For more than three decades all U.S. economic policy has been elevating Wall Street and diminishing Main Street. As a result blue-collar workers have not had wage gains keeping up with inflation for over 30 years…. Then came the era of Trump.

– “Walking in a Winner Wonderland” –

More than two years ago CTH began discussing the ramifications to a new emphasis on the economy outlined as a possibility of candidate Donald Trump’s economic policy outlook. Within the overall discussion we walked through the anticipated changes possible if A.) Trump won the election, and B.) Trump began instituting Main Street economic policy ahead of Wall Street policy (the past 30+ years).
We discussed the new dimension that would occur between two economic engines (Main Street -vs- Wall Street) as three decades of policy shifted. CTH outlined statistical and measurable KPI’s that would become visible in the space between the policy shifts.
Part of those discussions focused on energy costs, product costs (we explained how inflation would be weird), and importantly, wage rates. It takes several months of policy emphasis (actual outcomes), before the labor market wage rates would grow. We anticipated seeing that impact in Q2 of 2018, which is April-June 2018.  Well:

(Via CNBC) […] The Bureau of Labor Statistics reported that April closed with 6.7 million job openings. May ended with just over 6 million people the BLS classifies as unemployed, continuing a trend this year that has seen openings eclipse the labor pool for the first time. At some point that gap will have to close. Economists expect that employers are going to have to start doing more to entice workers, likely through pay raises, training and other incentives.

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Pontificating economic globalists are stuck between empirical good news and their preferred anti-Trump tariff narrative.  Economic media like the Wall Street Journal are filled with angst, as Trump’s manufacturing MAGAnomics continues to destroy their decades-long talking points and globalist preferences.

The analysis of June factory and manufacturing indicators from the Institute for Supply Management (ISM) highlight an expanding reality: increased production, increased new orders, increased employment, and demand outpacing supplies and transportation capacity.  Yes, all of this means the Main Street U.S. economic engine is firing on all cylinders.  We can only imagine what the Q2 numbers will reflect when it’s all rolled up.

ISM DATA – “Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 percent or above for the 14th straight month, and the Customers’ Inventories Index remaining low. The Backlog of Orders Index continued to expand, reading at 60 percent of higher for the third consecutive month. Consumption, described as production and employment, continues to expand in spite of labor, skill and material shortages.

What does this mean in blue collar language?  Short term: OVERTIME pay folks…. maximum earnings possibilities as demand for factory and manufacturing has all employment working maximum production shifts. Long term: upward wage pressure, jobs, jobs, jobs.
For the Truck Drivers?  Work, work, work.  You got a rig, they need it hauled. Everywhere.
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In a decision that holds massive up-front ramifications for Democrats, the Supreme Court ruled today (full pdf below) that non-union members cannot be forced to pay for union representation.  This is a devastating blow to the Big Club political caucus.
The justices said in a 5-4 opinion that state government workers who choose not to join a union cannot be compelled to pay a share of union dues for covering the cost of negotiating contracts.  This allows state union workers to withdraw funding for the political aspirations and objectives of union leadership who work against their interests.
At the top of the hierarchy, union executives, multinational corporate executives and K-Street lobbyists, work in synergy to maximize financial benefits for a select group of interests known as The Big Club.  The corrupt operations carried out over the past four  decades fuel the UniParty; which is comprised of both democrat and republican political apparatus.  Today’s decision permits the removal of forced payments from the bottom of the Big Club pyramid scheme.
With an America-First independent voice in President Trump occupying the White House, the BIG CLUB already lost access to economic policy manipulation.  Today’s supreme court decision means even more downstream consequences.
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An interesting discussion this morning on CNBC with White House economic adviser  Larry Kudlow beings to highlight the principal purpose of his forte’.

President Trump is the first U.S. president who came to the table of economic policy with a plan of action that is uniquely his own.  POTUS doesn’t need “advisers” to frame possible policy, he already has the program mapped out; POTUS needs ‘advisers” who are not actually “advisers” per se’ but rather a sales-force to explain and advance his program agenda to the world markets as the policies are implemented….

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…Because this is such a substantial shift from historic reference, President Trump’s unique position of actually creating the economic policy must be emphasized and continually repeated.  It’s not Kudlow creating the policy; these are President Trump’s policies.  The granular details are carried out by U.S.T.R Lighthizer, Commerce Secretary Ross, Treasury Secretary Mnuchin.

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Trade Representatives from Canada, Mexico and the U.S. are in the deepest weeds within NAFTA negotiations, and some of the current proposals are flat out nuts.

Within the auto-sector the “Rules of Origin” continue to be one of the biggest sticking points.  The U.S. position is that 80% or more of a vehicle made in the U.S., Mexico or Canada should be made from parts from the U.S., Mexico or Canada, ie. North America.  Canada and Mexico are trying to argue for lower North American content because they want more Asian/Chinese parts in American automobiles. [Reuters Link]

On its face their position is ridiculous.  Canada and Mexico are not arguing for more Canadian and Mexican content; they are arguing for more Chinese content.  The U.S. is arguing for more North American content.  Canada and Mexico want to support China’s economy; the U.S. wants to support Canada, Mexico and the U.S. economy.   Let that sink in for a moment.

In an effort to enhance their ridiculous position, Canada and Mexico have come up with a proposal that is, well, bananas. Can/Mex want the United States to tax vehicles made in Canada and Mexico.  Stop. Re-read that.  Yes, that is correct.  Canada and Mexico want Chinese parts so badly, they are arguing for the U.S. to tax American (NAFTA) automobiles.

