President Trump has announced the raising of tariffs on China effective Sept 1st and October 1st, 2019.  This is one arrow in a quiver filled with economic consequences:

• The preexisting 25 percent tariff on $250 billion in Chinese goods will increase to 30 percent effective October 1st, 2019.
• The pre-planned 10 percent tariff on $300 billion worth of Chinese goods will increase to 15 percent, effective September 1st, 2019.

This targeted tariff approach is only a small sample of the economic action that is available to President Trump.  There are a host of tools and targeted economic weapons available to President Trump that are far more damaging to Beijing.
This announcement also sends a clear message to the members of the G7 as they prepare for their meetings in France.
(more…)

Within the dynamic of the U.S -vs- China trade confrontation, CTH has long noted the Wall Street (globalist) multinationals would always go bananas.  There are trillions at stake and President Trump is confronting three decades of financial influence from Wall Street’s multinational corporate lobbyists.
To the angst of Wall Street, POTUS Trump tweets the dynamic.
President Trump will not back down from his position; the U.S. holds all of the leverage and the issue must be addressed.  President Trump has waited three decades for this moment.  Main Street U.S.A has waited for this moment.  This President and his team are entirely prepared for this battle…. Now we fight!

We are finally confronting the geopolitical Red Dragon, China!
President Trump has been brutally consistent for more than three decades on his intent and purpose with the Chinese.  President Trump is the first U.S. President to understand how the red dragon hides nefarious motives behind the panda mask.
Additionally, while carrying out the objectives of the confrontation, Secretary Mnuchin, Secretary Ross, Ambassador Lighthizer and adviser Peter Navarro are well aware of Beijing’s duplicitous panda mask; POTUS Trump will never let them forget about it.
(more…)

Well, they cannot later claim they were not warned.  In a series of stunning tweets today, President Trump directly tells U.S. companies manufacturing goods in China, they need to make rapid plans for exit.

Earlier today China’s commerce ministry said it will impose additional tariffs on thousands of U.S. products, including agricultural products, crude oil, small aircraft and cars. Tariffs on some products would take effect on Sept. 1 and others on Dec. 15.
The Wall Street multinationals are exposed to significant losses because of their investments in China.  White House trade and manufacturing policy advisor Peter Navarro appeared on Fox Business with Maria Bartiromo to discuss the dynamic.

(more…)

According to the U.S. Department of Labor [data here] companies hiring American workers are not complying with the media “recession” narrative.   Yes, another day, and yet another data point reflecting the “unexpected” & continued strength of Main Street.

WASHINGTON (Reuters) – The number of Americans filing applications for unemployment benefits fell sharply last week, suggesting the labor market was holding firm despite a manufacturing slowdown and concerns the economy is on a path toward recession.
Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 209,000 for the week ended Aug. 17, the Labor Department said on Thursday.
The decline was sharper than expected. Economists polled by Reuters had forecast claims would drop to 216,000 in the latest week.

(more…)

President Trump was delivering another round of delicious Chopper Presser rebuttals to the MSM narrative engineers today, when he remarked about confronting China: “I am the chosen one”…  And the media had the customary spontaneous ‘splodey head.
First, the people’s president is right, he is the chosen one.  Through prayer and divine providence, we finally have a businessman fighting for Main Street USA.   Secondly, it’s funny to watch an entire MSM apparatus that decries religion, suddenly searching for scripture in their anti-MAGA talking points.  Too funny.  Only Trump can achieve this.
Epic. Just epic. WATCH:

(more…)

The Wall Street pundits are having a harder time pushing their recessionary economic narrative while the results from Main Street continue to beat expectations.  Two data points continue to highlight the strength of Main Street: Home Sales and Wage Gains.

President Trump’s MAGAnomic policies are focused on delivering results to the middle-class worker and family.  The middle-class American is the engine for a Main Street economy.  Growing the middle-class is the key to strengthening the U.S. economy and blocking negative global economic influence.  Growing the middle-class is how the U.S. economy continues to be self-sustaining. [We buy/use 80% of our own production.]
Today The National Association of Realtors released data showing existing home sales rose 2.5% to a seasonally adjusted annual rate of 5.42 million units in July.  Forecasters only expected 5.39 million units.  The U.S. Main Street housing market is very strong.

Because the results defy pundit expectation, Reuters has to ignore the strength of Main Street and put the Wall Street spin on the results.  The efforts to keep pushing a negative economic narrative are intense [Trillions At Stake]:

WASHINGTON (Reuters) – U.S. home sales rose more than expected in July, boosted by lower mortgage rates and a strong labor market, signs the Federal Reserve’s shift toward lower interest rates was supporting the economy.

(more…)

White House Trade and Manufacturing Advisor Peter Navarro appears on CBS ‘Face the Nation’ and ABC ‘This Week’ to outline the strength of the U.S. economy, and the current U.S-China trade reset, including tariffs.
There are trillions at stake.
Food for thought – contemplate how Sunday media bookings take place.  The ‘subject‘ for  Sunday interview discussions, and who they need for their narrative engineering sessions (ie. interview schedules), are made by MSM *corporate media early in each week.  [*U.S. Media are owned by Wall Street multinational conglomerates]
Obviously, as noted in the WH scheduling requests, the corporate MSM was planning to follow up and exploit their 48 hour engineered narrative (Tue/Wed) surrounding a false recession.  Unfortunately the excellent Commerce Dept. economic data released Thursday crushed their objectives… Thus, the corporate media were tripped up mid-plan.

(more…)

For all intents and purposes Germany is the EU, because German economic policy dictates the outcomes of all EU economic policy.  So as the EU promises to engage in more central bank monetary printing (quantitative easing) simultaneously Germany promises to keep negative interest rates floating as long as possible. [EU Parliament pictured below]
Yes, the EU is in serious structural economic trouble; and that is likely the real reason why quivering Chancellor Angela Merkel has decided to exit the political stage before the larger communal catches on.

Within the remarks by German Finance Minister Scholz it is the lamentation about the lack of investment into their grand collective economic scheme where you find the economic dissonance, and ultimately the hilarious punch lines:

BERLIN (Reuters) – German Finance Minister Olaf Scholz said on Saturday that he expected interest rates to remain very low for “the next few years”, adding that companies should seize the opportunity of near-zero borrowing costs to boost private sector investment.
The European Central Bank has already signaled even more monetary stimulus for the euro zone economy, hoping to arrest a downward spiral that could lead to an economic recession.

(more…)

Finally an economic analyst gets prime-time media pundits to listen as he describes the fundamental difference between the U.S. “Economy” (Main Street) and the U.S. “Markets” (Wall Street).  Charles Payne understands most of this, but El-Erian has it nailed.
Allianz Group chief economic advisor, Mohamed El-Erian, accurately describes what is happening in an era where deglobalization is taking place. The U.S. economy is strong; however, the multinationals on Wall Street -invested overseas- are exposed.  Thus there’s a disconnect and accompanying market volatility.
This is well worth watching because this is the first well-regarded financial pundit that is speaking truth to Wall Street in terms the panel pundits will understand/accept.

.
There is nothing that China and the EU can do to stop the de-globalization process; and efforts to stimulate their economy, more quantitative easing (pumping money) while the global supply chains are being shifted, are futile.
The more a nations’ economy is dependent on exports, the more exposure they have to the inherent downsides of de-globalization.   U.S. companies that are invested in these nations will lose their investment over time; some rapidly.  This will keep the stock market volatile, yet the Main Street USA economy is thriving.
(more…)