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Deporting Illegal Aliens and the Impact on Inflation, Consumer Prices and Wages

CTH reader “Charles” asked a great question yesterday that deserves some expansion:

CHARLES: “I’m having some trouble parsing how exfiltrating [deporting] illegal alien workers thereby pushing American wages upward can cause a decrease in inflation. Conventional wisdom for my whole life (73 years) has held that increasing labor costs drive inflation upwards.”

It’s a great question because Charles is essentially correct from a historical reference.  However, we are in uncharted territory due to the scale of illegal aliens within the U.S. economy in this modern era. The answer is a commonsense theory currently playing out in real time.

ANSWER: A much larger percentage of illegal aliens live on various subsidies and govt spending programs than our native American population. As a result, it’s like govt spending, except we have ten million people spending excessive govt money instead of one big spending bill.

The underlying economy is inorganic and detached from traditional cause and effect. In this dynamic when you deport the illegals, we are reducing the govt spending.  Less govt spending actually tames inflation and lowers housing costs at a greater rate than the upward pressure on wages.

Removing the ‘free govt money” from the economy, creates less upward price pressure. Additionally, deporting the govt spender reinstalls a more authentic supply and demand economy, because the current demand is skewed by all the ‘free money’ subsidy spending.

Charles is correct in that within his 73-years this was not evident.  That’s because we have an unprecedented number of illegal aliens spending govt money without any economic productivity.  Those subsidies, extra non-productive money in the economy, creates upward price pressure.  Take the money away and prices drop.

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A Bigger Backstory – ICIG Delivers Read and Return Intelligence Report with Letter to Congress Vindicating DNI Tulsi Gabbard

The Intelligence Community Inspector General (ICIG) delivered the “read and return” intelligence report to congress that sits at the background of an anonymous whistleblower complaint against Director of National Intelligence, DNI Tulsi Gabbard. [CBS Story]  In addition to delivering the report, the ICIG also delivered a declassified letter outlining the framework of the backstory [SEE HERE].

I strongly urge people to take a few minutes and read both links above, particularly the pdf of the ICIG report that frames the complaint.  In essence, the same playbook the IC tried to create the impeachment narrative against President Trump (2019), they repeated against DNI Tulsi Gabbard.

Now, the story gets a little weedy, so at the risk of yet another subpoena for outlining highly classified intelligence information simply by using public sourcing information and strategic brain mapping to put dots together, the easiest way to explain what has happened is to tell the big picture story of it.

People opposed to President Trump inside the National Intelligence Council (NIC), which in 2025 was a sub-silo inside the CIA, wrote an analysis saying the Venezuela gang ‘Tren de Aragua” (TdA) was not officially affiliated with the Venezuela government. Therefore, when President Trump and Secretary Rubio defined TdA as an officially recognized terrorist group, the analysis was intended to separate the TdA violence from the official U.S. policy toward Venezuela.

[The NIC is the “federal agency” being described in the media reports. I suspect the report’s authors were Mike Collins and Maria Langan-Riekhof or close associates therein.]

The “highly classified” component to the analysis, the part that intentionally skewers the telling of the story, is almost certainly the sourcing for the NIC analysis.

Here I would estimate with 90%+ confidence, that a CIA asset within the Venezuela government was the source of the intelligence saying TdA is not officially aligned with the Venezuelan govt.  That CIA asset could be someone very close to former dictator Nicholas Maduro, or someone currently inside the transitional government.  That source makes the component to the NIC analysis “highly classified.”  [However, it also fulfills the goals and operational agenda of the people who want to weaponize the “whistleblower angle.]

Now, I want to break out a component here because it is directly related to the reason for anti-Trump IC to manufacture this official CIA-NIC analysis.  Remember, Judge James Boasberg’s argument against deporting TdA members was based on his refusal to accept the deportees were designated terrorists.  Venezuela would not take them back, so President Trump sent them to the maximum-security prison in El Salvador.

