The professional financial punditry can’t explain it.  Flummoxed academics run around bumping into walls amid economic numbers that continue to defy expectations.  All caused by a simple return to common sense ‘America First’ MAGAnomics.
Low unemployment (3.8%); wages growing (+3.2%); inflation stable (1.6%). These measures all have a cumulative impact on paycheck-to-paycheck Americans. Prices for durable goods are stable and wage growth is exceeding inflation. That means more disposable income in the middle-class…DUH. Which, when combined with the increased pay from lower middle-class tax rates, is exactly the intended outcome of MAGAnomics.

Today the BEA is out with consumer spending results for the first quarter that defy expectations.  Consumer spending on goods increases 1.7%. Overall spending +.09 in March, reaches highest gain in ten years. The deplorables are spending their higher wages.  Go figure.  Meanwhile core inflation drops to 1.6%.  The pundits are shocked.

(Reuters Headline) “U.S. consumer spending roars back, but inflation tame” – WASHINGTON (Reuters) – U.S. consumer spending increased by the most in more than 9-1/2 years in March as households stepped up purchases of motor vehicles, but price pressures remained muted, with a key inflation measure posting its smallest annual gain in 14 months.

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Prior to March 9th, 2016, the political surveillance and spy operations of the Obama administration were using the FBI and NSA database to track/monitor their opposition. However, once the NSA compliance officer began initiating an internal review of who was accessing the system, the CIA and FBI moved to create ex post facto justification for their endeavors. [Full Backstory]
After the November 8th, 2016, election everyone within the Obama network associated with the Trump surveillance operation was at risk. This is the impetus for the “Muh Russia” collusion- conspiracy narrative that was used as a mitigating shield. Within a few days after the election ODNI James Clapper and CIA Director John Brennan began pushing the Russia election interference narrative in the media.

Without notifying anyone, NSA Director Mike Rogers went to Trump tower on November 18th, 2016.  Despite his compartmentalization it appears Rogers identified the NSA database abuse as the likely underpinning for some form of political surveillance.
By mid-December 2016 the Obama administration was deploying a full-court-press using their media allies to promote the Russia conspiracy.  However, despite their public proclamations Clapper and Brennan were refusing to give any specifics to congress.
The hard narrative was that Russia interfered. That was the specific push from within the Obama intelligence apparatus writ large.  All IC officials, sans Mike Rogers (NSA), had a self-interest in pushing this narrative; after all, it was the defensive mechanism to justify their illegal spying operation throughout 2016.  This was their insurance policy.
The media was doing their part; and using the information leaked to them by those who were part of the 2016 operation(s) began battering the Trump transition team every hour of every day with questions about the Russia hacking narrative; thereby fertilizing the seeds of a collusion conspiracy.
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Those who participated in the 2015/2016 surveillance and spy operations, which evolved into the 2017 (through today) soft-coup effort, are relying on a defense that Russia ‘hacked’ the 2016 election. This false narrative is how the corrupt administrative state will defend themselves.
Pay close attention to this interview and note how Senator Graham supports that narrative saying: “the Russians hacked into John Podesta’s e-mails, the campaign manager for the Democratic candidate for President. The Russians hacked into Hillary Clinton’s e-mails, the candidate for the Democratic Party.”
This ‘Russia-hacking narrative’ is the DC ‘chaff and countermeasures‘; when combined with their ‘by-the-book‘ justifications, it becomes their unified defense. Once you accept their baseline, it becomes much more difficult to expose their unlawful conduct.

[Transcript] MARGARET BRENNAN: We just heard about this tragic shooting. It was an AR-15-style semi-automatic weapon. Hate crimes seem to be on the rise–
SENATOR LINDSEY GRAHAM: Right.
MARGARET BRENNAN: –in this country. What do we need to do to combat this, prevent it?
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President Trump calls-in to Sunday Morning Futures for an early interview with Maria Bartiromo from the border.   [Unrelated, POTUS sounds like he’s in his pajamas, while Bartiromo looks like she’s in her pajamas] The topic is the crisis at the border.
The president answer questions about background of the problem; and then starts to discuss what Lindsey Graham is putting together. Additionally, the president discusses the Democrat 2020 candidates.

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Senate Judiciary Chairman Lindsey Graham gave some brief remarks to local Dallas media discussing his summer agenda for the Judiciary Committee.  Graham notes he does not intend to question Robert Mueller -deferring to AG Barr- which is not surprising considering how lightly Mueller may have been involved in the investigation.
Graham also notes the separation between the legislative branch and judicial branch as a firewall for inquiry into the FISA court.  However, Graham explains his intent to discuss possible FISA abuse (manipulation from the executive branch) with Chief Justice John Roberts. It appears Graham is also waiting for the DOJ inspector general report.

