Reuters: Stunning GDP Growth Anticipated by Federal Reserve Next Quarter…

Reuters is reporting on a stunning financial prediction coming from the Federal Reserve in Atlanta.  Their 2nd Quarter prediction falls in line with many of the “new dimension” economic predictions we have been anticipating.

The Atlanta Fed is predicting 4.3% growth:

NEW YORK (Reuters) – The U.S. economy is on track to grow at a 4.3 percent annualized pace in the second quarter, rebounding from a 0.7 percent increase in the first quarter which was the weakest in three years, the Atlanta Federal Reserve’s GDP Now forecast model showed on Monday.

This is much faster than the latest second-quarter gross domestic product estimate of 2.33 percent from the New York Federal Reserve.  (read more)

There is a disconnect in traditional economic quantification that we have been predicting for well over a year.  It’s the same disconnect currently reflected in the jobs numbers between payrolls and the Fed explained here.  We also outlined additional data two months ago which the federal economists admit they cannot reconcile – Expanded HERE.

For 30+ years U.S. economic political policy has been driven by Wall Street interests. STOP. Main Street, the middle-class and the American worker have suffered. STOP. The successful election of Donald Trump, and the execution of his “main street” economic policy agenda, has sledgehammered the prior economic machine into a full seizure an halt. FULL STOP.

It was Albert Einstein who aptly stated:

“The significant problems we have cannot be solved at the same level of thinking with which we created them.”

The same basic principle applies to those who are trying to understand and evaluate current economic activity yet failing to disengage themselves from their historic economic frames of reference.

Minds who are framed around thirty years of financial political policy, intended to influence the U.S. economy and created by vested interests who were building out the legislative priorities based on Wall Streets’ best interests, will struggle to understand the new landscape which is entirely formulated to benefit Main Street.

The two economic engines are entirely divergent and detached. Time, along with focus only on Wall Street interests, has pushed those two economic engines further apart. The same policies which worked in the immediate past will not work in the immediate future.

The two economic engines are now in reverse level of importance.  Trump economics focuses on Main Street’s economic engine.  The Fed is stuck focusing on the economy through the prism of Wall Street’s economic engine.

We are now in the economic space between both engines. The traditional cause and effect (Fed) is now uncoupled.  The administrators of the economy are perplexed; this is unfamiliar terrain.

• Wage rates will be driven up by inflation in ‘non-measured’ high-turn, domestic  consumable goods: food, fuel, energy.  The Fed does not measure this segment for inflation.

• Inflation, from the perspective of the Fed will appear artificially low because prices on the measured segment will be static: non-domestic durable goods, housing etc.  Durable good prices will remain static, and in the short term fall surreptitiously – seemingly unattached to the larger expanding economy.

Until the two economies gain parity – any fed activity, taken as a consequence to their familiar traditional measurements (interest rates etc.), will have minimal to negligible impact on Main Street.

• Regional areas which benefited from high yield and high rates of return from Wall Street, ie. investment benefactors, will begin economic contraction. The downstream effect on retail and high-end service industries will also be negatively impacted.

• However, industrial areas with affordable housing and infrastructure, which have suffered in the past 20+ years, will see home values increasing as the local economy expands.

National policy (Trump Policy) which benefits Main Street also benefits local economics which are founded in manufacturing, production, and ancillary services.  In essence, the Middle-Class.

Those who benefited from high-yield international investment income will see less income.  Those who live on savings will see a moderate benefit.  However, those living day-to-day and week-to-week on their paychecks will see much more income.  Believe it.

Here’s the Deep Dive:

Traditional economic principles have revolved around the Macro and Micro with interventionist influences driven by GDP (Gross Domestic Product, or total economic output), interest rates, inflation rates and federally controlled monetary policy designed to steer the broad economic outcomes.

Additionally, in large measure, the various data points which underline Macro principles are two dimensional. As the X-Axis goes thus, the Y-Axis responds accordingly… and so it goes…. and so it has historically gone.

