Data released by the Commerce Dept [pdf here] shows U.S. shoppers increased spending by a record 17.7% from April to May. The jump in spending was double the amount most economists and forecasters were predicting.
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(Reuters) Retail sales jumped 17.7% last month, the biggest advance since the government started tracking the series in 1992. Sales dropped a record 14.7% in April. Economists polled by Reuters had forecast retail sales would rise 8% in May. (link)
New coronavirus reports from Beijing are very sketchy. According to Chinese authorities they have identified a new strain of coronavirus at a massive wholesale food market in Beijing called the Xinfadi Market. They are blaming “European Salmon”…
Beijing officials have reported 79 cases over the past four days, the biggest concentration of infections since February. The spate of new cases prompted officials in many parts of the city to swiftly bring back tough counter-epidemic measures, with at least three districts entering “war-time mode.”
Measures imposed included erecting round-the-clock security checkpoints, closing schools and sports venues, and reinstating temperature checks at malls, supermarkets and office buildings. CNBC REPORT:
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There have been several economic reports that China’s manufacturing economy is contracting. Considering a desperate dragon…. It would not be out of place to consider that Beijing would react to losing an economic war, or even economic position, by trying to unleash a globally mitigating virus intended to target their geopolitical adversaries [Hong Kong, Taiwan and the U.S.]
This zero-sum outlook is EXACTLY how the Chinese red dragon thinks!
We have been engaged in an undeclared economic war. Perhaps it’s time we made an official and public declaration; and strategically, openly, aligned all U.S. interests toward economic combat.
Earlier today President Donald Trump participated in a roundtable discussion with various Administration officials to highlight their respective efforts to safeguard America’s senior citizens. Attendees include: Attorney General Bill Barr, HHS Secretary Alex Azar, HUD Secretary Ben Carson, VA Secretary Robert Wilkie, HHS Administrator Seema Verma, Centers for Medicare & Medicaid Services (CMS), and Chief Gary Barksdale, U.S. Postal Inspection Service (USPIS).
AG Barr noted seniors are being targeted by internet scammers and gave examples of DOJ intervention. USPS Chief Barksdale noted similar activity using the postal service and highlighted USPS intervention and arrests. VA Secretary Wilkie noted efforts to combat COVID-19 amid senior veterans. There was also an extensive press availability.
[Video and Transcript Added]
[Transcript] – THE PRESIDENT: Okay, thank you very much. Today is World Elder Abuse Awareness Day, and we’re here to discuss our ironclad commitment to protecting and caring for America’s seniors.
We’re joined by Vice President Mike Pence, Attorney General William Barr, Secretary of Health and Human Services Alex Azar, Secretary of Housing and Urban Development Ben Carson — who, by the way, was fantastic over the weekend in various interviews you did, Ben. Really good job, I appreciate it. Secretary of Veterans Affairs Robert Wilkie, Administrator Seema Verma, Chief Postal Inspector of the United States Postal Inspection Service Gary Barksdale. And Gary has done a great job, especially with spotting drugs coming into our country. He’s done a fantastic job.
The U.S. media are in ideological alignment with blue state governors and congressional democrats to hype COVID-19 panic as a method to keep the economy from reopening. To advance this narrative the crowds during mass protects they approve of are ignored; but any crowd at an event they do not align with is used to push panic. Everyone can see this.
The New York manufacturing index shocked everyone earlier today showing a strong rebound. The index “unexpectedly” surged 48 points in June surprising all economic forecasters. Meanwhile, National Economic Council Chairman Larry Kudlow appears on Fox News to discuss the dynamics.
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As Kudlow notes, President Trump is looking to use any potential phase-4 legislative package to inject a massive ‘America First’ boost, via tax incentives for manufacturing business interests to return to the U.S. The administration does not see a need for additional direct spending, bailouts, or continued payments; however, this is an opportunity to provide tax incentives to boost U.S-centric economic activity.
It’s important to remember the dynamic of U.S. multinationals (Wall St), and how many of them align with Democrat and media efforts to hold down the U.S. economy. There are trillions at stake.
The COVID shutdown was an exceptional event. The consequences from the shutdown do have ripple effects; however, the strength of the underlying economic foundation is now coming back into focus as the rebound starts taking shape.
Last week most economic analysts were stunned by the 2.5 million jobs added to the economy in May. As we shared earlier, the result wasn’t so surprising when you consider the framework of the Paycheck Protection Program (PPP) worked exactly like President Trump and Treasury Secretary Mnuching planned. The incentives within the PPP program did what they were intended to do; small and mid-sized businesses retained or rehired their employees.
Inside the foundation of the Trump Main Street economy, the cement that binds the America-First policy, are a series of pre-established economic policies that specifically targets middle-class workers. The foundation is made strong by net wage gains and earnings amid mid-tier workers; those wage gains are made more important by policies that keep inflation in check.
Blue-collar workers, on average, were fortunately positioned to ride-out the COVID shutdown. With the shutdown over; Main Street now quickly fires back into action.
The demand for mortgage applications rose five percent last week, resulting in year-over-year growth over 13 percent. Again, this result stuns the experts. Demand for home purchases remains high and people are confident in their income security to make big decisions on home financing. The visible strength of Main Street cuts against the naysayers and doomsayers who thought the COVID shutdown would collapse the economy. It didn’t.
