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While Trump thinks he’s helping to bring industry home, Chevy builds new Blazer in Mexico

And we thought it was millennials who were going to kill the auto industry

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Trump thinks that the rest of the world is being unfair in its trade with America, and that’s why he’s withdrawing from crucial international trade agreements and threatening others, namely the North America Free Trade Agreement (NAFTA), and imposing tariffs on America’s trade partners the world over.

Trump has already virtually initiated a trade war with China, America’s largest trade partner, with another $200 billion in tariffs coming down the pipeline, and has levied steel and aluminum tariffs on literally everyone else, including NAFTA members Canada and Mexico, while threatening to levy fresh tariffs on autos imported from the EU.

While Trump thinks that applying pressure to his trade partners in this way, that he can persuade them to see the light by agreeing to more favorable trade terms for America while also convincing manufacturers to bring their production back home, hopefully to employ Americans.

But so far, that’s not how the story has played out. China has responded with tit-for-tat measures, as has Canada, Mexico, India, Japan, and the EU while there isn’t much at all to show in the way of manufacturers opening new plants in America as a share of overall manufacturing job growth. As some plants are reopening, so far, the trade war is poised to actually cost America hundreds of times the amount of jobs that it stands to repatriate.

Largely, this is due to the reality that manufacturers took their production elsewhere in order to cut their production costs, such as regulations and labor expenses. As long as there is somewhere else that imposes less regulations and offers lower wage requirements, and as long as the cost of Trump’s tariffs can be simply passed on to the consumer, manufacturers have little, if any, incentive to undergo the expense of opening up production plants in America, navigating a forest of regulation and paying first world living wages.

That is partially why, despite Trump’s tariffs and tough talk towards American manufacturers which produce their products in other countries, GM is moving forward with producing its new SUV line, the new Blazer, in Mexico.

Reuters reports:

(Reuters) – General Motors Co (GM.N) is going ahead with its plan to manufacture the new Chevrolet Blazer SUV in Mexico, a spokesman for the automaker said on Thursday, despite criticism by U.S. President Donald Trump over making vehicles abroad.

Trump has been pressing automakers to build more vehicles in the United States under efforts to renegotiate the North American Free Trade Agreement (NAFTA).

“We remain committed to working with the administration on a modernized NAFTA,” GM spokesman Pat Morrissey said, adding the decision was made years ago.

Trump has previously criticized GM for building vehicles in Mexico for sale in the United States.

The United Auto Workers union called the decision disappointing. “This is all happening while UAW-GM workers here in the U.S. are laid off and unemployed,” the union said in a statement.

Automakers have called NAFTA a success, allowing them to integrate production throughout North America and make production competitive with Asia and Europe.

Trump has repeatedly threatened to pull out of NAFTA unless the deal can be reworked in a way that favors the United States.

And, if retaliations to Trump’s tariffs regimes means that there is less foreign market participation in purchasing American autos, the manufacturer will seek to cover its productions costs which will then be dispersed across a smaller area, meaning that Americans could expect to pay more for their autos for this reason, as well as the fact that the materials from which they are made are more expensive, as a result of Trump’s aluminum and steel tariffs, as well. In this way, American cars sold to other markets will realize fewer customers as they become less competitive in their prices, meaning fewer sales revenue there from.

Therefore, Trump’s tariffs aren’t going to bring industry back to America in the manner that he thinks, they’re merely going to increase the cost of living for the American consumer by decreasing the purchasing power of the few dollars Americans do have to spend by increasing the price of the goods which Americans purchase. And we thought it was millennials who were going to kill the auto industry.

 

 

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BobValdez
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BobValdez

As ye shall sow, so ye shall reap. (Stupid is as stupid does).

Bill Spence
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Bill Spence

Trump does not have the power needed to reverse the trade imbalance. He could do it if appointed king with total budget and legislative power.

The reason the problem exists is because the government is dysfunctional and cannot be cured. So the idea of letting Trump be king or dictator is a better alternative than counting on Congress to fix the trade problem.

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Rod Rosenstein resigns from his post before President Trump can fire him

Rosenstein’s comments about secretly recording the President backfire, and resignation may throw the Mueller Russiagate probe into question.

Seraphim Hanisch

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The Washington Times broke the story that Deputy Attorney General Rod Rosenstein resigned from his post. He submitted his resignation to Chief of Staff John Kelly.  At present the breaking story says the following:

Deputy Attorney General Rod Rosenstein is out at the Department of Justice.

Axios reported that Mr. Rosenstein verbally resigned to White House Chief Of Staff John Kelly, but CNN said that he is expecting to be fired.

Sarah Isgur Flores, a Department of Justice spokeswoman, declined to comment on the reports.

Mr. Rosenstein’s departure immediately throws Special Counsel Robert Mueller’s Russian collusion probe into chaos.

