The Bureau of Labor Statistics has presented the data for second quarter (Q2) year-over-year wage growth.  Average weekly wage growth is 3.7% year-over-year.

[Source, BLS release Q2 – Table 2]

With inflation (CPI) averaging 1.8% over the same period this means wages are strongly outpacing inflation and increasing the disposable income of U.S. workers.  This data-set, combined with positive consumer sentiment on job and economic security, bolsters the recent report showing “unanticipated” strength in retail sales.
The data is a reflection of Main Street strength. The job market is hot; wages are rising (3.7%) much faster than inflation (1.8%); the middle class has more disposable income. Hence, retail sales growth is strong at 3.8 percent.

Excellent interview by Charles Payne as White House Manufacturing Policy Advisor Peter Navarro outlines how the strategic road map of MAGAnomics is converging.  If you want to see the future, listen to how Navarro outlines what’s coming.
The six MAGAnomic components to pay attention to include: ♦changes to the Universal Postal Union (UPU); ♦HUD Opportunity Zones; ♦America First raw material policy for infrastructure; ♦retail sales strength; ♦the current status of the U.S-China negotiations; and ♦the USMCA ratification.

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♦The UPU was one of those archaic policy issues set-up with good intentions, and then maintained by ‘stupid’ politicians well after it should have been renegotiated.  It’s good to hear that mess is coming to an end in October.
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An article from Reuters discussing the position of the International Monetary Fund (IMF) is interesting.   Essentially the IMF is warning that “global economies” will contract by $455 billion next year due to the ongoing trade conflict between the U.S., China, the EU and to a lesser extent, Japan.  Yes Alice, there are hundreds of billions at stake.
There’s really no reason to doubt the amount estimated, though I think it’s on the short side, but the yearly value seems in line.  I have no doubt President Trump will cost the “Global Economy” $455 billion…. because that money will be transferring back to the America First economy. That’s what happens as MAGAnomics reverses the IMF trade (wealth distribution) model.

The IMF is correct in part (the effect), incorrect in part (the cause), and mostly hypocritical.  The Euro-minded IMF rails against the high value of the U.S. dollar, but simultaneously ignores the motives behind the intentional devaluation of currencies that are pegged against the dollar.

WASHINGTON (Reuters) – The International Monetary Fund said on Wednesday the U.S. dollar was overvalued by 6% to 12%, based on near-term economic fundamentals, while the euro, the Japanese yen and China’s yuan were seen as broadly in line with fundamentals.

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The Commerce Department has released the first advanced estimate of retail sales and consumer spending for June. Core retail sales increased 0.7 percent last month (very strong), and 3.8 percent year-over-year; very strong retail sales.
Retail sales is an important component to the U.S. economy as more than two-thirds of our GDP is based from retail sales. In essence, one of the unique attributes to the U.S. economy is that we buy lots of stuff. Actually, the U.S. consumer buys almost three-quarters of everything produced. We are -for the most part- self-sustaining; we do not necessarily need to depend on exports. When the U.S. consumer is buying stuff the internal economy is strong.

WASHINGTON (Reuters) – U.S. retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the drag on the economy from weak business investment.
[…] Economists polled by Reuters had forecast retail sales edging up 0.1% in June. Compared to June last year, retail sales advanced 3.4%.

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Earlier today China reported the Chinese economy grew at its lowest rate in 27 years. This report follows additional information of more companies exiting China while the U.S-China trade conflict continues.
National Economic Council Director Larry Kudlow discusses the future of USMCA, and the vote decision of Speaker Nancy Pelosi; the ongoing renewed U.S. trade talks with China; President Trump’s Made in America Showcase and the overall state of the U.S. economy.

