White House Council of Economic Advisers Chair Kevin Hassett appears with Lou Dobbs to discuss the strength of the U.S. economy and the U.S-China trade negotiations.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will head to Beijing for talks that start on April 30:

(White House) At President Donald J. Trump’s direction, United States Trade Representative Robert Lighthizer and Secretary of the Treasury Steven Mnuchin will travel to Beijing for continued negotiations on the trade relationship between the United States and China. The talks will begin on April 30, 2019. Vice Premier Liu He will lead the talks for China. The Vice Premier will then lead a Chinese delegation to Washington for additional discussions starting on May 8, 2019. (link)

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The U.S. manufacturing economy continues to expand and thrive amid President Trump policies targeted to benefit middle-class workers.  As an outcome of continued growth another report today shows historic growth in income and home ownership for American workers of Hispanic descent.  Additionally, with targeted trade and tariff policy focused on strengthening the U.S. auto sector the ancillary benefits are surfacing.
A strong and vibrant middle-class is the key to a balanced economy, and thanks to America-First policies the U.S. economy continues to expand.  An example of mid-sized expansion is in this latest article from Michigan where 400+ auto-sector jobs are gained.

MICHIGAN – A German auto supplier is expanding its operations in Michigan with a new manufacturing facility in Plymouth Township.

The Michigan Economic Development Corp.’s governing body approved Tuesday a $2.7 million performance-based grant to Webasto Roof Systems Inc., a subsidiary of the Webasto Group, a sunroof, convertible top and heating systems manufacturer.

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The Bureau of Economic Analysis (BEA) reports a much lower trade deficit than all economists predicted.  This is good news for the upcoming GDP growth report because the value of imported goods are deducted from GDP.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $49.4 billion in February, down $1.8 billion from $51.1 billion in January. (read more)

The smaller overall trade deficit was primarily driven by a decrease in the deficit with China. The deficit with China decreased $3.1 billion to $30.1 billion in February.  As noted by Reuters: ““It sounds like pencils are being sharpened in order to revise up first-quarter GDP forecasts,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto.“
With little inflation in the U.S. economy it appears Trump’s tariffs on Chinese goods are essentially invisible to the consumer; likely being absorbed overseas in an effort to keep their prices low upon delivery. As the Trump administration negotiates on the world’s first ever Free Trade Agreement with China, the willingness/ability to execute additional tariffs provides ongoing leverage.
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A massive defeat for the left-wing loons in Alberta Canada now means half the Canadian provinces are aligned against Justin’s rainbow-socks coalition and disastrous climate agenda.  Apparently having a common sense approach now means ‘right-of-center‘.

CALGARY, Alberta (Reuters) – A right-of-center party swept to power in Canada’s main oil-producing province of Alberta on Tuesday and attacked Prime Minister Justin Trudeau’s efforts to fight climate change, raising tension just months ahead of a federal election.

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Council of Economic Advisor Chairman Kevin Hassett appears with Lou Dobbs to discuss the current state of the U.S. economy.  Hassett compares current outcomes to the prior congressional budget office predictions; and shares the results for middle-class growth.

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National Economic Council Chairman Larry Kudlow holds an impromptu press conference today with media discussing the current state of the economy. Kudlow focuses attention to the economic gains amid the middle-class.

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Global economics, and the way the financial media spin, can be funny at times.  On one hand the pretentious global community scoffs at American Exceptionalism and claims the U.S. is only one country amid a international community of equals; on the other hand the reality of the U.S. being the leading economy in the world, and their need to retain access therein, slaps them in the face like a cold fish…
Investment capital flows to the location of highest return.  Amid the U.S. MAGAnomic growth; global investment is inbound to the USA.  The EU and Asia are in a period of low to stagnant growth…  lots of high-brow teeth gnashing.  To make matters worse, Trump is leveraging their weakness against them as he renegotiates reciprocal trade deals.

The G20 IMF and World Bank’s 2019 Annual Spring Meetings of finance ministers (fancy name to describe Mnuchin’s job) is taking place in Washington DC.  The finance ministers are stomping their feet at horrible Trump hoarding all the economic growth.

(Reuters) […] Policymakers from the Group of 20 industrialized countries are worried that the weakness evident in key economies could spread, especially if elevated trade tensions, such as those between the United States and China, escalate further.

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White House Council of Economic Advisors Chairman Kevin Hassett gives an interview to discuss the current state of the U.S. economy.  After discussing President Trump’s Fed pick Herman Cain, Hassett outlines how inflation is non-existent; and also discussions around ongoing U.S-China trade discussions.

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Earlier today President Trump delivered remarks during an energy and infrastructure event in Crosby, Texas. [Video and Transcript]

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[Transcript] – 4:07 P.M. CDT – THE PRESIDENT: Thank you. Thank you very much. (Applause.) And one of my all-time favorite governors is right here. Greg, thank you very much. Greg Abbott. (Applause.) Great, great job.
I’m thrilled to be here in Crosby, Texas, with the incredible members of the International Union of Operating Engineers. (Applause.) I know you well. I know you well and I also know who most of you voted for, and I appreciate it. (Laughter.)
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There’s a term called “zeroing” at the heart of this World Trade Organization decision that supports President Trump, Secretary Ross and USTR Lighthizer.
When an industry product like Canadian softwood lumber is shipped into the U.S. for sale at a lower price than exists in Canada, the U.S. Commerce department calls that “dumping“.  If the Canadian product is the same or higher in the U.S. as it is in Canada there is no dumping.  No dumping is a “zero” or normal price differential; hence “zeroing”.

The Canadian government is subsidizing their lumber industry by allowing tree removal from federal land at discounted rates so long as the lumber is exported.  This made softwood lumber cheaper in the U.S. than in Canada and set up the dumping issue.
[NOTE: This is the same issue with Steel and Aluminum from China]
U.S. lumber mills were going out of business because Canada was dumping subsidized product into the U.S. market at a discounted rate.  As a consequence, in 2017 Commerce Secretary Wilbur Ross instituted a 20% tariff on Canadian lumber to protect the U.S. lumber industry.  The tariff is a countervailing duty to offset the Canadian subsidy. ie. “zeroing”.
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