Foxconn, the world’s largest contract electronics maker, is considering setting up a display-making plant in the United States in an investment that would exceed $7 billion, company chairman and chief executive Terry Gou said on Sunday.
The plans come after U.S. President Donald Trump pledged to put “America First” in his inauguration speech on Friday, prompting Gou to warn about the rise of protectionism and a trend for politics to underpin economic development.
Foxconn’s proposal to build a display plant, which would be planned with its Sharp Corp <6753 .t=""> unit, depend on many factors, such as investment conditions, that would have to be negotiated at the U.S. state and federal levels, Gou told reporters on the sidelines of a company event.6753>
Gou said that Foxconn, formally known as Hon Hai Precision Industry Co <2317 .tw="">, had been considering such a move for years but the issue came up when Foxconn business partner Masayoshi Son, head of Japan’s SoftBank Group Corp <9984 .t="">, talked to Gou before a December meeting Son had with Trump.9984>2317>
In the early 1950’s, more than 90 American companies made television sets. Today, the last American-owned television manufacturer, the Zenith Electronics Corporation, gave up its battle to survive on its own and agreed to sell a controlling interest to a South Korean industrial giant.
LG Electronics Inc., the South Korean manufacturer whose products sell under the Goldstar name, announced with Zenith that it would lift its stake in that company to 57.7 percent from the current 3.8 percent. It will gain control by paying $10 a share, or more than $350 million, for a combination of newly issued and existing Zenith common stock.
Zenith, which is based just north of here in Glenview, was founded in 1918 as a radio manufacturer and in the years after World War II fought for leadership in the television industry against rivals like RCA, General Electric, Magnavox, and Motorola.
Much of the text of the TPP was unknown to American citizens since it was lobbied and created in secret. However, leaked sections of the document revealed a plan to not only “remove barriers on trade” which, in reality, is political speak for NAFTA on steroids and a massive sucking sound of American jobs fleeing across the Pacific, but also that the TPP contained a number of frightening points that would have allowed for the corporate domination of the American regulatory system, copyright law, and the Internet as well as the American food supply.
If Americans don’t stop TPP corporations will literally be able to circumvent the existing laws of the EPA, FDA, trade unions, collective bargaining agreements, patent protections, banking regulations and many other American regulations and rights. All will be negated solely by the arbitrary diktats of corporations. This treason is being currently and secretly included in the language of the TPP treaty here in San Diego. Should state, local, or federal governmental agencies attempt to enforce American laws in favor of their citizens that conflict with the wishes of the multi-nationals, a separate corporate court will have supreme jurisdiction – and the last say – over any American governmental agency. Ominously called, “The Tribunal,” it has the power to override any existing American regulation. Absurdly, Federal agencies, State Gov’ts, City authorities, citizen’s property rights, and competing American corporate interests will be considered as the Defendant before this tribunal. When brought to the dock, these defendants – these nations – will be charged, by the plaintiff corporation, with a new crime: “Technical Barrier to Trade.” Really.
Many analysts are suggesting that Trump’s Executive Order is a signal that the Trump administration truly plans a more protectionist trade policy. We certainly hope so.
We congratulate President Trump for ending the push for the disastrous TPP and we hope that NAFTA and the various other “free trade agreements” such as CAFTA, GATT, and the various bilateral agreements made between the U.S. and China are next on the chopping block. Indeed, this writer has long advocated for an end to the TPP, even including it in my list of demands for a political revolution.
We strongly encourage President Trump to continue his assault on the disastrous Free Trade policy that has so utterly devastated the American economy.
Venezuela’s desperate economic times are not ending anytime soon. The nation entered an economic emergency for the 6th consecutive time under Nicolas Maduro’s leadership. The Venezuelans endured massive currency devaluation last year. Food shortage, rising prices and lack of basic amenities is making them flee to neighboring countries, especially Brazil. The opposition’s task to get the President recalled have fallen flat in 2016 and the country is now entering a pressure cooker situation with increasing volatility and political volatility.
Here are 3 reasons why the Venezuelan crisis is as scary as it is disturbing.
People have no option- neither government, nor opposition
It is difficult to imagine a country that has given up on the government as well as the opposition, unless you go to Venezuela. The Democracy Unity Roundtable (the united opposition, known as MUD) has failed in creating a roadmap to fuel the fire of citizen’s demands. When times turned rough and protests began late in 2016, the opposition was as overwhelmed as the government and failed to capitalize the unrest into a political movement.
Datanalisis, a polling firm based in Venezuela, confirmed that only 1/5th of the citizens support the Maduro government in testing times. With a popular vote meandering around 20% and economic emergency in place, there is nothing that Maduro can do to strengthen his position in public. However, the people are also disappointed in the united opposition coalition that has failed to revive hope or even a political change. Even with an opportunity, the opposition appears overwhelmed and directionless, if nothing else.