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The 2016 anti-Trump effort and 2017 soft-coup was not just an assembly created by Obama officials; there was/are a significant number of mutually aligned republican politicians willfully blind to the effort.
As a consequence, we see the administrative state holding a vested interest in retaining the originating Russia premise.
With President Trump openly stating “coup” and “overthrow“, those who participated in the coup and overthrow need to protect their involvement by substantiating the background lie they used to carry out the cover-up operation.  We note the media outlets used by the intelligence community never change. Cue the predictable:

New York Times – The F.B.I. director warned anew on Friday about Russia’s continued meddling in American elections, calling it a “significant counterintelligence threat.”
[…]  “We recognize that our adversaries are going to keep adapting and upping their game,” Christopher A. Wray, the F.B.I. director, said Friday in a speech in Washington, citing the presence of Russian intelligence officers in the United States and the Kremlin’s record of malign influence operations.

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Can’t make this stuff up folks…. as if on cue.
Vice President Mike Pence responds to Senator Grassley and Senator Johnson’s speculation that FBI agents wanted to use Pence’s chief of staff to infiltrate President-elect Trump’s transition team in 2016:

“I was deeply offended to learn that two disgraced FBI agents considered infiltrating our transition team by sending a counter intelligence agent to one of my very first intelligence briefings only 9 days after the election,” Pence said in a statement to Axios. “This is an outrage and only underscores why we need to get to the bottom of how this investigation started in the first place.”
“The American people have a right to what happened and if these two agents broke the law and ignored long-standing DOJ policies, they must be held accountable.” (more)

Next up: Deep State (IC) deploys Washington Post and New York Times remind everyone how intense the 2016 Russian election interference was…. In 3, 2, 1..

In 2015 CTH outlined candidate Trump’s economic positions and how they would impact the economy.  We anticipated that MAGAnomics would be reversing three decades of federal reserve monetary policy. After about a year of analysis, in 2016 CTH presented a theory: “A new Dimension in Modern Economics“.
The theory was based on a likelihood of what would happen if MAGA economic Policy was shifted to favor Main St over Wall St.  One aspect we presented was how Federal Reserve monetary policy would be oddly disconnected from its ability to influence inflation.
Today National Economic Council Director Larry Kudlow appears on CNBC to discuss the latest first quarter GDP growth rate of 3.2% and the status of the U.S. economy.   Kudlow notes the rate of inflation is disconnected from the GDP growth.

CTH 2016[…]  Understanding the distance between the real Main Street economic engine and the false Wall Street economic engine will help all of us to understand the scope of an upcoming economic lag; which, rather remarkably I would add, is a very interesting dynamic.

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President Donald Trump: “The GDP numbers were just announced and they were far higher than even the high expectation. There were many people who thought it would less than 2, and they were at 3.2.”
“Inflation numbers are very low. The gasoline prices are coming down. I called up OPEC. I said, “You got to bring them down. You got to bring them down.” And gasoline is coming down. We’re doing great.”
“GDP is an incredible number. But remember this: Not only that, we have a great growth — which is growth. We have great growth and also very, very low inflation. Our economy is doing great. Number one in the world. We’re number-one economy right now in the world and it’s not even close.  So thank you very much.”
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Yesterday Senators Johnson and Grassley opened the door for the DOJ and FBI to justify the post-election investigation of President Donald Trump, based on a premise of a possible FBI counterintelligence operation ran against the office of the Vice-President, Mike Pence. And lickety-split the outrage voices jumped right to work. Predictable.

Discussions, conversations and displays of evidence outlining the efforts of the intelligence community, to defend against the potential of a compromised President, are exactly what the previous administration officials want to see.  This is the conversation President Obama, Susan Rice, Ben Rhodes and Denis McDonough would be happy to discuss.
Think of the worst or most shocking possibility you can imagine for what might have taken place.  Wiretaps on the White House? Enlisted assistance from staffers? Bugs placed in the cufflinks of Donald Trump?  So what?  From their position all of these efforts were undertaken because they were dealing with the possibility of a U.S. President who might be under the control of a foreign government.  This is the conversation they would enjoy.
From their ‘by-the-book‘ perspective the officials who ran the counterintelligence operation against President Trump have no fear of discussions about what they did in their post-election defense of the constitution (that’s how they will sell it). No fear.
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