We believe there will be multiple fiscal stimulus rounds. When one considers the stalled economy, negligible Real GDP growth and high unemployment, it would seem that this $2 Trillion stimulus round under discussion won't be sufficient to satisfy the narrative that Government needs to do more. When one factors in runaway entitlements (table below), it … Continue reading Multiple Fiscal Stimulus Rounds Are Coming. Good News for Equities. Bad News for The Real Economy.
Make no mistake, another fiscal "stimulus" deal is coming. Politicians won't pass on the opportunity to "rescue" the U.S. economy while funding a variety of pet programs in the process. Republicans and Democrats are undoubtedly haggling over the amount and nature of the pork that will be included in the next debt-funded stimulus stew. We … Continue reading Mustn’t Worry. A Fiscal Deal Is Coming.
This next round of debt-funded stimulus will ensure that the U.S. economy look much like Japan's at least for the next decade if not the next 20-30 years. The fiscal side of the ledger is a deficit-promoting mess and the monetary side is complicit by way of subsidizing the debt. Fed official Neel Kashkari believes … Continue reading More Debt-Funded “Stimulus” Ensures Near Zero Real GDP Growth