Traditional monetary policy has centered upon a belief of cause and effect: (ex.1) If inflation grows, it can be reduced by rising interest rates. Or, (ex.2) as GDP shrinks, it too can be affected by decreases in interest rates to stimulate investment/production etc.

However, against the backdrop of economic Globalism -vs- economic Americanism, CTH is noting the two dimensional economic approach is no longer a relevant model. There is another economic dimension, a third dimension. An undiscovered depth or distance between the “X” and the “Y”.

I believe it is critical to understand this new dimension in order to understand Trump economic principles, and the subsequent “America-First” economy he’s building.

As the distance between the X and Y increases over time, the affect detaches – slowly and almost invisibly. I believe understanding this hidden distance perspective will reconcile many of the current economic contractions. I also predict this third dimension will soon be discovered and will be extremely consequential in the coming decade.

To understand the basic theory, allow me to introduce a visual image to assist comprehension. Think about the two economies, Wall Street (paper or false economy) and Main Street (real or traditional economy) as two parallel roads or tracks. Think of Wall Street as one train engine and Main Street as another.

The Metaphor – Several decades ago, 1980-ish, our two economic engines started out in South Florida with the Wall Street economy on I-95 the East Coast, and the Main Street economy on I-75 the West Coast. The distance between them less than 100 miles.

As each economy heads North, over time the distance between them grows. As they cross the Florida State line Wall Street’s engine (I-95) is now 200 miles from Main Street’s engine (traveling I-75).

As we have discussed – the legislative outcomes, along with the monetary policy therein, follows the economic engine carrying the greatest political influence. Our historic result is monetary policy followed the Wall Street engine.

a17b2-hip-replacement-recall-bribery[…] there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street).

Investments, and the bets therein, needed to expand outside of the USA. hence, globalist investing.

However, a second more consequential aspect happened simultaneously. The politicians became more valuable to the Wall Street team than the Main Street team; and Wall Street had deeper pockets because their economy was now larger.

As a consequence Wall Street started funding political candidates and asking for legislation that benefited their interests.

When Main Street was purchasing the legislative influence the outcomes were beneficial to Main Street, and by direct attachment those outcomes also benefited the average American inside the real economy.

When Wall Street began purchasing the legislative influence, the outcomes therein became beneficial to Wall Street. Those benefits are detached from improving the livelihoods of main street Americans because the benefits are “global” needs. Global financial interests, investment interests, are now the primary filter through which the DC legislative outcomes are considered.

There is a natural disconnect. (more)

Here is an example of the resulting inflationary impact as felt by consumers:

economy-1

♦ TWO ECONOMIESTime is the important measurement.  Time continues to pass as each economy heads North.

Economic Globalism expands. Wall Street’s false (paper) economy becomes the far greater economy. Federal fiscal policy follows and fuels the larger economy. In turn the Wall Street benefactors pay back the politicians.  K-Street lobbyists pay for policy.

Economic Nationalism shrinks. Main Street’s real (traditional) economy shrinks. Domestic manufacturing drops. Jobs are off-shored. Main Street companies try to offset the shrinking economy with increased productivity (the fuel). Wages stagnate.

Now it’s 1990 – The Wall Street economic engine (traveling I-95) reaches Northern North Carolina. However, it’s now 500 miles away from Main Street’s engine (traveling I-75). The Appalachian range is the geographic wedge creating the natural divide (a metaphor for ‘trickle down’).

By the time the decade of 2000 arrives – Wall Street’s well fueled engine, and the accompanying DC legislative attention, influence and monetary policy, has reached Philadelphia.

However, Main Street’s engine is in Ohio (they’re now 700 miles apart) and almost out of fuel; there simply is no more productivity to squeeze.

From that moment in time, and from that geographic location, all forward travel is now only going to push the two economies further apart. I-95 now heads North East, and I-75 heads due North through Michigan. The distance between these engines is going to grow much more significantly now with each passing mile/month….

