A Positive Economic Picture

CNS News is reporting today that the economy is doing better than predicted.

The article reports:

A record 157,005,000 people were employed in June, the most since February and the 19th record of Trump’s presidency, the Bureau of Labor Statistics reported on Friday.

And the economy added a strong 224,000 jobs in June, well above the estimate of 160,000.

The unemployment rate, the lowest in 50 years, ticked up a tenth of a point to 3.7 percent.

In June, the nation’s civilian noninstitutionalized population, consisting of all people age 16 or older who were not in the military or an institution, reached 259,037,000. Of those, 162,981,000 participated in the labor force by either holding a job or actively seeking one.

The 162,981,000 who participated in the labor force equaled 62.9 percent of the 259,037,000 civilian noninstitutionalized population. That’s up a tenth of a point from May’s 62.8 percent participation rate. The payroll taxes paid by people who participate in the labor force help support those who do not participate, so the higher this number, the better.

The participation rate reached a record high of 67.3 percent in early 2000; the highest it’s been under Trump is 63.2 percent.

In December 2016, the labor force participation rate was 62.7. It has moved between 62.7 and 63.1 since President Trump took office.

I love the fact that during a Republican administration, the estimates of jobs created is always low and economists are always surprised when the real numbers come out.

The article concludes:

And wages continue rising: In June, average hourly earnings for all employees on private nonfarm payrolls rose by 6 cents to $27.90, following a 9-cent gain in May. Over the past 12 months, average hourly earnings have increased by 3.1 percent.

Federal Reserve Chairman Jerome Powell, in a June 25 speech, said the economy has performed “reasonably well” so far this year, with continued growth and strong job creation keeping the unemployment rate near historic lows.

But Powell also mentioned “some ongoing cross-currents,” including trade uncertainty and incoming data about the strength of the global economy.

He said the Fed “will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion…” That could mean lower interest rates — or not, if the employment and job numbers remain strong.

Economic policies impact the economy. It matters who is occupying the White House. President Trump has proved that.

The Economy Is Humming Along

CNBC is reporting today that the economic news for April is very good.

The article reports:

The U.S. jobs machine kept humming along in April, adding a robust 263,000 new hires while the unemployment rate fell to 3.6%, the lowest in a generation, the Labor Department reported Friday.

Nonfarm payroll growth easily beat Wall Street expectations of 190,000 and a 3.8% jobless rate.

Average hourly earnings growth held at 3.2% over the past year, a notch below Dow Jones estimates of 3.3%. The monthly gain was 0.2%, below the expected 0.3% increase, bringing the average to $27.77. The average work week also dropped 0.1 hours to 34.4 hours.

Unemployment was last this low in December 1969 when it hit 3.5%. At a time when many economists see a tight labor market, big job growth continues as the economic expansion is just a few months away from being the longest in history.

The growth in the economy is the result of economic policies put in place by President Trump–tax cuts, revised trade deals, cuts to regulations, and generally making the economy more welcoming to companies who want to do business in America.

The article concludes:

GDP increased 3.2% during the first quarter, far exceeding expectations, while productivity during the quarter jumped 3.6% for its best gain in five years. Pending home sales rose 3.8% in March, providing some hope in the real estate market so long as rates are held in check.

Earlier this week, the Federal Reserve held the line on its benchmark interest rate, characterizing economic growth as solid even as inflation remains tame. The central bank watches metrics like the nonfarm payrolls report closely for clues both on job creation and wage pressures.

Fed Chairman Jerome Powell said current indications point to a prolonged period of holding pat on increases or decreases in rates. President Donald Trump has said he wants the Fed to cut rates by a full percentage point.

The economy plays a big role in deciding elections. None of the policies espoused by the current group of Democrat Presidential candidates for 2020 will continue this economic growth.

Sad News For The American Economy

One entity that controls the American economy is the Federal Reserve (which is not controlled by the government). It’s board members are nominated by the President and approved by Congress, but it is a private entity. Unfortunately it is part of the globalist cabal that seeks to undermine American sovereignty. President Trump has attempted to put two skilled businessmen on the Federal Reserve recently. The globalists in Congress have caused both men to withdraw their nominations. In the coming year, you can expect the Federal Reserve to subtly move to make the re-election of President Trump more difficult. I expect rate hikes leading up to the election to counter a healthy economy that is rapidly expanding. President Trump is not a globalist, and the globalists really want him gone. Globalists in Congress include both Democrats and Republicans (that is why it is so difficult to secure our borders).

The Gateway Pundit is reporting today that Stephen Moore has withdrawn his nomination to the Federal Reserve Board.

