Against the backdrop of MAGAnomic success, many people (some young some old) are beginning to engage in questions of decades-old economic assumptions.  Consider me thrilled at the possibility of a generational economic awakening.
Toward that end, here’s another repost from 2016 to gain understanding of the fundamentals behind President Trump’s MAGAnomic policies.  God Bless Main Street!
NOVEMBER 2016 – As we all begin to filter the impact of a historic Donald Trump victory, perhaps it is important to remind ourselves what should be the primary filter for perspective..

…the economics.

For the first time in many decades the chief executive of the United States will walk into office concerned about the long-term financial stability of the United States.  For the first time ever, a titan of American Main Street is going to be in the oval office. Do not downplay the significance of this aspect. Money makes the world go ’round.
Every single global leader and politician is reviewing the U.S. election through their own domestic financial prisms. Rule #1 – Everything is about the money. Rule #2 – Everything is about the money. Rule #3 – when pondering any information broadcast by corporate media about a global Trump effect, refer back to the prior two rules.
Donald Trump is 100% pure MAIN STREET, never doubt that. Trump’s macro economic DNA outlook is compromised of American business interests at a micro-cellular level. Senate Leader Mitch McConnell et al will be dispatched immediately if he attempts to bring his big Wall Street/K-Street lobbying friends into the Trump economic equation.
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National Economic Council Chairman Larry Kudlow appeared on Fox News to discuss the latest GDP figures from the Bureau of Economic Analysis (BEA).
Keep in mind when contemplating ‘sustainable growth’, all of the current underlying economic activity is during the phase of transition between Wall Street policy (last 30 years) and Main Street policy (Trump).  We are in the space between the two economic approaches; two engines – SEE HERE.

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How will we know when the two economic engines have crossed paths?  There is an easy answer:  Under MAGAnomic Main Street policies inflation is disconnected from FED monetary policy.  In the real economy inflation is connected to wage rates.  When inflation and wage rates reach growth equity (over two quarters), that’s when the Main Street economic engine will have caught and passed Wall Street. We’re close.  Watch.
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Earlier today President Trump, Vice-President Pence and NEC Chairman Larry Kudlow delivered remarks on the economy from the South Lawn of the White House:

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[Transcript] South Lawn – 9:43 A.M. EDT – THE PRESIDENT: Good morning. Moments ago, the numbers for America’s economic growth — or GDP — were just released. And I am thrilled to announce that, in the second quarter of this year, the United States economy grew at the amazing rate of 4.1 percent. We’re on track to hit the highest annual average growth rate in over 13 years. And I will say this right now, and I’ll say it strongly: As the trade deals come in one by one, we’re going to go a lot higher than these numbers. And these are great numbers.
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MAGAnomics

The Bureau of Economic Analysis (BEA) has released the second quarter estimate in GDP growth at 4.1%, the highest rate of growth since 2014.  Here’s the non-spin review along with an embed copy of the actual report [full pdf below] to include all tables:

Gross domestic product (GDP) is the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production. GDP is also equal to the sum of personal consumption expenditures, gross private domestic investment; the net result of exports of goods and services, and government consumption expenditures and gross investment.

Along with the first estimate of Q2 GDP Growth at 4.1% (exceptionally strong), the BEA increased the Q1 growth rate to 2.2% (previously 2%).
Growth in U.S. exported goods was massive at 13.3% [Table 1, line 17] That is HUGE.
Growth in U.S. imported goods was very small at 1.0% [Table 1, Line 20] That is great.
The combination of massive increases in exports, and minimal growth in imports, led to a net increase in overall GDP from exports of 1.06%. [Table 2, line 45] Let that sink in.
WE DID NOT DEDUCT from GDP growth due to the net result of imports/exports. We actually exported more goods than we imported.
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No reports from the press pool on this, and there is some important granular information, so here’s the transcript:
[Transcript] Aboard Air Force One – En Route Dubuque, Iowa – 11:27 A.M. EDT
GIDLEY: I know we’re about to land. We wanted to bring Secretary Ross back to have conversation about just what happened yesterday with the agreement with the European Union and steps moving forward, and what the President was able to do in that agreement.
So with that, I’ll turn it over to Secretary Ross, and he’ll take questions after. And if we could, let’s keep it to topic.
SECRETARY ROSS: Okay, thank you very much. I think you’ve heard the general outline of what was done yesterday, namely a commitment to move toward three zeros: zero tariffs, zero non-tariff trade barriers, and zero subsidies.
Basically, the idea that — is to level the playing field. Europe right now has much higher tariffs and much higher trade barriers than we do. Their trade barriers are both in the form of regulations that are not science-based, and standards that also are not science-based. So they have the practical net effect of keeping products out, even if they had no tariff at all.
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National Economic Council Chairman Larry Kudlow discusses the framework for the U.S./E.U. trade agreement. [Remember, the highly controversial auto-sector is removed from the entire negotiation.] Chairman Kudlow discusses the benefit of the U.S. and E.U. working together to confront China at the World Trade Organization; this is key.
Additionally, Kudlow discusses the forward-leaning meetings being conducted by both the U.S. trade team and the Mexican trade delegation. The multidimensional U.S. trade strategy is operating, and advancing, on several simultaneous fronts.

