The Commerce Department has released a much anticipated January Retail Sales Report which shows total cumulative spending growth of .02% over prior month, and 2.3% growth year-over-year.  Importantly, a sector review (year over year), comparing January ’19 with Jan ’18, highlights where we are against our anticipated state of the economy:

(source – pdf)

Gas prices are low which are reflected in lower overall sales data (-4.2% year-on-year) within the gasoline station sector.  Additionally, electronic and appliance store sales (-3.3%) reflects American consumers holding on to currently owned durable goods in that sector and not replacing. Both of these sectors were defined within the larger MAGAnomic forecast.
On the strong upside, building materials and home improvement reflect large growth of +8.7% year-over-year and +3.3% over prior month.  Again, when considering how the principles of MAGAnomic policy focuses on ‘blue-collar’ economic improvement, these outcomes are exactly what you would expect to see.
How do these results reflect amid your family and social circle; do you see the same?
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Remember: “everyone has a plan until they get punched in the face.” ~ Mike Tyson
The exploitation of Michael Cohen toward the launch of Speaker Pelosi’s impeachment effort backfired bigly.  Not enough people found Cohen credible; and because of the ridiculous way the entire staged performance was carried out by Democrats, and the their media allies, most people saw right through the politicization of it. The plan just failed.

Additionally, some politicians like Jim Jordan, Jody Hice and Mark Meadows started calling out the blatant construct behind Pelosi’s impeachment plan.  HPSCI Chairman Adam Schiff sending his staff to New York four times to prep Michael Cohen before the hearings – was only made more ridiculous by Chairman Schiff trying to deny they coached Cohen.  Schiff looks like a doofus.  So today:

[Nancy Pelosi] “I’m not for impeachment. This is news. I’m going to give you some news right now because I haven’t said this to any press person before. But since you asked, and I’ve been thinking about this: Impeachment is so divisive to the country that unless there’s something so compelling and overwhelming and bipartisan, I don’t think we should go down that path, because it divides the country. And he’s just not worth it.” (link)

UPDATE: Jerry Nadler has also joined in (see below).
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National Security Adviser John Bolton appears with Maria Bartiromo to discuss recent reports that Kim Jong-un is moving toward more nuclear testing.
Obviously that discussion moves quickly into the influence of China and Chairman Xi Jinping.
The frustrating question no-one ever seems to ask is not “if” China controls the DPRK government, but rather “to what extent”?
It has become more obvious in the past few years that North Korea’s Chairman Kim Jong-un has much less control over officials and military leadership within his own government than previously thought.
Does Chairman Xi and Beijing structurally control everything around Kim? Is Kim a hostage; forced to ride a dragon he doesn’t control?  I think the answer is yes.

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Once people start to realize that China controls North Korea as a proxy province, then the discussion can evolve toward the true nature of the challenge, and the way President Trump is precariously negotiating a hostage release while refusing to pay the ransom.
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National Economic Council Chairman Larry Kudlow appears on Fox News Sunday to discuss economic policy, budgets and taxes. Since the discussion is the economy, Wallace quickly puts on his doomsday hat.

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National Economic Council Director Larry Kudlow discusses the February jobs report, wage gains, stimulus from the European Central Bank, and President Trump’s ongoing trade confrontation with China.  [Solid Interview]
Chairman Kudlow notes some interesting dynamics at play including the recent National Household employment survey which showed 225k additional workers resulting in a drop in the overall unemployment statistics to 3.8%

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Additionally, the globalist-minded Wall Street crowd are disappointed that a March summit between Chairman Xi and President Trump has been scuttled. In aggregate terms, this cancellation backdrops USTR Robert Lighthizer’s strong granular demands of the Chinese delegation toward contractual enforcement terms. It is most likely Chairman Xi is not happy with the feedback he is receiving from his team. Too bad.
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The BLS employment report for February is very underwhelming with a mere 20,000 new jobs calculated and results that fall far short of expectations.  The recent private sector ADP payroll report showed 183,000 gains.  Despite the low reported jobs gains, the national unemployment number dropped to 3.8%.
Further confounding the low February BLS calculations, revisions to December and January were upward. December’s jobs were revised up from +222,000 to +227,000 (gaining 5k), and the change for January was revised up from +304,000 to +311,000 (+7k). With these revisions, employment gains in December and January combined were 12,000 more than previously reported. Job gains now average 186,000 per month over the last three months.
On a very positive note the calculated wage growth continues to reflect a tight labor market where employers are increasing wages well beyond inflation. “In February, average hourly earnings for all employees on private nonfarm payrolls rose by 11 cents to $27.66, following a 2-cent gain in January. Over the year, average hourly earnings have increased by 3.4 percent.” That is the strongest sustained wage growth in a decade.

