President Trump is doing exactly what his supporters told him to do. In a warning to Asian countries at the Asia-Pacific Economic Cooperation summit in Da Nang, Vietnam, President Trump said:
The US will trade with any country that wants to abide by the principles of fair trade. What we will no longer do is to enter into large agreements that tie our hands, surrender our sovereignty, and make meaningful enforcement practically impossible. Instead, we will deal from a basis of mutual respect and mutual benefit. We will respect your independence and sovereignty. We want you to be strong, prosperous, and self reliant, rooted in your history and branching out towards the future. That is how we will thrive and grow together in partnerships of real and last value. But for this, and I call it the endo-pacific dream, if it’s going to be realized, we must insure that all play by the rules. They do not right now. Those who do will be our closest economic partners. Those who do not can be certain that the United States will no longer turn a blind eye to violations, cheating, or economic aggression. Those days are over. We will no longer tolerate the audacious theft of intellectual property. We will confront the destructive practices of forcing businesses to surrender their technology to the State and forcing them into joint ventures in exchange for market access. We will address the massive subsidizing of industries threw colossal state-owned enterprises that put private competitors out of business happening all the time. We will not remain silent as American companies are targeted by State affiliated actors for economic gain whether through cyber-attacks, corporate espionage, or other anti-competitive practices.
To understand how monumental last week’s speech from President Trump was, you need to review this macroeconomics lesson on free trade and China. No seriously, you need to review this lesson before listening to the clip of President Trump below.
Below is a clip I made of the speech from President Trump:
This monumental speech from President Trump was hardly mentioned in the mainstream media. This monumental speech should have been the top news story last week. Instead, the corrupt mainstream media ran “big nothing burger” stories about President Trump and Russia. And the mainstream media wonders why so many people are angry with them and no longer trust their reporting. And then, some people are so dumb and let the mainstream media manipulate them into not listening to what the President is saying. Instead, these brain-less sheep will ignore what the President just said in Vietnam. Why? Because the mainstream media told them to not listen to this speech. How? Well the corrupt mainstream media can’t just totally block the speech so they show a little clip and remove all the stuff about China. But then too many people listen to it anyways so how does the mainstream media get them to close off their minds? They run stories about how Trump’s daughter imports some things from China in her business suggesting that you therefore can not listen to anything the President says about free and fair trade and China. Reality check: who cares about Trump’s daughter?! There’s a bigger picture story happening here about global trade! Don’t close off your mind and let yourself be manipulated by petty small stories about Trump’s daughter to where you lose sight of bigger picture macroeconomics.
The days of giving China “Most Favored Nation” trading status are over. For those who are old enough to remember, the American public was outraged that Presidents Bill Clinton, George Bush, and Barack Obama, gave China “Most Favored Nation” trading status when China was clearing violating the spirit of fair-trade. These previous Presidents played a corrupt game of pseudo-capitalism where corporations that gave campaign contributions were the puppet masters while the average American worker suffered. No other candidate who ran for office in the 2017 Presidential election would have made this speech. Congratulations to Trump supporters and all who pushed hard to get Trump elected. Now we need some tough actions to back up the tough talk and that’s when we see volatility hit markets and as swing traders, we love volatility.