Action oriented.  Yesterday President Trump introduced the workforce initiative to develop American workers to support the dynamic economic resurgence.  A group of private employers signed a pledge to help train and develop over 3.8 million workers for the 21st century American economy.
However, no plan, no pledge and no promise, can succeed without: 1) establishing clear goals; 2) evaluating progress; and 3) measuring the effectiveness in the results.  President Trump introduces the results-oriented business action plan to the public sector.

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[Executive Order] By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to provide a coordinated process for developing a national strategy to ensure that America’s students and workers have access to affordable, relevant, and innovative education and job training that will equip them to compete and win in the global economy, and for monitoring the implementation of that strategy, it is hereby ordered as follows:
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There is a key issue in every NAFTA discussion that is omitted purposefully.  The issue always hidden is that NAFTA is not a North American “Trade Bloc”.
Most people mistakenly equate NAFTA with other multi-nation trade partnerships like the EU (European Union).  The NAFTA partnership is nothing like the EU trade bloc; it is not even close.

Within the EU example, each nation is committed to only trade with outside nations on terms of agreement within the trade bloc.  All trade parameters must meet and comply with the terms within the EU trade agreements.  The terms of trade inside the group are connected to the same terms outside the group. It is an agreement between themselves and their commerce toward all other external nations.
However, in NAFTA, the Canadian and Mexican trade ministers can negotiate freely with outside nations.  There are no restrictive parameters on their independent decisions.  NAFTA is more similar to an access agreement with *only* terms of internal trade and commerce between the U.S., Canada and Mexico subject to the agreement. NAFTA is only an agreement between the U.S., Canada and Mexico and does not extend to external nations.
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Begin, with the end in mind:…  A critical component of MAGAnomic need:

A skilled American Workforce.

In anticipation of; and in preparation for; the Trumpian manufacturing, innovation, and industrial-era resurgence, today President Trump is hosting the “Pledge to America’s Workers” event.  He has to get tens of millions trained and developed for our future.
President Donald Trump will sign an executive order “outlining immediate steps to address the vocational crisis” on developing new opportunities and set up a workforce council. The president will call upon industry leaders and the private sector to sign a pledge on helping advance workforce development.  Anticipated start time 3:00pm EST
UPDATE: Video Added

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Read Executive Order HERE
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Begin, with the end in mind….  More than two years ago CTH began discussing the ramifications to a new emphasis on the economy outlined as a possibility of candidate Donald Trump’s economic policy outlook. Within the overall discussion we walked through the anticipated changes possible if A.) Trump won the election, and B.) Trump began instituting Main Street economic policy ahead of Wall Street policy (the past 30+ years).  Today is the two year anniversary of that MAGAnomic prediction.

We discussed the new dimension that would occur between two economic engines (Main Street -vs- Wall Street) as three decades of policy shifted. CTH outlined statistical and measurable KPI’s that would become visible in the space between the policy shifts:

July 2016 – […] The demand for labor increases, and as a consequence so too does the U.S. wage rate which has been stagnant (or non-existent) for the past three decades.
As the wage rate increases, and as the economy expands, the governmental dependency model is reshaped and simultaneously receipts to the U.S. treasury improve. More money into the U.S Treasury and less dependence on welfare programs have a combined exponential impact. You gain a dollar, and have no need to spend a dollar. That is how the SSI and safety net programs are saved under President Trump. (link)

So let’s take a look at the measurable KPI’s via the Labor Department and the Federal Reserve (beige book) today in 2018:
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President Trump hosts a cabinet meeting after returning from the NATO summit, U.K. visit and Helsinki meeting with Russian President Vladimir Putin.   The overall emphasis was on the U.S. economy, employment, job-training and the larger goal of leveraging economic strength to advance American interests.
The administration kept the cameras rolling as key cabinet members and White House officials discussed ongoing initiatives with a heavy emphasis on workforce development. If you want an idea of the massive scale and scope of Trump’s MAGAnomic initiatives for American workers, watch this video in its entirety.

