TRUMP RULED THE WHITE HOUSE USING MY KGB INSTRUCTIONS (doc). Mikhail Kryzhanovsky

Mikhail Kryzhanovsky, a former KGB spy and CIA "Filament"  

kryzhanovsky7777@gmail. com  

THE WHITE HOUSE MANAGEMENT  

Instruction hacked by Wikileaks and transferred to Trump:  

https://search. wikileaks. org/gifiles/emailid/5127100  

Come in!  

Be strong. Be attractive. Be logical.  

All you have to do during your first term is to take care of the second one.  

The 2nd term’s agenda is to set your place in the world’s history.  

1st year. You have enough public support to start big initiatives.  

2nd year. Develop your initiatives.  

3rd year. Go, go public preparing your re-election. Presidents often lose voters during this period.  

4th year. All-politics year. Try to achieve important international agreement (a treaty) for the historic record. Win re-election.  

Divide your day into hours and minutes : 30% of your weekly hours go to senior White House staff, 10% – to Cabinet, 5% – to Congress members, 5% – to foreign leaders.  

No matter what, even if it’s a war time, sleep one hour during the day to give your brain a break, and finish your day at 6 P. M. After 6 P. M. do not read any documents, do not take any phone calls, do not talk to anybody but family members and close friends.  

Eat whatever you want, but remember, the more calories you have to digest, the slower you think.  

REMEMBER:  

1. You are a national image (a national ideal based on pseudo-facts), a symbol of national unity, national continuity and the symbol of federal government. Leadership is the first quality Americans look for in you – they want a President who is steadfast in his convictions.  

2. The power to control the federal budget is your top prerogative.  

3. Define for yourself whom are you going to be:  

– utopist (ideas manipulator)  

– manager (Government and Congress manipulator)  

– challenger (reformer)  

4. Any problem turns into a political one if it threatens your power.  

5. Use your legal right to press the nation and illegal ones to press the world to eliminate problems.  

4. Once you’re in politics, you are a hostage of your status and you must sacrifice privacy in return for power.  

6. Never play alone.  

7. All your decisions are risk taking ones (any decision brings a problem). You may ask advice before you make a decision, but don’t listen to anybody afterwards. You are not paid for the quantity of your work but for leadership and ultimate decision making.  

8. Correct political mistakes fast, before they become political scandals.  

10. Never blame previous presidents for the problems they left for you – that’s a sign of political weakness.  

11. Get rid of a White House tradition to deal with problems if they “knock at the door” only.  

The White House Staff  

Chief of Staff  

The Chief of Staff reviews most of the documents that go to you, gives his/her advice after intense information processing and consultations with other agencies and then – he’s/she’s telling others what President wants.  

A lot of people, including Congressmen and Senators, will try to reach you through him/her.  

He/she has to give exact instructions to the Press Secretary on the White House message about current headlines and the President’s plans and actions (the Press Secretary works the same way with VP and First Lady/First Gentleman press teams).  

He/she is responsible for your time and has to plan at least two months ahead your effective activity together with Communications, Scheduling and other policy offices’ Directors plus VP and First Lady/First Gentleman Chiefs of Staff. Besides, he/she has to do “dirty jobs” for the President like firing people or act as a “lighting rod” to draw criticism away from the President.  

National Security Adviser  

The National Security Adviser controls all the documents concerning national security coming from Defense, Homeland Security, State Departments, and national security agencies, and coordinates these offices.  

His/her position is not subject to Senate confirmation, which, according to a long-standing Washington tradition, means that he/she can’t be compelled to testify before the Congress. He/she decides what papers the President should see and, what’s more, he gives his comments on any document.  

ATTENTION :National security is 100% the President’s business, so keep this figure at some distance and don’t let him think of himself as your Number Two – foreign leaders will try to work through him to get to you or to influence you.  

He/she has to oversee the functioning of the National Security Council (NSC), which is your foreign policy making tool and a “government inside government. ” This is something very special and convenient about the NSC – it’s responsible only to you and there’s not much Congress control over its budget. Plus, National Security Adviser is involved in every meeting between you and any foreign leader and is responsible for the schedule.  

The most powerful of executive offices after the National Security Council is the Office of Management and Budget (it’s authorized to make cuts in federal agencies’ budgets, to advise you on national fiscal and economic policies, supervise execution of the government budget, evaluate the performance of federal programs).  

