White House Director of Trade and Manufacturing Policy Peter Navarro appears on Fox News to discuss the current status of the U.S-China trade discussions and the USMCA.
Ms. Bartiromo points out how U.S. multinationals are holding back further investment in Asia due to ongoing President Trump tariffs.  Mr. Navarro points out there is no uncertainty if U.S. companies would invest in Main Street USA.
However, the Wall Street multinationals do not want to give up on their Asian investments and bring U.S. manufacturing jobs back to North America.  Hence the conflict between Wall Street/The Big Club and Main Street/President Trump.

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As Navarro noted, the narrative about October talks between the U.S. and China are driven by the collaborative financial interests of Beijing and Wall Street multinationals in an effort to create the image of something that doesn’t exist.  Prepare accordingly.
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I am thankful every day that we have a businessman in the White House who brilliantly understands how to leverage U.S. economic power to achieve national security objectives.
While remaining under the threat of punishing U.S. tariffs, Mexican President Andres Manuel Lopez-Obrador (aka AMLO) is strictly enforcing migrant blockades to stop the unlawful travel of Central American migrants to the U.S. border.

(Via AP) […] Foreign Secretary Marcelo Ebrard said he believes Mexico’s strategy of cracking down on illegal migration with a National Guard deployment, investment in Central America and allowing the U.S. to make more asylum seekers wait in Mexico is enough to avert President Donald Trump’s threat to impose tariffs on all Mexican imports.

Ebrard is scheduled to meet with U.S. officials Tuesday at the White House to review the progress.

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HatTip DaveNyiii – Shocking video has surfaced (via Voice of America) of Mexican military police battling today with swarms of African migrants outside an immigration detention center in Tapachula, Mexico.  WATCH:

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How do African nationals get to Mexico?

[…]  J. Antonio Fernandez, president and CEO of Catholic Charities of San Antonio. These new arrivals hail from the Democratic Republic of Congo and Angola—two countries with no strong historic ties to the United States. (link)

It’s the business end of illegal immigration.  Previous background here.
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After federal authorities raided seven chicken processing facilities in Mississippi last week evidence is now surfacing (within probable cause affidavits – full pdf below) of willful and intentional illegal hiring practices.  But don’t look for all the employers to be prosecuted.
The Washington Post has an excellent outline of the seven facilities citing dozens of instances where evidence shows each company knew they were hiring people who were not legally eligible for work.
In a surprising number of cases the illegal employees were arrested by Border Patrol in California, Texas, New Mexico and Arizona and released on electronic-monitoring programs, including ankle bracelets, to await court dates.
According to the affidavits federal authorities tracked the GPS locators on some of the employees and found they were illegally working in all of the facilities.  During interviews with the workers they stated how friends and family members in Mexico and Guatemala told them where to go for work in Mississippi.
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Former White House chief strategist Steve Bannon appears on Fox News with Maria Bartiromo for a wide-ranging discussion on current political and geopolitical events.
Topics include the U.S-Mexico border security and immigration; the 2020 democrat candidates (announced and unannounced); the bigger geopolitical issues behind the U.S-China trade conflict; Joe and Hunter Biden’s direct financial relationship to the Chinese communist government; the USMCA trade agreement; Trump’s leverage to increase an EU free economic alliance against China; and radical action by dems.

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In a remarkable admission today on Twitter AFL-CIO Labor Union President Richard Trumka supports the principle of illegal alien workers taking the jobs of American workers.  This is quite a bucket of sunlight upon a previously hidden agenda.

It is quite remarkable to see a large U.S. labor union now standing in support of illegal workers in the U.S.  There was a time, throughout the history of labor unions, when some of the strongest immigration voices were against American worker displacement.  Apparently that time is passed.
The United Food and Commercial Workers (UFCW) union was recently impacted by a federal immigration authority raid in Mississippi; which resulted in almost 700 illegal alien workers being identified and removed. In addition to the unlawful border entry, most of the illegal workers used fake documents, fake identifications and stolen social security numbers to falsify employment eligibility.
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It is hard to believe but it’s been three years since we first outlined what would happen if candidate Donald Trump’s “America First” policy was implemented.  Specifically how the Federal Reserve would essentially become disconnected and functionally obsolescent for a few years.  As a result of the evidence visible, we are in a unique position to explain.
Staying in the big picture, a disconnected Fed was very predictable.  In the past 35 years the Wall Street multinationals gained as cheap money flowed overseas to start global manufacturing operations; Main Street USA suffered.  When you reverse this process by punishing the multinationals (tariffs), shifting the global supply chain, and changing the best location for investment dollars, Main Street USA benefits.  President Trump August 7th tweets statement:

Notice the “we are competing against other countries” part of the statement.  This is key to understanding what is in the future.  The Wall Street ‘multinationals’, corporations making and selling goods, are invested in production within other countries.
On one hand, Wall Street loves cheap money (low fed rates). However, on the other hand Wall Street multinationals are invested in overseas manufacturing; and those corporations don’t want to see the retention efforts of China and the EU undermined with a lower dollar value (lower fed rate).  So Wall Street is schizophrenic (check the stock market).
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The Bureau of Economic Analysis (BEA) released significant wage and salary data yesterday which held stunning upward revisions for 2018 and 2019.   Wage growth of 5.5% combined with low inflation remaining at 1.4 percent; the disposable income of U.S. workers jumped to a stunning 4.1%.  [Data Tables]

Within the revised BEA data, we find employee compensation rose 4.5% in 2017 and 5% in 2018.  Importantly the growth trend continued into 2019, with compensation increasing 3.4 percent in the first six months alone.  Year-over-year wages and salaries were revised upward to 5.3% for May, and 5.5% in June.  These are stunning increases in worker pay.
There are various economic indicators we have shared through the years, but wage growth is one of the more critical.  First, wage growth lags behind business activity – workers don’t get pay raises until after business volume demands/provides it.  Second, wage growth is generally uni-directional – once businesses hike pay, the increases cement.
As the Wall Street Journal put it:
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Earlier today President Trump sent a warning tweet about Apple possibly incurring tariffs on their products if they continue a plan for manufacturing in China.  Later in the day the president answered direct questions about those possible tariffs.
Additionally, Secretary Wilbur Ross was very insightful when he also spoke of the current U.S. perspective toward the U.S-China trade negotiation.  If you have followed the basic road-map of America-First, there’s a very clear picture; however, most pundits and trade analysts will likely ignore the message.

Subtle as a brick through a window…. yet it’s amazing how many people can’t see it.
Secretary Ross warned the professional investment class that the current objective for Secretary Mnuchin and USTR Lighthizer is to find out if Beijing is willing to re-engage from the starting point where they left-off when talks collapsed.  That’s a big tell.
After several phone calls and staff contacts if the U.S. team doesn’t know the answer to that question, well, there’s almost zero likelihood of any optimistic outlook.  In essence, the only value within the current engagement is financial ‘optics’ to stabilize markets.
It has been clear -validated by the G20 outcome- that President Trump is not going to accept anything less than a full and complete structural change in the U.S. trade position with China.  Lighthizer’s severe compliance and enforcement clauses, specific to each unique trade sector, are non-negotiable.
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President Trump ‘unexpectedly‘ negotiated a major asylum deal with the government of Guatemala.  In a surprise announcement on Friday President Trump invited the press into the oval office where Guatemalan Interior Minister Enrique Degenhart and acting Department of Homeland Security Secretary Kevin McAleenan were gathered in advance.

It’s important to remember that President Trump spoke about this on Wednesday during an impromptu presser.  In essence President Trump delivered an offer/threat at the end of several months of negotiations.  REMINDER:

Q What are you going to do about Guatemala? Guatemala. What are you going to do about Guatemala?
THE PRESIDENT: So, Guatemala gave us their word. We were going to sign a safe third agreement and then, all of a sudden, they backed up. They said it was their supreme court. I don’t believe that. But they use their supreme court as the reason they didn’t want to do it.
So we’ll either do tariffs or we’ll do something. We’re looking at something very severe with respect to Guatemala. I’ve already cut all payments; I did that a year ago. I cut all payments going to Honduras, El Salvador, and Guatemala. We used to send them $500 million for nothing. For nothing. They didn’t do anything except set up caravans.
So, Guatemala we’re going to take care of and it won’t even be tough. We’re going to do — we’re looking at a couple of different things. ~ Wednesday July 24th, 2019.

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