Twitter Link
Revisions happen all the time but I can't seem to recall ever seeing before such a massive revision. Seems bizarre.
Printable View
Twitter Link
Revisions happen all the time but I can't seem to recall ever seeing before such a massive revision. Seems bizarre.
Wow that's a big revision...I'm trying to find detailed coverage of what went into the revision. Supposedly Boeing has an impact, but it doesn't seem nearly large enough to cause such a revision...
https://www.wsj.com/articles/boeings...dp-11563815426
Trump's Tax Cuts, Tariffs, and Trade Wars have skewed the data. Or at least how GDP 'growth' has traditionally been calculated.
1) The corporate tax cuts didn't pay for themselves. Instead, they added massively to our debt and deficit.
2) Tariffs didn't change trading partner behaviors, but meant more subsidies/welfare for US farmers and manufacturers (and more bankruptcies) plus higher prices for US consumers.
3) Trade Wars aren't so easy to win, as Trump promised, but lead to chaos and uncertainty, which eventually spooks 'the markets'.
4) Revisions will be the new norm.
It's no surprise Trump is dissing the Federal Reserve for not lowering interest rates, and blaming them that we don't have the sustained 3-5% "growth" he promised. :rolleyes:
It seems likely that the trade fights are having an impact.
Corporate tax cuts are as sacred as lower tax rates for investment versus wages; both must be preserved at all costs to sustain job creation and economic growth.
It's probably easier, and politically expedient, to ignore public and private debt, and just brag about GDP. :rolleyes:
We're over-due for a recession, and global growth is slowing. Trump isn't just skating on thin ice....he's making matters worse with his Tariff and Trade policies.
Chaos feeds volatility and speculation. The game is exposed: Trump is gambling with tax dollars like he did with his failed casinos; leveraging debt with false promises of growth/profit. But when bond vigilantes call his hand, he blames the Fed. :rolleyes:
Trump's administration doesn't have any plans to deal with a recession. That would look bad. Even worse is that Trump "doesn't believe" any negative data that comes from legitimate economic research. That's part of the Deep State that's out to get him. :picard: