Op-ed:
Takeaways and Ramifications of the Recent G7 Summit
By: Diane Sori / The Patriot Factor / Right Side Patriots on American Political Radio

He came...he saw...he conquered...at the G7 Summit in Barrittz, France that is. And by “he” I mean President Donald J. Trump, for the “master of the deal” surely made America the "winner" once again.

The G7 summit...a gathering composed of the most advanced economies in the world as in the United States, France, Canada, Germany, Japan, Italy, and the United Kingdom...got off to a bit of a rocky start with President Trump “strongly requesting,” at last Saturday's formal dinner, that its members allow Russia back into the economic fold after being removed back in 2014 for its “illegally” annexing Crimea. And the  G7 members response...“Most of the other leaders insisted on this being a family, a club, a community of liberal democracies and for that reason they said you cannot allow president Putin—who does not represent that—back in,” so said the summit's ever foolish host French President Emmanuel Macron to President Trump.

But his words did not speak for Italian Prime Minister Giuseppe Conte who was the only G7 member to support President Trump’s rightful position. And this man, who, as I write this, attended in what's called a “caretaker roll” as he soon will be stepping down from his position, also agreed with our president that Vladimir Putin should be in on the group’s discussions about Iran, Syria, and North Korea. Smart man Conte is...too bad Italian politics have basically forced his resignation.

But why is President Trump right in his stance on Russia returning to the G7, making it the G8 once again...simply because in today's heated political world...a tinderbox world rife with those ready to kill us all...common sense alone should dictate that it's better for Russia, the world's number two super power, to be if not an actual friend at least be a de-facto partner of sorts.

So while Trump didn't win on Russia he did, as per the White House, end on a high note in five key areas, with those areas being sending a message of economic unity; the U.S. securing of a framework billion-dollar trade deal with Japan; promoting the "United States-Mexico-Canada Agreement" (USMCA); developing stronger trade with Europe; and helping to reduce India-Pakistan tensions. And let's not forget the one “win” Democrats feared most...the “win” that will not only soar economically above all the others, but it's a “win” that will assure President Trump a well deserved second term in office. And what exactly is that “win”...it's that China is now on the verge of economically bowing to President Trump, if you will, as the tariffs he imposed on them are taking their rightful toll.

Rightful toll you ask...yes...as in remember that it was and still is we the American consumer who basically paid for the "modernization of China" with our buying of their goods all while they willingly chose to undercut American goods of better quality...albeit goods with a higher price tag. Time for a little payback I'd say...time to admit that sometimes tariffs do work.

But before I get into more details involving China, lets step back a bit and focus first on President Trump and Japanese Prime Minister Shinzo Abe announcing that our two countries had agreed to the “framework” of a trade deal. This trade deal involves Japan buying excess corn from U.S. farmers; Japan lowering tariffs on imported U.S. beef and pork exports to the same levels as those proposed for the Trans-Pacific Partnership, which is around 9% down from the current 38.5%; all while keeping in place, for now anyway, the U.S. import tax of 2.5% and 25% respectively on the $50 billion worth of Japanese automobiles, trucks, and parts Japan exports to our country annually.

So why is Japan agreeing to this...simply because Japan is trying hard to stay in Trump’s good graces, if you will, in order to avoid even costlier tariffs while retaining their “positive relationship” with its key ally the U.S...an ally Japan knows well ensures its security against both China and North Korea. And Japan is also hoping to secure U.S. support in their ever ongoing “diplomatic spat” with South Korea...an escalating so nasty “spat” over Japan’s "conduct" towards Korea during World War II that has now turned into a full-blown feud over trade and national security.

And both President Trump and Prime Minister Shinzo Abe hope to get this what is now “framework” deal finalized and signed by September, when again they meet, this time in New York City for the next United Nations General Assembly. And once signed, this deal with Japan would give President Trump an actual tangible victory in the current trade war with China...a trade war that saw China announcing new tariffs on $75 billion of U.S. goods in retaliation for Trump's existing 25% tariffs on some $250+ billion in imports from China being raised to 30% come October 1st.

But like I stated earlier, China...the very country Trump has long accused of currency manipulation and carrying out flagrant intellectual property theft...that country seems to be wavering a bit...as in being on the verge of actually starting to comply for as per White House Chef Economic Advisor Larry Kudlow, “The largest part of the economic burden of the tariffs has fallen on China.” No truer words spoken as China's currency, the yuan, has sunk to an 11-year low...a low not seen since the 2008 world financial crisis..and this is no matter that the Chinese government itself, not the free market, sets its currency's value against the dollar. Also, China has lost some five million jobs and two million manufacturing jobs since the newest round of tariffs took hold while our economy remains strong as it's 50% larger than China's and relies much less on imports and exports...key elements to consider when determining who will actually “win” any given trade war.

