Wall Street was rattled by economic figures that showed exactly what stock traders did not want to hear: a significant slowdown in the world’s largest economy and persistent inflation pressures.[…]
Gross domestic product increased at a 1.6 per cent annualized rate, trailing forecasts. A closely watched measure of underlying inflation advanced at a greater-than-expected 3.7 per cent clip.
“This report was the worst of both worlds: economic growth is slowing and inflationary pressures are persisting,” said Chris Zaccarelli at Independent Advisor Alliance. “The Fed wants to see inflation start coming down in a persistent manner, but the market wants to see economic growth and corporate profits increasing.”
If neither are headed in the right direction, he said, then that’s going to be “bad news” for markets.
Ah…good old step 14, right on time:
As someone with a 12th Grade education (from the 80s before it truly rotted), we had to pass an economics course. I wrote this three years ago, with very few edits required. Why does someone with a single high-school course 40 years ago still know about the M1 money supply and what happens when it increases:
https://tradingeconomics.com/canada/money-supply-m1
1) there is no threat of inflation due to the government borrowing then “spending” a trillion dollars
2) there is no inflation, like we said
3) there is some inflation, but not everywhere, and its not bad, so point 1 stands, please ignore point 2
4) there is some inflation in some minor areas such as fuel, housing and food, but its manageable
5) its only for a short time, just like two weeks to flatten the COVID curve, remember then?
6) inflation is actually good, Colbert says so, and who would know better than a celebrity millionaire?
7) the government has a plan for inflation if it ever really becomes a for real problem for real people
8) you’ll love wage and price controls…
9) its corporate greed that somehow didn’t exist two years ago, just started overnight
10) no, increasing taxes isn’t inflationary either
11) did we mention the inflation that isn’t happening, but would be great, is Putin’s fault?
12) overturning Roe will damage the economy
13) CTRL/H inflation/stagflation
14) CTRL/H stagflation/recession
15) CTRL/H recession/New Great Depression
Note: blame conservatives is taken for granted for being 1a), etc.
Because, and I’m certain you know this… the effect of an increasing M1 on the economy hasn’t changed in the past “forever” probs back to at least the crisis of the 3rd century. Is this not taught at all in a high school economics course anymore? it would take any Tuesday afternoon 50 minutes class time to sum up 1/2 of what the kids need to know in the entire semester … and that’s a fair bit more than the talking heads *get* in the MSM.
Have you seen Bidens newest budget?
Higher taxes and spending.
Perfect election year timing for an economic slow-down. The $ billions in additional spending didn’t work, $ billions more in spending won’t work. Canada is in similar dire straits and none of the talking heads consider “more freedom” to be the way forward. Who will pay their salaries in 2025? It won’t be “tax credits” funding their shady shaky business…
Ric Santelli of “STOP SPENDING STOP SPENDING STOP SPENDING” fame was on Bannon’s War Room in the first hour to cheer me up, to confirm some things like the above Financial Post link.
The ship is taking on some water, where’s your lifeboat? Oh are lifeboats being taxed? May have to build your own…. just do it outside of tier 2 Canada or you’ll take it hard on the capital gains front.
The marginal consumer continues to demonstrate just how tapped out he is. Within a few months, we are going to start hearing repeated cries for the Fed to cut interest rates.
If you take out government deficit spending, from the “growth” of GDP, how long have we been in recession?
for years, now ….
All western central banks have blatantly lied to everyone.
We know that Statistics Canada “fixes” their basket of goods all the time, neglecting all the real purchases of Canadians and our health, as protein = beans, not meat, which is verboten.
https://www.linkedin.com/pulse/us-recessions-dont-start-third-year-presidency-kevin-press/
Everyone in Canada understands that what they buy is 10-30% more, yet we have core inflation that is in the below 4%… a joke! Unfortunately, no one understands economics or statistics, and all our new immigrants are badly-educated, as are our children.
https://acecomments.mu.nu/?post=409386
“It increased by a negative amount” … in the comments at Ace.
Gonna be an uphill battle to top that glowing outlook!
Garf Turner, never-Trumper Bidenonomics FANBOY, couldn’t be found for comment. He’s still searching for his failed RedTory party status.
If our government were honest about the rate of inflation we’d be in a recession but oh well fudge the stats and tell us forty percent rise in food is only 3 percent inflation?
The longer that governments attempt to manipulate markets, and avoid recession, the worse the recession will be when it occurs. Recessions are a normal part of the business cycle, but todays government think they can manipulate the economy so that EVERYONE’S A WINNER and gets a participation trophy.
This one’s gonna hurt…..
I had an economics course too, back in grade 10.
Learned that if the credits don’t equal the debits, then then the books do not balance. Dropped out of school after that.
Kept my debits and credits in balance since then, and doing just fine now in my old age.