To be or not to be – with Maduro or without?
The deadline for the recall referendum of the President has passed, thanks to the involvement of the government officials who slept on the idea until it was no longer viable. Fresh elections are a year away and Venezuela has months to go before the hitting on the release valve and finally selecting someone new. The country does not support Maduro or his left-wing Hugo Chavez ideology anymore. However, a recall referendum will only mean that he will be replaced by Tareck Al Assami, the radical Vice President appointed by Maduro himself.
In this situation, Venezuela could fall into a vicious trap. While the chances of Maduro losing to a coup are highly unlikely, if he loses in a referendum, Assami will take his place. He is known for his radical approach. He has been linked to human trafficking, drugs and even Hezbollah which creates an even darker picture of the country’s future than what Maduro has painted now. Most likely, the Venezuelans must wait till 2018 for fresh elections. Contrary to this, many smaller-level elections have been called off in the country recently which may not be a favorable decision for the people.
The real struggle is for power- left is no more socialist
The political and economic problem with Venezuela is the struggle for power. Chavistas (supports of Hugo Chavez and his left-centric ideology) have been trying hard to get their way through the chaos. Whether Maduro remains or Assami gains power depends on their wish to gain more political leverage out of the country’s misery. Venezuela has turned into a case study of economic socialism. The country is struggling with poverty and crime is rampant on the streets. The basic infrastructure of the nation is on the brink of breaking down and survival has become difficult with each passing day. It has even been termed a ‘failed state’ by political analysts. Mass migration is another big problem. People have started fleeing the nation to find better opportunities in neighboring countries. The crisis that Venezuela brought to its currency is another case study of a failing currency and a crashing economy.
Venezuela is one of the states that are troubled with rising internal crises. Maduro blames lowering oil prices for the doom but this hasn’t helped people lining up for food and other necessities in the country. With people fleeing the country, currency crisis at an all-time high and political lethargy, the country can either wait for a strong visionary leader or fresh elections in 2018.
The political crisis in Venezuela needs to end quickly for the good. The inflation is at all time high and if things continue likes this then it won’t be too long before there is mass exodus.
According to the United States Constitution, Article 1, only Congress shall make Federal Laws. However, since the “War and Emergency Powers Act” of 1932, every President has usurped the lawmaking powers of Congress by creating Presidential “laws” called “Executive Orders.” These Executive Orders, not our Constitution, have been governing America ever since. The “War and Emergency Powers Act” decrees that the President alone can declare a National Emergency and essentially become a dictator.
The President can also declare a “war” on anything and thereby also give himself dictatorial control. For example, the “War On Drugs” makes it possible to use Federal authorities, such as FBI, FEMA, BATF, and the U.S. Military against American citizens even though these agencies have no authority to do so under the Constitution. A particulary gruesome example of this would be Waco. Another example would be hurricane Opal. After Florida was declared to be in a state of National Emergency, FEMA was brought in and all citizens were put under Marshal Law and restricted to the point they could not go outside their own front doors. This was utterly un-Constitutional.
The “War and Emergency Powers Act” is a treasonous act on the part of our government, passed so Presidents can bypass the Congress and do whatever they choose. It also makes it possible to do away with the “posse comitatus” in cases of “emergency”. The “posse comitatus” is what protects the American citizens from the military being turned on them. In Germany, the military and the Gestapo were turned on German citizens. Now, in an “emergency”, the U.S. military can be turned on the American citizens. The Federal Government has its own Gestapo in the form of the FBI, the BATF, and FEMA.
These Executive Orders have not been widely publicized, and most Americans are completely unaware of them. If they were aware of what has been going on, most of the 250 million Americans would not tolerate it for another minute. Interestingly, copies of these illegal, un-Constitutional Executive Orders are avaiable to the American public. They are all printed in the U.S. Federal Register and have the force of law when activated by a President. You can contact your Congressman for information on how to get copies of these Executive Orders, or check your local library.
The Conspiracy Of The New World Order World War 3 The Secret
The genocidal depopulation plan generally involves poisoning or sterilizing people through the use of chem. trails or water fluoridation. Agribusinesses transnational like Monsanto are often implicated in some sort of scheme to monopolize the world’s food supply so it can be easily tainted with deadly toxins. Just about anything that can be said to involve “chemicals” can be implicated in this nefarious scheme: vaccines, alleged covert geo-engineering schemes, genetically modified food, etc. Variants of the theory include those with an anti-abortion tinge who incorporate conspiracy theories about Planned Parenthood, and AIDS conspiracy theorists who believe AIDS was concocted in a laboratory for the purpose of reducing the population. Another variant, largely attributable to Lyndon La Roche, has worldwide nuclear war as part of the conspirators’ alleged plan along with a deliberate economic collapse and de-industrialization to force the world back into a “new dark age.”
