Globe with Money

Welcome To The McAlvany Intelligence Advisor

Trump’s Tweet is Laughable: Only the Communists Will Be Celebrating the 70th Anniversary of Their Oppression of the Chinese People

On the surface, Donald Trump's reason for delaying by two weeks the increase in tariffs on Chinese imports is laughable: the only people celebrating the 70th anniversary will be the communists themselves.

Beneath the surface, however, is the negotiating war taking place between the Chinese communists and Mr. Trump. And both know the rules.

They come from the Harvard Law School's Program on Negotiation (PON).

Tweeted the President: "At the request of Vice Premier of China, Liu He, and due to the fact that the People's Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as gesture of good will, to move the increased Tariffs on 250 Billion Dollars' worth of goods (25% to 30%), from October 1st to October 5th."

This is laughable on its face, but indicative of the sort of hard bargaining both sides are engaging in. It's laughable because only the communists in China are celebrating that 70th anniversary of their oppression of the Chinese people. It's a communist dictatorship, after all, and any celebration will be carefully planned, managed, staged, and performed for a world press enamored by (and deceived by) claims that China has raised itself (all by itself) from third world status to first world challenger to the United States.

The PON rule? "Extreme demands followed up by small, slow concessions." This strategy, according to Harvard Law, "protects dealmakers from making concessions too quickly."

It's not the only rule Trump is following. There's the "delaying and stalling" technique, the "precondition" technique, and the "withdrawn offer" technique, among others.

Click here to continue reading this article...

CHECK OUT THE ENTIRE MCALVANY NETWORK

McAlvany Weekly Commentary provides investors with valuable monetary, economic, geo-political and financial information that cannot be found on Wall Street. Your host David McAlvany presents a solid strategy of wealth preservation for your financial and retirement assets while living in an unstable economy.

Through its client focused, customized approach, MWM is committed to providing independent, well-researched, objective advice, and investment professionalism. At MWM, our client commitment is to preserve capital, manage risk, and grow your assets in an ever-changing global environment.

At International Collectors Associates (ICA), we specialize in the sale of bullion, semi-rare U.S. and European gold coins and secure offshore storage in Switzerland for your precious metals. Our highly trained and experienced advisors strive to help you in customizing solid strategies of wealth preservation for your financial and retirement assets.

McAlvany Financial Group

The McAlvany Financial Group has a contrarian, in-depth approach to its analysis, allowing the company to avoid decisions based on emotion, and thus combine maximum risk mitigation with consistent real growth for its clients’ investments. Integrity, attentiveness, and longevity have characterized the company’s client relationships since 1972.