Pontificating economic globalists are stuck between empirical good news and their preferred anti-Trump tariff narrative.  Economic media like the Wall Street Journal are filled with angst, as Trump’s manufacturing MAGAnomics continues to destroy their decades-long talking points and globalist preferences.

The analysis of June factory and manufacturing indicators from the Institute for Supply Management (ISM) highlight an expanding reality: increased production, increased new orders, increased employment, and demand outpacing supplies and transportation capacity.  Yes, all of this means the Main Street U.S. economic engine is firing on all cylinders.  We can only imagine what the Q2 numbers will reflect when it’s all rolled up.

ISM DATA – “Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 percent or above for the 14th straight month, and the Customers’ Inventories Index remaining low. The Backlog of Orders Index continued to expand, reading at 60 percent of higher for the third consecutive month. Consumption, described as production and employment, continues to expand in spite of labor, skill and material shortages.

What does this mean in blue collar language?  Short term: OVERTIME pay folks…. maximum earnings possibilities as demand for factory and manufacturing has all employment working maximum production shifts. Long term: upward wage pressure, jobs, jobs, jobs.
For the Truck Drivers?  Work, work, work.  You got a rig, they need it hauled. Everywhere.
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Today U.S. Chamber of Commerce President Tom Donohue announced another campaign to protect and defend his Wall Street contributors against initiatives that benefit Main Street U.S.A. This is not the first time, and unfortunately it will likely not be the last time.
For a great historic reference consider THIS ARTICLE from 2014; when the U.S. Chamber of Commerce announced their direct attack against the Tea Party backed candidates that threatened to remove the massive lobbying power of Tom Donohue’s corrupt officials. That 2014 reference point has two parts. I strongly urge anyone who would defend the U.S. CoC approach to read both.

The overwhelming majority of economic punditry and opinion come from salespeople on the purchased payroll, direct and indirect, of the chamber. It is one of the most, check that, it is the most corrupt and abusive enterprise in the history of our nation. They are pulling out a very familiar playbook.

(Reuters) – The U.S. Chamber of Commerce on Monday denounced President Donald Trump’s handling of a global trade dispute, issuing a report that argued the tariffs imposed by Washington and retaliation by its partners would boomerang badly on the American economy.

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Within the German economy the auto-sector holds the largest political influence.  Because of this dynamic all German politicians kneel at the knee of the big industrial auto manufacturers.  It has been said that losing support from within the auto-sector is much worse on a German politician than losing support from party or parliament.
Because of this dynamic; and specifically because the German auto-sector is dependent on the United States as their biggest customer, President Trump holds leverage over German Chancellor Angela Merkel.  This makes Fraulein Merkel unhappy.

President Trump wants three EU issues resolved: 1) Germany to contribute the minimum 2% of GDP for their own NATO defense.  2) Germany/EU to support enhanced sanctions against Iran; and  3) President Trump wants all German/EU protectionist trade barriers and tariffs lowered or eliminated – and new trade deals negotiated.
To gain momentum on these initiatives, President Trump is using the economics of trade as leverage.  Trump has suggested a 20% tariff on all EU automobiles shipped into the U.S. [The same standard now likely proposed toward Canada]  The German auto-sector, and as a consequence the German economy, simply cannot survive without low cost access to the U.S. market, their biggest customer.
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Earlier today President Trump delivered remarks celebrating the six month anniversary of the U.S. Tax Cuts and Jobs Act.   Today is also the last business day of the second quarter.

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Long time CTH readers might note in 2015 when we first saw candidate Trump’s economic policy initiatives, we began outlining the sequential economic possibilities if President Trump won. So far, all is going according to plan – STUNNINGLY According To Plan.  Seriously, go back and look –FEBRUARY 2016– two-and-a-half years ago.
The possibilities were obvious.  As a result we predicted repeatedly that Q2 of 2018 would be the beginning of the largest period of U.S. GDP and wage growth in the past 30 years.  Q2 2018 ends tomorrow and the results of Q2 will be announced in the next few weeks.  Everything is happening in a logical sequence as a result of Trump’s MAGAnomic plans.
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President Trump is hosting a roundtable MAGAnomic meeting in Las Vegas with business leaders and professionals.  The discussion centers around ongoing benefits from the tax reform initiative; the administration policy toward trade rebalancing; and the ongoing America-First investment and business development plans.
UPDATE: Video Added

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We’ve been sharing this intensely predictable issue since late 2017. Andrés Manuel López Obrador, or “AMLO”, is going to be the next President of Mexico.  The self-described “soft Marxist”, a Mexican Hugo Chavez, has been so far ahead of all other candidates – the outcome of the July 1st Mexican election is a foregone conclusion.
Interestingly, people are only now starting to take notice because AMLO is openly telling his fellow countrymen they must flood the U.S. border.

