Who is winning?

Sundance at The Conservative Treehouse reports,

With the new year comes more Main Street winning; and the distinction between Wall Street’s economy and Main Street’s economy becomes stunningly clear.

The January jobs report showed a gain of 200,000 U.S. jobs, and more importantly, a 2.9% year-over-year growth in wages. [Biggest wage rate jump since the phony trillion stimulus-funded growth mid-2009.] We continue to remind of our two-year prediction that stunning wage growth will evidence in Q2 of 2018 (April-July)… today’s report is only the preview of that wage growth cycle.

Construction reported by the biggest gain by sector with 36,000. Bars and restaurants added 31,000 and health care was up 21,000. Manufacturing also showed a gain of 15,000 and durable goods-related industries added 18,000.

“Perhaps the biggest positive surprise on hiring is the continued surge for the goods-producing sector with manufacturing and construction leading the way,” said Mark Hamrick, Bankrate.com’s senior economic analyst.

The Main Street economic engine is fundamentally detached from the drivers of the Wall Street economic engine (monetary policy). While the paper wizards are getting kicked in the teeth, interest rate increases will not diminish Main Street gains because wage increases will remain ahead of price inflation. Interest rate increases will, however, impact Wall Street because interest rates are monetary policy, and a great deal of Wall Street is based on speculation within the paper (false) economy.

Can you see now why we have been saying for two years MAGAnomics will draw out the new dimension in modern economics? There is a distance between Main Street’s economic engine and Wall Street’s economic engine. MAGAnomics operates in the space between them.

…At the very heart of America-First, MAGAnomics focuses on U.S. jobs and U.S. companies. Investment growth drives labor demand; labor demand drives wage rates; wage rate growth increases consumer demand for goods and services; that demand drives investment; more investment is expansion of production capacity – ie. need more labor.

Read more here.