The Wall Street pundits are having a harder time pushing their recessionary economic narrative while the results from Main Street continue to beat expectations.  Two data points continue to highlight the strength of Main Street: Home Sales and Wage Gains.

President Trump’s MAGAnomic policies are focused on delivering results to the middle-class worker and family.  The middle-class American is the engine for a Main Street economy.  Growing the middle-class is the key to strengthening the U.S. economy and blocking negative global economic influence.  Growing the middle-class is how the U.S. economy continues to be self-sustaining. [We buy/use 80% of our own production.]
Today The National Association of Realtors released data showing existing home sales rose 2.5% to a seasonally adjusted annual rate of 5.42 million units in July.  Forecasters only expected 5.39 million units.  The U.S. Main Street housing market is very strong.

Because the results defy pundit expectation, Reuters has to ignore the strength of Main Street and put the Wall Street spin on the results.  The efforts to keep pushing a negative economic narrative are intense [Trillions At Stake]:

WASHINGTON (Reuters) – U.S. home sales rose more than expected in July, boosted by lower mortgage rates and a strong labor market, signs the Federal Reserve’s shift toward lower interest rates was supporting the economy.

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White House Trade and Manufacturing Advisor Peter Navarro appears on CBS ‘Face the Nation’ and ABC ‘This Week’ to outline the strength of the U.S. economy, and the current U.S-China trade reset, including tariffs.
There are trillions at stake.
Food for thought – contemplate how Sunday media bookings take place.  The ‘subject‘ for  Sunday interview discussions, and who they need for their narrative engineering sessions (ie. interview schedules), are made by MSM *corporate media early in each week.  [*U.S. Media are owned by Wall Street multinational conglomerates]
Obviously, as noted in the WH scheduling requests, the corporate MSM was planning to follow up and exploit their 48 hour engineered narrative (Tue/Wed) surrounding a false recession.  Unfortunately the excellent Commerce Dept. economic data released Thursday crushed their objectives… Thus, the corporate media were tripped up mid-plan.

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For all intents and purposes Germany is the EU, because German economic policy dictates the outcomes of all EU economic policy.  So as the EU promises to engage in more central bank monetary printing (quantitative easing) simultaneously Germany promises to keep negative interest rates floating as long as possible. [EU Parliament pictured below]
Yes, the EU is in serious structural economic trouble; and that is likely the real reason why quivering Chancellor Angela Merkel has decided to exit the political stage before the larger communal catches on.

Within the remarks by German Finance Minister Scholz it is the lamentation about the lack of investment into their grand collective economic scheme where you find the economic dissonance, and ultimately the hilarious punch lines:

BERLIN (Reuters) – German Finance Minister Olaf Scholz said on Saturday that he expected interest rates to remain very low for “the next few years”, adding that companies should seize the opportunity of near-zero borrowing costs to boost private sector investment.
The European Central Bank has already signaled even more monetary stimulus for the euro zone economy, hoping to arrest a downward spiral that could lead to an economic recession.

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Finally an economic analyst gets prime-time media pundits to listen as he describes the fundamental difference between the U.S. “Economy” (Main Street) and the U.S. “Markets” (Wall Street).  Charles Payne understands most of this, but El-Erian has it nailed.
Allianz Group chief economic advisor, Mohamed El-Erian, accurately describes what is happening in an era where deglobalization is taking place. The U.S. economy is strong; however, the multinationals on Wall Street -invested overseas- are exposed.  Thus there’s a disconnect and accompanying market volatility.
This is well worth watching because this is the first well-regarded financial pundit that is speaking truth to Wall Street in terms the panel pundits will understand/accept.

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There is nothing that China and the EU can do to stop the de-globalization process; and efforts to stimulate their economy, more quantitative easing (pumping money) while the global supply chains are being shifted, are futile.
The more a nations’ economy is dependent on exports, the more exposure they have to the inherent downsides of de-globalization.   U.S. companies that are invested in these nations will lose their investment over time; some rapidly.  This will keep the stock market volatile, yet the Main Street USA economy is thriving.
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Chopper pressers are the best pressers.  A confident, cool and assertively diplomatic President Donald Trump holds an impromptu press conference with media as he departs New Jersey for a campaign rally in New Hampshire. [Video and Transcript Below]

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[Transcript] – THE PRESIDENT: So, tremendous retail numbers were announced today, which really is a great indicator of how well our country is doing, how well our economy is doing. Those are real numbers. Walmart announced; others announced. We had some tremendous numbers come out today, which I’m sure you saw. So we’re very happy about that. We’re doing very well.
The economy is incredible. The consumer — probably above all else, the consumer is doing incredibly.
So, go ahead. Any questions?
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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….

• Reminder #1: Consumer spending is two-thirds of the U.S. economy.
• Reminder #2: We consume more than 80 percent of our own production (products created in USA).  We do not rely on exports.
• Reminder #3: Because of #1 and #2, the “Main Street” U.S. economy is self sustaining -much stronger- and more protected from the negative impacts on the global economy.
• Reminder #4: Who/What is at risk from global contraction? The Wall Street economy (compromised primarily of multinationals).  What is not at risk, the Main St economy.
• Reminder #5:  Because of #3 and #4, Wall Street can drop while Main Street thrives.

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.

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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.

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More below
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Those who could not see this coming are those who just don’t pay attention to how President Trump operates the geopolitical influence of economics.  This is Trumpian.
U.S. President Donald Trump and British Prime Minister Boris Johnson are walking their respective trade teams through a process to deliver a U.S-U.K trade deal on the day after a no-deal Brexit is scheduled to happen October 31st.  An interim trade agreement that goes into effect November 1st 2019 is pure Donald Trump win/win deal-making.

President Trump supports the nationalistic position, purposes and intents of Brexit. PM Johnson has promised to deliver Brexit by the mandatory date of October 31st.  One of the benefits, and also concerns amid the political left in the U.K, surrounds the economic impacts.  President Trump and PM Johnson would counter all those concerns with the announcement of an agreement for an interim bilateral trade deal ahead of Brexit.
This strategic approach, a deal that delivers both the Brexit result and the economic stability to offset any Brexit downside concerns, was the original idea that President Trump proposed to Theresa May two years ago.

LONDON (Reuters) – Britain and the United States are discussing a partial trade accord that could take effect on Nov. 1, the day after Britain is due to leave the European Union, a senior Trump administration official said on Tuesday.

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