If you needed any empirical evidence to prove the doomsday proclamations by the financial pundits are false claims, just look at the July consumer spending results. July spending more than doubled expectations.
July results were +0.7 percent, against the economic forecast of +.03 percent. Consumer spending makes up over two-thirds of the U.S. GDP and overall economy. Doesn’t exactly sound like Main Street is on the precipice of a recession. Oh my.
Average wage growth remains +3.5% year-over-year. The growth of overall income for American workers exceeds +5.4 percent year-over-year. Unemployment is a low 3.6% and U.S. consumer inflation remains low at 1.4 percent. Meaning: the middle-class has more disposable income to save or SPEND; and that’s what is happening….
This is the fundamental disconnect. These Main Street results, this dynamic, is the space between two economic engines that CTH has been describing for three years. The investment class on Wall Street can go through pain, while the middle-class on Main Street thrive. We are in the space between.
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Commerce Secretary Wilbur Ross appears (in studio) on CNBC to discuss the current state of the U.S. economy, the ongoing issues with communist China, the ‘next step’ trade tariffs and the situation in Hong Kong.
A “negative yield curve“; a pending “economic recession“. These are the obtuse and ridiculous proclamations of the Mainstream Corporate Media today. So let’s take a moment to discuss how stunningly -intentionally- disconnected they are.
Always remember, there are trillions of dollars at stake; and these media entities have a vested interest in maintaining the Wall Street position, adverse to Main Street USA.
First the “negative yield curve” aspect; where long-term bond rates (returns on investment) are lower than short-term rates (returns). As Reuters proclaims:
“A key bond market metric turned negative for the first time since 2007 on Wednesday, sending stocks tumbling”…
I must admit, I actually started laughing out loud when I first read that proclamation. Allow me to introduce a radical concept in economics: “supply and demand” !
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White House trade and manufacturing policy advisor Peter Navarro appears on Fox News to discuss the status of the U.S-China trade negotiations and the reason for a USTR delay on some product tariffs.
Peter Navarro confirms what we noted from the office of USTR Robert Lighthizer yesterday. On December 15th “the tariffs will go on.” While the statement flies over the head of Stuart Varney, Navarro confirms the “next step” process that Lighthizer implied.
Early on Tuesday United States Trade Representative Robert Lighthizer announced the modification of “next step” tariffs on Chinese products. [See Here] “Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.”
President Trump responded to the delay/modification when questioned in New Jersey. President Trump noted a “very productive” phone call between Lighthizer and Vice-Premier Liu He of China:
[Transcript Segment] – […] Q Why did you make the decision on the tariffs, to delay the implementation of the tariffs?
THE PRESIDENT: Only to help, I think, a lot of different groups of people. And we had a very good talk yesterday with China — a very, very productive call. I think they want to do something. I think they’d like to do something dramatic. I was not sure whether or not they wanted to wait until a Democrat has a chance to get in. Hopefully that’s not going to happen because the economy would go to hell in a handbasket very fast.
The situation in Hong Kong is a geopolitical dynamic that will likely become much more volatile in the next few weeks, months and/or years. One constant in an ever-changing universe is how the UniParty in DC will attempt to drag the U.S. into the issues.
First, Hong Kong is China. Whether a generation of people look back with regret to the time when Great Britain ceded the territory to Beijing is irrelevant. China has, and will have, full control over Hong Kong; and that’s the way it is. This will not be reversed.
Any effort for the people within Hong Kong to reverse the situation and escape the clutches of oppressive communism while retaining their liberty will only lead to massive bloodshed.
Unfortunately for Hong Kong, as President Trump decouples the U.S. economy from the duplicitous communist Chinese enterprise, Beijing will grasp more control over the heavily Western-influenced economic strata in/around Hong Kong.
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Chopper pressers are the best pressers. Earlier today President Trump delivered remarks and held and impromptu press conference from the airport in Morristown, NJ, prior to departing for Pennsylvania. [Video and Transcript Below]
President Trump travels to Pittsburgh, PA, today to tour the Shell cracker plant and deliver remarks on “America’s Energy Dominance and Manufacturing Revival.” The anticipated start time is 2:10pm EST. [Update – Video Added]
Former Acting Attorney General Matt Whitaker appears on Fox News with Lou Dobbs to discuss immigration judges and a unionization ruling. However, when the discussion turned to Jeffrey Epstein, even AAG Whitaker said common sense tells us something about this is “fishy”.