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For those following the nuance within ongoing U.S. trade discussions you have likely noted Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer speaking optimistically about a potential for a U.S. Mexico trade agreement. However, simultaneously the U.S. trade team is not optimistic about any deal with Canada.
Mexico’s President-Elect Lopez Obrador (AMLO) has changed the trade dynamic internally within NAFTA for two reasons: #1) because the agriculture sector is much more critical to Mexico than it is to Canada; and #2) AMLO acknowledges and accepts the NAFTA fatal flaw; his manufacturing economy is based on the assembly of imported parts – like Canada, Mexico doesn’t actually manufacture much (ex. no aluminum smelters).

[Pompeo congratulating AMLO – Not an accidental delegation]

In the big picture AMLO wants to advance the Mexican manufacturing base; expand the aggregate economic base; and also stop the corporate exploitation of the Mexican farm worker. In these objectives U.S. President Trump is more than willing to be a partner with President Lopez Obrador. Heck, President Trump would actually love to assist AMLO on that agenda; it is mutually beneficial.
Diametrically, in Canada Prime Minister Justin Trudeau has doubled-down on the retention of the fatal flaw and does not want an expanded domestic manufacturing base. The enviro-nuts of his base just will not support it. Therefore, Canada is loggerheads with the United States because Canada is demanding to retain their NAFTA access to the U.S. market, and simultaneously retain their ability to broker imported Chinese goods.
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This afternoon President Trump will deliver remarks on tariffs, trade and jobs in Granite City, Illinois following his tour of the Granite City Works steel plant.  The anticipated start time was 3:40pm; however, POTUS is running approximately 30 mins behind schedule.
UPDATE: Video Added

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Originally outlined a year ago. Reposted by request, because we are watching it play out in real time: Believe me, at the heart of the professional/political opposition the issue is the money; there are trillions at stake.

President Trump’s MAGAnomic trade and foreign policy agenda is jaw-dropping in scale, scope and consequence. There are multiple simultaneous aspects to each policy objective; they have been outlined for a long time even before the election victory in November ’16.
If you get too far into the weeds the larger picture can be lost. CTH objective is to continue pointing focus toward the larger horizon, and then at specific inflection points to dive into the topic and explain how each moment is connected to the larger strategy.

Today we repost an earlier dive into how MAGAnomic policy interacts with multinational Wall Street, the stock market, the U.S. financial system and perhaps your personal financial value. Again, reference and source material is included at the end of the outline.
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Commerce Secretary Wilbur Ross appears on Mornings with Maria to discuss the objectives of the new trade negotiations between the U.S. and the European Union.
Yesterday, President Trump and EU President Jean Claude Juncker announced the parameters of the agreement and the intent to reach a comprehensive agreement between the U.S. and the EU.  Secretary Wilbur Ross fills in some of the details:

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The U.S. trade team has assigned geographic responsibilities. There is overlap, and a great deal of synergy depending on the deal being negotiated; however, each member has a specific region of SME responsibility: ♦U.S.T.R Ambassador Robert Lighthizer has NAFTA; ♦National Economic Council Chairman Larry Kudlow and White House Manufacturing Policy Director Peter Navarro have China; ♦Commerce Secretary Wilbur Ross has the EU (and all others). As a consequence it makes sense that Secretary Ross would be the point-person discussing the outlines of the U.S./E.U. trade agreement.
An agreement with the EU puts pressure on Mexico to quickly participate in a similar agreement. This domino effect puts significant pressure on the Chinese to agree to terms of free, fair, open and reciprocal trade. Last night Secretary Ross appeared on Lou Dobbs for discussion. That interview is below:
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