Here are examples of just a few Presidential Executive Orders and their purposes:
10995– Federal seizure of all communications media in the United States.
10997–Federal seizure of all electric power, fuels , minerals, public and private.
10998–Federal seizure of all food supplies and resources, public and private, all farms and equipment.
10999–Federal seizure of all means of transportation, including cars, trucks, or vehicles of any kind and total control over all highways, seaports and waterways.
11000–Federal seizure of American People for work forces under Federal supervision, including the splitting up of families if the government so desires.
11001–Federal seizure of all health, education and welfare facilities both public and private.
11002–Empowers the Postmaster General to register all men, women and children in the United States of America.
11003–Federal seizure of all airports and aircraft.
11004–Federal seizure of all housing and finances, authority to establish Forced Relocation.
Designates areas to be abandoned as “unsafe”, establishes new locations for the populations, relocate communities, build new housing with public funds. 11005–Seizure of all railroads, inland waterways and storage facilities, both public and private. 11051–Provides the Office of Emergency Planning (FEMA), complete authorization to put above orders into effect in times of increased international tension or economic or financial crisis.
These particular executive orders are outdated but they have been turned over to FEMA which can activate them in a time of “national emergency.” President Clinton took care of this problem of lapsed or outdated Executive Orders on June 3, 1994, (and released on June 6, 1994), when he drafted a new Executive Order that would cover ALL the above issues.
This new Executive Order will be the only thing he needs to enact in order to become a full dictator. It covers ALL the Executive Orders mentioned previously. The only thing this Order doesn’t do, is define WHAT the “National Emergency” would have to be in order for this Executive Order to be signed. Please keep that in mind. Anything can be declared a National Emergency for this new Executive Order to be enacted. Here is the summary of President Clinton’s new Executive Order 12919: Part one of the Order describes the purpose, policy, and how this Executive Order would be implemented.
In Section 103 of Part One, it describes how the various Federal departments and agencies will be responsible to implement all the measures described in this Order. This means all 50 individual State Departments will have no say in what is happening. It goes without saying that American citizens will have no say, either. These Federal departments and agencies are charged with identifying the requirements for the “full spectrum of National Security emergencies.” This includes the “military, industrial, and essential civilian demand.” Part of their job will be to “foster cooperation between the defense and commercial sectors.”
Section 104 sets up the Federal Emergency Management Agency (FEMA) to oversee the carrying out of Executive Order 12919. FEMA has already been involved with any number of “national emergencies” which have occurred since it’s inception (hurricanes and floods are the most common). When this new Executive Order is implemented, FEMA will be responsible to act as advisor to the National Security Council. FEMA will coordinate the plans and the programs to the “authorities and functions delegated”. It will establish procedures to resolve conflicts and issues that may arise while implementing this Executive Order.
FEMA will report directly to the President on a regular basis. In Part Two, the President will delegate authority to allocate the materials, services, and facilities necessary to promote the national defense. The various agency heads who will have designated assignments would be: The Secretary of Agriculture, The Secretary of Energy, The Secretary of Health and Human Services, The Secretary of Transportation, The Secretary of Defense, and The Secretary of Commerce.
FEMA will be used to resolve any problems with issues between the various agencies. All department heads will give their findings to the President for approval. (More detail about what these department heads will be doing a little further in the report). In Part Three, the financing of the Order is discussed and the Federal Reserve will be heavily involved. Under Section 310, they talk about the critical items list needed to take care of the “National Emergency.” Each agency head will ensure that all the critical components and technology items are available from the reliable sources to “meet defense requirements during peacetime, graduated mobilization, and national emergency.” Part Seven is titled “Labor Supply.” It is almost common knowledge now that there are large civilian labor camps on military installations in a number of locations around the U.S. There are also processing centers where people can be separated to go to the various camps. It will be the Secretary of Labor’s job to, in Section A, “Collect, analyze and maintain data needed to make a continuing appraisal of the nation’s labor requirements and the supply of workers for purposes of national defense.” Section C deals with how to “formulate plans, programs and policies for meeting for defense and essential civilian labor requirements;”.
Section E addresses the Secretary of Labor’s responsibility to determine the jobs and the skills that will be critical to meeting the labor requirements of defense and of essential civilian activities. Keep in mind that FEMA is the organization behind the civilian labor camps. They are also the organization that will make this Executive Order function smoothly. Part Nine, Section 901 is interesting. It talks about the National Defense Executive Reserve (NDER). This is an executive branch composed of people of various parts of the private sector, along with full-time federal employees. Their purpose is to train people in executive positions in the Federal government in case of an emergency that would require that type of employment.