Nuts.

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JOINT STATEMENT – Today, Ambassador Lighthizer and Minister Kim are pleased to announce that the United States and the Republic of Korea have reached an agreement in principle on the general terms of amendments and modifications to the United States-Republic of Korea Free Trade Agreement (KORUS FTA). The nations have also agreed on terms for a country exemption for the Republic of Korea from tariffs imposed on steel imports under Section 232 of the Trade Expansion Act of 1962 pursuant to Presidential Proclamation 9705, as amended.  The arrangement with respect to steel imports is expected to take effect on May 1, 2018.  (link)

Ever since the original 2012 US-Korea free trade agreement (KORUS) went into effect, the U.S. trade deficit in goods with Korea increased by over 73 percent from $13.2 billion to $22.9 billion (2017), while the overall deficit increased by 70 percent from $6.3 billion to $10.7 billion (2017).  President Trump committed his administration to changing this immediately and renegotiating a deal that benefited the United States.

“The improved KORUS agreement reflects the President’s leadership in delivering more reciprocal trade outcomes benefiting U.S. workers, exporters, and businesses. The United States and Korea have strengthened an important economic relationship by agreeing to substantial improvements to KORUS that will help rebalance our trade, reduce our trade deficit, and expand U.S. export opportunities.”  ~ U.S. Trade Representative Robert Lighthizer

Here’s the historic details:

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Sneaky.  CTH anticipated POTUS Trump would withdraw from NAFTA due to the FATAL FLAW that still remains unaddressed in all discussions.  So it came as a surprise to see reports (opaquely cited) that U.S.T.R. Lighthizer was willing to drop the U.S. firm stance on content origination rules within the auto-sector.

Why would the Trump team agree to low thresholds of U.S. auto-parts used in American cars?  It just doesn’t make sense.  Still doesn’t… but no-one’s talking right now; and clarity is impossible to find.  The bigger question remains:  Why haven’t we pulled out yet?

Perhaps the answer to that question lies in the heart of a plan concocted by a small group of conniving GOPe multinational business interests. The tricksters are creating an enticement plan to insert domestic rules on U.S. regulations into a renegotiated NAFTA draft.  The GOPe loves them some NAFTA. The GOPe will scheme to keep NAFTA.

Their current enticement plan is to work around congress, by structuring a NAFTA chapter on “rules of competitiveness”.  If the scheme works as they have outlined, many domestic regulations currently tripping up expanded U.S. business development, specifically shipping/transportation infrastructure (ports/railroads), could be reduced or eliminated by putting rules to override U.S. regulations in a final NAFTA deal.

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It’s well known that Republican Speaker of the House Paul Ryan doesn’t want to be in an actual leadership position; and it’s also well known -enhanced by the campaign, and victory, of Donald Trump- that Republicans did not want to win the majority position and face having to reveal their true UniParty agenda.

The evidence of this UniParty positioning has been staring the electorate in the face, repeatedly and brutally, since candidate Donald Trump actually campaigned on key tenets of the Republican party and found himself being openly opposed by GOP leadership.

Now, a stunning discovery surfaces of Paul Ryan’s Congressional Leadership SuperPAC, congressionalleadershipfund.org, actually campaigning for the Democrat, Conor Lamb, in the recent PA18 congressional race.

As evidenced by Big League Politics the Paul Ryan SuperPAC sent a mailer to Pennsylvania CD-18 voters touting Lamb’s favorable position on gun ownership rights:

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The special election in Pennsylvania Congressional District 18 is today.  The polls close at 8:00pm EST.  The district political registration heavily favors the Democrat Conor Lamb with a +50,000 advantage in Democrat registered voters.  However, President Trump carried the mostly blue-collar district in 2016, and he supports Republican Rick Saccone.

Generally speaking the Democrat Conor Lamb is favored; and with that outcome in mind the media began using this likely Democrat win to position an anti-Trump narrative.  To counter that narrative President Trump went to PA and campaigned with Rick Saccone.  Both RNC and DNC have spent a lot of money on this temporary district race.

Democrat Conor Lamb is attempting to revive the extinct “blue-dog” model and has refuted Nancy Pelosi along with the far-left-wing of the Democrat party; while emphasizing his strong labor union relationships.  On the Republican side, the district is Pro-Trump on the national economics but candidate Rick Saccone has strongly supported ‘right-to-work’ policies which the local unions do not like.  So it’s a weird election.

Pennsylvania State Election Return Results – HERE

New York Times – Election Results HERE

White House Legislative Affairs Director Marc Short appears on Fox News to discuss the Steel and Aluminum tariffs being implemented by President Trump to protect the U.S. steel and aluminum manufacturing industry.

The Wall Street antagonists together with politicians purchased by the U.S. Chamber of Commerce and K-Street lobbyists (working on behalf of Wall Street),  have vowed to fight President Trump’s trade initiatives.   The steel and aluminum tariffs are the first in a series of trade actions by President Trump that he outlined during his candidacy.

Wall Street politicians (globalists) are now engaged in a fight against Main Street economic and trade policy (nationalists). There are trillions at stake. The anger against the President over the steel/aluminum tariffs is nothing in comparison to what lies ahead; with a likely NAFTA withdrawal and other MAGAnomic trade initiatives looming on the horizon.

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