It did not, because (a) the shutdown was an exceptional event; and (b) the underlying foundation is stronger than the blow it took from the COVID sledgehammer.
(Via CNBC) “The recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its highest level since January,” said Joel Kan, an MBA economist. “Purchase activity increased for the eighth straight week.”
White House trade and manufacturing policy advisor Peter Navarro appears for an interview with Maria Bartiromo to discuss the strong data for jobs amid the effort to reopen all facets of the U.S. economy. Navarro highlights the recent visit to Maine where he accompanied President Trump to celebrate U.S. critical manufacturing.
Within the interview Navarro reminds the audience of the larger strategic confrontation against China that involves multiple geopolitical aspects to the U.S. economy.
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The media apoplexy over positive economic news is directly related to how much damage a positive economy does to the Antifa/BLM strategy to divide our nation through class warfare. A thriving Main Street economy is antithetical to the objective.
The media apoplexy over stunningly positive economic news is directly related to how much damage a positive economy does to the Antifa/BLM strategy to divide our nation through class warfare. A thriving Main Street economy is antithetical to the objective.
A thriving Main Street means an expanding U.S. middle-class. As the middle-class expands it becomes more difficult to organize outrage based on division.
Part of the reason why limo-liberal elites have been successful politicians through the years is the outcome of their economic policy inherently creates a wider gap between the haves and have-nots. This divide allows politicians to control apportioning.
Exploiting the gap, essentially exploiting class warfare as a political strategy, is the fuel that drives identity politics. Ergo all progressive economic policies, the offshoring of jobs; the policies that support Wall Street and globalism etc; are designed to weaken the U.S. middle-class while making rich people more affluent, and poor people more dependent.
The ruling elites deny this fundamental truth, but the rust-belt did not create itself. The erosion of the U.S. manufacturing base -and Main Street- was an outcome of policy. Republicans and Democrats participated in this process. Democrats claim, falsely, to be champions of the middle-class; but their narrative is refuted by the actual results of their policy. Both parties are deep in the pockets of Wall St multinationals.
Many people call for a third party in politics without realizing President Trump represents the first second party DC has seen in decades. That’s why he is opposed by both wings of the same legislative bird.
Through dependency the political elites begin their role to decide who gets what part of their limited and controlled economic pie. Economic intervention, supported by both wings, in the spending process is what has allowed political interests to retain control.
Crowds of enthusiastic supporters lined the streets cheering as President Trump traveled through Maine to arrive at Puritan Medical Products to deliver a speech thanking the industry and company for their efforts to produce vital medical equipment.
Workers at the event wore white T-shirts with a green logo on the back that read: “Saving The World One Swab At A Time,” as President Trump delivered his remarks. The theme remains “Transition to Greatness.” [Video Below – Transcript ADDED]
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[Transcript] – THE PRESIDENT: Thank you very much. Appreciate it. We had some crowd coming in. I don’t know, you have a lot of people up here. A lot more than people think. And they’re great people, and they like Trump — that, I can tell you.
No, we had — (applause) — we had a lot of people. We got off Air Force One, and we came, and the roads were packed. Five deep; ten deep, in some cases. I have to be very careful because I have the fake news back. They’ll say, “It was only two deep.” (Laughter.) “There were some areas where it was only one deep.” And they’ll end up putting me on the front page.
Earlier today President Trump and trade advisor Peter Navarro traveled to Bangor, Maine to participate in a roundtable discussion on supporting America’s commercial fishermen. During the visit the president signed a proclamation modifying the Northeast Canyons and Seamounts Marine National Monument.
Participating in the roundtable were: Paul LePage, Former Governor of Maine; Terry Alexander, Owner, Jordan Lynn Inc.; Jim Odlin, Member of Board of Directors, Blue Harvest Fisheries; Frank O’Hara Jr., President, O’Hara Corporation; Kristan Porter, President, Maine Lobstermen’s Association; Maggie Raymond, Executive Director, Associated Fisheries of Maine; Mary Beth Tooley, Former Council Member, New England Fishery Management Council and Jon Williams, Owner, Atlantic Red Crab Company
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Background – On September 15, 2016, the Obama Administration designated the first and only national marine monument in the Atlantic Ocean, the Northeast Canyons and Seamounts Marine National Monument, using authority under the Antiquities Act of 1906.
This action abruptly ended commercial fishing within its boundaries, limiting economic prosperity for this crucial industry in the northeast. President Trump’s proclamation amends that economic restriction, reauthorizes commercial fishing, but will not alter the boundaries of the Northeast Canyons and Seamounts Marine National Monument.
Economic analysts had forecast another month of job losses around 9 million; however, the ADP payroll report shows a much better result with 2.76 million jobs lost in May. The surprising difference between expectations and results is giving increased hope a quicker rebound may be possible.
The ADP results were so much better than expected that White House economic advisor Kevin Hassett said he has to check the data twice. The data was released while Hassett was in the middle of an interview with Maria Bartiromo on Fox Business.
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The key is getting rid of these nonsensical shut-down rules. As the lack of social distancing concern amid the protests has shown, the shut-down fears, rules and regulations are over-hyped and baseless. However, the blue state governors continue to fight economic re-engagement as they look to maximize negative economic impact for political gains.