FEMA, of course, will coordinate the NDER program activities of the departments and agencies. In section 602, Part Six, we get down to what it means to the average American citizen. In the case of a Presidential decree of National Emergency: The President of the United States, with the help of federal agencies, will have control. We will not be including all the subsections, just the ones that hit the American Citizen where he or she lives.
(a) Provides for total Federal control of all transportation, “regardless of ownership”. This means if they need your car, they’ve got it. They will control all public transportation also.
(b) Provides for total Federal control of all forms of energy, including “petroleum, gas (natural and manufactured), electricity, solid fuels (including all forms of coal…..), atomic energy, and the production, conservation, use, control, and distribution (including pipelines).” This means the Federal Government will have complete control over who will have power (electric) and who won’t.
(c) Provides for total Federal control of all farm equipment. Farmers will now have to be part of “the production or preparation for market use of food resources“. They did this in Russia. The farmers worked for the government.
(d) Provides for total Federal control of all fertilizer. This means that any “product, or combination of products that contain “one or more of the elements –nitrogen, phosphorus and potassium” will be able to be confiscated by the Government. These are key plant nutrients and gives the government even more control over agriculture…from farms to potentially home gardens.
(e) Provides for total Federal control of all food resources. ALL means ALL. This includes all “commodities and products, simple, mixed, or compound, or complements to such commodities or products that are being ingested by either human beings or animals….”. (emphasis mine) This includes all “starches, sugars, vegetable and animal or marine fats and oils, cotton, tobacco, wool mohair, hemp, flax fiber, and naval stores”. That means they can come into your home and take all of your food. Period. Catherine Bertini, the Executive Director of the U.N. World Food Program made an interesting comment in Beijng, China, at the U.N. 4th World Conference on Women in September, 1995. She said, “Food is power. We use it to change behavior. Some may call that bribery. We do not apologize.”
(f) Provides for total Federal control of all food resource facilities. This means “plants, machinery, vehicles and other facilities required for production, processing, distribution and storage (including cold food storage).” This includes “livestock and poultry feed and seed”. In other words, they will control anything and everything that has to do with food.
(j) Provides for total Federal control of all health resources. This means EVERYTHING. They will have control over all “materials, facilities, health supplies, and equipment (including pharmaceutical, blood collecting and dispensing supplies, biological, surgical textiles, and emergency surgical instruments and supplies.” They will be able to come in and take your medicine.
(k) Provides for total Federal control of all metals and minerals.
(m) Provides for total Federal control of all water resources. ALL usable water from all of the sources within the jurisdiction of the United States. All the water that can be “managed, controlled and allocated to meet emergency requirements”. Not only will they be able to turn off your water supply, they can come and take any water you have stored in your house. How many of you knew about this? I find it very interesting that one person, the President of the United States, has the authority to control the life of every single person in the country.
This new Executive Order 12929 gives step by step instructions on the complete take over and control of every American civilian. Executive Order 12919 fails to address the issues of dignity and individuality of human life. It brings Americans down to the level of domesticated animals. Animals have no control over their owners. Animals have no possessions. Domesticated animals aren’t fed unless the owners do it. Some animals work for their owners. Some animals are used in lab experiments for research purposes. Animals are sometimes put to sleep when they become old, crippled or weak. We have had an abnormal amount of Presidentially-declared “national emergencies”. And each time FEMA has been on the scene. If you don’t believe these Executive Orders exist, you can contact the Capitol and get a list of all those President Clinton has personally signed. He once commented, “If Congress doesn’t cooperate with me, I’ll just run the country by Executive Order.” He has done just that. Clinton has signed more Executive Orders than ANY prior President. To receive a fax index of the Executive Orders Clinton has signed, contact the White House Publications Fax Line by doing the following: Dial 1 202 395-9088. Listen for further instructions.
When it asks if you know the number of the document enter: 5555. Follow the rest of the instructions and your Index to Executive Orders will be faxed to you. After you receive the Executive Order Index, you can ask for copies of the individual Executive Orders by Index number. (Not the Executive Order number.)
Message Creation Date was at 12-NOV-1997 17:03:00 THE WHITE HOUSEOffice of the Press Secretary For Immediate Release November 12, 1997
CONTINUATION OF EMERGENCY REGARDING WEAPONS OF MASS DESTRUCTION On November 14, 1994, by Executive Order 12938, I declared a national emergency with respect to the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States posed by the proliferation of nuclear, biological, and chemical weapons (“weapons of mass destruction”) and the means of delivering such weapons. Because the proliferation of weapons of mass destruction and the means of delivering them continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States, the national emergency declared on November 14, 1994, and extended on November 14, 1995 and November 14, 1996, must continue in effect beyond November 14, 1997. Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing the national emergency declared in Executive Order 12938.