However, and this is a key reference point, if you are judging their advancing progress from a globalist vessel (filled with traditional academic economists and analysts who occupy the Federal Reserve) in the mid-Atlantic, both economies (both engines) would seem to be essentially in the same place based on their latitude.

From a two-dimensional linear perspective the FED cannot tell the distance between Wall Street and Main Street.

It is within this distance between the two economies, which grew over time, where a new economic dimension has been created and is not getting attention. It is critical to understand the detachment.

Within this three dimensional detachment you understand why Near-Zero interest rates no longer drive an expansion of the GDP. The Main Street economic engine is just too far away to gain any substantive benefit.

Despite their domestic origin in NY/DC, traditional fiscal policies (over time) have focused exclusively on the Wall Street, Globalist economy. The Wall Street Economic engine was simply seen as the only economy that would survive. The Main Street engine was viewed by DC, and those who assemble the legislative priorities therein, as a dying engine, lacking fuel, and destined to be service driven only….

Within the new 3rd economic dimension, the distance between Wall Street and Main Street economic engines, you will find the data to reconcile years of odd economic detachment.

Here’s where it gets really interesting. Understanding the distance between the real Main Street economic engine and the false Wall Street economic engine will help all of us to understand the scope of an upcoming economic lag; which, rather remarkably I would add, is a very interesting dynamic.

Donald Trump wins the election.

President Trump begins putting into effect his policy.

Think about these engines doing a turn about and beginning a rapid reverse. GDP can, and in my opinion, will, expand quickly. However, any interest rate hikes (fiscal policy) intended to cool down that expansion -fearful of inflation- will take a long time to traverse the divide.

Additionally, inflation on durable goods will be insignificant – even as international trade agreements are renegotiated. Why? Simply because the originating nations of those products are going to go through the same type of economic detachment described above.

Those global manufacturing economies will first respond to any increases in export costs (tariffs etc.), by driving their own productivity higher as an initial manufacturing cost offset, in the same manner American workers went through in the past two decades. The manufacturing enterprise and the financial sector remain focused on the pricing.

♦ Inflation on imported durable goods sold in America, while necessary, will ultimately be minimal during this initial period; and expand more significantly as time progresses and off-shored manufacturing finds less and less ways to be productive. Over time, durable good prices will increase – but it will come much later.

♦ Inflation on domestic consumable goods ‘may‘ indeed rise at a faster pace. However, it can be expected that U.S. wage rates will respond faster, naturally faster, than any fiscal policy because inflation on fast-turn consumable goods is now re-coupled to the ability of wage rates to afford them.

The fiscal policy impact lag, caused by the distance between federal fiscal action and the domestic Main Street economy, will now work in our favor. That is, in favor of the middle-class.

Within the aforementioned distance between “X” and “Y”, a result of three decades traveled by two divergent economic engines, is our new economic dimension….

Trump thumbs up

We support reinstating a modern version of the Glass-Steagall Act of 1933 which prohibits commercial banks from engaging in high-risk investment,” said the platform released by the Republican National Committee. (link)

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This entry was posted in Big Government, Big Stupid Government, Economy, Legislation, media bias, President Trump, Trade Deal, Uncategorized, US Treasury. Bookmark the permalink.

83 Responses to Reuters: Stunning GDP Growth Anticipated by Federal Reserve Next Quarter…

  1. Oldschool says:

    If we get those numbers this quickly, imagine the Americans who will have jobs again and benefit from this!

    Heh, heh, then imagine the “reporting” from the msm.

    MAGA

    Liked by 12 people

    • Fe says:

      I am imagining the size of my paycheck when we get this tax cuts 😁😎

      Liked by 10 people

    • TheLastDemocrat says:

      They already have their memes.
      “Jobs, sure. But largely in the low-wage service sector. Part time. With no benefits.”

      They will run a couple news stories about someone who could only find a job flipping burgers, and someone somewhere being cut to <35 hours so as not to qualify for benefits.

