PRE MARKET/GDP

After 8 years of 0% interest rates…after printing of over $5 trillion over here…after negative interest rates around the globe…after printing another $15-20 trillion around the globe (depending on which abacus you are using)…after actually using printed money to buy up their own markets…after gargantuan, monstrous, monolithic, over-the-top, cannot even be counted deficit spending…we just came in with a whopping GDP growth of 0.7%. That’s 0.7%.

How did we get here? All the remedies employed by these Keynesian nut jobs do not work. Massive debt and massive deficits do not work in the long run. Massive money printing does not work in the long run. Rigging and manipulating interest rates does not work in the long run. What it does do is create the idea all is well as markets keep going higher. What it does is make everyone feel better because markets keep going higher. Remember, nothing is bad as long as markets cooperate. But unfortunately, all they have done in the long run is create a massive debt and deficit blob that never ever ever gets rolled back. In fact, they make you believe you just need more. We want to thank the media for finally caring about debt and deficits as they didn’t give a flying crap about debt and deficits under Obama’s $9 trillion festival of debt. Funny, we don’t remember Obama being asked by the media on how he would pay for $800 billion of bs stimulus but now want to know how to pay for tax cuts. We repeat…we will never have an economy reach its full potential as long as they continue to suck out of the economy the amounts of money they are sucking out. This year…$4.1 TRILLION! There is no way this economy can reach its full potential with so much debt ($20 trillion and counting) and deficits (slated to go back to $1 trillion/year). Until this trajectory is changed, the trajectory of bigger government and higher taxes, this economy will have headwinds unlike we have ever seen in the past. But don’t worry, markets will keep going higher until…

As far as markets, big cap tech/internet continue to lead. Lots of strong earnings reactions to the upside. This is good news. We will get more in-depth in the weekend report. Special live Neil Cavuto on Fox News Channell at 10 am et Saturday covering Trump’s first 100 days. Don’t miss it.

 

 

1 reply

Comments are closed.