Trump's Grand Strategy - And If This Isn't His Strategy, Then You Should Elect PASTORIUS As Your Next President
I'm watching Trump's Cabinet picks, and the almost daily announcements from his contacts in the corporate world that they will add jobs to the American workforce (IBM, Dow Chemical, Carrier, U.S. Steel, Apple-supplier FoxConn), and I'm wondering, where is all this headed?
Having given it some thought for a few days now, I believe I am beginning to see the grand strategy.
There are three tiers to it.
First, though, as I've written before, Trump's election was all about Borders:
1) Real borders
2) Economic Borders (Trade)
3) Ideological Borders (protecting and applying the laws and Constitutional Rights of the USA)
And, while I still think this to be true, I am beginning to believe Trump's vision is even larger than that.
I believe Trump sees enforcing America's Borders as the foundation to the grander vision.
And here's the Grander vision:
1) Lower Taxes = Jobs
2) Energy Policy
3) A Realignment of World Powers Centered Around Nationalism, Cultural Affinity, and Energy Policy
First), the jobs that have been promised by U.S. Steel, Carrier, IBM, Dow Chemical and FoxConn are all dependent upon the lower Business Tax rate that Trump has promised. As I pointed out in this post, it has been known for some years now that American corporations have been sitting on mountains of cash. The reason is, they earn this money in other countries, and do not bring it home because, if they do, they will be taxed at 35%. Trump has promised to lower this to 15%.
So, I think the first part of Trump's strategy is to obtain commitments from a large number of corporations to bring jobs to the U.S., if the business tax rate is lowered. He probably has a target number of promised jobs that he wants to hit, and when he hits that number, he will take his case to the American people in this manner:
"I have obtained commitments from the following 500 corporations to hire 1,000,000 American workers, IF THE BUSINESS TAX RATE IS BROUGHT DOWN TO 15% AS YOU HIRED ME TO DO WHEN YOU ELECTED ME. I need your support to get this through Congress. Those who would oppose this plan need to be made aware that they would be destroying the possibility of job growth in our nation, and they would be taking money out of your pockets. We can not allow their government greed for your tax dollars to halt our goal of Making America Great Again. I ask that you all write an email to your Congressman and Senator demanding that they do their part to Make America Great Again, and put jobs and money back into the America economy and into the pockets of the American worker. Make America Great Again."
Second) having accomplished that, Trump will set about making America energy-independent. America is already the third biggest Oil Producing nation in the world. What's more, America has more proven reserves than any other nation in the world. The only thing stopping us from exploiting those proven reserves and becoming not merely the largest Oil Producer, but the largest Oil Exporter is regulations imposed by Greenies and Global Warming fear mongers.
In the past few years, we have discovered oil fields in Montana/Dakotas, and in Colorado, which have FIVE TIMES AS MUCH OIL AS SAUDI ARABIA.
In fact, America has enough oil to be the #1 oil-producing nation in the world:
An oil field was just recently discovered in the South Dakota/Montana region which has three times as much oil as the Rockies.
There is also a tremendous amount of oil in the ANWR region.
All that oil, and we don't drill for it.
Because of pressure from environmentalists.
We are awash in LNG here in America. The top four trucking companies in the US already use LNG to run their fleets. The only reason America's cars are not running on LNG is because Service Stations have not been equipped to provide the fuel. And until the Service infrastructure is set up, automobile manufacturers will not build the cars.
... microwave oil shales in the Green River Formation, which sprawls across Colorado, Utah and Wyoming, the nation’s recoverable reserves could soar and energy independence could become more than an election slogan.
Even with existing methods — strip-mining the shale and then cooking it, or injecting steam to cook the rock underground (hydraulic fracturing is useless here) — the formation contains enough oil to last the U.S. 165 years at current rates of consumption. Microwave extraction could goose those numbers even higher.
After all, there are more than 4 trillion (with a “t”) barrels of oil in the Green River Formation.
Let’s take a deep breath. One formation, previously inaccessible, has a century and half’s worth of oil for America.What does all this mean?
It means, as I said, America can become not just the number one Oil Producing nation on Earth. We can become the number one OIL EXPORTING NATION.
And this brings me to
Third) I believe we will see Trump create a realignment of World Powers based upon Nationalism, Cultural Affinity, and Energy Policy.
This again is the reason Trump appointed Rex Tillerson to head up our Foreign Policy. Tillerson knows the levers of power in the world's Energy markets. Tillerson understands how important this is. Tillerson knows who works together well, and who doesn't.
Tillerson knows America and the West built out the entire Oil infrastructure of the Islamic world, of OPEC. Tillerson knows OPEC has no gratitude for that. And how could we expect that they would. It's only business, right?
Sure, until Business turns into Zakat; Islamic Charity supporting terrorism; i.e. Yemen, UAE, Saudi Arabia, and Iran supporting Al Qaeda, the Muslim Brotherhood, ISIS, Hamas, and Hizbollah.
Trump has promised to end this state of affairs, saying we will no longer accept immigration from nations who support terrorism.
Do you think he intends to be any more friendly to those who fund it?
Not when he and Tillerson know the opportunity that lies in front of America, given the realities of our Oil and Natural Gas Production.
And there's this:
OPEC is still openly plotting to suppress U.S. shale oil production
In other words, they are trying to take down our oil market.
