Apparently the rumors of our economic demise were greatly exaggerated.  Yes, amid the gnashing teeth of the Wall Street pundits hoping for another lucrative Fed rate decrease, the Main Street economy continues to defy expectations:

“Today’s jobs report shows the U.S. economy continues to create jobs at a strong pace even as we enter the longest period of economic expansion on record.” ~Tony Bedikian, Citizens Bank.

According to the BLS Report – June saw 224,000 jobs added; and importantly the private sector wage growth knocks a very solid +3.2% year-over-year. [Table B-8]  You might remember in the May 2019 jobs report 299,000 people moved from Part-Time to Full-Time employment.  In today’s report total payrolls added another 224,000 workers.

These are stunningly numbers.  The 224k new jobs this month is higher than same month last year (2018).  The Main Street economy is continuing to expand.  Private sector growth in wages continues to run above 3% for the 11th straight month.   Wage Growth is a critical driver because over inflation is around 1.3%. Wage growth is more than double inflation.
Key Point: Economic numbers, statistics, are subject to narrative engineering.  Those pushing a negative economic narrative are Wall Street pundits.  Wall St. has a self-interest to push negative economic news to get lower interest rates.  Lower interest rates means cheap money and a higher stock market.
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The Republican party presents an Independence Day message from President Trump:

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Excellent news from White House manufacturing policy advisor Peter Navarro as he discusses the re-engagement in U.S. and China trade discussions. Great INFO.
You won’t see this interview highlighted by MSM.  As we anticipated the prior 150 page agreement negotiated by USTR Robert Lighthizer and Vice-Premier Liu He, previously dismissed by Beijing after three months of intense discussions, is now the starting point for new talks.  This means the Chinese have acquiesced to the prior terms they rebuked.
The seven chapters, each assigned to a specific trade sector, are the baseline for Lighthizer and Liu He to re-engage.  Excellent news from the position of the U.S. team.

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The CNBC knucklehead injecting about a Hauwei compromise was quickly corrected by Navarro. The Commerce Department restrictions and process for 90-day licenses to do business with Hauwei remains unchanged.
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Many Democrat presidential candidates will be traveling to Iowa for July 4th events as part of their campaign effort.  Interestingly, according to the recent updates from the Bureau of Labor Statistics, Iowa has some of the lowest unemployment rates in the nation:

(Waterloo Iowa Headline Link)

Iowa has three of the top five lowest unemployment regions in the nation:

(BLS DATA) In May, Ames, IA, and Burlington-South Burlington, VT, had the lowest unemployment rates, 1.5 percent each, followed by Midland, TX, 1.7 percent; Iowa City, IA, 1.8 percent; and Dubuque, IA, 1.9 percent.

While Democrats have falsely been saying the economy isn’t working for all Americans, the facts are that blue-collar middle-class Americans have been the largest beneficiaries.
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Cultural Marxism is advanced through a process of incremental control over customs and traditions within a free society.  It’s the frog boil process. Small, violent and loud identity groups set the standard. The majority dismisses the Alinsky approach at their peril.
The U.S. confederate flag was targeted successfully. Now the same Marxists shift attention toward the U.S. Betsy Ross flag.  Eventually the target will be the current U.S. flag.  The collective process is to isolate, ridicule, marginalize and attack anyone who would point out what is happening.  The collective goal is the complete removal of national identity.
In this segment MSNBC guest Michael Eric Dyson compares the Betsy Ross American flag to the Nazi swastika and burning Ku Klux Klan crosses.  In Dyson’s worldview, to accomplish his objectives, all symbols of national unity and patriotism must be destroyed.

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Today, July 1st, is the first day of the third quarter 2019.  As typical some of the earliest economic reporting from June is released.  One of the first reports comes from the Institute for Supply Management (ISM) as they compile the manufacturing sector.