So why exactly are the U.S. and China closer to resolving their trade dispute especially when their differences are rooted in deeply entrenched domestic politics within both countries? Why...because of President Trump's “long term” economic approach to China instead of his ignoring China's “fingers crossed behind their back” G20 commitment to fair trade...an anything but commitment that saw China “dumping” their goods below cost into our U.S. markets something past presidents, especially Obama, have ignored. And this dirty tactic is now backfiring on China thanks to President Trump's regulations overhaul which sees major American manufacturing companies returning home to the U.S., thus creating jobs here instead of over there. And this in turn is greatly hurting China's economy while boosting our own.

America and Americans first...as it should be...as it always must be.

So while China has lodged a formal diplomatic complaint what with Trump's latest tariff increases looming, both sides continue working behind the scenes to “rebalance economic relations” and move towards a trade war truce that is not only enforceable but a deal that would allow China to “save face.” Remember, as the world's third largest superpower, China cannot afford to appear weak in the eyes of the world even if President Trump appears strong...which he does. And let's not forget that China's “dumping” tactics aren't sitting too well with the Europeans either...meaning it's to China's advantage to “play nice” with the U.S. or else risk economic collapse.

Another G7 “win” for President Trump and hence the U.S., came during his side-line meeting with India's Prime Minister Narendra Modi. During this meeting President Trump publicly acknowledged India's role as a critical partner in the ongoing war in Afghanistan, reaffirmed the need for “dialogue” between India and Pakistan, and saw both he and Modi speaking of resuming bilateral trade negotiations...trade negotiations that got somewhat derailed after Washington removed the Generalized System of Preferences (GSP) for Indian exporters.

This action saw India imposing retaliatory duties on 28 American products in response to the unilateral increase in import duties on India’s aluminum and steel, but that now seems like water under the bridge because after the meeting Prime Minister Modi tweeted this, “Excellent meeting with Donald Trump. We had useful discussions on bilateral matters. We agreed to address trade issues for mutual benefit soon. Looking forward to expanding cooperation as large democracies for the benefit of our citizens and global peace and prosperity.” Says a lot now doesn't it. And not to be overlooked is India's new trade deals and ties with the Jewish State of Israel, which also helps to solidify our ties to India and India's ties to the U.S.

Yet another “win” came when President Trump, with Canadian Prime Minister Justin Trudeau by his side, talked about the importance of expanding America's trading partnership with its neighbors by passing the United States-Mexico-Canada Agreement (USMCA). And with both Canada and Mexico having essentially finalized the deal...the replacement to NAFTA (the North American Free Trade Agreement), Trump strongly noted that it was time for U.S. lawmakers to do the same...after all it's a deal where America and Americans see the most economic benefits.

But I can't speak or write this article about the G7 Summit without mentioning the more than rightful concern of our president when host Emmanuel Macron, on behalf of the French government, had the unmitigated gall to invite to the summit and who then showed up, but Iran's Foreign Minister Mohammad Javad Zarif. Saying to reporters that his invitation intent was to “deescalate nuclear tensions in the Middle East,” saw President Trump responding to the reporters that, “we’ll do our own outreach.” And pray tell how does Macron's inviting the prime minister of the world's leading sponsor of terrorism have anything to do with economics especially in light of his previous words in regards to Russia that this meeting is a meeting of “...a family, a club, a community of liberal democracies...” Simply, it does not as neither Iran nor its prime minister fit into any of those categories.

So why did Macron really invite Zarif to the summit? The answer is simple...while President Trump did know ahead of time about the invitation and let Macron know in no uncertain terms that he would not meet with Zarif, the fact is Macron did what he did, contrary to media reports, to annoy and try to discredit President Trump as well as to slap our country in the face. Trying to “trump Trump” as the big boy at the summit, Macron failed miserably as he showed himself as both catering to Iran and using Zarif for his own political purposes what with his poll numbers tanking by the day.

The islamist condoner using an islamist...hope the French people wake up and see reality...France remaining French depends on it.

So there you have my take on this years G7 Summit. Next year the summit will likely be here in the U.S... probably at The Trump National Doral grounds in Miami, Florida...and I'm sure Russia's Vladimir Putin will be in attendance...as he most assuredly should have been this time around.

Copyright @ 2019 Diane Sori / The Patriot Factor / All Rights Reserved.
 
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For more political commentary please visit my RIGHT SIDE PATRIOTS partner Craig Andresen's blog The National Patriot to read his latest article, The 2nd Amendment - History vs The Myths.