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DHS Secretary Kristi Noem Discusses Minneapolis Chaos Amid Ongoing ICE Operations

Against the backdrop of President Trump’s instructions to pull back from confrontation with leftist antagonists, Dept of Homeland Security Secretary Kristi Noem appears on Fox News to discuss what that means to the ongoing immigration enforcement action in Minneapolis, Minnesota. WATCH:

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Federal Judge Refuses to Block Minnesota DHS Operation ‘Metro Surge’

State and local officials within Minnesota had asked the federal court for an injunction halting Dept of Homeland Security ICE/CBP operations in/around the Minneapolis metro area on the grounds the tenth amendment.  A federal judge rejected the request and refused to stop ongoing ICE operations.

In the ruling today [FULL RULING HERE], U.S. District Court Judge Katherine Menendez admitted the ongoing operation “will likely continue to have profound and even heartbreaking, consequences on the State of Minnesota, the Twin Cities, and Minnesotans,” however, there is no grounds for the state’s case using the 10th amendment.

[source]

The decision means the ongoing surge of Immigration Customs Enforcement, as well as various federal officials looking into regional fraud in the region, can continue.

(Via Politico) – […] “There is evidence that ICE and CBP agents have engaged in racial profiling, excessive use of force, and other harmful actions,” Menendez said, adding that the operation has disrupted daily life for Minnesotans — harming school attendance, forcing police overtime work and straining emergency services. She also said there were signs the Trump administration was using the surge to force the state to change its immigration policies — pointing to a list of policy demands by Attorney General Pam Bondi and similar comments by White House immigration czar Tom Homan.

But the Biden-appointed judge said state officials’ arguments that the state was being punished or unfairly treated by the federal government were insufficient to justify blocking the surge altogether. And in a 30-page opinion, the judge said she was “particularly reluctant to take a side in the debate about the purpose behind Operation Metro Surge.” (MORE)

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Strategic Retreat? – President Trump Announces Instructions to DHS to Pull Back from ICE Operations in Democrat States/Regions

President Trump appears to be initiating a strategic retreat from sanctuary states and sanctuary cities. Via a message on Truth Social President Trump says he has instructed DHS Secretary Noem not to participate in “poorly run Democrat cities”:

PRESIDENT DONALD TRUMP – “I have instructed Secretary of Homeland Security, Kristi Noem, that under no circumstances are we going to participate in various poorly run Democrat Cities with regard to their Protests and/or Riots unless, and until, they ask us for help. We will, however, guard, and very powerfully so, any and all Federal Buildings that are being attacked by these highly paid Lunatics, Agitators, and Insurrectionists.

Please be aware that I have instructed ICE and/or Border Patrol to be very forceful in this protection of Federal Government Property. There will be no spitting in the faces of our Officers, there will be no punching or kicking the headlights of our cars, and there will be no rock or brick throwing at our vehicles, or at our Patriot Warriors. If there is, those people will suffer an equal, or more, consequence.

In the meantime, by copy of this Statement, I am informing Local Governments, as I did in Los Angeles when they were rioting at the end of the Biden Term, that you must protect your own State and Local Property. In addition, it is your obligation to also protect our Federal Property, Buildings, Parks, and everything else. We are there to protect Federal Property, only as a back up, in that it is Local and State Responsibility to do so.

Last night in Eugene, Oregon, these criminals broke into a Federal Building, and did great damage, also scaring and harassing the hardworking employees. Local Police did nothing in order to stop it. We will not let that happen anymore!

If Local Governments are unable to handle the Insurrectionists, Agitators, and Anarchists, we will immediately go to the location where such help is requested, and take care of the situation very easily and methodically, just as we did the Los Angeles Riots one year ago, where the Police Chief said that, “We couldn’t have done it without the help of the Federal Government.” Therefore, to all complaining Local Governments, Governors, and Mayors, let us know when you are ready, and we will be there — But, before we do so, you must use the word, “PLEASE.”

Remember that I stated, in the strongest of language, to BEWARE — ICE, Border Patrol or, if necessary, our Military, will be extremely powerful and tough in the protection of our Federal Property. We will not allow our Courthouses, Federal Buildings, or anything else under our protection, to be damaged in any way, shape, or form. I was elected on a Policy of Border Control (which has now been perfected!), National Security, and LAW AND ORDER — That’s what America wants, and that’s what America is getting! Thank you for your attention to this matter.”

