported by subsequent events.
So, next time you see President Trump tweet out something that seems outrageous or non-reflective of reality as you know it at that moment in time, wait a few days and see how your reality changes before you react negatively to it.
You’ll be glad you did.
That is all.
Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.