Sometimes we just sits and thinks… and sometimes we just thinks and laughs… This truly is the greatest of times to be alive and engaged. All, because, Trump stuff.

After reminding ourselves there’s no longer an actual media apparatus (per se’) in the historic sense of assembling facts, just facts, that explain situations; we once again see a brutal example of an answer to a simple economic question ignored by media.

Yesterday, within a MAGAnomics discussion thread, the question was asked:

♦ How long do you think the Chinese economy can sustain itself? When will it run out of steam? Could you maybe add some meat to the bone of what a trade war may look like with China, in terms of what we can expect to happen?

My own reply was rather simplistic:

♦ A trade confrontation with China will remove the cloak of capitalism and show the true colors of totalitarian control behind the Chinese economic mask. Confronting China’s Oz, economically, is simply sending in Toto (Wilbur Ross) to pull back the curtain. Easy peasy.

As if on cue… here comes Xi Jinping to deliver the audio visual demonstration.

SHANGHAI (Reuters) – China’s central bank will take on a beefed up role managing systemic risk in the country’s financial markets, state broadcaster China Central Television said on Saturday, citing President Xi Jinping. Speaking at the National Financial Work Conference, Xi said China would set up a financial stability committee under the State Council, boost the People’s Bank of China’s (PBOC) role managing financial risks and create more cohesive regulation. “We will strengthen the PBOC’s role in macro-prudential management and in averting systemic risk,” Xi said, adding the country would increase the accountability of regulators and the supervision over regulatory bodies. Ahead of the closed-door event, economists had widely expected the meeting to focus on how the central bank could better coordinate with the country’s three main financial regulators to manage risk in the financial system. China’s financial regulators are gathered in Beijing in a once-in-five-years huddle to discuss how better to tackle weakness in the financial system. The most recent meeting in 2012 yielded no significant policy change. (read more) “China’s central bank will take on a beefed up role managing systemic risk in the country’s financial markets.”

{{Insert laughing self here.}} DUH ! Ya don’t say…

Anyone who has been following along will note the entire Chinese economy is beyond tenuous, at best. Their economic enterprise is not a free market, has never been a free market and is only as sustainable as the imported dollars are available to keep it propped up. Without expansive export growth it stalls, then contracts.

As such, when considering the trade and economic leverage that underpins the entire construct, China engaging with the U.S. is like Michael J Fox playing Jenga against U.S. Commerce Secretary Wilbur Ross.

Of course China’s central bank is planning for what lies ahead. The only annoying part of the entire discussion is that the U.S. media is entirely duplicitous in their hiding of what it means…

(Bloomberg) Countries from Canada to China have been bracing for the result of a Commerce Department investigation into whether steel imports threaten U.S. national security. Officials within the administration have been debating several options, including raising tariffs on steel imports, according to people briefed on the discussions. […] Commerce Secretary Wilbur Ross briefed members of the Senate Finance Committee on the steel investigation on Thursday in Washington. While Commerce has until early next year to hand over the report, Secretary Ross has said he wants to complete it soon, though he already missed a self-imposed deadline at the end of June. Ross on Thursday declined to tell reporters the new target date for finishing the study, after briefing members of the Senate Finance Committee in Washington. Ross told the lawmakers during the meeting he will present options to the president, who will make the ultimate decision on steel imports, according to Republican Senator Pat Roberts, who attended the briefing. (more)

China’s attack on steel overcapacity looks more credible this time https://t.co/GKhZ7dHCuE — Wall Street Journal (@WSJ) July 10, 2017

China is indeed an issue, however we don’t import as much steel from China as we do from Canada. And lookie who was getting all BFF’s yesterday:

Met w/ PM @JustinTrudeau & on behalf of @POTUS discussed US/Canada's strong relationship & our shared commitment to update & modernize NAFTA pic.twitter.com/0G3eVq8mKJ — Vice President Pence (@VP) July 14, 2017

…”On behalf of”..

Yes, that’s me laughing again. Because…

Vice President Mike Pence met with Prime Minister of Canada Justin Trudeau today after both leaders addressed the National Governors Association in Providence, Rhode Island. On behalf of President Trump, the Vice President recognized the importance of the beneficial US trade and investment relationship with Canada, while expressing the need to work together to address lingering trade disagreements. The two leaders also expressed their shared commitment to update and modernize NAFTA through constructive renegotiation. (link)

MAGAnomics: “MAGAnomics is for everyone, but especially for those who left for work this morning in the dark but came home after their kids were asleep. It’s for those who are working part-time but praying for a full-time job. It’s for folks whose savings are as exhausted as they are. This president hears you. He knows America’s greatness doesn’t spring from higher taxes or unnecessary regulations or broken welfare programs. It doesn’t come from government at all. It comes from you.” (link)