      Here is what I have been doing for years: dig deeper into the story. The victims portrayed are almost always political operatives, or there is something fishy about the story. My wife gets tired of me telling her how I sleuthed the latest sob story.

      Liked by 13 people

      • The Boss says:

        Exactly. Like the recent pro-$15 / hour weekend convention where minimum wage earners traversed the country to attend. How did part-timers grossing maybe $9,000 / year with no benefits afford to stay in a Marriott after flying to the convention? How did they get the time off? That simple question was never asked by any of the MSM slime who were there.

        Liked by 1 person

  2. uvaldegirl says:

    MAGA. Promises made and kept. God bless Donald Trump.

    Liked by 9 people

  3. Sentient says:

    First full Qtr with DJT as president, growth rate exceeds all Qtrs of Obama’s 8 years.

    Liked by 11 people

  4. Bouchart says:

    Economists are notoriously bad at predicting things. The Fed in particular is more likely to overestimate growth than underestimate.

    Like

    • Sentient says:

      They tend to play it safe and predict a mid-point of guesses. During Obama’s tenure, GDP predictions tended to be ~3%. The economy just kept underperforming their guesses, mostly as companies tried to stay <50 employees to avoid Obamacare mandate and because of mortal fear of Dodd-Frank and the CFPB.

      Liked by 4 people

  5. Texas Deplorable says:

    Reuters is owned by the Rottenchilds … Very difficult to believe anything they report !

    Liked by 1 person

  6. Sentient says:

    If growth hits 4.7% annualized rate, interest rates will rise. Not complaining- just plan accordingly.

    Like

    • starfcker says:

      Very tough for interest rates to rise, Sentient. Easy explanation. Where does interest come from? Interest is the price of money. Someone has to be willing and able to pay that price. The fed and other central banks have been counterfeiting about a trillion dollars a year to keep the ponzi afloat. As a result, there is more capital out there seeking a return than there are productive uses of that money. Because of all the excess liquidity, there is no pressure for rates to rise much.

      Liked by 6 people

      • Yes, and they can keep printing a trillion, injecting it into the system as inflation if they like (to offset the positive growth), or sit back and wait to manufacture the next “crisis” as they have done over and over again then simply steal all the new found wealth again.

        Yes, it’s a negative comment because… history. That hasn’t been revised. The fed was sold to Americans as the only thing that could stabilize the American economy. The economy was already strong, and boomed in the roaring 20s, thanks to a wise conservative President Coolidge… in 1928 the fed kept raising the “fed funds rate” and kept doing so even into the recession of 1929 (guess why that happened<<<) then came 1929 and they crashed the stock market with massive trades in one day.

        This sent the people rushing to trade dollars for gold, but they kept raising the rate without creating any more money supply. duh. The dollar supply fell to 30%, people withdrew all their money from banks, everyone was crazed and the fed? The fed was fine… as always. It's a privately “owned” printing press central bank run by criminal banksters that is in no way “federal” other than that the government borrows from it for it’s globalist anti-American ops and expects We the People to pay the debt they incur to said banksters, who created that debt… from nothing but paper.

        With the fed left in place, and if nothing else is done to prevent it, once President Trump is no longer in office, it will all happen again if we let it.

        Liked by 4 people

        • Donna in Oregon says:

          It’s okay to be mean sometimes. When your country is literally being stolen from you…..and your life depends on it. If someone is robbing you blind they don’t care what you say, so why would they stop? Now if you go after them and they are worried about their own safety….they care.

          Turn up the heat! This summer could be the hottest one on record. I hear Washington DC is a great place to take the family for a vacation. Surrounding Capitol Hill for a picnic.
          Maybe about 5 million of us could meet for a BBQ and a sing-a-long. Build the Wall is one of my favorite chanting meditations. Here’s another, Kill the Lobbyists…..hummm, too soon? Maybe we should wait 30 more years for that one, eh?

          Liked by 3 people

      • starfcker, good comment. “Someone has to be willing and able to pay that price.” This is why the Fed will pretend to raise interest rates as soon as possilble. But note, they’ve been warning about rate increases for a couple of years now and haven’t been able to do it.