This notice shall be published in the Federal Register and transmitted to the Congress. WILLIAM J. CLINTON THE WHITE HOUSE
The Chinese comments came after Trump in his inauguration speech said his administration would focus on an “America first” approach to foreign policy
Over the weekend China used the Trump inauguration to warn about the perils of democracy, touting the relative stability of the Communist system as President Xi Jinping heads toward a twice-a-decade reshuffle of senior leadership posts.
Without directly referencing the new president, China wrote that democracy has reached its limits, and deterioration is the inevitable future of capitalism, according to the People’s Daily, the flagship paper of China’s Communist Party. It devoted an entire page on Sunday to critiquing Western democracies, quoting former Chairman Mao Zedong’s 1949 poem asking people to “range far your eyes over long vistas” and saying the ultimate defeat of capitalism would enable Communism to emerge victorious.
“The emergence of capitalism’s social crisis is the most updated evidence to show the superiority of socialism and Marxism,” said one of the People’s Daily articles.
“Western style democracy used to be a recognized power in history to drive social development. But now it has reached its limits,” said another article on the same page. “Democracy is already kidnapped by the capitals and has become the weapon for capitalists to chase profits.”
The Chinese comments came after Trump in his inauguration speech said his administration would focus on an “America first” approach to foreign policy, undermining hopes abroad that the new president would moderate his protectionist tone. His pledge to abandon a U.S.-led Pacific trade pact has enabled China to step in as the chief advocate of an alternative Asia-wide deal.
Sensing a global feeling of discontent, China was quick to appease the public and deflect US woes to the terminal decline of its democratic system. With ministries and senior officials stressing unity as a priority for China, smoothing the path for the party’s congress in the fourth quarter, state media were quick to highlight divisions within America shown by Trump’s elevation.
As Bloomberg observes, the unusual series of commentaries in the People’s Daily mirrors Soviet efforts to promote an alternative political and economic system during the Cold War. The rise of anti-establishment, protectionist politicians like Trump, amid populist winds on several continents, has sent political parties scurrying to shore up their support, helping China to portray itself as relatively steady.
Ironically, realizing a power vacuum is forming in global “governance”, Xi has used recent speeches to international audiences to tout China’s economic and political values and has said that globalization, despite its flaws, should endure via the existing international system of finance and trade. That’s even as state media criticizes democracy and capitalism amid efforts to build support at home for the party. Translation: China remains largely an export-driven economy, and any threats to the global trade model could have dire consequences for social stability in China.
“China’s rising wealth has brought greater global presence, but that’s not enough,” said Zhang Ming, a political science professor at Renmin University in Beijing. “The Communist leaders want that someday China will matter globally for the nature of its political system and create its own universal values.”
As a result, Trump’s policies will give China a chance to take a bigger global role, said Zhang. “China doesn’t have a better Communist system than it used to have, but the global economic and political turmoil has undermined public confidence in western democracy,” he said.
Separately, in comments made by Zhang Jun, director general of the Chinese Foreign Ministry’s international economics department during a briefing with foreign journalists to discuss President Xi Jinping’s visit to Switzerland last week, he said that China does not want world leadership but could be forced to assume that role if others step back from that position. The senior Chinese diplomat’s statement also followed Trump’s pledge to put “America first” in his first speech.
Speaking days before Trump assumed the presidency, Xi also urged countries to resist isolationism, signaling Beijing’s desire to play a bigger role on the global stage. Elaborating on that theme, Zhang said China had no intention of seeking global leadership.
“If anyone were to say China is playing a leadership role in the world I would say it’s not China rushing to the front but rather the front runners have stepped back leaving the place to China,” Zhang said.
“If China is required to play that leadership role then China will assume its responsibilities,” he added.
“We still hope that the United States and other Western economies can continue to make an even bigger contribution to the world economic recovery. We’ve heard Trump announce that the United
States will achieve four percent growth and we’re very happy about that,” he added.
Returning to Trump, Zhang said he thought Trump would not be able to achieve his economic growth goals if he was also fighting trade wars. “A trade war or an exchange rate war won’t be advantageous to any country,” Zhang added. But mostly China.
Separately, Chinese Foreign Ministry spokeswoman Hua Chunying said Xi had sent a congratulatory message to Trump upon his assumption of office, but gave no other details.
Gold price to 2 month high as fiery Trump declares New American Order
– ‘Trumponomics’: Politics and economic policy in 140 characters– The ‘intelligence’ according to Trump– Trump, Putin and Russia – the great bromance– Trump – Bull in a China shop– Trade and currency wars with China and other nations– Trump – Fan of gold and golden tweets– Conclusion – Trump may be the ‘Golden Ticket’
by Jan Skoyles, Editor Mark O’Byrne
On Friday Donald J Trump became the 45th President of the United States of America.
Gold prices were surprisingly muted on Friday but did begin to rise towards the end of trading and rose from below $1,200 to over $1,212 per ounce before closing slightly lower at $,207.60 per ounce.