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Today President Donald Trump is hosting the 3rd Annual Made in America product showcase on the south lawn of the White House.  Anticipated start time 11:45am EST:
UPDATE: Video and Transcript Added

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[Transcript]  THE PRESIDENT: That sounds nice, doesn’t it? Beautiful. Thank you very much. And thank you very much. Terrific talent.  Please sit down. Please.
I want welcome everyone to the White House. We are very excited to be hosting our third annual Made in America Showcase. It’s all about “Made in America.” (Applause.) We just started this, and this is my third already. And I just went around and saw these incredible companies that make everything from the THAAD missiles to beautiful boats. And I said, “How would that boat do against the THAAD missile?” And it wasn’t a good answer. (Laughter.) The boat is going to have a little problem, but that’s okay.
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We had to wait a few weeks to see how the Beijing communists and Xi Jinping hardliners were positioned for new trade talks; and now things make sense.
Initially it seemed at odds with Beijing’s prior position to restart U.S-China trade negotiations with Vice-Premier Liu He.  The prior three months of negotiation came to a collapse when Beijing resoundingly rejected the trade terms organized by Liu He.  If the Red Dragon was so opposed to conciliatory terms, why would team Xi restart with the same negotiator?  Now it makes sense, they didn’t.

China’s Commerce Minister Zhong Shan has been assigned the role to harden the position of the communist regime and override any panda presentations by Liu He.  Vice-Premier Liu retains the panda mask, but Zhong is the ultimate control agent.  The message within Zhong’s placement tells the true nature of the Chinese position: Trade War !
Beijing attempts to downplay the position of their hard-line commerce addition, but the reality of the re-started trade discussions tells a more fulsome story.  Chairman Xi took the strategically presented bait and is going to engage in full confrontational trade war with President Trump and the U.S. team.

SCMP – The participation of China’s Commerce Minister in the latest trade discussion with the United States was “normal”, China’s Ministry of Commerce said on Thursday, playing down the eye-catching change in Beijing’s negotiating team.

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CTH has tracked this issue so closely through the years it often feels futile for another reminder. However, with the insufferable political games in the headlines over the issue of illegal immigrants and children, perhaps it is worth another visit.
There is no greater disconnect from ordinary Americans on any singular issue than the policy positions of Democrats and Republicans in Washington DC surrounding illegal immigration. President Donald Trump is confronting their unified interests.

Understanding The Big Racket.

Massive illegal immigration is supported by both sides of the professional political machine. There are few issues more unifying for the K-Street purchased voices of DC politicians than keeping the U.S. borders open and the influx of illegal aliens as high as possible. The U.S. Chamber of Commerce pays politicians to keep this system in place.
All Democrats and most Republicans support mass immigration. Almost no DC politicians want to take action on any policy or legislation that stops the influx. There are billions at stake. None of the GOP leadership want to actually stop illegal immigration; it’s a lucrative business. Almost all of the CONservative groups and politicians lie about it.
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U.S. President Donald Trump is attending an event in Milwaukee, Wisconsin, today to discuss the importance of a North American trade bloc and support the United States-Mexico-Canada Agreement (USMCA) trade deal.
Anticipated start time approximately 2:25pm EST.
UPDATE: Video Added

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In his former role as U.S. Attorney for the District of Miami Alexander Acosta was one of the senior DOJ officials involved in the Jeffrey Epstein case.  Mr. Acosta has explained his role and justified all the actions of his office over a decade ago.  However, the media and political opponents to the administration are using Acosta to attack the Trump cabinet.
Today President Trump and Labor Secretary Acosta announce the decision to depart from the administration.  President Trump doesn’t want Acosta to resign, but understands he is doing so in order to stop any further distractions to the administration and labor dept.

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[Transcript] THE PRESIDENT: I think he was a great Labor Secretary, not a good Labor Secretary. He’s done a fantastic job. He’s a friend of everybody in the administration. And I got a call this morning, early, from Alex. And I think he did a very good job yesterday. Under a lot of pressure, he did a fantastic job and he explained it. He made a deal that people were happy with, and then, 12 years later, they’re not happy with it. You’ll have to figure all of that out.
But the fact is, he has been a fantastic Secretary of Labor. And Alex called me this morning and he wanted to see me. And I actually said, “Well, we have the press right out here, so perhaps you just want to say it to the press.”
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