Jensen Huang, speaking about the Trump Administration policies:
"We can't create new industries without energy. You can't reshore manufacturing without energy. You can't sustain a brand new industry like artificial intelligence without energy. If we decide, as a country, the only thing we want is IP—to be an IP-only, a services-only country—then we don't need much energy. But if we want to produce things, something as vital as artificial intelligence, then we need energy.”
The Pillars of Power front and center -- recognized by the President of the United States, and the Founder of the Biggest Company in the World (Nvidia).
One of the many Purposes of Tariffs is to increase Critical Product Production -- and you are seeing the recognition of it above.
The US/Japan deal outcome was a result of the Tariff catalyst. This new deal provides a unique, flexible MONEY structure:
A key component of the deal is a $550bn Japanese-funded investment vehicle, managed by the U.S., to support critical sectors such as semiconductors, clean energy, pharmaceuticals, and shipbuilding. Japan provides the capital, the U.S. retains 90% of the profits.
Clearly this is directly in relation to the MONEY Pillar. Which is being used to fund the TECHNOLOGY Pillar -- notably Technologies deemed Critical Products, and increasing their respective Production.
All of these trade deals are focused on the PILLARS OF POWER at their core.
US/Middle East & Emerging New System -- provides another template:
It is highly likely the mid August US/China trade 'deadline' ends up getting extended -- after some back/forth in between.
As the Tariff piece suggests, the US is accelerating all plans to build and strengthen its Pillars of Power and establish the 'New' System
Once the 'New' System is established with the West/Allies, then negotiations with China truly begin -- ideally with a non-zero-sum outcome (US increase Production; China increase Consumption)
Useful piece here by @Doomberg, highlighting one of the many ways in which China has been exploiting the Old System -- in this case, in the Energy realm:
Sec of Tsy Scott Bessent laying out exactly what we laid out months ago:
'Our goal is not to decouple from China, but to open markets and restore balance.
We’ll continue trading with China, especially in non-strategic goods, and at lower tariff levels.
At the same time, we’re focused on reshoring critical industries like medicine, semiconductors, and steel to protect U.S. national security interests.'
With a very powerful ending paragraph that ties directly into the Re-Balancing we've discussed:
'What we are witnessing is perhaps the final battle, or at least a finalizing battle, between democratic capitalism and authoritarian communism. Many will say that Trump IS the authoritarian problem. But these observers don’t seem to care that the alternative (under both Republicans and Democrats) has been a leadership that was fine with a military-industrial-intelligence complex that was constantly suppressing American citizens and overthrowing democracies abroad in their effort to protect corporate interests and the flow of campaign contributions. They don’t mind that the establishment totally failed to solve the fundamental problems of asset allocation in the economy and has left Americans in a completely untenable position financially. The multiple-front war America is in will have huge consequences for the American establishment, both on the left and on the right.'
Great podcast (Odd Lots) with Stephen Miran that highlights many of the Purposes we lay out for Tariffs in this piece, as well as the rationale for why we need to Re-Balance (primary focus of Part I)
Technology is a key Pillar of Power. Controlling the Technology stack and supply chain end-to-end is Critical. The Technological Revolution today is AI, and the primary US adversary today is China. Learn from History to make better Decisions Today to Shape the Future.
To Tariff or not to Tariff, That is the Question. https://torrancestephensphd.substack.com/p/to-tariff-or-not-to-tariff-that-is
Jensen Huang, speaking about the Trump Administration policies:
"We can't create new industries without energy. You can't reshore manufacturing without energy. You can't sustain a brand new industry like artificial intelligence without energy. If we decide, as a country, the only thing we want is IP—to be an IP-only, a services-only country—then we don't need much energy. But if we want to produce things, something as vital as artificial intelligence, then we need energy.”
The Pillars of Power front and center -- recognized by the President of the United States, and the Founder of the Biggest Company in the World (Nvidia).
One of the many Purposes of Tariffs is to increase Critical Product Production -- and you are seeing the recognition of it above.
PoP: US & Trump Admin Agenda: https://aquavis.substack.com/p/the-pillars-of-power
Tariffs & The Re-Balancing of the System: https://aquavis.substack.com/p/the-system-series-tariffs-part-ii
Link to article above: https://shorturl.at/7oo0w
The US/Japan deal outcome was a result of the Tariff catalyst. This new deal provides a unique, flexible MONEY structure:
A key component of the deal is a $550bn Japanese-funded investment vehicle, managed by the U.S., to support critical sectors such as semiconductors, clean energy, pharmaceuticals, and shipbuilding. Japan provides the capital, the U.S. retains 90% of the profits.