Gold is looking very healthy technically and has risen for four weeks in a row and reached a two month high this morning at $1,219.43 per ounce – its highest since November 22nd. According to Bloomberg holdings in gold-backed ETFs climbed for the fifth day in a row by 0.9 tons.
Gold is gaining on increasing investor concern about the Trump Presidency and uncertainty regarding what is set to be his radically different term in office. The dollar has continued to weaken as markets prepare for major changes to US trade, economic and foreign policies.
The British pound has hit a five week high, along with the yen and 10 year US Futures. Shares fell across most markets, the dollar fell 0.5%, which RBS Capital markets blame on “the lack of economic policy detail in President Trump’s inauguration speech coupled with concerns over his potential protectionist stance.”
“The market is now worrying about what would come out from the new administration,” Bob Takai, chief executive officer and president of Sumitomo Corp. Global Research Co., told Bloomberg. “In this kind of very unforeseeable environment, people want to buy gold,” he said, adding the biggest factor was the strength of the dollar and the outlook for interest rates.
More on Trump’s like of gold and golden tweets below
Trump’s fiery inauguration speech was a significant step away from the more presidential-tones of his November acceptance speeches. It was full of protectionism, promises to ‘hire’ and ‘buy’ American and strident nationalism.
The weekend was not full of any shocking declarations such as currency manipulation or border taxes, however Trump did tweet yesterday that he would be sitting down with Canada and Mexico to discuss NAFTA.
Across the world, most people aren’t sure what to think. Markets seem disappointed that Trump’s inauguration speech contained few details on fiscal policy, tax cuts and infrastructure spending. For the first time following a Presidential election we are more likely to feel uncertain post inauguration than we were in the run-up to the vote.
With Trump we are facing something new and radically different. His tweets are not only emotional and reactive but the subject of them combined with his general message go against the status quo, or international order (of the West) that we have seen supported in political America for so long.
The status quo opinions on Russia, free trade, strong dollar, China and war – has long been supported throughout Western politics, regardless of party leanings since the end of World War Two.
Politicians, policy makers, markets and the general public around the world are now having to come to terms with what this might mean. And whilst they figure it out, we expect heightened uncertainty.
For gold investors this is likely good news in both the long and medium term. We expect to see severe volatility due to Trump’s unexpected actions and tweets. Markets will be very nervous and wait with baited breath to see how the affected party, be it the EU, China, Russia or Congress, decide how to react.
‘Trumponomics’: Politics and economic policy in 140 characters
It was generally expected that we would see markets pull back in the week running up to the inauguration as confusion tends to surround anticipated policy from the new administration.
That is precisely what has happened, but it was exacerbated by both Trump’s direct comments to the press and his own tweets. Trump’s tweets and comments, clearly have an impact on sentiment. GM, Boeing and Toyota have all felt the wrath of the market following a Trump Tweet.
And, when companies thought it could not get much worse for them, this week Trump told the Wall Street Journal that the US Dollar was too strong, breaking the unwritten rule that Presidents do not comment on the currency.
The dollar headed south following the comments. This surprised markets who were getting used to the Trump Trade that had seen equity markets and the dollar embark on a rally since the election result.
On a political note, Trumps’ comments to Bild on NATO being obsolete have put the first military alliance that combines both Second World War agreements and post-Soviet Union countries on an awkward and unstable position. Comments against NATO flies in the face of US foreign policy.
Trump reconfirmed his views, by tweeting “My statement on NATO being obsolete and disproportionately too expensive (and unfair) for the U.S. are now, finally, receiving plaudits!”
The above is just a recent reminder of the power of a Trump statement and that his favoured medium of communication, one that is un-vetted and seemingly unadvised, continues to take some getting used to.
There seems to be some thinking that once Trump takes office, the tweets will calm down.
Trump has no plans to stop, telling the Sunday Times, “…I can put out Twitter — and it’s not 140, it’s now 280 — I can go bing bing bing… and they put it on…”
Everyone is aware of how Trump is changing how Presidents will rule and make statements, Wei Li, iShares head of investment strategy EMEA, said in a recent interview with TradngFloor:
“There are some really unexpected things happening with the Trump administration and there are no doubt a lot more people paying attention to Twitter at 2am in the night…We are operating in a very different environment where markets are reacting and adapting to changes that have not been seen for a good decade or more.”
The CIA’s outgoing director, John Brennan, has also warned Trump that his tweets are not only bad for markets but also for national security: “Spontaneity is not something that protects national security interests…So therefore when he [Trump] speaks or when he reacts, just make sure he understands that the implications and impact on the United States could be profound.”
In all likelihood, Brennan’s advice will not be heeded by Trump.
