…“It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than a new system. For the initiator has the enmity of all who would profit by the preservation of the old institution and merely lukewarm defenders in those who gain by the new ones.” 

~ Niccolò Machiavelli

CTH has been fully immersed in the battle against the Chamber of Commerce Decepticons for so long we have to be careful of our language.  This battle is the heart of Wall Street’s war against MAGA Main Street.
Republican senators from Mitch McConnell’s ‘decepticon caucus’ are now warning President Trump they will fully engage in an open effort to stop him from confronting the corrupt corporate systems that finance their life of indulgence.  Tariff’s on Mexico are a bridge too far for Tom Donohue and the multinational Wall Street lobbying system.  The republicans who benefit from K-Street lobbyist payments are now on full display.

Senate Leader Mitch McConnell has one major career alliance that has been unbroken and unchanged for well over two decades.  That alliance is with the U.S. Chamber of Commerce and specifically with CoC President Tom Donohue.  [SEE HERE and SEE HERE].
However, decepticon senator John Kennedy (U-LA) has personally spoken to Trump and outlines the president will not back down in the face of their threats:

“He’s as serious as four heart attacks and a stroke,” Kennedy told reporters at the Capitol. “A 5% tariff isn’t going to break the bank. A 25% tariff is a different story, but we are a long way from there.” (link)

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Counsel of Economic Advisers Chairman Kevin Hassett appears on CNBC to discuss his decision to leave the White House; the purposeful importance of President Trump’s tariff threat on Mexican imports; and why overall trade reform is important.

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When Kevin Hassett notes best models without interest rates, and the perplexing discussion centers the appearance of two distinct economies, they are talking ABOUT THIS.  MAGAnomics is what happens in “the space between” Wall St and Main St.
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The hypocrisy and ideology of the Mexican position would indicate the tariffs are certain to take place.  Factually, after Mexico has made their “red line” position clear, one could argue there’s no reason to go through the graduated timeline; the U.S. might as well just start applying the full 25% tariff amount on June 10th.

WASHINGTON/MEXICO CITY (Reuters) – Mexico said on Monday it would reject a U.S. idea to take in all Central American asylum seekers if it is raised at talks this week with the Trump administration, which has threatened to impose tariffs if Mexico does not crack down on illegal immigration.
[…] Mexican Foreign Minister Marcelo Ebrard said the country was committed to continuing to work to keep migrants from Central America from reaching the U.S. border.

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Acting chief-of-staff Mick Mulvaney appears on Fox News to answer Chris Wallace question about whether President Trump is serious about punishing Mexico with tariffs for their lack of action on illegal central American migrants.
Mulvaney skewers Wallace and predicts the tariffs will hit. Additionally Mulvaney sets the record straight on the impact of tariffs on consumers.
Generally, watching a Chris Wallace segment is worthless; however, Mulvaney’s linguistic Ginsu delivery is so good, this one is worth watching:

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As Wall Street’s Big Club politicians go bananas over the pending tariffs on Mexico, House Judiciary Committee ranking member Doug Collins appears on Fox morning to discuss his own visit to the border, the growing crisis and the political intransigence in DC.

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Jumpin’ ju-ju bones, President Trump has just announced an emergency tariff program on all Mexican goods that begins on June 10th at 5% and continues to increase monthly until Mexico takes action to halt illegal Central American migration.
Tariff Schedule: ♦5% effective June 10th ♦10% effective July 1st ♦15% effective August 1st ♦20% effective September 1st ♦25% effective October 1st, and continuing therein until Mexico takes action to stop the flow of Central American migrants.

Details from the White House: As everyone knows, the United States of America has been invaded by hundreds of thousands of people coming through Mexico and entering our country illegally.
This sustained influx of illegal aliens has profound consequences on every aspect of our national life—overwhelming our schools, overcrowding our hospitals, draining our welfare system, and causing untold amounts of crime. Gang members, smugglers, human traffickers, and illegal drugs and narcotics of all kinds are pouring across the Southern Border and directly into our communities. Thousands of innocent lives are taken every year as a result of this lawless chaos. It must end NOW!
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Vice-President Mike Pence traveled to Canada today as an emissary of the Trump administration to support Canadian passage of the USMCA trade agreement.
According to Reuters media reports the vice-president was focused on the importance of a strong North American economic alliance, and how a united tri-lateral agreement can form a geopolitical hedge against influence from communist China and socialist ideologies in Cuba and Venezuela. Justin from Canada expressed his perspectives over diminished women’s rights, U.S. abortion laws, the important contributions of a transgender workforce, climate change and the NBA championship playoffs…. Yes, really:

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Meanwhile in Mexico: “The Senate, controlled by Lopez Obrador’s National Regeneration Movement (MORENA) and its allies, should approve the United States-Mexico-Canada Agreement (USMCA) once it has passed through congressional committee, the president said.” (link)
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Today is a very good day.  Despite the professional punditry and their doomsayer predictions of Trump tariffs driving up costs for consumers, exactly the opposite is happening.
Despite large growth in the Main Street USA economy; and despite large wage gains by U.S. blue-collar workers; inflation remains low and mysteriously detached from the Fed monetary policy.

WASHINGTON (Reuters) – U.S. inflation was much weaker than initially thought in the first quarter amid a sharp slowdown in domestic demand, which could cast doubts on the Federal Reserve’s view that the benign price pressures were largely because of temporary factors.
The personal consumption expenditures (PCE) price index excluding the volatile food and energy components increased at a 1.0% rate last quarter, the government said. The so-called core PCE price index, which is the Fed’s preferred inflation measure, was previously reported to have risen at a 1.3% pace.
The increase last quarter was the smallest in four years and pushed inflation further below the Fed’s 2% target. (read more)

They just don’t get it.  For over three years CTH has been explaining how President Trump’s maganomic policy will reverse three decades of stagnant Main Street economic growth.  Today the Bureau of Economic Analysis (BEA) once again confirms our earlier predictions, and releases the data showing inflation is essentially nonexistent.
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Steve Bannon is in Paris, France as the nationalist wins in the EU parliamentary election results fill the headlines.  Additionally, Bannon gives his opinion on the strategic importance of President Trump’s recent state visit to Japan.

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“Economic security is national security“… I would emphasize the strategy within the multi-layered geopolitical economic reset is all President Trump.  The restoration of a sovereign U.S. economy, and the increases in Main Street American wealth, is Donald Trump’s primary agenda item.  The President listens to advisers on a variety of economic and trade matters, but the America-First policy strategy is all his.
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Despite the professional doomsayer predictions from the professional financial class of Wall Street investment punditry, Main Street is upbeat and consumer confidence is strong.

Tariff-Man Winning

“Consumer Confidence posted another gain in May and is now back to levels seen last Fall when the Index was hovering near 18-year highs,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The increase in the Present Situation Index was driven primarily by employment gains.
Consumers expect the economy to continue growing at a solid pace in the short-term, and despite weak retail sales in April, these high levels of confidence suggest no significant pullback in consumer spending in the months ahead.” (more)

Never is the disconnect between Wall Street and Main Street more visible than in the predictions -vs- reality for the growing/strengthening American middle-class.
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