Who they really are  

Staffers (and Secretaries) prefer stability and don’t like if you’re “rocking the boat” – that’s why they often play reform-stoppers.  

They don’t like to work hard and prefer to send you on “very important visits” abroad as often as possible.  

They try to load you up with an extremely busy schedule and “feed” you witnh hundreds of useless documents, create artificial problems and conflicts to show off their hyper-activity.  

They try to be your decision makers and they do influence you because, unlike Secretaries, they have daily contact with you; that’s why you don’t see Cabinet members as your principal aides.  

They try to set you up by interpreting your decisions and orders in their own way, as every adviser is the “American President himself. ”  

They know you won’t accept “complicated, ” “expensive, ” “risky” projects and they’ll try to sell you “simple, ” “cheap” and “popular” ones only.  

Watch your senior staff and how they present ideas. If somebody wants to push his idea or a project, he will give you three options, making two of them unattractive. Naturally you pick the one he presented as least harmful.  

Their dirty tricks  

1. Fight for access (influence) to President or to people with direct access (aiming to get a better position if President is re-elected).  

2. Isolate government from the President.  

3. Influence = relationship with the President.  

4. Get a table in the West Wing. You are nobody if you are stuck in the White House basement and see the President by appointment only.  

5. Before you send a document to the President, have to look at it and ask yourself if it’s too immoral or too radical.  

6. Never say “no” aloud to anybody.  

7. Remain anonymous with conflicts.  

8. Never bring bad news to the President – let it be some idiot, not you.  

9. Never say “That’s impossible, ” no matter what the President is asking you to do.  

10. Disappear (and find an excuse later) if the President is in a bad mood.  

11. Never ague with the President if there’s somebody else present.  

12. Learn how the President likes to do business (talking, giving orders, writing the documents and taking notes, managing official and non-official meetings) and his habits (food, drinks, cigarettes, favorite sport, movies, show business stars, writers, politicians; attitude to women) and try to copy him — the President has to feel comfortable with you.  

13. Fight anybody who’s trying to do your job to be closer to the President.  

14. Avoid taking on risky tasks controlled by the President in person (if necessary, try to “delegate” it to somebody else).  

15. Avoid being associated with any failures.  

16. Don’t say anything President doesn’t want to hear.  

17. Use “Smith’s Principle”: if it can be understood by Congress, it’s not finished yet.  

18. Write memorandums not to inform the reader, but to protect the writer.  

19. No matter what subject is under discussion, employ the language of sports and war: say “breakthrough” instead of “progress”, never speak of compromise, consider “adopting a fallback position. ”  

20. Every public appearance in with the President is an investment in your career after the White House.  

21. Minimize the number of rivals.  

22. Gain independence according to how much the President needs you.  

23. Before asking the President for some personal favor, make him believe he’s going to get some (political) profit out of it.  

24. Tell the President what he can do and help him try to do it, and never tell him what he shouldn’t do.  

25. Avoid giving any personal gifts to the President if you are not Chief of Staff.  

Every public appearance in with the President is an investment in your career after the White House.  

There is an open power struggle between national security staff members and domestic policy staff and between those who develop new policies and initiatives versus budget staff.  

How to Manage the Staff  

Adopt a dominant management style:  

1. Pyramidal, structured as hierarchy with you at the top, followed by the Chief of Staff and other key assistants. I strongly recommend this one – it insures a clear chain of command and provides precise channels of information going up and directives going down.  

2. Circular, when you are surrounded by advisers, all of whom have equal access to the Oval Office. That means chaos (JFK style).  

All your assistants are political assistants and everyone will try to play a policy-maker. But a good thing is that all of them were not elected and are responsible to you only.  

Thus you can:  

– reform your staff freely as there’s not even a word about it in the US Constitution  

– interchange key figures if domestic crisis is approaching  

– if you don’t agree with the staff on important issues, go to polls for back-up. (The best employee is the one you can blackmail. Besides, a very good “pusher” for your people is their deep understanding that they have to work together to help the President stay in office next term because if the President leaves, everybody leaves)  

– use “the carrot and the stick” tactics  

– use “pulling by pushing” – give an important job without publicity to those who become too popular  

– do as little reading as you can – you have staff for that  

– do as little writing as you can – same reason  

– involve yourself personally in your staff and Cabinet jobs as little as you can – same reason  

– make no minor decisions – same reason  

– send back any intelligence or other report if it’s more than one sheet of paper  

The Pocket Cabinet  

If the bureaucrats are wearing you down, you have the right to fire any Secretary. However, Cabinet members must be approved by Senate, therefore, you have to negotiate with the Senate leaders and party leaders throughout the country. As a result, some positions may go to people you don’t know well and can’t trust. Then if you want to re-organize the Cabinet you have to confront the Congress, because Congress tries to protect the interests of its constituents, who are often the clients of the existing bureaucratic agencies. So, if you plan changes you have to appoint people who share your strategy.  