(From the Daily Caller) […] “And soon, very soon — after the victory of our movement — we will defend all the migrants in the American continent and all the migrants in the world,” Obrador said, adding that immigrants “must leave their towns and find a life in the United States.”  He then declared it as “a human right we will defend.”

Most political observers read this and think it sounds crazy. They make comparisons to a U.S. presidential candidate telling Americans to flee to Canada (Daily Wire example). That type of perspective shows a disconnect.  The paradigm, and frame of reference, is entirely wrong.
What AMLO is saying is not a surprise, nor is it an ideological proclamation; there is an actual strategic policy behind these statements.  This has been AMLO’s strategy for years, and no-one was paying attention.   Andrés Manuel López Obrador has long proposed a key economic plan for Mexico to become wealthy. However, his idea has only recently gained broad mainstream Mexican understanding.
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Office of Management and Budget Direct Mick Mulvaney had a break-out session during the White House cabinet meeting today where he discussed part of the government restructuring and reform proposals.
We have waited a long time for this type of common sense initiative.  This is MAGA.  Some will say it can’t be done; however, if it is not attempted it most certainly will never be done. As President Trump has shared for years: “the impossible is only the starting point”; and I would not bet against this administration actually getting this accomplished.  WATCH:

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Senior administration officials are preparing to brief the media on a congressional “recission request” notification:

“Today, senior administration officials will hold a background briefing to preview the Presidents historic rescission request to Congress. The special message to Congress will be delivered Tuesday, May 8, 2018. The briefing will be conducted via conference call at 6:00PM EDT tonight. The information will be embargoed until 9:00PM EDT this evening.” (LINK)

In essence the administration is preparing to enter into a spending discussion with congress. The White House is actually trying to eliminate unnecessary federal spending. FULLSTOP. Yes, that’s what happens when a businessman, committed to financial stewardship, takes over as executive and reviews spending.

The basic point of “recission” is simple. The Omnibus spending bill contained too much unneeded spending on non-essential budgetary items. A Very Stable Genius President approved the Omnibus to gain the needed financing for the military.

With the military shored-up, the sketchy pork hidden inside the Omnibus needs to be addressed while deconstructing the deep state apparatus.  So,…. the White House is talking with congress about NOT spending the appropriations.

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National Economic Council Director Larry Kudlow appears on Bloomberg News to discuss U.S-China trade confrontations, the use of tariffs, and the potential for negotiations between the two nations:

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Obviously – with the ongoing issues surrounding NAFTA, and China’s exploitation of the fatal flaw therein, in combination with President Trump confronting the dragon behind the false Panda mask, the fight for MAGAnomic America-First policy execution is entering a new phase….

The multinational interests who benefited from the prior U.S. global trade approach are increasingly desperate. There are trillions at stake.

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There’s no escaping the reality that today’s Omnibus spending bill is a significant slap in the face to Trump voters and supporters. The $1.3 trillion UniParty spending scheme is a bitter rebuke from the legislative branch. A twitter comment outlines an understandable, albeit emotionally charged, reaction:

“You did have a choice. There’s always a choice. You betrayed us with what you did. We have fought for you. We have lost friends/family for you. We have become targets for you. Yes, you did have a choice. Fix this.”

Despite the valid and understandable reaction, ‘betrayal’ is harsh. From POTUS Trump perspective the lack of “choice” stems from a cornerstone that Making America Great Again is dependent on a strong U.S. military.  Protecting Americans writ large is contingent upon ensuring our military is solid. Unfortunately, the only way to ensure the #1 objective was to acquiesce/concede to the blackmail of the UniParty in DC.  –  FUBAR.

~ “Leadership is often painful” ~

There ain’t a single part of this that seems ok, regardless of necessity. Worse still, is having to accept the republican side of the UniParty would enjoy nothing more than losing their majority position so they can go back to being comfortable enablers of the unholy DC alliance, and expel the annoying disruption known as President Trump.

Yes, this self-preserving UniParty approach is by design; it is a feature of the swamp – not an anomaly. Our only current solace is a historic reference; generally speaking when President Trump retreats from a fight, he tends to re-advance his force with greater severity. But on this singular day, if there’s a larger push-back yet to unfold, the commander-in-chief is conceding to the opposition a great deal of valuable ground.

FUBAR….. Cue the Wolfmoon:

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