Attorney General Jeff Sessions recused himself from the investigation, leaving Mr. Rosenstein in charge.

President Trump mulled firing the No. 2 at the Department of Justice over the weekend.

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This report came after Fox News reported that the Deputy AG was summoned to the White House. Fox reported a little more detail:

Deputy Attorney General Rod Rosenstein is heading to the White House expecting to be fired, sources tell Fox News, in the wake of a report that he suggested wearing a wire against President Trump and invoking the 25th Amendment to remove him from office last year.

This is a developing story, however one major factor that comes under consideration is the fate of Robert Mueller and his Russiagate investigation, which was authorized by Rosenstein. CNBC had this to say in their piece:

Deputy Attorney General Rod Rosenstein is resigning Monday, according to Axios, which cited a source familiar with the matter.

NBC News’ Pete Williams, however, reported that Rosenstein would not resign of his own accord, and that he will only depart if the White House fired him. He will refuse to resign if asked to do so, Williams added.

Rosenstein was at the White House when Williams reported this on the air. However, President Donald Trump is in New York for the United Nations General Assembly.

Bloomberg later reported that the White House accepted Rosenstein’s resignation, citing a person familiar with the matter.

Rosenstein’s expected resignation will immediately raise questions about the fate of the ongoing investigation by special counsel Robert Mueller, who is probing Russian interference in the 2016 presidential election, and possible obstruction of justice by President Donald Trump.

Rosenstein’s job security was called into question after The New York Times reported last week that the No. 2 DOJ official had discussed invoking the 25th amendment to remove Trump, and had also talked about surreptitiously recording the president.

Rosenstein oversees the special counsel investigation, and has appointed Mueller to run the Russia probe last year, after Attorney General Jeff Sessions recused himself from the case.

The special counsel’s office declined to comment on the report.

The White House did not immediately respond to CNBC’s request for comment on Axios’ report. The Justice Department did not immediately respond to CNBC’s inquiry.

Trump has repeatedly blasted Mueller’s inquiry, which also is focused on possible collusion with Russia by members of the Trump campaign.

He has called the investigation a “witch hunt,” and has repeatedly vented frustration about Sessions’ recusal, which directly led to Mueller’s appointment by Rosenstein.

Rosenstein’s expected departure comes on the heels of a guilty plea by Trump’s former campaign manager Paul Manafort to conspiracy charges related to his consulting work in Ukraine, which predates his role on the campaign.

As part of the investigation, Mueller’s team has been locked in an ongoing back-and-forth with Trump’s legal team over an in-person interview with the president.

Trump’s lawyers, including former New York Mayor Rudy Giuliani, have signaled that Trump is unwilling to sit for an interview, calling it a “perjury trap” and setting up a potential challenge for Mueller to subpoena the president.

This story is developing. Please check back for updates.

 

 

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European Council crushes Theresa May’s soft Brexit dream (Video)

The Duran – News in Review – Episode 116.

Alex Christoforou

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UK Prime Minister Theresa May hoped that the European Council was ready to see things her way, in terms of proceeding with a soft Brexit, which was essentially no Brexit at all…at least not the hard Brexit that was voted on in a democratic referendum approximately two years ago.

Much to May’s surprise, European Council President Donald Tusk delivered a death blow verdict for May’s Brexit, noting that EU leaders are in full agreement that Chequers plan for Brexit “will not work” because “it risks undermining the single market.”

Without a miracle compromise springing up come during the October summit, the UK will drift into the March 29, 2019 deadline without a deal and out of the European Union…which was initially what was voted for way back in 2016, leaving everyone asking, what the hell was May doing wasting Britain’s time and resources for two years, so as to return back to the hard Brexit terms she was charged with carrying forward after the 2016 referendum?

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss what was a disastrous EU summit in Salzburg for UK PM Theresa May, in what looks to be the final nail in May’s tenure as UK Prime Minister, as a hard Brexit now seems all but certain.

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Via Zerohedge

Tusk was speaking at the end of an EU summit in Salzburg, where the leaders of the 27 remaining states in the bloc were discussing Brexit. He said that while there were “positive elements” in May’s Chequers plan, a deal that puts the single market at risk cannot be accepted.

“Everybody shared the view that while there are positive elements in the Chequers proposal, the suggested framework for economic co-operation will not work, not least because it is undermining the single market,” Tusk said. He also said that he could not “exclude” the possibility that the UK could exit the EU in March with no deal.

May has been urging her European counterparts to accept her controversial Chequers plan which has split both the Conservative party and the broader UK population after it was thrashed out back in July. However, despite the painfully-slow negotiation process, which appears to have made little headway with just a few months left, the UK is set to leave the EU on March 29 2019 – with or without an exit deal.