You may also need to offer a position to a group that you need to support in the coming election, or whose help you need; or to help pass legislation (these people will be more loyal to their political benefactors than to you).  

Secretaries have disadvantages compared to the staffers as they don’t have easy access to the Oval Office (again, that depends on you). Some of them had little or no contact with you before being appointed. Actually, their task is to win the backing of key interest groups and that’s why you, practically speaking, don’t need Cabinet meetings (if there’s no crisis). If a Cabinet member feels independent (usually, that’s the Secretary of State), don’t fire him/her – substitute him/her by the national security adviser or send him abroad on a regular basis.  

The Cabinet members work hard during a crisis only. They prefer to save their plans and suggestions for private conversations with you, because that is what you need them for and they are competing with other Secretaries for your time, support and for funds.  

It’s not easy for the President to make government agencies work effectively : first, you have no time, second – they have no competition. Anyway, you must have insiders in all departments, especially in the Justice Department (FBI), CIA and Secret Service firing anybody who’s trying to dig up dirt on you.  

Secretary of Defense.  

The Secretary of Defense is a very special and unique position for many reasons. This department is regarded a non-political one, defending the United States no matter what (never let him decide, though, what and where US interests are). Military leaders have a lot of friends in Congress who press the administration to accept military demands. Besides, it’s not easy to manage the Pentagon, as you depend on the military for evaluations of the national military capacities; they decide also what kinds of weapons to buy and build. Half of the federal budget goes to Pentagon, making it a major department and that’s the most frustrating aspect of your management.  

You have to find compromise between you, Congress, public opinion, interest groups and defense contractors’ lobbyists.  

The defense budget affects diplomacy and international relations, because governments worldwide scrutinize it for clues about US global intentions. For example, increases in defense spending, particularly for items such as naval vessels and aircraft, may signal your intention to pursue more aggressive foreign policies, and cuts in defense spending may indicate an effort to scale back on defense commitments.  

Hidden Structure  

The Cabinet is divided into the inner circle (State, Defense, Treasury, Justice) and outer, less important one (Interior, Agriculture, Commerce, Labor, Health and Human Services, Housing, Transportation, Energy, Education, Veterans Affairs, Homeland Security). While inner Cabinet members are selected more on the basis of personal friendship and loyalty, outer Cabinet members are selected more on the basis of geographical, ethnic or political representation and adopt an advocacy position for their Departments.  

The inner Cabinet is divided into two groups:  

а) national security group (State and Defense Departments).  

b) legal-economic group (Justice and Treasury Departments). The Attorney General usually serves as the president’s attorney and this special responsibility leads to close personal contact with the President. The Secretary of Treasury is very important in domestic monetary and fiscal policies and international trade and currency.  

The outer Cabinet is a “domestic” group. Don’t waste your time meeting them – you have enough staffers for that. Sometimes “outer” Secretaries try to build their political base of support within their own bureaucracies. Don’t hesitate to fire and replace any of them if they start to criticize you and behave politically independent, counting on bureaucratic and interest groups’ support.  

There’s one (negative for you) thing in common between all Secretaries – self-interest pushes them to protect and expand their departments and then they act more like representatives of their departments to the President then the presidential envoys they were appointed to be (“divided loyalty”).  

ATTENTION : Secretaries of State and Defense usually form a coalition against your National Security Adviser. You must be a smart mediator as Commander-in-Chief. These two have weekly meetings, and each of them has a weekly meeting with the DNI (Director of National Intelligence), so you must know from independent sources what they are talking about in case they “forget” to tell you the details. The Defense Secretary meets weekly with the Joint Chiefs, too.  

Mind Control  

Every day in 2004 we watched the Homeland Security Department "terror alert colors" and very often the threat was "high" or "very high. " With all my 30 years espionage experience I couldn’t understand why they were telling the nation about the threat and producing the multicolor picture on TV. Why? What can ordinary Americans do about that? What happened next made the situation absolutely clear for me and posed one more question for the nation: right after President Bush was re-elected the colors disappeared – why? Again, what happened? Is there no more "terror threat" to America? There is. But there’s mind control, too.  

