Too funny.  The economic pretending is so strong almost every outlet leads the Gross Domestic Product news release by saying “better than expected.”  Duh!   The Bureau of Economic Analysis (BEA) releases the GDP date for the second quarter (Q2) and shows a 3.0% jump in economic growth.

We say “duh”, because it was an entirely predictable result.  Why, because imports are a deduction to the GDP equation and imports dropped 30.3% in the second quarter (Table 1, line 19).   We said this was going to happen because there was a surge of imported goods in the first quarter as companies tried to be proactive with orders in advance of tariffs.

That massive influx of imports made the Q1 GDP weak (-0.5%).  Conversely, with all those goods delivered in the first quarter, the products were not imported in Q2 and the GDP rebounded.  The lack of imports, ultimately the lack of deduction, resulted in a 5.18% positive change to the second quarter GDP (Table 2, line 47).

[Source, Table 2, Line 47]

But wait, the winning doesn’t stop there.  Remember, the Big Beautiful Bill just passed in July. That means fixed asset investment is likely to expand in Q3 because 100% expensing on capital investment was part of the BBB.

But wait, there’s more.  Annual wages spiked 4.4% — double the rate of inflation (2.1%).   That means people are growing their wage incomes twice as fast as prices are rising.  Real wage growth is back again!  Yes, REAL WAGE GROWTH.

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This is one of those interviews that simply must be watched in its entirety. It’s long, almost 3 hours, but take the quiet time to watch and absorb the information provided by economist Professor Richard Werner.

Werner discusses something absolutely vital to understand about the nature of economics and the banking system that underpins it. You have often heard me say “there are trillions at stake” when describing the elements aligned against President Trump. Well, Werner gives context to what lies behind those trillions.

Nine years ago, as President Elect Trump won his first election, I wrote about the future of economics and the potential if a Main Street monetary and banking system was created. {GO DEEP} Richard Werner discusses the specific issue of how credit creation by regular banks actually creates money. He’s the first person I have seen speak who really gets it.

There are distinct differences between banks creating money for asset purchases (inflation), consumer purchases (inflation) and GDP growth (Main Street expansion). He simply nails it, and that is why he was put on the CIA radar.

When Werner speaks of the need for two distinct banking systems as a solution to the “inflationary” impact of money created for asset purchases vs GDP growth, he is specifically highlighting the difference between Wall Street money and Main Street money. This, in the largest measure, is exactly why President Trump and Secretary Mnuchin created the dual banking system.  This is what led to the global pandemic as a tool to stop President Trump.

I cannot recommend this interview enough. However, don’t sell yourself short. Find a quiet place, quiet time, and take notes as you listen to Richard Werner outline the true and unspoken nature of how money is created.

When you understand what Werner is saying, everything the FED and Central Banks do starts to make sense. WATCH:

Behind what Werner is explaining you will find the motives to oppose President Trump.  Werner doesn’t draw the connection to Trump’s policies, but when you hear him outline the history and the problem you will get it.

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U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer hold a joint press conference in Stockholm after concluding the third-round of trade talks with Chinese officials.

The discussion and press availability covered U.S-China trade negotiations, economic cooperation and whether President Trump will meet Xi Jinping. Key moments include questions on tariffs, supply chains, and Beijing diplomacy. WATCH:

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Treasury Secretary Bessent notes as the U.S. economy continues strengthening, and as each trade deal with the U.K, Japan, ASEAN nations and Europe have cemented, the talks between the U.S. and China become more substantive.

With each global trade partner agreeing to terms of access to the USA market more pressure is naturally created on China to complete negotiations and affirm their position as supplier to the world’s largest market.

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Following the breaking news of the U.S-EU trade deal with Commissioner Ursula von der Leyen, President Trump sits down for an extensive interview with Miranda Devine.

President Trump talks about the trade agreement with the EU in addition to overall perspectives on trade, tariffs and the goals of the America-first economy.  Additionally, President Trump talks about immigration challenges, current events and the intelligence documents declassified by Director of National Intelligence Tulsi Gabbard. WATCH:

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Commerce Secretary Howard Lutnick describes some of the details within the new U.S-European trade agreement.