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RIGHT SIDE PATRIOTS 

Due to Hurricane Dorian...and with Diane living within the infamous "cone"...Right Side Patriots will NOT be on tomorrow night but will return live on Friday, September 6th at its regularly scheduled time and place. Look for us at: http://listen.samcloud.com/w/73891/American-Political-Radio#history...or on Tune-In at: https://tunein.com/radio/American-Political-Radio-s273246/

Op-ed:

The Upper Hand Remains Ours

By: Diane Sori / The Patriot Factor / Right Side Patriots

Thanks to President Trump, China appears to be trying to reign in the insane North Korean man-child Kim Jong-un for China’s President Xi Jinping understands well that the U.S. could and most likely will take unilateral action against the North Korean dictator if he keeps up his saber rattling and rocket launching.

And with President Xi saying that China "is committed to the target of de-nuclearization on the peninsula, safeguarding peace and stability on the peninsula, and advocates resolving problems through peaceful means," it becomes apparent that Xi knows that to do so would benefit China’s economic pocketbook...but is there actually more to his words and even more at stake than seen at first glance.

And yes...there is more at stake...much more...what with Kim Jong-un now threatening not just South Korea and Japan but threatening also to do a “mighty pre-emptive strike against the U.S.”...that is if his rockets do not keep falling into the sea. And these recent threats have seen China moving its military towards their shared border because Xi is wise enough to know that first, a war on the Korean peninsula would not serve China’s said pocketbook nor its pecking order on the world stage well and second, he also knows that a loony man-child like Kim Jong-un could just as easily turn on China... the very country that made and still finances his dictatorial bed.

In other words, while both China’s government and her people know they would suffer and suffer greatly on the economic front if war did indeed break out, they also know that both prestige and regional influence not only comes into play, but that sometimes those two factors trump even the economic scenario. And that is why President Trump tried to put the ball back in our court when he told President Xi in a recent telephone conversation that “a trade deal with the U.S. will be far better for them (China) if they solve the North Korean problem!”

 

Translation: Trump made it clear that China must, no matter the cost to them, reign in Kim Jong-un for China not only needs bi-lateral trade deals and investments with the U.S., but with us now flexing our military muscle the dynamics in both the Middle East and the Far East have changed...as in the U.S. is now leading from the front having replaced Obama’s leading from behind.

And that particular dynamic has common sense dictating that if China was smart they would switch sides in the North Korean standoff or at least call for the man-child to stand down...something they now seem somewhat to be doing.

But if truth be told an actual outward switching of sides will not be that simple for China to do what with China being a big brother, a mother, a father, and an overseer all rolled into one in regards to North Korea. And this is but a symbiotic relationship that started when China’s Chairman Mao sent more than a million Chinese troops to fight in the Korean War, and that very act directly afforded Kim Jong-un’s grandfather, Kim Il-sung, the ability to keep control of the northern half of the Korean peninsula. But as the years have unfolded, China ever so slowly has started to see and digest the reality that the current regime of Kim Jong-un has done absolutely nothing to benefit China’s growing national interests nor for its growing economy...in fact the man-child has actually harmed China’s long-coveted super-power status in certain key ways.

 

How so...with North Korea having the nuclear bomb...albeit at this time minus a successful delivery system...which in time please know they will get...and with North Korea lying on China’s eastern border...they can and do try to pretend that they are a major power broker. And as such with both threats and accusations they have held the true power brokers at bay...power brokers including China, Russia, and until just recently these United States.

Thankfully, that scenario changed for the U.S. when President Trump recently ordered U.S. warships and aircraft carriers to the waters off North Korea’s coast.

So, if an actual switching of sides by China might not be realistically feasible at this given point in time what with Chinese so-called ‘saving face’ also coming into play...know that in the near future it just might happen. And why...because China can ill-afford having a loon next door going ‘rogue’ without warning, and because the Chinese know that the U.S. dollar is mightier than North Korea’s saber rattling sword.

And how so...first let’s look at a few key number facts* about both China’s and our U.S. economy and see who, if anybody, actually holds the much needed upper hand and why they do so. 

Fact: China, thanks to rapid industrialization, is the world's largest economy with $21.27 trillion in 2016 (with the allowing for adjusted purchasing power parity which is simply the exchange rate between two currencies equaling the ratio of the currencies' respective purchasing power); the European Union is second at $19.1 trillion; and the United States, thanks to Obama’s total economic disasters, is now in third place at $18.5 trillion. But even with this China’s economic growth slowed to 7.7% last year, it continues to show some signs of decelerating further. This has certain trading partners worried, especially those that export a lot of resources to China...trading partners like Brazil and Australia.

But for China this slowdown in growth is not necessarily a bad thing as a slowing down usually does happen after years of rapid growth. And China has had an eight-fold increase in living standards in a mere 30 years...an increase that took the U.S. 122 years and Japan about 80 years to achieve. Or as economist Barry Naughton states, “China’s growth is slowing in part because it has graduated early.”

