💵 - ECONOMY / #recession
The Vibe Shift And The Wealth Effect
Behind this new exuberance, however, is a grim economic reality. There is no sense in which the economy is healthy. No matter what data you examine, you see some very dark clouds. The debt addiction by government, Wall Street, institutions, and households is palpable and, once you examine the numbers, truly scary.
Real income is down and falling. The U.S. dollar buys likely 40 percent less of goods and services than it bought just four years ago.
Europe is not unaware that it is far better off importing from Russia than the United States, which makes trade negotiations with Europe extremely difficult. Energy and debt assets are the only bargaining chips the United States has, and those are being eaten away in real time.
What does an incoming administration do with an economy mired in an unannounced inflationary recession, a weak production sector, and a debt overhang the likes of which the world has never seen? A good mood and Trump dances only get a nation so far.
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