Friday, November 27, 2020

Tag: Fake Money

Peak Bull: Fake Markets, Fake Money


by David Stockman, DailyReckoning:
Washington is not governing. What was expected after the election by Wall Street was a rebirth of growth through pro-business policies, a giant stimulus from tax cuts and a sweeping infrastructure package within the economy. Growth expectations have been languished and slowly ground to a halt at near 1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} GDP growth.

Real GDP growth is close enough to zero when you realize that they’re understating inflation. If you look at nominal GDP, which is roughly 3.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} to 3{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} a year at most, and you take a real measure of inflation from that – there isn’t much left.

All of the expectations that have been priced into the market and still linger will eventually come to terms with the fact that none of the anticipated growth is happening.