MAGAnomics – Consumer Confidence Jumps in May – Main Street Defies Wall St…

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.

The professional financial punditry can’t explain it.  Flummoxed academics run around bumping into walls amid economic numbers that continue to defy expectations.  All caused by a simple return to common sense ‘America First’ MAGAnomics.

Low unemployment (3.6%); wages growing (+3.2%); inflation stable (1.6%). These measures all have a cumulative impact on paycheck-to-paycheck Americans. Prices for durable goods are stable and wage growth is exceeding inflation. That means more disposable income in the middle-class…DUH. Which, when combined with the increased pay from lower middle-class tax rates, is exactly the intended outcome of MAGAnomics.

WASHINGTON (Reuters) – Consumer confidence jumped in May as households grew more upbeat about the labor market, suggesting the economy remained on solid ground despite signs that activity was slowing after being temporarily boosted by exports and a build-up of inventories.

The surge in confidence reported by the Conference Board on Tuesday came despite an escalation in tensions in the 10-month trade war between the United States and China, which sparked a sharp sell-off on Wall Street. It mirrors strength exhibited by another sentiment surveys in the middle of this month. (more)

 

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29 Responses to MAGAnomics – Consumer Confidence Jumps in May – Main Street Defies Wall St…

  1. FofBW says:

    If the FED lowered interest rates where they should be given inflation, the economy with go into WARP 8

    Liked by 8 people

    • David Kohler says:

      Yes. The true heart of our economy is SMALL business.
      Go Main Street!
      I shop quite regularly at a small Mom and Pop grocery near my home.(It’s owned by a very nice husband and wife who are LEGAL immigrants from India, BTW!). True, some items are more expensive, by necessity for the proprietor. Yet they frequently have items and specials that are just as inexpensive as the big chain stores!
      And, I most likely save gasoline $$$ by walking a short distance to the store rather than driving almost a mile each way to the nearest chain store.
      Just my two cents worth…..

      Liked by 1 person

  2. barnabusduke says:

    MAGA Baby!!! Love it!

    Liked by 3 people

  3. CaptainNonno says:

    Are the two trains beginning to move back together? Seems like more and more Wall Streeters are seeing the differences between them and that Main St is a good place to make money. Still a ways to go, I know.

    Like

  4. tozerbgood8315 says:

    Like

  5. Imapop says:

    Two things I do not understand:

    1). Why Obama entered into the Iran agreement including giving them pallets of dollars. What was this to accomplish?

    2). Why with huge budget deficits, full employment, very low interest rates including negative rates in many places, is it not overheating the economy? What is different now than at all times in the past?

    Like

    • Dennis Leonard says:

      I f you asked the question,you should have the answer,seeing as you stat this a fact,
      “including negative rates in many places”

      Liked by 1 person

    • thedoc00 says:

      Item 1: Related directly to some sort of deal involving the Clinton administration, after she won. Plus, do not discount one of Obama’s puppet masters was Iranian.

      Item 2: The President has sent 3 balanced budget proposals to the congress, 2 while the Republicans held the House and ZERO was done or even attempted to implement them. They were dismissed by Ryan and McConnell as really good proposals but NOT POLITICALLY FEASIBLE. This budgets included very few if any “cuts” to benefits bit did eliminate allot of duplication and waste, as well as aligned spending with revenues. Congress for the past 19 years has intentionally proposed and executed spending plans far beyond recognized revenues. Even the so called “sequestration” was only executed against DoD for 8 years as none of the other parts of the government was held accountable for violating this agreement. Bottom line, neither party in Congress wants to control spending. Even when the President tried NOT to spend money, Congress took him to court.

      Liked by 6 people

    • Petrel says:

      Imapop — President Obama, a socialist, favored the Shia – socialist system of Iran rather than the Sunni – oligarchic system of Saudi Arabia and its allies.

      Regarding the US economy, Sundance has explained that our economy is recovering from a number of structural brakes — e.g. stifling taxation, stifling regulation and manipulated market prices for everything from lemons to natural gas. As a result, we are experiencing a surge in productivity. Factories once operating at 30% are now running at 90% and can afford to pay employees a lot more per hour.

      Then again, government un-employment statistics are totally fake, since these measure only those receiving un-employment payments and not the nearly 90 million out-of-work Americans all across fly-over-country. There are huge reservoirs of once middle class people anxious to work and, consequently, capable of absorbing additional production when they begin to receive regular paychecks.

      Liked by 1 person

      • Imapop says:

        Thanks on the Iran issue. A reasonable explanation.

        On the economy, the structural brakes may be the reason, hopefully they are, that we are still not far enough removed from the damage brought on by the great recession to witness typical organic, self sustaining growth and eventually it will return as in the past. But, all western industrialized nations are experiencing similar issues and we are actually doing better than others. Japan and Europe are printing cash out of thin air at levels far greater than did we. German ten year bonds have negative rates. They literally pay you to borrow money. It’s not normal. It’s not logical. It may be demographic? We old people don’t buy much other than health care and hard liquor (actual fact).