Mind control, which I call mind manipulation or MM, is used to program the "right political behavior" of the nation or "indifferent behavior" (if necessary) without people’s knowing or understanding the procedure.  

We are talking here about total illegal social control.  

Principles of Mind Manipulation  

1) It’s not enough if every single citizen, and the nation as a whole, thinks and behaves your way – it’s much better if they want to behave your way and feel comfortable, and are absolutely sure it’s their own choice and, finally, they become your active supporters.  

2) If you want to control the nation and program peoples’ thoughts, you have to control knowledge (information, culture and communication).  

3) The political imagination (belief) of the nation has to move in the right direction and has to be accepted as the most comfortable and most acceptable way of political activity: nobody is thinking, nobody is criticizing the President, nobody is making comparisons and drawing conclusions. Everybody believes the American President and hates his enemies.  

4) Don’t waste time fighting foreign ideology, take care of ordinary Americans.  

5) There is no difference between commercial and political advertising, and MM.  

American Propaganda Technology  

You need 24/7 effective propaganda to get non-stop public support of your policy — your war for public support does not stop the day you enter the White House — it may stop the day you leave the White House. If your polls go below 40%, the United States effectively has no President.  

Use propaganda tricks:  

– general (abstract) information on big problem  

– information dosage (the less people know — the easier you convince them)  

– misinformation (full or partial) presented as news, sensations, rumors  

– disorientation – one bit of information contradicts another one  

– provocation – information "pushes" people (before you start war)  

– information over-dosage – too much information (and people lose interest)  

– exaggeration of enemy’s negative sides and promotion of scary data  

– distraction of nation’s attention from news that is bad (for you) by publishing sensations and (political) scandals  

– stereotype manipulation ("nuclear threat, " "international terror, " etc.  

– "shuffle" – all news and facts match President’s political course  

– "cocktail" – mix of true and false information  

–"facts transportation" from abroad (you buy a foreign reporter and he’s publishing positive information on your politics; then you spread the information through American media)  

Remember the principles of mass psychology: people don’t believe the government – they believe the market and the stock exchange; people need statements, not analysis.  

MM Technology  

1) Create a steadfast American collective will-power: “We want to live forever in the America we live in now” – through the media.  

2) Don’t ask people to change their views and beliefs – they have only to change the object of their aggression – “Now we understand who are America's enemies! (the previous President, Republicans).  

3) Get people accustomed to accept facts but believe only in the “right” comments – any common sense has to be “switched off. ” This way you create “mass artificial schizophrenia” — people lose the ability to connect statements and facts (notions) and just believe.  

Besides, by extreme exaggeration of the enemy’s negative qualities you can install the national schizophrenic fear (of "international terrorism") and people have to accept you, the US President, as a savior. Plus, no matter what, repeat your major statements until people start accepting them without thinking.  

4) Divide the nation into “good Americans”(patriots) and “bad Americans”(the “minority).  

Make it clear : it’s much better and more comfortable to be “good” than “bad. ” “We aren’t watching good Americans who support the President. The surveillance is for bad Americans and we make their lives and careers uncomfortable. We have to do that because enemies of America may be using them. ” This method is called artificial social selection and its ultimate goal is a total regulation and standardization of the nation.  

5) For successful MM, use the combined efforts of popular Democratic American writers, TV and radio anchors, talented publicists and columnists, business and show business celebrities, politicians. Thus, step by step you create the “industry of correct political behavior and correct American thinking. ”  

6) Use a combination: statement + image. It reduces the effort needed to understand your message and makes people comfortable with you.  

7) Shift all popular TV shows to prime time – Americans don’t have to think about politics after they come home.  

Psycho-epidemic  

During his first presidential campaign Obama used my strategy of psycho-epidemic.  

It's simple – you hypnotize people by permanent repetition of a certain word, like "Change! ", a phrase, a slogan. A crowd, and even a nation,, often behaves like a dog, it's very submissive if there's a strong personality, a strong leader in front of it. Then, the reflex appears – once you see a strong leader, you must listen to him and follow his orders.  

Strategic planning  

That’s the biggest problem for all administrations.  

Strategic planning is the process of making present decisions based on well-calculated future consequences. The basic strategic objective is a decision as to where to concentrate the government efforts this is the essence of strategic planning. The worst example of strategic planning is the war in Iraq.  