As noted, the $600 billion in regular trade products exported by the EU to the USA market will be subject to a 15% reciprocal tariff.  This approach effectively ends the Marshall Plan, sets the trade terms to balance and should generate approximately $90 billion in revenue to the U.S. treasury.

U.S. tariffs on cars and auto parts are being reduced to the baseline 15 percent — a level that matches the deal notched earlier this month by Japanese automakers. In exchange, the EU has agreed to lower its car tariffs from 10 percent to zero, trade spokesperson Olof Gill said.  The German companies are angry though, because the 25% tariff still applies to Mexico. So, German autos manufactured in Mexico (massive prior investment) will come to the USA with a 25% tariff.

In addition to the EU agreement to open their markets to U.S. products, private companies within the EU have committed to $600 billion in direct investment within the USA.  Additionally, the EU will purchase $750 billion in U.S. energy products and with the NATO commitments previously agreed significant military purchases are anticipated. That is a major purchase agreement of $250 billion each year for the next three years.

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President Donald Trump and Prime Minister Keir Starmer hold a press availability from President Trump’s Turnberry golf course and estate.   Prime Minister Starmer is very focused on support for Palestinians in Gaza as the Israeli-Hamas conflict continues.

Both leaders took media questions on a variety of topics from immigration and Scotland’s independence movement to the conflict between Russia and Ukraine. WATCH:

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The Marshall Plan is OVER!

Okay, this is a very big win.  EU Commission President Ursula von der Leyen outlines some more details of the U.S-EU trade agreement.  The parameters fall similar to the Japanese deal, without the banking aspect.

The EU will face (and accept) a 15% tariff rate for most exports to the USA including autos, that’s huge, even with some zero-for-zero tariff sectors outlined.  The primary motivating factor was to avoid the 35% tariff rate scheduled for August 1st and provide the EU corporations with certainty in their tariff rate as applied by the USA (15%).  WATCH:

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This is almost full acquiescence to President Trump.  WATCH THE VIDEO

Ursula has the sads.

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President Trump and EU Commissioner Ursula von der Leyen have apparently come to terms around the broad outlines of a U.S-EU trade agreement.

The EU will commit to purchasing $750 billion in energy products.  The EU will commit to investing $600+ billion in direct U.S. industries.  The EU will commit to purchasing their NATO military hardware from the USA ($500+ billion likely).  The EU will open up all markets to USA products without tariffs.  The EU and U.S. will both carry a 15% auto tariff for imports.  WATCH:

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I’m all about the broad outline described in the video above, but I also want to see the details.  If what President Trump said about all EU markets being open is accurate, it sounds like the Marshall Plan is over

Canada will not be happy; Europe gets a deal – Canada gets a cold shoulder.

Also, with U.K, Japan, ASEAN and EU trade agreements complete, President Trump is likely to begin focusing on the USMCA (Canada and Mexico) sooner than later.  Two bilateral trade agreements will likely replace the USMCA.

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Office of Management and Budgets (OMB) Director Russ Vought appears on CNN to discuss the problems noted with the Federal Reserve (FED) as the organization viewed their ‘independent’ status as meaning beyond accountability.  The FED has been operating without any oversight until President Trump and Russ Vought began a baseline review of how they spend taxpayer funds.

As noted by Director Vought, the FED can have independence and yet they must be held accountable to the American people. President Trump is that accountability piece and the FED were not familiar with scrutiny. They are now.

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Russ Vought also appeared on Face the Nation to receive questions from the insufferable and ever-pontificating Margaret Brennan.  Video and Transcript Below:

[Transcript]  – MARGARET BRENNAN: We begin today with the director of the White House Office of Management and Budget, Russell Vought, welcome to ‘Face The Nation.’

DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET RUSSELL VOUGHT: Thanks for having me.

MARGARET BRENNAN: There’s so much to get to with you. Let’s start on what’s going on with the Federal Reserve. If you take the president at his word, he does not intend to fire the Federal Reserve Chair, Jerome Powell- though he’s still criticizing him. What is the President seeking in a successor when his term ends in May 2026?

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While President Trump visits his golf courses in Scotland, he will also be conducting business on behalf of the USA by meeting with trade partners from both Great Britain and Europe.

This morning USA time, President Trump is scheduled to meet with EU Commission President Ursula von der Leyen, at approximately 11:30am ET.  Livestream Links Below:

UPDATE: Video Added

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