        Why? Because the Fed follows the money market, it does not lead, direct or control it.

        Like

  7. Alison says:

    Thank you, Sundance. Astute analysis. You’re an economic wolverine yourself!

    Liked by 9 people

  8. Gil says:

    The biggest “F-U” that can be given to the uniparty. Total economic success despite their obstruction.

    Liked by 7 people

  9. Hollywood Bungalow says:

    I think our new favorite number going forward should be “3”. As in 300,000+ jobs month after month and 3% or greater GDP quarter after quarter.

    We get 4% growth in Q2, the headlines will write themselves, as in: “Trump Administration delivers 4% growth in first full quarter in office”.

    Fingers crossed!

    Liked by 3 people

  10. Weeper says:

    I have a background in finance, so this is my “wheelhouse”. This is hands down, the BEST, easy to understand, piece on fiscal policy that I have ever read. Excellent job Sundance, and as always thank you!!! Let the “trains” begin 😉 MAGA!!!

    Liked by 12 people

    • maiingankwe says:

      Weeper,
      I have absolutely no experience in finance or economics, except what I would call a rudimentary introduction to economics in college. And I have to say even I am getting this! Yes! Finally I am understanding this! It’s a glorious day and such a great feeling. I was so sick of all the gobly gook explanations and it was always, always so far above my little head. I do not have an analytical mind, it’s a creative mind.

      I don’t know why I feel so proud of myself when it’s all of Sundance’s doing, but it’s still there. I might even be able to explain it to someone else. If I can, then I know I’ve really got it.

      Where’s my daughter? Dokme? (Dough-ka-may) (Short for Dokmegishgokwe). Where are you? Can I explain this to a twelve year old? Maybe I should hit my husband first? Nah, he’s working tonight and will be tired in the morning. This is so exciting!

      Okay, off I go, wish me luck. No matter what, I will find some poor soul tonight. Exciting stuff!

      Liked by 7 people

  11. Bob says:

    Isn’t that the end game, to get the Rothchilds, Bloombergs etc of our backs and stop mortgaging our future. They can make all the money, but never give back except to their special interests.

    Liked by 4 people

    • CaptainNonno says:

      It seems that’s what they do. Make/take the money, distribute to ‘institutes’ that help them make more money and on, and on. And now we have the SJW uber rich. Hard to compete, can only do our part not to feed them our money.

      Like

  12. TheLastDemocrat says:

    Price change graph: what is growing?

    In other words, we again see that when you subsidize/”third-party” something, costs grow tremendously. I am surprised solar panels are not in there.

    Like

  13. ginaswo says:

    In their mission to stripmine US jobs and middle class and shift assets to Wall St, the Federal Reserve has effectively insulated said Main St economy from much of the pain they use to keep politicians in line.

    We did not benefit from TARP ZIRP NIRP QEinfinity. We felt the pain of their $$$ printing in non core inflation in food and energy as SD so brilliantly outlines.

    Thus, Yellen can ratchet the Fed Funds Rate up, but she cannot go higher than 3% without creating a banking crisis and seizing the financial system, and none of her metrics directly hurt us as we are so divorced from the financial economy.

    President Trump will and has called her bluff. Go ahead! Raise rates! Can you even imagine if they tried to scare our POTUS with threatened rate rises causing default?!

    BWAAAHAAAAAAA Negotate debt much? Cuz our POTUS has, that would be gravy for him.
    Threaten to crash the TBTF? Please do! President Honeybadger will nationalize and restructure them if they try it.

    The incredible confidence that our POTUS has inspired has led to cap ex investment for the first time in forevah.

    Exciting time to be alive, The American Restoration.
    #JobsJobsJobs
    #AmericaFirst
    #MAGA

    Liked by 10 people

  14. stan stendera says:

    Brilliant analysis, Sundance. You and the treepers are becoming a must read daily.