The article reports:

Stephen Moore has a distinguished career in leadership roles at Heritage and The Wall Street Journal. Stephen Moore is a founder at the Club for Growth. Moore was an early Trump campaign supporter and wrote the book Trumponomics.

Moore is a presidential adviser and friend and is an architect of the greatest economic boom since Ronald Reagan.

In September Stephen Moore spoke at the Gateway Eagle Council in St. Louis, Missouri.

And in December Steve criticized Federal Reserve Chairman Jerome Powell for his irresponsible and dangerous rate hikes and threats of rate hikes. Powell was able to unilaterally stall the US economic boom in its tracks and cost the US economy hundreds of billions of dollars.

Moore wrote that it was time for Powell to resign. Moore was right.

The article includes excerpts from a World Net Daily article explaining why Jerome Powell should resign:

The Fed had already reduced the monetary thrust that it provides to the economy eight times since Dec. 15, 2015, by raising its federal funds interest rate from 0.25 percent to 2.25 percent. Each time, the Fed claimed that it needed to guard our economic airliner from inflationary “overheating” – as if its job is to prevent too many people from working and to make sure that paychecks aren’t rising too quickly.

Unfortunately, if you cut engine power too far on a jetliner, it will stall and drop out of the sky.

On Wednesday, Dec. 19, despite the numerous market-based alarms that were sounding in the cockpit, Federal Reserve Chairman Jerome Powell and his co-pilots on the Federal Open Market Committee – a committee within the Federal Reserve System charged under the United States law with overseeing the nation’s open market operations and which makes key decisions about interest rates and the growth of the U.S. money supply – voted to raise the funds rate to 2.50 percent. This sucks more dollars out of the economy at a time when the world is demanding more dollars – thanks to Trump’s tax-cutting and deregulation policies.

Powell has been entirely tone-deaf to the financial markets he seeks to protect. The Dow Jones Industrial average, which had risen by 382 points on hopes that the Fed would listen to Trump and stop cutting power, plunged by 895 points after the 2 p.m. announcement, and closed the day down 352 points (1.49 percent). Poof. Trillions of dollars of wealth vanished.

The article at The Gateway Pundit concludes:

The Democrats and Deep State apparatus does not want Stephen Moore on the board of the Federal Reserve. Stephen is the perfect pick for the job. Now the deep state is attacking Steve and his family.

Republican Senators Joni Ernst (R-IA), Shelley Moore Capito (R-WV), Lisa Murkowsky (R-AL) and anti-Trumper Mitt Romney (R-UT) expressed reservations this week. The Republican senators effectively killed Steve Moore’s nomination.

The Republicans voiced concerns over Moore’s nomination for comments he made nearly 20 years ago about women earning as much as men in fields like women’s sports.

On Thursday Steve Moore withdrew his nomination for the Federal Reserve Board.

It was a victory for anti-Trump globalists everywhere.

Stephen Moore’s withdrawal of his nomination is America’s loss.

The Law Of Unintended Consequences

It’s hard to defend the actions of the Federal Reserve right now. The people who propped up the economy under President Obama seem determined to destroy the economy under President Trump. But we know that the Federal Reserve is apolitical. Sure we do. However, there may be some unintended consequences of the current Federal Reserve actions.

The Gateway Pundit posted an article today which explains some of those consequences.

The article reports:

The Chinese were relentless in their efforts to obtain Western technology and grow their economy.  They set up trade barriers and manipulated their currency in ways that helped China. The US was at a disadvantage in trade resulting in massive deficits into the billions.

Along comes the Trump Administration, the first administration to address China’s unfair trade advantage.  President Trump is a shrewd negotiator and he obviously believes now is the time to encourage China to make changes to their trade barriers with the US.  China may have no choice but to go with what the US offers to keep its economy afloat.

The more pressing issues for China surround real estate, in a manner similar to the US in 2008.  As China grew, it invested in its infrastructure and in addition it invested in large housing projects throughout the country.  These efforts helped bolster China’s already fast growing economy.

The problem is that China over invested in these random properties all over China and these properties today remain empty.

…Now to add to China’s misery, the Fed is doing all it can to kill the US economy.  China is dependent on the US economy to stay afloat.

…The US debt now stands at $21.8 trillion. A 2.25% interest increase on this amount of debt is an annual increase in debt interest payments of $500 billion!!!

The Fed is doing all it can to destroy President Trump’s economy. What the Fed doesn’t realize is that a flat US economy means disaster to the Chinese.

China’s financial crash may make the 2008 crash in the US look small.  The implications will no doubt impact the entire world.  Jerome Powell at the Fed has no idea what he is doing!

Hang on to your hat, if the Federal Reserve continues on its current path, this may be a very bumpy ride.