Most people are aware the Wuhan coronavirus has become an economic contagion within China. However, the scale of the contraction is only now being quantified and the data doesn’t match the visible reality.
When evaluating the data showing drops in exports from China is worthwhile to consider the lack of visible supply-chain disruption formerly predicted by global economic “analysts”.  According to Reuters; to the extent data can be gathered from within a closed communist system; total exports from China dropped 17.2% in January and February.

The lack of factory production has cut the estimated growth rate within China by half.  However, is that a cause?  – or – Is that a cover?  For decades corporations have moved to a supply chain process known as Just-In-Time (JIT) inventory.
If Chinese component manufactured goods were part of a critical corporate supply chain, and with more than 30-days of source disruption quantified, there would be impacts by now. Where are the crippled customers?  There are no measurable, demonstrable, citations for missing component parts making downstream finished goods impossible.  There are lots of anticipatory declarations, but no shortage has materialized.
(more…)

7:30pm – THE PRESIDENT participates in a working dinner with the President of the Federative Republic of Brazil

White House – President Donald J. Trump will meet President Jair Bolsonaro of Brazil at Mar-a-Lago on Saturday, March 7, 2020. President Trump and President Bolsonaro will discuss opportunities to build a more prosperous, secure, and democratic world.

As leaders of the Hemisphere’s two largest economies, they will also discuss opportunities for restoring democracy in Venezuela, bringing peace to the Middle East, implementing pro-growth trade policies, and investing in infrastructure. The President will use this meeting as an opportunity to thank Brazil for its strong alliance with the United States. (link)

Jumpin’ ju-ju bones.  The Bureau of Labor Statistics highlights an excellent jobs report for February with 273,000 new jobs added; and an upward revision of 85,000 job gains in December and January.  Total new jobs with revisions 358,000; that’s exceptional.
Main Street USA is very strong, exceptionally strong; and the fundamentals of the U.S. economy show balance and overall strength.  Keep in mind, while all of this growth is happening the full impacts of the renegotiated trade deals have yet to kick in.

Highlighting the strength in the overall economy the construction sector added 42,000 jobs in February, following a similar gain in January (+49,000). In 2019, construction job gains averaged 13,000 per month. In February, employment gains occurred in specialty trade contractors (+26,000) and residential building (+10,000). This specific metric is important because it highlights economic expansion from U.S. workers and households having financial strength for home purchasing.

(BLS DATA) Total nonfarm payroll employment rose by 273,000 in February, and the unemployment rate remains at 3.5 percent. Over the past 12 months, average hourly earnings have increased by 3.0 percent.
The change in total nonfarm payroll employment for December was revised up by 37,000 from +147,000 to +184,000, and the change for January was revised up by 48,000 from +225,000 to +273,000. With these revisions, employment gains in December and January combined were 85,000 higher than previously reported. (link)

(more…)

President Trump is disrupting decades of multinational financial interests who use the U.S. as a host for their ideological endeavors. President Trump is confronting multinational corporations and the global constructs of economic systems that were put in place to the detriment of the host (USA) ie. YOU. There are trillions at stake; it is all about the economics; all else is chaff and countermeasures.

We are already familiar how China, Mexico and ASEAN nations export our raw materials (ore, coking coal, rare earth minerals etc.). The raw materials are used to manufacture goods overseas, the cheap durable goods are then shipped back into the U.S. for purchase.
It is within this decades-long process where we lost the manufacturing base, and the multinational economic planners (World Trade Organization) put us on a path to being a “service driven” economy.
The road to a “service-driven economy” is paved with a great disparity between financial classes. The wealth gap is directly related to the inability of the middle-class to thrive.
Elite financial interests, including those within Washington DC, gain wealth and power, the U.S. workforce is reduced to servitude, “service”, of their affluent needs.
The destruction of the U.S. industrial and manufacturing base is EXACTLY WHY the wealth gap has exploded in the past 30 years.
(more…)

Coronavirus As An Economic Contagion

Steve Bannon discusses the Chinese Coronavirus as an economic contagion and how the Trump economic security doctrine applies to the current downstream impacts.  Even before the Coronavirus surfaced in China there was lower manufacturing factory activity within the Chinese economy.  The necessary response within China to control the spread of the Coronavirus was to shut down most commerce.  Factories, schools &  businesses throughout China were impacted as various containment measures took hold.

