In 2015, even before President Trump came down the golden escalator, CTH was outlining a ‘new era and dimension’ in American economics that could be possible if a presidential candidate focused on specific Main Street policy. {Go Deep}

Throughout the next four years we watched carefully how Donald Trump was organizing that Main Street revival {Go Deep} and what specifically was creating the economic growth {Go Deep}.

One of the points emphasized in 2016 about Trump’s unique MAGAnomic policy, was how both Trump and Bernie Sanders agreed on the problem.  The difference between them was the solution.

Think of it like economic football.

Both Trump and Sanders identify the rigged game.  Bernie Sanders wanted to change the referees so that government controls the game. Donald Trump’s approach was different.  Trump wanted to change the rules of the game, not step in and try to play referee to a rigged game where the rules were flawed.

One of the examples of economic “rule changing” is trade tariffs.  You don’t need govt to regulate the corporations directly (ie. raise corporate income taxes). Instead, you can change trade policy to make the better corporate decision a return of production back to the USA (a fundamental rules change).

Both approaches involve a different govt policy, but Trump’s approach changes behavior.  That’s MAGAnomics.

One of the reasons Trump’s approaches are much more effective, is that his rule changes extend beyond the American corporate game.  Trump’s approach changes the behavior of foreign governments and foreign corporations, a win/win/win.

An example is the Japanese government investing in America to offset reciprocity tariffs; while Toyota, a corporation, invests in specific auto manufacturing expansion to avoid baseline tariffs.

You don’t get that kind of result through Bernie’s approach changing the American referee in an all-American game and raising corporate income taxes. And don’t forget, the corporation can just move offshore and avoid income taxes entirely.  Apple used to have their company incorporated in Ireland.  Trump’s rule changes brought them back.

The Promethean Action PAC is now highlighting the fundamentals of Trump’s MAGAnomics and how the policy is distinctly different from all U.S. economic policy before it.

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A rather ironic sequence of events as Canada formally requests to renew the USMCA (CUSMA) trade agreement for 16-years, followed a day later by the U.S. announcing additional tariffs toward 60 countries including Canada.

On Tuesday, Dominic LeBlanc, the trade minister from Canada assigned to USMCA negotiations, traveled to Washington DC for a meeting with U.S. Trade Representative Jamieson Greer.

LeBlanc, reflecting the obtuse nature the Canadian trade delegation is now well known for, seemed oblivious to the friction points in the U.S. position and formally requested the trade deal be renewed for another 16 years. {Citation}

LeBlanc called the agreement “highly beneficial” to all three countries. From the Canadian position this may be true, but that’s not even remotely what the U.S. team has presented in private and public comments.

Additionally, over the past two weeks the shift in Canadian strategy has become clearer.   While Carney’s administration previously seemed to be targeting Democrats in the U.S. congress to support retaining a trade agreement with Canada, that approach ended abruptly after several key Democrat senators began taking the position of influential U.S. labor unions who want the deal scrapped.  Canada now seems to be relying on pressure from the U.S. Chamber of Commerce and corporate republicans to support their position.

The day after news reports of Dominic LeBlanc’s expressed position, USTR Greer announced a new round of 301 tariffs against 60 countries who participate in third-party trade agreements with countries who use forced labor. {Citation} Suddenly, Canada’s embrace of China becomes even more serious.

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Ironically, I find myself with a grin on my face as I read the recent media reports about how the data processing demand behind AI is beyond the scope of financial sustainability.

For several years I have asserted, accurately, the business model for social media was never feasible because the data processing demand needed for the scale of simultaneous users was beyond the capabilities of the revenue side of the equation.  I have been told by all the high-horse experts on the matter how wrong I am.  However, each story they write about the prohibitive cost of AI proves I was not wrong.

CTH watches the tokenization and subscription fees for various AI model use with the same perspective CTH viewed over a decade of false claims within the financial market that told lies about social media viability and data processing costs.

Now, we watch the seemingly exponential growth of AI capabilities and associated costs with the same pragmatic perspective.

Robotic pool cleaners were introduced two generations ago.  Did the pool cleaner business dry up? No, it expanded.  Robotic vacuums broke into the popular household appliance market five years ago, you probably have one, did it eliminate maid services?  No, still growing.

AI can now write its own code to generate outputs. Are software developers getting fired?  No, demand for software designers and engineers is up 15% in the past year.