The ‘intelligence’ according to Trump
John Brennan had been feeling Trump’s wrath for a long time. The new President has long criticised the intelligence services in the US, at one point suggesting Brennan was the ‘leaker of fake news’ following the Golden Shower story.
Trump had previously likened the intelligence services the Nazi regime, tweeting
“Intelligence agencies should never have allowed this fake news to “leak” into the public. One last shot at me. Are we living in Nazi Germany?”
As Zerohedge pointed out recently, no president since JF Kennedy has dared to take on America’s seemingly untouchable intelligence agency. The website writes, “If his refusal to take intelligence briefings, or follow CIA advice is serious, then serious consequences will follow. If Trump is serious about peace with Putin when they insist on war, there will be a problem.”
Trump has already announced that he will be replacing Brennan with Mike Pompeo, something which may be seen as a smart move for Trump, but whether it is so for the rest of the world, time will tell. Either way there is a changing of the guard from deep within the national security state that has, until now, been widely listened to when it comes to geopolitical, international and domestic threats.
Trump’s lack of desire to toe the status quo party line is something intelligence services around the world will seemingly have to get used to. This has become acutely apparent when it comes to matter of Russian relations, which was what triggered the most recent bout between Trump and the intelligence community.
Trump, Putin and Russia – the great bromance
Trump’s desire to improve relations with Putin and the Kremlin is the most glaring difference between his ideas and those of the status quo, and alongside his thoughts on NATO has much of the Western community nervous.
When CIA Director John Brennan responded to Trump’s comments comparing the US Intelligence Agencies to Nazi Germany he not only said that the then President-elect had crossed the line but also warned him about Russia:
“Mr. Trump has to understand that absolving Russia of various actions it has taken in the past number of years is a road that he, I think, needs to be very, very careful about moving down …”
It wasn’t until last week that Trump admitted it was likely that Russia had been involved in cyber-attacks and hacking, having previously expressed doubts over US Intelligence Agencies assertions in this regard.
A US Intelligence Report, seen by both outgoing President Obama and President Trump alleged that Russia had tried to sway the outcome of the 2016 election. However, there was little hard evidence and it did not state if the measures specifically had been successful.
In an interview with the Wall Street Journal, Trump vowed to improve relations with Putin and Moscow. He stated that the sanctions imposed by Obama last month, may be removed in exchange for support in fighting terrorism and meeting other US goals.
He reiterated his desire to work with Russia again in an interview with the Sunday Times, claiming that he wanted both the nuclear powers of the US and Russia to be
“reduced very substantially…They have sanctions on Russia — let’s see if we can make some good deals with Russia. For one thing, I think nuclear weapons should be way down and reduced very substantially, that’s part of it.”
In the same interview in The Times, Trump also criticised Putin and his country, for their involvement in Syria’s war, describing it as “a very bad thing” that had led to a “terrible humanitarian situation.”
It is no secret that Poland and Finland have been preparing themselves, with some international support, for a possible attack from Russia. Whilst neither Russia nor Europe have commented directly on any potential threat, Kremlin spokesman Dmitri Peskov says “threatens our interests, our security”.
Trump’s comments on both Russia and China, and apparent planned-policies regarding them, are very different to current foreign policies stances of the U.S., the EU, the UK and NATO.
Trump – a bull in a China shop
At various points during Trump’s campaign he managed to rile China, accusing them of currency manipulation and of ‘raping American jobs’. Then, he really made sure they were paying attention and increased tensions even more when he accepted a call from Taiwan’s President, on his birthday.
For just some of Trump’s issues with China, it’s worth looking at yet more of his tweets:
January 3: China has been taking out massive amounts of money & wealth from the U.S. in totally one-sided trade, but won’t help with North Korea. Nice!
December 18: We should tell China that we don’t want the drone they stole back.- let them keep it!
December 17: China steals United States Navy research drone in international waters – rips it out of water and takes it to China in unprecedented act.
December 5: Did China ask us if it was OK to devalue their currency (making it hard for our companies to compete), heavily tax our products going into…their country (the U.S. doesn’t tax them) or to build a massive military complex in the middle of the South China Sea? I don’t think so!
Anti-China and anti-free trade and globalisation rhetoric is something that is becoming louder, not just because of Trump’s victory but also because of discontent in the EU. China is likely to be one of the biggest victims of this change in trade, and a trade and currency war may be on the cards.
Prior to the election Trump signaled that he would label China a currency manipulator, whether he will do so or not is obviously unknown, but he has still drawn attention to their currency. In a recent interview Trump complained about the strong US dollar and China’s weak yuan.
“Our companies can’t compete with them [Chinese companies] now because our currency is too strong. And it’s killing us”. In the same interview Trump said that China’s currency was “dropping like a rock.”