Economic Nationalism -vs- Economic Globalism

Despite the intense doomsayer predictions surrounding the ‘Coronavirus as an economic contagion’ narrative, the U.S. economy remains strong. When evaluating economic impacts for the USA it is important to remember 80 percent of all activity within the U.S. is internal. We create and consume eighty percent of our own production.
(more…)

CTH is more confident than ever about POTUS having a comprehensive understanding of the bigger picture around COVID-19 and China’s Coronavirus outbreak.  In this interview Senator Marco Rubio discusses the risks that China now represents on a myriad of levels.
The Coronavirus issue hits on three main points of policy outlined by President Trump since his initial announcement of candidacy in 2015:  (1) The need for secure borders and strong immigration controls. (2) The need to stop reliance on Chinese manufacturing; and (3) The need for the U.S. to have independent control over key sectors of manufacturing; including healthcare products and pharmaceuticals, as a matter of national security.

.
Stay big picture. Think about what you know of the aggressive Communist and strategic disposition of China. In addition to the risks within technology development (well discussed), allowing China to have a heavy influence over critical healthcare supply chains is too dangerous.
(more…)

Economic Nationalism -vs- Economic Globalism

Despite the intense doomsayer predictions surrounding the ‘Coronavirus as an economic contagion’ narrative, the U.S. economy remains strong. When evaluating economic impacts for the USA it is important to remember 80 percent of all activity within the U.S. is internal.  We create and consume eighty percent of our own production.

The U.S. economy is unique in the amount of balance within it as compared to other industrial economies.  We are not dependent on exports to sustain our economy; and we are not dependent on any imports at the macro level.  Unlike China, Asia and Europe, and despite decades of efforts by globalists and multinationals, the U.S. generates and sustains a tremendous amount of our own economic prosperity.  First the January data:
The Bureau of Economic Analysis (BEA) reveals data today showing January wage growth .5%, personal income increases .6%, consumer spending at .2%; overall U.S. savings at $1.33 trillion, and low inflation at 1.7 percent year-over-year.  Solid and stable.
Both consumer spending (+.2 Jan) and inflation (1.6% Jan) were impacted by lower energy prices (-.7%) & mild weather in January.  Reuters spins the lower rate of spending growth to imply a contracting U.S. consumer; there is no data to support that narrative.
(more…)

White House Manufacturing and Trade Advisor Peter Navarro has been advocating for a return to U.S. production of medical products as a matter of national security.  With the spread of the Chinese Coronavirus and a rapid depletion of medical response products, Navarro’s concerns carry more weight than ever before.
President Trump has tasked Navarro with lead position coordinating the administration response to U.S. supply chain impacts.  In this interview with Charles Payne, Peter Navarro outlines the ongoing efforts to address all Coronavirus impacts.

.
On the economic front President Trump has positioned the U.S. to withstand supply chain disruption better than most consumer economies. Starting from a position that the U.S. was too dependent on Chinese products; over the past two years Trump has pressured companies to return to the U.S. or find alternate suppliers outside China. During the two-year tariff battle many companies did exactly that. As a result those companies are not dependent on Chinese component goods. A proactive position is now helping many U.S. companies avoid the China economic contagion, and insulating their business interest.
(more…)

White House Trade and Manufacturing Advisor Peter Navarro has an interview with Maria Bartiromo to discuss potential U.S. supply chain issues and the need to reorient our medical equipment manufacturing back to North America.   As Navarro highlights the Chinese communist govt recently nationalized an American medical manufacturing company and commandeered all of their products. An important discussion.
Additionally, Navarro discusses the ongoing administration effort to combat incoming fake products from China still estimated to be over ten percent of all imports.

(more…)

National Economic Council Director Larry Kudlow appears on CNBC for an extensive interview on upstream economic issues.  With China’s economy at a standstill; and with the troubles of the coronavirus spreading outward; what does that mean for us?
There’s some good questions in this interview.  Domestically, as we noted yesterday, the U.S. economy is strong and growing. However, the Wall Street multinationals are very exposed to the China issues. On the bright side the overall China issues are helping to push more corporate decisions toward domestic investment and away from Beijing.

.
Given these lessons being learned, I sure wish we didn’t have China involved in making our medicines and medical products.  The administration needs to look at this more.
Director Kudlow also appeared on Fox Business with Lou Dobbs.
(more…)