Clearly this is directly in relation to the MONEY Pillar. Which is being used to fund the TECHNOLOGY Pillar -- notably Technologies deemed Critical Products, and increasing their respective Production.
All of these trade deals are focused on the PILLARS OF POWER at their core.
US/Middle East & Emerging New System -- provides another template:
https://aquavis.substack.com/p/pop-the-middle-east-and-the-emergence
The recent "un-banning" of Nvidia and AMD chip sales into China is likely a deal in exchange for access to rare earth minerals/magnets from China
https://www.techradar.com/pro/china-regains-access-to-nvidia-chips-after-us-lifts-restrictions
It is highly likely the mid August US/China trade 'deadline' ends up getting extended -- after some back/forth in between.
As the Tariff piece suggests, the US is accelerating all plans to build and strengthen its Pillars of Power and establish the 'New' System
Once the 'New' System is established with the West/Allies, then negotiations with China truly begin -- ideally with a non-zero-sum outcome (US increase Production; China increase Consumption)
https://aquavis.substack.com/p/the-system-series-tariffs-part-ii
Useful piece here by @Doomberg, highlighting one of the many ways in which China has been exploiting the Old System -- in this case, in the Energy realm:
https://newsletter.doomberg.com/p/hoodwinked
Tariffs are a Tool to accelerate the building of a New System:
https://aquavis.substack.com/p/the-system-series-tariffs-part-ii
Re-Build and Re-Balance
And, unsurprisingly, the Reshoring of Critical Products is accelerating:
'Trump's trade war is accelerating the build up of a US AI Server Supply Chain'
https://x.com/dnystedt/status/1932976608396390441?s=46
Sec of Tsy Scott Bessent laying out exactly what we laid out months ago:
'Our goal is not to decouple from China, but to open markets and restore balance.
We’ll continue trading with China, especially in non-strategic goods, and at lower tariff levels.
At the same time, we’re focused on reshoring critical industries like medicine, semiconductors, and steel to protect U.S. national security interests.'
https://x.com/secscottbessent/status/1924113999224078402?s=46
Great recent piece by Pippa (https://drpippa.substack.com/p/the-hot-minute-war-part-two)
With a very powerful ending paragraph that ties directly into the Re-Balancing we've discussed:
'What we are witnessing is perhaps the final battle, or at least a finalizing battle, between democratic capitalism and authoritarian communism. Many will say that Trump IS the authoritarian problem. But these observers don’t seem to care that the alternative (under both Republicans and Democrats) has been a leadership that was fine with a military-industrial-intelligence complex that was constantly suppressing American citizens and overthrowing democracies abroad in their effort to protect corporate interests and the flow of campaign contributions. They don’t mind that the establishment totally failed to solve the fundamental problems of asset allocation in the economy and has left Americans in a completely untenable position financially. The multiple-front war America is in will have huge consequences for the American establishment, both on the left and on the right.'
Great podcast (Odd Lots) with Stephen Miran that highlights many of the Purposes we lay out for Tariffs in this piece, as well as the rationale for why we need to Re-Balance (primary focus of Part I)
https://x.com/TheStalwart/status/1933469309738553521
And a further point of Validation for our Framework:
Jensen Huang (CEO of NVDA) highlighting how Tariffs are being used to accelerate the Reshoring of Critical Product Production in the US
https://x.com/unusual_whales/status/1929191456285360354
Exactly as we highlighted (using rubber ducks as an example).
We do not want to make t-shirts in the US.
We want to be able to make things critical for National Security - AI, Semiconductors, etc
https://x.com/unusual_whales/status/1929266953396560037?s=46&t=Ay_vpS-Cy_QDCvezUUZaSQ
Good article about the history around export controls - notably around Technology and the Cold War (with CoCom):
https://www.chinatalk.media/p/learning-from-cocom
Technology is a key Pillar of Power. Controlling the Technology stack and supply chain end-to-end is Critical. The Technological Revolution today is AI, and the primary US adversary today is China. Learn from History to make better Decisions Today to Shape the Future.
To the point on Dependencies / Chokepoints, the US is hosting a hearing on China Shock 2.0 next week:
“Dominance by Design: China Shock 2.0 & the Supply Chain Chokepoints Eroding U.S. Security,” is set for June 5 at the Dirksen Senate Office Building
https://x.com/chinabeigebook/status/1928490013550915844?s=46&t=Ay_vpS-Cy_QDCvezUUZaSQ