Tuesday, August 28, 2018

And the US-Mexico deal shitshow erupts.

Like clockwork - Trump positioned his entire " I made a deal with Mexico" story to break at lunch time yesterday and as expected the whole thing went over a lead balloon.

He tried publicizing it as a "NAFTA is dead - this is a US-Mexico deal"... and the Mexican representative responded by saying "No... it is  NAFTA negotiation" - which means a TrumpTradeFail has happened again.

The US has agreed to buy cheap car parts from Mexico needed to keep the profit margins of Ford, GM and Chrysler high and in exchange Mexico has agreed to keep buying US Corn at a price that will make sure that US Ag big shots will continue to keep donating to Trump/GOP accounts in Nov 18.

Nothing substantial has changed in the setup. The hype is far in excess of the meat here.

Nothing here could not have been achieved by a competent negotiator without the use of tariffs - most of the changes here are part of the NAFTA cooperative negotiation framework.

Everyone that is talking about how a US Mexico agreement is jacking up the pressure on Canada - you need to stop inhaling so much cocaine. There will be no movement on a purely US Mexico deal if Canada is deliberately left out. That deal would have to go through Congress and the Canadians have more to gain by holding out and waiting for Trump to kneel.

As Nov 18 elections draw nearer, the pressure will mount on Trump to make a deal with Canada. So absent a few Russian paid media channels that will attempt to portray Trump crawling on his knees as a massive victory - this will collectively produce a yawn from everyone else.

We should just rename this the "US-Mexico Corn for Cars" deal - we can then call the US-Canada Deal as "Pork for Bacon" deal.

If I was China - I would be laughing my ass off.

And in case you were watching MBS cancelled the Aramco auction - think in Saudi Arabian - that means "No Baksheesh For You Trump". I guess MBS has realized that it is best to keep Trump begging too.

What a world we live in.


At 5:17 AM, Blogger Ralphy said...

my whole point is that china will not cooperate with trump on the trade war...... they can't and survive in their present form. so, trump must capitulate in order to avoid a trade meltdown. canada and mexico is just a side show and nothing meant to be serious.

mexico will continue to use the us as a safety valve to send excess population so that they don't have to change their culture of elites and campesinos outlaw drug worship and state socialism .

At 5:26 AM, Blogger Ralphy said...

on any trade agreement with china look at the south china sea......several years ago xi promised obama that the china outposts in the south china sea would not be militarized.....now they are fully weaponized with missiles......see how a trade agreement with them works? the us faces an implacable long horizon, patient foe.

the us is short term, short memory, does not learn its lessons, nation.

At 5:29 AM, Blogger Ralphy said...

actually us elites do not like to consider the us as a nation....its more like a global vehicle to further achieve their personal goals of enrichment.......


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