    Liked by 6 people

  15. MrE says:

    4% in Q2 – Media: “Omg we hate economic growth now”

    Liked by 8 people

  16. MrE says:

    America – Start your engines!!

    Liked by 6 people

  17. MakeAmericaGreat says:

    This (and things like this) are why the CR doesn’t matter.

    For now, we hold the fort.

    When the economic numbers come in, we storm the battlefield.

    Patience, patience.

    The best is yet to come.

    If a president succeeds with the economy, almost nothing else matters.

    Trump knows this well. He knows he’s setting the media and the opposition up for the ultimate fall.

    Liked by 12 people

  18. fleporeblog says:

    Our President has done so much in terms of killing the regulations that have chocked our economy. Those regulations over the past 8 years were done on purpose to hold us back. Obozo in a sinister was was successful. Americans came to the belief that having 1.5% to 2% quarterly GDP growth was to be expected. By the time he left, 97,000,000 able bodied Americans were no longer in the work force. Obamacare was the mail in the coffin for small businesses. It forced them to reduce the hours and headcount of their employees so that they couldn’t be penalized according to the rules governing Obamacare. These animals were a couple of hundred thousand votes in PA, MI and WI from killing our country once and fore all.

    I thank God for allowing us one more chance to fix this great nation by allowing our Lion to roam the country. Just imagine where those GDP numbers will be as soon as Obamacare is repealed and replaced. It WILL happen folks! No matter how much the Uniparty wants to keep it, it is all but dead. Not sure how many folks realize in the CR that will be approved this week, our President only promised to fund the subsidies for the month of May even though Nancy Pelosi was pushing for it to be funded indefinitely. There is a reason it will only be funded in May. Insurance companies will determine in June whether they will remain or bail. The fact Our Lion can and will stop payments after this month means of the remaining 50% that stayed to date, that overall % will be less than 20% next year. You will have double digit states with no provider.

    Also think about the unleashing of Energy that is and will occur over the next year. The Dakota pipeline is about to start pumping oil. The Keystone pipeline is about to get up and running. Secretary Zienke is allowing the leasing of 70,000,000 acres of land in the south for fracking. We are about to kill the land grabs in Utah, Colorado and Nevada. Our Lion is taking back the artic ocean off of Alaska for energy exploration. A Treeper the other night shared a story of sitting at a railroad crossing watching coal being transported like it once was many years ago. Beyond the high paying jobs, this will lower energy costs as well as manufacturing costs. FOur dependence on foreign manufacturing will be greatly reduced because it will soon cost the same for those products to be made in America.

    Our President spoke about increasing the gas tax which hasn’t been done since the early 90s. Truckers, that is right, truckers said they wouldn’t mind in order for the funding to be their for the infrastructure plan. They would rather pay more for better roads and bridges. Will they be paying more? Not if the Energy sector takes off. Just like the tax plan, the production of cheaper energy will drive the costs down meaning an increase in tax will pretty much leave prices the same.

    The Wilburine will get a chance to tear up NAFTA. Our Lion will give them another week before he says that either they accept the letter or he signs the EO to terminate it. There is shit the Uniparty can do about it. Just think what it will be like to go from being in a $850 billion deficit to a $250 billion deficit (reason I am keeping the deficit is because China will eliminate fat boy and it is the small price we have to pay).

    I could go on and on but when everything I described above gets done, 3% will be a floor with 5% the ceiling. Forget about where it goes with the actual tax reform. 7% to 8% would not be out of the realm of possibility. We Are Making America Great Again even with the Uniparty, CoC and the Big Club fighting us every step of the way!

    Liked by 15 people

  19. R-C says:

    Boiled down to its essential elements, it breaks down like this:

    “Those who adhere to ‘The Common Wisdom’ are measuring yards with a meter stick. Inaccurate, presumptuous, and foolhardy.

    Liked by 4 people

  20. SR says:

    Fake MSM and fake leader CNN breaking news- Obama put such a strong foundation that we are seeing 4%+ growth. Trump is xenophobic, islamphobic, racist,sexist and more so can not get credit for great economy .