OPEC, which is comprised of 13 nations) is responsible for 42% of the world's Oil Production. It's total output is 33.5 million barrels per day.
Now let's look at a list of Western Oil-Producing nations and the possibilities inherent in forming a United Front.
Much has been made of Tillerson's friendship with Russia. And while it is true that Putin is ex-KGB, and we know his goals lie in re-establishing much of the Soviet bloc, the key to containing him is to build upon mutual self-interests. Russia produces 10.25 million barrels of oil per day. If America has been able to increase it's proven reserves and it's production through the introduction of Fracking technology, you can be sure that Russia could too. We know they are keen to implement Fracking. But that would require help. They did not innovate fracking technology. America did. Donald Trump and Rex Tillerson are deal makers. There is a huge opportunity here. And they know it.
Between the United States and Russia, we produce 19 million barrels of oil per day. That is 57% of OPEC's production.
Now, who else produces a lot of oil in the Western World?
Why, Canada and Mexico do. Thanks for asking.
The two nations to the north and south of us, produce a lot of oil. Canada produces 3.6 million barrels per day, and Mexico produces 2.2 million barrels per day.
That's another 5.8 million barrels per day, bringing us to 74% of OPEC.
Then there is Norway and England, another 2.7 million barrels per day. That's 82%.
Add to that Austalia which just discovered a MASSIVE store of oil in Southern Australia, comprised of 12% of the world's proven reserves. Yes, Australia has shown itself to have 12% of the world's proven Oil reserves... just waiting to be Microwave Fracked.
I have just named a bloc of Western-oriented nations, bound together by natural Cultural Affinity, who could, if banded together, break the back of OPEC.
Do you think Tillerson and Trump are not aware of this opportunity?
The way to break OPEC's back is to bring the cost of oil per barrel down so low that it causes pressure within the ranks so that the individual nations want to negotiate their own deals rather than working together.
The way to accomplish this is to create a glut.
The way to create a glut is to negotiate deals among like-minded nations, to get all one's horses running in the same direction, with a larger strategy.
A strategy that would also realign World Powers.
And, it just so happens that such a strategy would not only fuel the world's automobiles and factories, but would also break the backs of Globalists, and fuel the Nationalism of Individual nations as well.
For instance, Norway and the UK's Nationalism would be fed by working as a team outside of the EU strictures.
Austalia would see it's sense of National pride soar as the result of becoming a major Oil-Producer if we give them the help they need.
And that brings me to the final piece of the puzzle.
You may have noticed I haven't talked about the one thing Trump is known for above all else:
This is how Trump will get Mexico to pay for the Wall. He and Tillerson will help Mexico build out it's oil industry so they can become more economically independent.
Even as the fallout from the Greek debacle continues to hammer oil prices, investors need to be on the lookout for future opportunities in the industry. One country that has generated a lot of interest among energy companies and investors is Mexico.
Now, as America’s southern neighbor moves to reinvigorate its energy industry, U.S technological advances seem to be moving south. Recent reports suggest that fracking is beginning to take hold in Mexico with numerous wells being drilled.
Unsurprisingly given the state of oil prices and the resources Mexico has available, thus far the fracking appears concentrated on natural gas, rather than oil.
The important point though is that the use of the technology on a broad scale suggests a new opportunity for investors. Fracking requires a very specialized set of skills and consistently significant capex given the substantial decline rates in those wells. This combined with the new infrastructure needs creates some intriguing possibilities for profits at firms in the space.
Fracking in Mexico is very controversial, just as the energy sector overhaul in the country itself is. Water scarcity in Mexico for instance may limit the country’s ability to engage in long-term fracking the way the U.S has. In many respects, these challenges create opportunities for companies like Haliburton and Schlumberger which have technical advantages over smaller operators.
Similarly opportunities for fracking offshore in the Gulf of Mexico, a technologically challenging feat, offers new business opportunities for the major servicing companies as well. ...
Further, any dramatic increase in natural gas production as a result of fracking would likely lead to significant infrastructure import needs for Mexico, and greater manufacturing output across the country. All of that is good for Kansas City Southern.But then, the question arises, does Mexico have large untouched reserves of Shale ready to be fracked? Yes it does, and it's ready to deal:
The importance of Mexico's energy reform is huge. Despite dumping more and more money into exploration by Pemex, oil production in the country peaked back in 2004. Without reform, Mexico would have most likely transformed from a net exporter of crude to a net importer within a few years.
Pemex officials believe shale has the potential to provide Mexico with more oil and gas than the country has produced since it first struck oil in the early 20th century.
“Mexico has the sixth largest gas shale fields in the world. And you’re all welcome to come join the exploration opportunities,” Emilio Lozoya, Pemex chief executive officer, told an energy conference in Houston in March.And, you can see how such a strategy would also increase Mexico's National Pride.
The entirety of this strategy is based upon a totality of vision. All deals must be tied to strict rules of cooperation. All deals must be canceled upon the first sign of uncooperative behavior. In this way, America must assert itself as an Economic Imperialist nation for the sake of building a new alignment of world powers, and diminishing the problem creators of the past half century.
Trump has put the pieces in place. It will be interesting to watch and see if he goes in the direction I foresee.
Of course, I could be wrong about every bit of this. After all, I'm just a goofball blogger, sitting here in my workout clothes.
TRUMP TO PAUL RYAN: "WE'RE GOING TO BUILD THAT WALL, PAUL"