Welcome to the Great American Economic Sugar High
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Anybody who’s had kids knows when they’re young, give them too much sugar. It can turn into a, I don’t know, 1970s Studio 54, Tony Montana Scarface high, to say the least. And that’s where we’re at as far as the economy is concerned. The great American economic sugar high.
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Biden’s lackeys was on CNBC this morning, touting these wondrous GDP numbers that were again revised upwards for the third quarter, 5.2% even stronger than first indicated. Sugar, baby, sugar, what is that sugar? Government money, government spending. It was a little bit.
in regards to non-residential fixed income, structures, equipment, some intellectual property. But even that rise was 1.3%, which was a sharp downward shift from previous quarters. Government spending boosted 5.5%. However, the important stuff like consumer spending, ah, it’s going in the wrong direction.
And then we got here from the Dallas Fed Survey, tremendous economic slowdown, high rates are killing us, yada, yada. Again, tell us something we don’t know already. Tell us something that I haven’t explained to you already. Government stimulus, government spending, this deficit spending, debt spending. It’s a sugar high. That’s…
all it is. You think all of this is going to translate into something beneficial down the road? Let me ask you a question. Did all of that American Recovery and Reinvestment Act money from Barack Obama, did that translate into dynamic growth? All that government spending, all those government handouts and giveaways, did it translate anything? That was when they first started the whole concept of shovel-ready projects.
You think the Biden administration is, they’re somehow genius and they’re going to pick all sorts of wonderful ways of spending our tax dollars and creating economic growth, real economic growth. That’s sustainable. That’s sustainable because what happens, what happens after the sugar high? You know, you got the kids bouncing off the walls, bang, boom, crash. And we’ll all wait for the crash, the kids are going to go to bed. But, yeah.
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The economy is slowing. Sure, there’s more government money in the pike, and I’m sure they’re gonna probably try to spend more because it’s an election year in 2024. But despite all of the Biden administration lackeys that they parade on TV, I think people have wisened up to the great American sugar high. Watchdogonwallstreet.com.