It is crucial to choose a professional crew and place people in positions where their brains will work effectively and produce quality.  

Planning formula:  

– design strategy  

– amplify and clarify strategy into policy  

– organize a team  

– guide execution  

– make final strategic decision  

A. Regular Planning Model:  

subject, concept, idea definition of objectives  

design of innovative options and debate  

exploration of concepts, claims and possibilities  

development of program outlines  

establishment of expected performance criteria and indications  

information gathering  

integration of ideological elements  

assignment of executive responsibility  

scheduling  

analysis and experiment  

experiment evaluation, examination of likely consequences  

comparison of expected and actual performance levels  

determination of costs  

prognosis  

strategic decision  

B. Express planning: information interpretation, projects design, choice of a project, decision  

C. Regular (math) model:  

Negotiations planning (example): pressure, compromise, tricks, break.  

Let’s evaluate "pressure": negative international reaction /-1/, breakdown /-1/, positive effect /+1/. Score: -2+1=-1 Conclusion: no pressure should be used.  

D. Expertise model.  

Government crisis (example): poor planning- wrong decisions- wrong actions- wrong execution- opposition activation- mass protests- coup  

E. Scale model.  

Risk factors: Risk levels:  

Intenationalsanctions : medium  

High inflation rise : medium to high  

High unemployment : medium to high  

Low public support level(low polls) : medium  

Presidential decision making  

1. Decision making is a multiple choice process.  

2. Any decision involves political risk.  

3. If you can’t make a decision, you need more information.  

4. Be optimistic, but remain realistic.  

5. Give yourself a deadline.  

6. No brainstorming chaos.  

7. There are two kinds of decisions: irreversible and reversible. Better know which kind you are facing.  

Here’s the process:  

a) Identify the problem  

b) Analyze the problem — what are the facts?  

c) Evaluate options – what are the pros and cons? what can go wrong?  

d) Identify choices – which alternative is the best?  

e) Implement plans – what action needs to be taken?  

As the world #1 leader you have to know that this world is being ruled not by you but by 11 financial corporations : Barclays, Goldman Sachs, Capital Group Companies, FMR Corp, AXA, State Street Corp, JP Morgan Chase, Legal & General Group, Vanguard Group, UBS AG, Merrill Lynch & Co Inc.  

Bonus  

Psychological Modeling of a President (Strategic Intelligence Method)  

Intelligence services worldwide watch political leaders during public appearances, trying to calculate their physical and mental health judging by their look and behavior. In the US they also evaluate the executives and staffers who surround the President at official meetings to calculate what’s going on in the White House.  

They look at:  

– a very detailed biography  

– personal needs, interests, philosophy  

– political views  

– intelligence, will-power, character, abilities  

– behavior in crisis situations  

– compromising facts and possible methods of influence  

– personal, political and big business VIP connections  

– financial situation  

– administration and team  

– political opposition and President  

– Congress  

Domestic headache  

You can’t separate domestic and foreign policies because they are married to the same ugly guy – the budget deficit.  

Domestic policy rests on three legs: education, health and environment. Americans will never support reduced funding for education, Social Security and Medicare (Medicaid) cuts and weakened environmental-protection laws. But I strongly advise you – don’t bother trying to emulate Europe and the British Commonwealth by providing health care for all – the privately insured middle class (your voting majority) won’t stand for it. If you don’t believe me, go to the polls.  

Now, are you a challenger in politics? If "yes, " strengthen your political positions in Washington, DC first, then start some reforms. Before you start a reform you have to win the information war with your opponents and get public support. A reform is always a venture; the process may start taking on momentum and you won’t be able to stop it. You had better continue old reforms using a new tactic because new reforms bring new problems, new enemies and new mistakes, and big economic mistakes bring you an economic crises.  

Dealing with big business  

1. Big organized money moves big political machines, big political machines move big lobbies, big lobbies move the President.  

2. The President is an investment.  

3. A group that rules the economy rules the White House.  

4. A new political course comes not with a new President, but a change of big business’ global financial interests.  

5. Follow 3 "golden rules":  

– protect big investments  

– help to promote  

– don’t interfere  

6. If the government doesn’t meet the needs of big business, it forms a new one of its own (something like a President’s Council). This usually happens when the President can’t provide financial stability and super-profits. Besides, big business has much more important foreign connections than the government.  