Fact: as of this past February the U.S. debt to China stands at $1.059 trillion and climbing...as in 27.8% of the $3.8 trillion in Treasury bills, notes, and bonds held by foreign countries. The rest of the $19.9 trillion national debt is owned by either the American people or by the U.S. government itself, and that once thought unimaginable number of monies owed is again thanks to the free-for-all spending of one Barack HUSSEIN Obama. 

Fact: China exported about $482 billion in goods to the U.S.in 2015 (the latest finalized numbers available), more than any other country who exported goods to the U.S., and that is according to the Office of the United States Trade Representative. However, we exported just $116 billion in goods to China during the same year, putting our goods trade deficit at $366 billion. 

Fact: China buys U.S. debt to support the value of the dollar. And why...because China ties in its currency (the yuan) to the U.S. dollar, and devalues said currency when needed to keep its export prices competitive. 

And much to the chagrin of so many, it appears on the surface that it is China who holds the upper hand in regards to the above facts for China's role as America's largest banker, if you will, gives her needed bargaining leverage no matter how the media tries to claim it does not. And China quite often, and not so quietly, states that it will sell off part of its U.S. holdings (and that includes its land holdings) if we continue to pressure her to raise the yuan's value. In fact, since 2005, China raised the yuan's value by 33% against the dollar, and between 2014 and 2015, the dollar's strength increased by 25% causing China to allow the value of the yuan to decline. And why did they allow this...simply...this decline allowed China’s exports to remain competitive with Asian countries that did not tie their currency to the U.S. dollar. 

So where exactly does our economic upper hand come in or do we actually have one at all? First, to outwardly gain the economic upper hand within a short period of time some say we can always place tariffs of up to 45% (remember President Trump spoke about that during the campaign) on goods coming into the U.S. from China. However, doing this would actually hurt both our countries as we are a prime export market for Chinese goods, and so in turn U.S. companies would lose access to China's growing middle class. 

And then China, a country who has now for all intents and purposes actually embraced capitalism, can always choose to rid itself of its U.S. Treasuries which would negatively affect U.S. financial markets by its causing so-called downward ‘shifts’ in the dollar or interest rates.

So where does our economic upper hand really lie...it lies with the fact that as China’s economy continues to develop no matter a temporary slowdown, they are now being forced to pay their workers more which in turn sees low-cost manufacturing jobs leaving China for even lower-cost countries like Vietnam, Bangladesh, and even (gasp) Mexico. And as per The Washington Post, China has also exhausted most of what economists call 'catch-up' growth from acquiring the technologies of more advanced markets for as countries catch up and get richer, their economic growth just tends to slow...and might I add while our economic growth is finally moving forward instead of just holding steady.

So how and why does all this affect China’s sudden cooperation in reigning in North Korea’s man-child Kim Jong-un...or at least their trying to. First, China is North Korea’s chief economic so-called ‘pipeline’ and that means they supply Kim Jong-un with the oil and coal needed to keep his country operational, meaning if said oil and coal is not supplied then the North Korean economy...no matter how unstable it already is...would totally collapse in full. 

Second, if that collapse did happen the Kim family dynasty would obviously come to an end, which in turn could lead to a unified Korea (which by the way will eventually happen) led by the South, which is home to tens of thousands of American soldiers sitting right on China’s border. And lastly, that would be coupled with countless numbers of refugees from the north flooding into China which would negatively impact their economy...that is unless beneficial economic trade agreements were reached between Beijing and Washington...trade agreements that would bring into China enough cash to balance out all the new mouths they would now be forced to feed.

And how does this new cooperation in turn affect the U.S...it allows the U.S. to have leverage over both any new trade agreements reached as the Chinese now know they need the increased trade and resulting cash flow in case Kim Jong-un does the unthinkable...as in turn on the so-called Chinese hand that feeds them. And that possibility is now starting to loom large what with China now doing what Kim Jong-un never thought they would do...as in suspend all imports of North Korean coal for the rest of this year. 

So in the end when push comes to shove, China does need us more than we need them for the dollar is indeed mightier than Kim Jong-un’s ever threatening sword. 

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*Number facts cited from Real Money, The Washington Post, and The Balance

 Copyright © 2017 Diane Sori / The Patriot Factor 

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RIGHT SIDE PATRIOTS...LIVE!

Today, Tuesday, April 25th from 7 to 9pm EST on American Political Radio, RIGHT SIDE PATRIOTS Craig Andresen and Diane Sori discuss who has the upper hand in regards to North Korea, misplaced indignation from both sides of the political isle, and important news of the week.

Hope you an tune in at: http://bit.ly/2cpXuRd