General Discussion
In reply to the discussion: The Con's Entire Story About the Economy Fell Apart This Week [View all]bucolic_frolic
(43,054 posts)because I see sluggish sales or worse, higher prices, higher gas prices, and a drop in help wanted ads. Trump doesn't understand the economy at all. He bought into the supply side Club for Growth. But what we have is overcapacity due to a decade of QE1-2-3, so tons of goods, but merchants are feeling it and not stocking up. It's like the whole supply chain is being backed up or stopped, while inflation rushes forward as all portions of the supply chain try to maintain profits, yet consumers have had their fill.
The 3 worst things I see are 1) no one is borrowing as if it's 2008 all over again; Discover offered me 12 months of 0% balances, zero, and 2) the Fed has no room to stimulate anything, they have lost control. Gold is roaring, crypto's are booming, yet we have sluggish economy, and 3) the stock market is peaking. It can't get going, profits are stretched and faltering, and it's a 10 year bull market. A fall is overdue. Printing money forever won't help it.
This will spiral downward quickly. I expect layoffs to begin in the fall, and winter after it's a lousy holiday season. Screaming on the Tweet Machine about growth, Powell, Democrats, oil, Iran, and money is not going to help. If anything, he's panicking some people because of his signs of desperation.