7. Big business is:  

a) money  

b) political and economic control  

8. Any political action gets an economic (big business) reaction.  

In terms of partisan politics, Republicans are considered to be more sympathetic to big business interests while traditionally Democrats get electoral and financial support from organized labor. Forget about antitrust policy business has become more global and efforts to enforce antitrust policies have proven deficient and are threats to national security.  

Managing the economy  

1. Regulate spending, taxation, monetary policy and foreign trade whic has to be under strict political control – you have the right to propose legislation and veto any legislation you think incorrect. Keep in mind that Americans always insist on reducing government spending on foreign aid and space exploration, and they naturally hate any rise in taxes.  

2. State and local governments, both through national associations like the US Conference of Mayors and Congress Members, always press the government to get more federal funds even at the expense of inflationary budget deficits.  

3. Keep unemployment low and prices stable – these two factors are politically dangerous and failure here can bring a free-fall in approval ratings.  

4. Take credit for economic growth, price stability and low unemployment even if you have nothing to do with it.  

Still have problems? Try international initiatives.  

There are four inevitable factors that will limit your control over the economy:  

1) You must share power with Congress — you can’t levy taxes or appropriate money all by yourself;  

2) The theoretical nature of the science of economics — no single economic theory has ever explained the behavior of the economy in the future;  

3) The imprecision of economic information. Economic statistics and indicators do not measure the immediate conditions of the economy, but rather the conditions that prevailed between one and three months ago, depending on the particular economic statistics. Consequently, if you take action on the basis of incoming economic information you may be reacting to a problem that no longer exists or that is much worse than believed.  

4) There are forces outside the reach of the federal government, like international factors (oil prices and foreign trade policies), state and local governments economic decisions and mistakes, big business decisions that affect employment, inflation, the trade deficit and public opinion — which is always against cutting social programs.  

Budget deficit  

A large budget deficit is a headache and has extremely negative effects on the economy:  

1. It limits the government’s flexibility to fight a possible recession; that requires tax cuts and deficit spending, which would exacerbate the debt problem. Since tax revenues fall during a recession and unemployment insurance and welfare payments rise, the budget would be under further strain precisely when deficit spending would be needed to pull the economy up.  

2. It reduces the amount of funds available for achieving the nation’s social and defense goals, because interest must be paid on the national debt.  

3. It can threaten the economy by "crowding out" corporate and private borrowers from the credit market. Because the government must borrow heavily to finance its deficit, it competes with business and individuals to borrow funds. The increased competition forces interest rates higher, causing loans (including mortgages) to become more expensive. As a result, business can afford to purchase less plant and equipment to expand and modernize their operations and fewer consumers can afford to finance purchases of expensive items, such as houses and cars. The resulting reduction in demand threatens economic growth.  

4. The US budget deficit has become so large that domestic savings no longer can provide enough capital to service the debt. Consequently, the government must borrow from foreign sources to make up the difference. This makes us dependent on foreign investors and raises the possibility of a "stabilization crisis, " which can occur if foreign investors lose confidence in the dollar and liquidate their US investments. Such a crisis could cause the dollar to plummet and interest and inflation to rapidly accelerate.  

Crisis  

Crisis means that your government as a system is exhausted and it’s unable to rule the nation and resources effectively in an extreme situation, including economic, natural catastrophes and war. A crisis has three stages – before the crisis, when the first signs appear; crisis development until culmination; catastrophe followed by impeachment. A crisis could be "programmed" at the very beginning of your term (mistakes in political and economic courses, inexperienced personnel, faulty planning) or it can appear later (too many mistakes, change of political environment, shifts in the economic or international situation). Crisis management includes pre-crisis management and handling of the situation. You must be ready not only for a government crisis but also for sudden military attack, mass riots and natural disasters.  

International trade is an important component of national security. Our "friends" (NATO members, Saudi Arabia and Japan) favor a dollar (that is neither overvalued nor undervalued) and a healthy US economy with relatively full employment and low inflation rate. If the dollar is weak, the value of much of their international currency reserves declines and their goods are less competitive in the US market. If the dollar is too strong, their investment capital migrates to the US and the high competitiveness of their products in the US market threatens to provoke calls for trade restrictions. If unemployment in the US rises, the major market for their goods declines. If interest rates are higher in the US than in Europe or Japan, investment capital moves to our country. Consequently, foreign governments press the United States to keep the exchange value of the dollar from fluctuating widely and to hold interest rates steady.