(Source Link)

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Apparently Canadian media are taking their hatred for U.S. President Donald Trump to new levels of opposition.  The taxpayer funded CBC news media is purchasing billboards and transit advertisement throughout Canada to promote a campaign against the sitting U.S. President.

SOURCE: “”TRUMP BAD!” ads are appearing throughout Canada attacking him for wanting to secure the border with Mexico using a historically illiterate comparison to the Berlin Wall. I’ve seen these on Vancouver transit also” (link)

Even for the ultra-leftists within Canada, this antagonistic approach toward the United States is quite remarkable. [Former President Barack Obama was in Canada yesterday.]
D’oh Canada, this will not end well for the Canadian government…  Additionally, Prime Minister Justin Trudeau is up for reelection this year.
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Economic analysis can get weedy…. so a simple way to look at productivity is to think about baking bread in your kitchen.
If you were going to bake 4 loaves of bread it might take you 2 hrs start to finish. However, if you were going to bake 8 loaves of bread it would not take you twice as long because most of the tasks can be accomplished with simple increases in batch size, and only minor increases in labor time. Your productivity measured in the last four loaves is higher.
Economic Productivity is measured much the same way, within what’s called a production probability equation. Additionally, if two hours of your time are worth $40, each of four loaves of bread costs $10; but if you make 8 loaves in the same amount of time the labor cost is only $5/per loaf.
From 2007 through 2017 the average rate of productivity increase was 1.3%. In the fourth quarter of 2018 productivity was 1.9%.  That means total business output increased as more product was demanded from within the business operation. Throughout the economy people just wanted more stuff.  However, the most important numbers for MAGAnomics (Main Street USA) center around manufacturing and durable goods.
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It does not appear accidental that each time Justin from Canada starts finding himself in trouble, serious trouble; the same person happens to show up.   In June 2017, Justin was being challenged with a new NAFTA trade agreement… and former President Obama showed up while delivering a speech to the Board of Trade in Montreal.
Fast forward to today…  March 2019 – the Canadian economy has halted; Justin from Canada is embroiled in a growing bribery, corruption and obstruction of justice scandal around SNC-Lavalin; and immediately after he loses two cabinet ministers… former President Obama shows up to deliver a speech to the Board of Trade in Vancouver:

During a question and answer session with Vancouver Board of Trade President Iain Black at the Vancouver Convention Centre in Canada, Obama went into a diatribe about the dangers of rising populism amid national politics. [LINK]
Serendipitous domestic timing for an Obama visit, as the ideological political-wagons are circling to defend Justin from Canada.
Coincidentally, nudge-nudge/wink-wink/say-no-more… say no more… after a coaching/not-coaching session, Justin from Canada has agreed to a heavily controlled press conference on the obstruction scandal tomorrow at 8:00am.
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White House trade adviser Peter Navarro has been a core member of the U.S. trade team providing a brutally honest perspective toward how specific trade engagements can directly benefit the U.S. economy and U.S. worker.
Navarro has gained a reputation as a trade hawk, specifically as it relates to confronting the one-sided trade schemes of China.  However, that encapsulation doesn’t accurately reflect Mr. Navarro’s value.
The Big Club hates him.  Yes, Navarro is hated and opposed by all the right people.  He might be rough around the edges, but he fights… for ‘America First‘.
Navarro is unapologetic in openly calling attention to the process where Wall Street, the multinationals (corporations and banks) have gained power and influence over politicians in Washington DC.  Wall Street funnels hundreds-of-millions to Tom Dohohue, President of the U.S. Chamber of Commerce.  Donohue controls an army of K-Street lobbyists who purchase politicians and sell their CoC created legislation.
Specifically because he calls attention to the brutal truth of a corrupt process, he has become the target of attacks from Wall Street’s beneficiaries, the big club and Decepticon senators who take massive campaign bribes from Tom Donohue.
In a recent Op-ed, Peter Navarro highlights how the Trump economic team is delivering on a promise for structural global trade reform that directly benefits the U.S. economy, U.S. workers, and Main Street USA.
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