    Liked by 1 person

  21. big bad mike says:

    Manufacturing is getting ready for the boom. Retooling, capital investment, machine tools, hiring, building. Look out! Here we come. MAGA!

    Liked by 3 people

  22. MVW says:

    Wall Street makes their returns by playing games, no real economic improvement, short term gains. The tech industry has been software focused. And like music only is as good as the next worthless revision, the previous revision now being worthless, not like a used car.

    Long term gains require real world improvements. Solving real problems. Here are two on the horizon that will shake the world.

    50% of Americans have one or more chronic disease, 25% have two or more. Know how many different chronic diseases there are? Volumes of medical books to document them. And what is done about them? Well, they are chronic, that means they aren’t cured. Instead, they are ‘treated’, palliated, symptoms are dealt with until the next chronic disease magically appears one at a time, until the person has many, then becomes debilitated, then dies. This is 20th century medicine practiced in the 21st century with 21st century palliative drugs.

    Alzheimers is one chronic disease and its care alone costs $200 billion a year. And the cost to productivity is not included. Genes. That is the focus. 25,000 of them and that is what the 20th century thinking is focused on. But wait, the Microbiome was discovered in the 21st century. There are at least a million genes associated with the Microbiome, but the medical business has no idea what the Microbiome is doing, how to know what it is doing, or what to do with it. Like a herd of elephants in the living room of a blind man, and so the herd is not spoken of. Stupid, and beyond expensive. No wonder so chronic disease is epidemic and dealt with by excuse and palliation. And insanity is likely also a Microbiome disease.

    No wonder the NIH was singled out in the budget. Trump is smart.

    Imagine if the Microbiome was reeled back in. Makes 4% growth rate look tiny.

    Liked by 1 person

    • MVW says:

      Then there is electric power for which a revolution is at our doorstep. Commercial Fusion within 8 years, possibly 7 if expedited, and not the Government institutional boondoggle Tokamak science project approach. ITER is nice for a science project and good for a 40 year plasma physics career. Not so great for real world electric power.

      There are at least 5, possibly more different Fusion projects that could make the 8 year commercial goal for a fraction the cost of money given to the all eggs in a boondoggle basket ITER project that is impractical in the long run.

      The flow on effect with virtual unlimited cheap electric, low pollution power would unleash production of fresh water, and that opens up the farmable land.

      It also opens up the solar system.

      Microbiome and Fusion are near term. The world will be unrecognizable. This is not fiction.

      Liked by 3 people

  23. alliwantissometruth says:

    Man Sundance, where do you find the time & energy for all these incredible pieces?

    The amount of research & thought put into this is amazing, & it’s massively appreciated

    But yeah, the Wall Street economy / globalists have done nothing but stolen our economy, our jobs & our wealth out from under us, & all those academic “economists” were their sales force

    It seems they weren’t the only ones to use those “economists”, as every Presidential Administration of the last few decades used those pencil necked geeks to pull the wool over the peoples eyes

    Amazing how long this rape & pillage of our country has gone on eh?

    Liked by 6 people

    • PoCoNoMo says:

      Yeah, imagine how things would’ve been different if the population had been paying attention these last decades. Computers and the net have been a game changer, thankfully!

      Like

  24. ElGato says:

    Economic growth is RACIST!!

    Liked by 3 people

  25. ALEX says:

    I heard Charles Payne mention this on his show(FBN) at 6pm eastern and I liked his take…He has been talking like Sundance for months and some of us on this site…He calls it Animal Spirits based on growth trajectories and the pro-business policies implemented by the President…..