PRESIDENT DONALD J. TRUMP

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President Trump Holds an Oval Office Press Availability – Following Announcement of “Freedom 250” Grand Prix

Following the announcement of the “Freedom 250” Grand Prix scheduled as part of the 250th Independence Day/Year celebration [Details Here], President Trump takes questions from the assembled press pool. VIDEO

The full event video is included below:

WHITE HOUSE – Today, President Donald J. Trump signed an Executive Order launching the Freedom 250 Grand Prix of Washington, D.C. – the first ever INDYCAR street race in the Nation’s capital, to be held near the National Mall in honor of America’s 250th birthday. {source}

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Border Czar Tom Homan Holds a Press Conference in Minneapolis, Minnesota

President Trump’s Border Czar, Tom Homan, arrived in Minneapolis, Minnesota on Monday.  Today he gives a press conference following meetings with the Minnesota governor and Minneapolis mayor.

Mr Homan said he is now supervising the capture and removal of all criminal aliens from the Minneapolis region. ICE agents together with Customs and Border Patrol officials will continue operations throughout the region and the governor and mayor have given their assurances they will no longer attempt to interfere with capture, detainment and removal efforts.

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A Domestic Insurgency Has Erupted – President Trump Sending Tom Homan to Minneapolis

The violence in Minneapolis erupted when the scale of financial fraud was discovered.  The administration of President Trump has begun to highlight this non-pretending reality.

On the surface it seems like ICE enforcement is the issue; however, in reality Governor Tim Walz and Mayor Jacob Frey have been leading a criminal syndicate, with the entire region engaged in money laundering and financial fraud.

State political leadership are involved. The local Minneapolis police are involved; the Minneapolis municipal leaders are involved; a large and dedicated segment of the migrant population is involved; corrupt judges and officers of the courts are involved; public and private sector agencies involved in fraudulent exploitation of benefits are involved, and the community activists -footsoldier communists- are engaged in the process of using civil unrest as cover.

As the violent insurgency escalates, President Trump has announced Border Czar Tom Homan is being sent to the region:

“I am sending Tom Homan to Minnesota tonight. He has not been involved in that area, but knows and likes many of the people there. Tom is tough but fair, and will report directly to me. Separately, a major investigation is going on with respect to the massive 20 Billion Dollar, Plus, Welfare Fraud that has taken place in Minnesota, and is at least partially responsible for the violent organized protests going on in the streets. Additionally, the DOJ and Congress are looking at “Congresswoman” Illhan Omar, who left Somalia with NOTHING, and is now reportedly worth more than 44 Million Dollars. Time will tell all. Thank you for your attention to this matter!” ~ President DJT

When we went to Iraq/Afghanistan, American political leadership said we were going to fight them “there” so that we didn’t need to fight them “here.” However, that same American political leadership then imported hundreds-of-thousands of them to here.

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FBI Director Kash Patel: We Have Our Top Men on the Ground in Minneapolis

Kash Patel appears on Fox News with Maria Bartiromo to discuss ongoing matters of great importance to the FBI, including the chaos and insurrection efforts currently underway in Minneapolis, Minnesota.

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JD Vance Notes Something Very Important About Minneapolis Chaos

Last week CPB commander Greg Bovino was asked what makes Minneapolis different from other cities where ICE enforcement operations have taken place. Bovino noted in the Minneapolis region there is no separation between the extremists on the ground and the people in local government. Today, Vice President JD Vance concurs and expands on that sentiment:

[Source]

What Vice-President Vance says here is very important.  The regional government is a stakeholder in maintaining the chaos on the streets.  Why?  Because for two decades a cancer of rampant financial fraud has been permitted to spread throughout the Minneapolis region and has now reached the stage of visible metastasis.

Shortly after the George Floyd incident, some of us started looking into a background issue where it seemed like local police and Floyd had a knowledgeable relationship with each other prior to the encounter on the street.  The initial contact between Floyd and police was about Floyd passing off a counterfeit $20 bill to a business that was not part of the approved money laundering operation.

When you follow that trail, you end up in a really weird place where it seemed like millions of counterfeit dollars were entering the country through Mexico, going by rail into the U.S. mainland and then transitioning through the Minneapolis region. I stopped researching it {SEE HERE} when I discovered that Floyd and police officer Chauvin were friends, and worked together at one of the laundry businesses; a nightclub.

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