The election of Donald Trump has seen the US Dollar climb to 13 year highs and made gains of nearly 5% in the period since November. But now, just one week ahead of the inauguration, the President has signaled that he will be dropping the strong dollar policy.
It isn’t just China’s currency that Trump is likely to have a say on, in 140 characters or perhaps more. Some pundits believe is about to upset China by not only announcing his intention to abandon the one-China policy but also to declare the move by China to build artificial islands in the South China Sea, as illegal.
China remains unimpressed, the English-language paper China Daily wrote, ““If Trump is determined to use this gambit in taking office, a period of fierce, damaging interactions will be unavoidable, as Beijing will have no choice but to take off the gloves.”
“China and the U.S. can find ways to solve problems through dialogue and negotiation,” Ministry of Commerce spokesman Sun Jiwen said Thursday at a briefing in Beijing. “Bilateral trade and economic cooperationhave made the two nations inseparable since relations were established more than three decades ago, and that’s reinforced every day”, Sun said.
According to Jim Rickards, this anti-China rhetoric could lead to a new currency war between the US and China.
President Xi Jinping, is also aware of the risks, speaking at his first address at Davos, China’s President spoke against businesses and political elites engaging in trade wars and protectionism:
“Pursuing protectionism is like locking yourself in a dark room, which would seem to escape the wind and rain, but also block out the sunshine and air…Waging a trade war will only cause injury and loss to both sides.”
Trade and currency wars with China and other nations, a civil war with Democrats and much of civil society in the U.S., combined with a weakening or dismantling of NATO, all in all points to uncertainty and volatility on a grand scale.
Trump – Fan of gold and golden tweets We know (and not just from his taste in interiors) that Trump is a fan of gold and he is aware of the role in plays in both dollar hegemony and currency wars.
Tweets over the last four to five years have shown an interest in the gold price and trade, tweeting in 2012:
“With Obama and Bernanke destroying the value of the dollar, gold and real estate should continue to rise in value.”
He is also not a fan of QE, tweeting in 2011 “The Fed continues to flood the market with US dollars. Wrong move.” and has since commented on gold purchases by China and Russia.
But what about the gold price? As we explained last week, the fundamentals supporting the gold market look good, regardless of who is about to take the US Presidency.
This year the gold price has already climbed by around 5%, fuelled by what appears to be a perfect storm coming together of Trump worries, Brexit angst and brewing tensions on trade and globalisation, generally.
Axel Merk told Bloomberg that uncertainty will support gold, “We have no idea what’s going to happen with some of Trump’s policies — everybody is a little nervous,” said Axel Merk, San Francisco-based founder of Merk Investments LLC, pointed out that
“Gold is relatively undervalued and will push higher.”
We concur and believe that the next four years of the Trump Presidency will be good for gold. If we assume gold takes a similar journey to that it took following Obama’s inauguration, we can expect:
A similar performance in the coming month would see gold rise from $1,200/oz to $1,392/oz.
A similar performance in the coming year would see gold rise from $1,200/oz to $1,555/oz
According to Bloomberg, gold has averaged gains of almost 15% in the inauguration years since the 1970s. It has made gains in five of the last seven inaugurations, and declined only in the year of Reagan’s.
Whilst events regarding China, Russia, NATO and even potential Civil War are unknown in how they will play out, one thing we can be fairly sure of is that Donald Trump is likely to preside over a significant budget deficit.
Conclusion – Trump may be the ‘Golden Ticket’
Whilst the run up to Trump’s inauguration has proven to be box office viewing, it is important to tune out the noise surrounding the short-term hype and to consider the real world consequences of his Presidency for investors and savers. We should be aware that what he says/tweets may impact and have lasting results, around the world.
A man who is against many of the financial, economic and foreign policies of most Western nations, has been democratically elected to run the West’s most powerful country. Policy may now be issued via Twitter and with little consultation.
Expect some serious volatility and prepare by diversifying and owning safe haven gold which has protected investors and savers from economic and political uncertainty in recent times and throughout the ages.
Due to ongoing requests for higher credit and debit card transactions, we have increased our maximum card transaction sizes from 5,000 to 50,000 GBP, EUR or USD.
You can now lock in prices online and transact immediately for up to 50,000 (GBP, EUR or USD) on your Visa and Mastercard credit cards (not American Express) for one transaction
We do not limit card payments to 50,000 per day but to 50,000 per individual transaction. This means that clients can do a number of transactions for 50,000 on a single day. Certain banks may have restrictions in this regard.
In the volatile markets of today, this added liquidity is advantageous and, to our knowledge, these are the highest credit and debit card transaction limits in the bullion market. This will be attractive to investors seeking to lock in prices without having to wait for funds to clear first.
Credit and debit card rates have come down significantly and are now 1.9% for credit cards and 0.45% for debit cards. Please keep in mind that this is subject to your own credit card limits.