As noted in the ISM review, manufacturing growth remains strong with an overall index of 51.7 (anything above 50 is growth), and the results are stronger than initially predicted by the financial media (Wall Street).
The manufacturing production index for June is 54.1 versus last month’s 51.3 (May); generally this means manufacturing outputs are growing, order backlogs are being reduced, orders are being fulfilled faster.  This is an indication that new production investment is now coming on-line and delivering actual products from orders.
In the past CTH had noted the heavy Main Street investment which began in 2017 would start to come on-line in Q2 2019, it generally takes about two years for a new manufacturing facility to start producing, and then increases in production efficiency follow.  The ISM result shows we were pretty close with that forecast.
Within the review there are particular notes for additional interest.  First, the June manufacturing employment index is 54.5, very strong; (last month 53.7).  In essence manufacturers are hiring at a fast rate.  One cause is better weather (seasonal), and the majority cause is filling the jobs from new production facilities coming on-line.
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With President Donald Trump making massive strides toward peace and stability surrounding North Korea, the media cannot accept -nor allow- the common sense solutions to succeed.  President Trump is clearly perceived as a risk because his success highlights just how useless and manipulative a professional political class of consultants, advisors and DC think-tanks really are.
The U.S. media are desperate to find something to criticize and openly cheering for failure, so long as it provides fuel for their anti-Trump narrative.  It is stunning to watch against the backdrop of President Trump cutting the Gordian knot known as North Korea.

Perhaps by training, by habit or by unintended consequence, the DC proletariat have developed a system for themselves where the process itself as the end result.  This allows them to wax philosophically about problems; but it is within the discussion of the problem itself where their industry exists.  Solutions are not wanted because that stops the process.
DC journalism has evolved into reveling about the never ending process and, as a consequence, media completely ignore the end point, miss the bottom line, don’t actually SEE the subject matter, and never actually attempt to discover solutions.
If you watch this nonsense long enough you realize those inside the industrial media complex avoid the subject matter deliberately; because if they get their heads around it and nail it home, they won’t have anything to talk about – they will have exhausted their stash.
As part of their unspoken strategy when they encounter a solution driven approach, the media (writ large) fall back on the Gruber Principle: relying on “the stupidity of the American voter” not to understand how the lies and talking points are being distributed.
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The world was watching history being made and overnight millions of Americans stayed up to watch the first sitting U.S. president cross into North Korea.  President Trump and North Korea’s Chairman Kim Jong-un took a massive step toward deconfliction and peace.
An incredible moment.  WATCH:

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CTH doesn’t want to devalue the history of this moment by over analyzing the dynamic. This is an incredible moment in history as U.S. President Donald Trump carries the hopes of tens-of-millions toward a peaceful outcome in North Korea.
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President Donald Trump will be delivering remarks to business leaders; then holding a bilateral meeting with President Moon Jae-in today in South Korea.  Following the bilat the two leaders will hold a joint press conference (12:05am EDT).
Then President Trump will travel to the demilitarized zone where the world waits to see if the U.S. President will meet North Korean Chairman Kim Jong-un, possibly making history. (1:30am EDT)

The DMZ schedule is tentative and might be subject to change; however, the world will be watching to see if the Trump-Kim meeting and handshake takes place (approximately 1:30am EDT). No sitting U.S. President has ever stepped foot in North Korea. If this was to happen it would be a historic moment.  Full Schedule Below:
10:00am ROK / 9:00pm EDT THE PRESIDENT delivers remarks to Korean business leaders, Seoul, Republic of Korea
10:50am ROK / 9:50pm EDT THE PRESIDENT departs the Hotel en route to Blue House, Seoul, Republic of Korea
11:00am ROK / 10:00pm EDT THE PRESIDENT arrives at Blue House, Seoul, Republic of Korea
11:10am ROK / 10:10pm EDT THE PRESIDENT participates in a restricted bilateral meeting with the President of the Republic of Korea, Moon Jae-in, Seoul, Republic of Korea
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President Trump has tweeted the high-level status of the negotiation restart.  Essentially the outcome is as we expected.

• Trade talks resume from former stalled point. [Likely Vice-Premier Liu He is back representing Chairman Xi Jinping – Beijing retreat]
• Current enhanced tariff’s remain in place. [The tariffs that were raised when talks collapsed will remain raised and in force. – Beijing retreat]
• China resumes AG purchases. [Likely soy beans will be priority – Beijing retreat]
• U.S. will allow trade purchases, exports, to Huawei of non-National Security tech. [Ross likely to determine products – Trump modifies position]

From this summation it would appear President Trump has created an exit ramp for Chairman Xi Jinping that allows him to save face.  However, obviously with retention of the recent tariff increases the benefits beyond optics all favor President Trump.
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