The main sticking point that has emerged, and left May and the EU at loggerheads, has been how to avoid new checks on the Irish border. May has claimed that her proposals were the “only serious, credible” way to avoid a hard border in Northern Ireland. She said during a press conference after the Salzburg meeting that she would not accept the EU’s “backstop” plan to avoid a Northern Ireland hard border. She said the UK would shortly be bringing forward its own proposals.

May also said that there was “a lot of hard work to be done,” adding that the UK was also preparing for the eventuality of having to leave the EU without a deal. Tusk, meanwhile, said that the upcoming October summit would be the “moment of truth” for reaching a deal, and that “if the conditions are there” another summit would be held in November to “formalize” it.

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Russia makes HUGE strides in drone technology

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The US and Israel are universally recognized leaders in the development and use of unmanned aerial vehicles (UAVs) or drones. Thousands of American and Israeli UAVs are operating across the world daily.

The US military has recently successfully tested an air-to-air missile to turn its MQ-9 Reaper drone into an effective long-endurance, high-altitude surveillance unmanned spy aircraft capable of air-to-surface as well as air-to-air missions. This is a major breakthrough. It’s not a secret that Russia has been lagging behind in UAV development. Now its seems to be going to change with tangible progress made to narrow the gap.

Very few nations boast drones capable of high-altitude long endurance (HALE) missions. Russia is to enter the club of the chosen. In late 2017, the Russian Defense Ministry awarded a HALE UAV contract to the Kazan-based Simonov design bureau.

This month, Russian Zvezda military news TV channel showed a video (below) of Altair (Altius) heavy drone prototype aircraft number “03”, going through its first flight test.

Propelled by two RED A03/V12 500hp high fuel efficiency diesel engines, each producing a capacity of 500 hp on takeoff, the 5-ton heavy vehicle with a wingspan of 28.5 meters boasts a maximum altitude of 12km and a range of 10,000km at a cruising speed of 150-250km/h.

Wingspan: about 30 meters. Maximum speed: up to 950 km/h. Flight endurance: 48 hours. Payload: two tons, which allows the creation of a strike version. The vehicle is able to autonomously take off and land or be guided by an operator from the ground.

The UAV can carry the usual range of optical and thermal sensors as well as synthetic-aperture ground-surveillance radar with the resolution of .1 meter at the range of 35km and 1 meter at the range of 125km. The communications equipment allows real-time data exchange.

Russia’s UAV program currently underway includes the development of a range of large, small, and mid-sized drones. The Orion-E medium altitude long endurance (MALE) UAV was unveiled at the MAKS 2017 air show. Its developer, Kronstadt Technologies, claims it could be modified for strike missions. The one-ton drone is going through testing now. The Orion-E is capable of automatic takeoff and landing.

It can fly continuously for 24 hours, carrying a surveillance payload of up to 200 kg to include a forward looking infra-red (FLIR) turret, synthetic aperture radar and high resolution cameras. The drone can reach a maximum altitude of 7,500 m. Its range is 250 km.

The Sukhoi design bureau is currently developing the Okhotnik (Hunter) strike drone with a range of about 3,500km. The drone made its maiden flight this year. In its current capacity, it has an anti-radar coating, and will store missiles and precision-guided bombs internally to avoid radar detection.

The Kazan-based Eniks Design Bureau is working on the small T-16 weaponized aerial vehicle able to carry 6 kg of payload.

The new Russian Korsar (Corsair) tactical surveillance unmanned aerial vehicles (UAV) will be upgraded to receive an electronic warfare system. Its operational range will be increased from 150km to 250km. The drone was revealed at Victory Day military parade along with the Korsar unmanned combat helicopter version.

The rotary wing drone lacks the speed and altitude of the fixed wing variant, but has a great advantage of being able to operate without landing strips and can be sea-based. Both drones can carry guided and unguided munitions. The fixed-wing version can be armed with Ataka 9M120 missiles.

The first Russian helicopter-type unmanned aerial vehicle powered by hydrogen fuel cells was presented at the Army-2018 international forum. With the horizontal cruising speed of the drone up to 60 kph, the unmanned chopper can stay in the air at least 2.5 hours to conduct reconnaissance operations. Its payload is up to 5 kg.

Last November, the Kalashnikov Concern reported that it would start production of heavy unmanned aerial vehicles capable of carrying up to several tons of cargo and operating for several days at a time without needing to recharge.

All in all, the Russian military operate 1,900 drones on a daily basis. The multi-purpose Orlan-10 with a range of 600km has become a working horse that no military operation, including combat actions in Syria, can be conducted without. Maj. Gen. Alexander Novikov,
the head of the Russian General Staff’s Office for UAV Development, Russian drones performed over 23,000 flights, lasting 140,000 hours in total.

Russia’s State Armament Program for 2018-2027 puts the creation of armed UAVs at the top of priorities’ list. Looks like the effort begins to pay off. Russia is well on the way to become second to none in UAV capability.

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Via Strategic Culture

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