The mainframe approach, the one AI brain to run all systems, will never work – it is cost prohibitive (see first paragraph – wash, rinse, repeat).  Deny this reality at your own investment risk. If needed, politely absorb the ridicule – for it matters not.

CTH predicts AI will become a localized and optimized sub-set for each sector of the economy, requiring each major organization and corporation to adopt specific cost/benefit data libraries and networks for use and functionality.

At scale, a thousand coders each working on Gemini, ChatGPT, Anthropic, Grok, etc. will become 100,000+ software designers working inside companies to create personalized, targeted, bespoke AI data systems and networks; each system specifically tailored to the industry or sector of business.  The intranet of internets will happen again.

Creating and selling AI system networks and integration functions that are personally tailored to highly specific company functions, creates an entirely new sector of the technology industry that has not even begun yet. [There’s an investment opportunity there]

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**Bumped by Request**

A few weeks ago, I was having a politics conversation with a tech insider. The issue of datacenters became a focus of the conversation. The first response from him was “this is the issue that might decide 2026 and will certainly decide 2028.”

The tech side of the issue is essentially: As 5G wifi was to mobile connectivity, so too are the datacenters the cornerstone of nationwide AI rollout.  Eventually, all of the datacenters will interconnect and become part of a massive information system that houses all knowledge, a great digital brain.  From that point, engagement with Artificial Intelligence (AI) systems will become like a public utility.

The datacenters themselves can be a hot button issue as their proximity to people creates friction.  Battles against datacenters are taking place in rural and non-rural areas alike. With deep pockets and strong national security arguments involving the “AI race,” the technocrats are currently winning the argument. However, as with all special interest issues, the opportunity for political benefit now determines DC advocacy.  WATCH:

What are your thoughts on this issue?

Is opposition to datacenters strong enough to tilt the outcome of the 2026 midterms?  And do you believe 2028 will be determined with this issue at the forefront?

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Appearing for an interview on Fox News with his daughter-in-law Lara Trump, President Trump explains the current status of the negotiations with Iran and more of the details within the deal as tentatively outlined. WATCH:

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The continual message from President Trump to President Claudia Sheinbaum has been clear, ‘clean it up or possibly we will’, as Trump has publicly and repeatedly said Sheinbaum and the Mexican government were under the control of Mexican cartels.

Following the daring capture of Venezuela dictator Nicholas Maduro, Mexican President Sheinbaum took notice.  In the past few months dozens of government officials and cartel members have been targeted, arrested, indicted, extradited and removed from positions of influence.

Today, Mexican Security Minister Omar García Harfuch announced the arrest of Cuautla Mayor Jesús Corona Damián (pictured left).

(Bloomberg) — Mexican authorities detained the mayor of a historic city near the capital, the latest move designed to show the government is rooting out corrupt politicians from its ranks.

Cuautla Mayor Jesús Corona Damián was arrested Saturday, Security Minister Omar García Harfuch wrote in a post on social media platform X. An arrest warrant had been issued by the general prosecutor’s office on May 20.

Corona was on the run in recent days, after the security ministry announced in May the arrests of other top officials in Morelos State. The moves are part of a broader operation under President Claudia Sheinbaum, who took office in 2024 with an anti-corruption message, to nab dozens of politicians taking part in extortion scams and with alleged ties to broader crime rackets.

“With this operation, more than 85 officials and former officials have been detained, including seven mayors currently in office,” García Harfuch said on X. “The government of Mexico maintains a policy of zero impunity regarding any links between authorities and criminal groups.”

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Mike Steger takes less than 20-minutes to walk through a year of President Trump’s multifaceted U.S. manufacturing policy initiatives that have positioned the U.S. economy for a massive surge in growth. Steger recaps several consequential moves by President Trump and his cabinet to fundamentally change economics in the Western Hemisphere. Each point is well delivered and well presented.

Steger then overlays the economic moves with the geopolitical moves in Venezuela (oil), Cuba (communism ended), Mexico (cartels, traffickers and corruption), Canada (globalism confronted) and finally Greenland (a new consulate is created). Put together, Steger notes how all of these move’s work together with a massive surge in energy, technology and productivity to create a hemispheric powerhouse within the United States. WATCH:

TIMESTAMPS
00:00 Intro
01:10 Volcker and the Origins of Globalization
02:30 NAFTA and the Collapse of Industrial America
04:05 Liberation Day and the Tariff Battle
05:30 China’s Rare Earth Weapon
06:45 Rebuilding American Industry

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Remember last weekend when we outlined how the sudden sense of urgency from Europe toward a trade agreement with Mexico? that agreement had little to do with purchasing row crops from Mexico, and everything to do with what Europe needs as access to the United States {Go Deep}.