        Like

        • Carrie2 says:

          Imapop, we are older but just replaced tub and toilet to updated models, soon for the shower stall, we each have a nearly new Toyota, we enjoy eating at great restaurants and traveling, we buy new items to replace the old, etc. So it depends on how one wants to live and maintain a great house,etc., especially as we are considering selling the house and at the prices in CA, we will walk away with a huge bundle of dollars vs. what we paid for our good size home. We have invested in a company in my home city/state (KCMO) which has no load, does no prime or others and we have used the company for over 20 yrs. and not even $1 lost and usually get a minimum of 7% or more. Of course after age 71 you must take out a percentage of an account and we spend that in other ways to enjoy our investment. While working I had 401’s with 5 in 5 different corporate offices and never ever gained anything but lost, so switching has been wonderful, especially since SS gives us back to little. By the way, Franklin R said SS was merely a small amount and not retirement money and that we should invest outside. I heard him say this which means I am a wee bit old but still going 100% with super health, take no drugs and look years younger. No upset with the 2 parties in 1 as most will soon be walking to the gallows! as well as sooo many others.

          Like

      • Robert Smith says:

        Obama also wanted it as one of his “legacy” accomplishments. I guess he wanted to top off the Arab Spring that set the middle east on fire and inundated europe.

        Liked by 2 people

        • TheLastDemocrat says:

          Iran: whatever our American anti-American want in the middle East seems to go through Iran.
          Gun running for profit, overthrowing any nation where Christians have been faring ok, stirring up trouble for Israel, and sustaining a permanent mess so we always are entangled.

          Liked by 1 person

    • Gary Lacey says:

      First, you have to know what Obama is, a muslim. Second, he is an antisemitic, as a muslim, he hates the Jews.
      The pallets of cash was to fund the Iranian nuclear program, in essence, to wipe out Israel….this is really shortsightedness on Obama’s part.

      Like

  6. Tiffthis says:

    What does “ increased pay from lower middle-class tax rates” mean? Does that mean lower middle class is paying more in taxes? Or lower middle class is making bigger paychecks but paying less in taxes? I’m pretty sure middle America saved all around in taxes federally but I found that sentence a little confusing.

    Liked by 1 person

    • Ausonius says:

      Note the hyphen: “Lower” modifies “tax rates as does “middle-class.”

      Lower-middle-class with two hyphens would make one adjective modifying “tax rates.”

      A comma after “lower” would have clarified things more, but some editors would be against it. (I would not be against ut!) 🙂

      Liked by 1 person

    • Arrest Soros says:

      @Tiffthis
      I think it was meant to be “Tax Cuts” not ‘Tax Rates’.
      Read it again as Tax Cuts and it’ll make sense.

      Liked by 2 people

  7. The 10 Year Bond rate has dropped by nearly a full 1% in a little over 6 months.

    1% interest savings on our $22 Trillion Debt constrains Debt Growth by $220 Billion ANNUALLY.

    Liked by 3 people

    • Skippy says:

      Thank you BlackKnightRides. Please keep up your good insight. I had no idea yet grasp that which you’re saying.

      Liked by 2 people

    • NvMtnOldMan says:

      BKR–As an old hick from the mtns of Nv I understand this as–the bond holders who get paid interest on the national debt are the same ones that bribe and control the members of congress to keep spending us into debt and thus increasing the interest payments. Talk about organized crime.

      Like

  8. Dazza says:

    J-J-Jumpin’ ju-ju bones!!!

    Liked by 1 person

  9. I found this news in WSJ today of interest:

    “Two high-ranking, veteran Federal Reserve Bank of New York executives will leave their jobs this Saturday, the bank said Tuesday.Simon Potter, leader of the bank’s Markets Group, is departing, as is Richard Dzina, who helms the Financial Services Group at the bank. While no successors have been named…” Link below to full story behind paywall.

    I find this interesting. These are key positions in managing interest rates (years ago I worked for NY Fed, as a junior person, one of my jobs was providing particular statistical info to the Open Market Committee which set rates).

    It is not typical for those holding these jobs to leave without a successor in place. Perhaps there is some dispute at the Fed about direction of rates…the sentiment for raising interest rates has diminished significantly in the last 8 months. And as we know, inflation has been tame despite the terrific USA GDP numbers. The WSJ writers go to some length to justify the “transition” as justified since QE2 has been largely unwound now (QE2 policies during Obama admin as “response” to the Great Recession–i.e., very low interest rates coupled with huge growth in Federal Reserve’s balance sheet)

    https://www.wsj.com/articles/new-york-feds-markets-group-head-to-leave-june-1-11559064375?mod=hp_major_pos10&cx_testId=7&cx_testVariant=ctrl&cx_artPos=0#cxrecs_s

    Like

  10. MaineCoon says:

    I am sure most remember (and for those who don’t) Sundance explained how this would happen 2+ years ago…and it happened just as he said and it will continue to solidify. Thank you Sundance for giving me this understanding.

    Like

  11. EJ says:

    In addition to Muh Russia, IMPEACH!, the “DOJ wouldn’t let me indict him” presser, North Korean rockets,,,,, we are now hearing about inverted bond yields “which haven’t been this way since right before the recession”.

    Y’all should get your boots on b/c the BS is getting thick.

    MAGA

    Like

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