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Labor Secretary Acosta discussed an ongoing workforce development initiative for providing job skills and apprenticeship programs for former prisoners/inmates.
Commerce Secretary Wilbur Ross discusses the expanded investment into the U.S., massive employment opportunity for skilled workers, and the importance of continuing to develop a skilled labor pool.
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Financial markets are essentially betting parlors.  Mohamed El Erian is considered to be one of the better, perhaps currently the best/most influential, financial market analysts in the world.   What El Erian outlines is something we have discussed at great length.

“When people realize that at the end of the day, the U.S. will prevail, because [China] is a less open economy, because [the U.S.] is a more dynamic economy, that ultimately you may end up in a situation where the U.S.’ position in global economic terms is better off.”

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The multinationals (corporations and financial entities) don’t like President Trump; nor do they like any politician who expresses economic nationalism – with the exception of Chinese President Xi Jinping, whom they had been using as the fulcrum for their investment betting on the U.S. as following a service-driven economic model.
Trump has crushed that fulcrum.  The economic globe is in a state of flux while it resets to the natural fulcrum with the U.S. as the centerpiece.  Previously we have explained the dynamic of this flux-time as the space between two economic engines.  Only President Trump could pull off this reset… his plans therein were assembled over decades.
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White House Office of Trade and Manufacturing Policy Director Peter Navarro appeared on Fox Business last night to outline the U.S. position in the ongoing trade reset against communist China.  Almost all of the financial media and economic punditry are intentionally obfuscating the underlying nature of China’s economic model.
China is a communist central government controlled economic system.  Free-market principles do not apply when dealing with China; therefore trade strategies based on ‘free markets’ cannot succeed against the centralized planning of a communist regime.

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The Bureau of Labor Statistics presents the latest snapshot of jobs and employment.  According to the BLS data, behind the 213,000 jobs added, the most significant gains all center around growth in durable goods, manufacturing, transportation/distribution and the ancillary business services directly connected to the blue collar sector.
In addition, April was revised up from +159,000 to +175,000, and the change for May was revised up from +223,000 to +244,000. With these revisions, employment gains in April and May combined were 37,000 more than previously reported.

In the macro-review things are looking great; however, when you go into the micro-review you discover things are even better, they are MAGAnificent.
To understand what is happening we must all remember the Trump MAGAnomic policies are geared toward enhancing the creation of “goods”; the production of physical “stuff”; the manufacturing and durable good sector; or put another way: Main Street/Blue Collar work.   MAGAnomic policy is geared toward expanding the production base of the U.S. economy.  Therefore all majority benefit will be necessarily attached to those workers and industries that are part of the expanding production base.
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For more than three decades all U.S. economic policy has been elevating Wall Street and diminishing Main Street. As a result blue-collar workers have not had wage gains keeping up with inflation for over 30 years…. Then came the era of Trump.

– “Walking in a Winner Wonderland” –

More than two years ago CTH began discussing the ramifications to a new emphasis on the economy outlined as a possibility of candidate Donald Trump’s economic policy outlook. Within the overall discussion we walked through the anticipated changes possible if A.) Trump won the election, and B.) Trump began instituting Main Street economic policy ahead of Wall Street policy (the past 30+ years).
We discussed the new dimension that would occur between two economic engines (Main Street -vs- Wall Street) as three decades of policy shifted. CTH outlined statistical and measurable KPI’s that would become visible in the space between the policy shifts.
Part of those discussions focused on energy costs, product costs (we explained how inflation would be weird), and importantly, wage rates. It takes several months of policy emphasis (actual outcomes), before the labor market wage rates would grow. We anticipated seeing that impact in Q2 of 2018, which is April-June 2018.  Well:

(Via CNBC) […] The Bureau of Labor Statistics reported that April closed with 6.7 million job openings. May ended with just over 6 million people the BLS classifies as unemployed, continuing a trend this year that has seen openings eclipse the labor pool for the first time. At some point that gap will have to close. Economists expect that employers are going to have to start doing more to entice workers, likely through pay raises, training and other incentives.

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Last month the White House presented a 36-page outline of the U.S. position toward trade with China (full pdf below).  White House National Trade Council and Office of Trade and Manufacturing Policy Director Peter Navarro delivers a presentation to discuss that report.  Very well worth watching:

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Report below:
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