The language being used by the United States trade office is specific. [SEE HERE] The first bilateral round of negotiations between the United States and Mexico for the USMCA free trade agreement has concluded. (Emphasis mine)

PRESS RELEASE – “MEXICO CITY — “Today, the United States and Mexico concluded the first bilateral round related to the Joint Review of the United States-Mexico-Canada Agreement (USMCA).

The United States concluded discussions with the goals of reducing the trade deficit with Mexico and strengthening American supply chains. During this first round, negotiators discussed priority issues related to automotive rules of origin, steel and aluminum, and economic security.

The United States and Mexico recognize the importance of advancing cooperation to enhance regulatory compatibility to strengthen sectors, including medical devices, pharmaceuticals, cosmetic products, and others.

We will continue advancing these discussions on June 16-17 in Washington, D.C., in addition to agriculture and a level playing field. The third round will be held during the week of July 20 in Mexico City.

The United States continues to emphasize the importance of ensuring the Agreement benefits U.S. manufacturers, farmers, ranchers, workers, service suppliers, and businesses of all sizes, and of addressing free-riding from third countries.” (source)

Currently, European automakers have billions invested in Mexican auto plants.  Much of the component material for those vehicles comes from Europe for assembly in Mexico.  That was the primary focus of the Europeans in their trade agreement with Mexico.

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Speaking to an audience at the Ronald Reagan National Economic Forum in California, Treasury Secretary Scott Bessent outlines how flawed trade, financial and economic policies of the past have brought us to a critical moment where President Donald Trump needs to reset the entire system in order to protect American interests.

This is a powerful and well delivered speech certain to gain attention from those who understand the challenge.  Secretary Bessent pulled no punches as he outlined how members of the audience themselves have contributed to a system that has eroded the national security of our nation state by advancing short-term interests disconnected from the American workforce and American industrial base.

The message was simple, “economic security is national security” and a failure to recognize how corporations chasing profits only contributed to the diminishment of internal American wealth.  The patriotic priority must be to return economic strength to the U.S., and all Americans must benefit from renewed economic nationalism.  The American system must be restored.  WATCH:

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The technical definition of a “recession” is two consecutive quarters of negative GDP growth. The 4th quarter of 2025 and 1st quarter of 2026 have identified exactly that problem, negative GDP growth in Canada. [-1% and -0.1% respectively] The pretending is fierce, and again CTH warns everyone to be careful about exposure to the Canadian sector in their investment holdings.

As customary, whenever the economic policy of a political leftist delivers a bad outcome, the media contort themselves in order to avoid defining the situation accurately.  Instead, the financial media project -without merit- that the current situation is more positive.  Unfortunately, the data doesn’t provide much room to arbitrarily change the definitions.

Keep in mind this announcement today comes on the heels of the Bank of Canada warning that a “cascading series of events could cause a sharp loss of investor confidence and lead to a spike in demand for liquidity or rapid asset sales.”  This is a particularly pertinent phrase given one of the common reasons being attributed to the negative GDP, increased import values – specifically Canadians purchasing gold.

Several financial outlets have noted the increase in the value of Canadian imports, a negative in the GDP calculation, is being driven by Canadians (institutions and individuals) purchasing gold as a hedge.  The Canadians are buying gold as a hedge against both inflation and currency devaluation.

This activity puts additional context onto the statements from the Bank of Canada, who would likely have advanced notice of this issue.  Hence, the Bank of Canada also saying, “In normal times, hedge fund activity helps keep markets running smoothly. But if conditions become strained, this activity could amplify stress and disrupt core funding markets.”  The Wall Street Journal:

WSJ – OTTAWA — Canada’s economy unexpectedly shrank for a second consecutive quarter as activity stalled at the start of the year, raising the likelihood the country dipped into a recession.

Gross domestic product, a broad measure of goods and services produced across Canada, edged down 0.1% in seasonally adjusted annualized terms in the January-to-March period, Statistics Canada said Friday.

The economy also contracted a larger-than-previously-estimated 1% in the final quarter of last year. Back-to-back quarterly declines typically define a technical recession.

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