    Payne looks for 3.5% or so and that’s great even if revised down to 3% etc . If we get anywhere near 3% the third quarter will be a bonanza…

    Flepore mentioned the Energy bonanza alone, which can drive domestic manufacturing combined with all the targeted de-regulation…

    Stories like this show the Animal Spirits just in Energy…

    http://www.zerohedge.com/news/2017-03-27/shells-new-permian-play-profitable-20-barrel

    Liked by 2 people

    • ALEX says:

      From the article on shale boom above….The resulting over-supply can be exported now and the one million barrel a day increase is phenomenal stuff folks…

      $30 billion has been spent on land acquisitions in the Permian basin since mid-2016, which is a favorite among oil companies.

      Considering the new projects and the resurgent shale boom, Goldman Sachs expects oil output to increase by 1 million barrels a day year-on-year. The outcome is an oversupply in the next couple of years.

      “2017-19 is likely to see the largest increase in mega projects’ production in history, as the record 2011-13 capex commitment yields fruit,” the U.S. investment bank said in a research note on Tuesday, reports Reuters.

      The U.S. Energy Information Administration expects the U.S. oil production to top 10 million barrels by December 2018, a level only surpassed in October and November 1970.

      OPEC is running out of options.

      Liked by 2 people

    • Sylvia Avery says:

      I like Charles Payne very much. He makes things understandable and I appreciate that.

      Liked by 1 person

  26. WSB says:

    How does this disconnect affect the CBO, Mulvaney, and the scoring of any budget or tax reduction initiative?

    The CBO is already inept at scoring anything. So, we’ll never receive an ‘Official’ truthful projection for any Trump Administration policy?

    Like

  27. Theresa Anne says:

    Could it be President Trump will Drain the Swamp by changing the donors? If Wall Street subsides and Main Street grows won’t the Main Street donors better support a #MAGA agenda?

    Like

  28. Craig W. Gordon says:

    Business has been very good since Nov. 4. Enthusiasm is high in the clients. Yeah buddy.

    Liked by 1 person

  29. Aqua says:

    Sundance, thank you for an easy-to-understand explanation on the economy. You’ve connected the dots to the President’s Main Street vision so well.

    President Trump intuitively knows what he wants to accomplish to help middle class Americans, businesses and our towns, cities and farms.

    But now you’ve made me think. What if President Trump, along with Secretary Ross and Mnuchen and the rest of his team know this economic model, too? We have elected a very smart man as President indeed.

    Wow.

    Liked by 1 person

  30. youme says:

    Wall Street Journal:
    …) Over the past eight years, the economy has grown at an average rate of 1% in the first quarter, while growing at a 2.3% rate over the remaining three quarters. Much of the blame for this quirk has been placed difficulties the Commerce Department has faced adjusting the GDP figures for seasonal swings in an evolving economy. So it is natural to think growth will pick up, and that is what forecasters are banking on. Economists at J.P. Morgan for example, estimate the GDP will expand at a 3% rate in the current quarter.

    But the worrisome thing about the GDP report is where the weakness was. Consumer spending grew at just a 0.3% annual rate—its slowest showing since the fourth quarter of 2009. The number is more worrisome because consumer spending accounts for about two-thirds of the economy and because it isn’t the part of the GDP report where seasonality problems have shown up. As confirmed by soft monthly retail sales and the drop off in car sales, the first-quarter spending slowdown was real.

    With incomes rising, consumers will probably spend more, though rising inflation is eroding their gains. Unusual weather and a delay in tax refunds may have weighed on spending over the winter, for example, so there ought to be some catch-up.

    Still, there are reasons to worry the rebound will be unimpressive. Jobs growth has been slowing as the U.S. has crept closer to full employment, so there are fewer new paychecks getting added to the income pile. Lenders have become a little more leery of extending credit for auto purchases and other consumer items, while the number of consumers falling behind on payments has started to rise. (…)

    Like

  31. barton2016 says:

    The FED needs to shut down the damned money printers.

    Liked by 1 person

  32. hellinahandbasket says:

    {sniff} MAGA {sniff} President Trump, please stop {sniff}, I can’t take all this WINNING! {sniff}

    Liked by 2 people

  33. jstanley01 says:

    Great analysis, Sundance. Thank you

    The basic problem Wall Street’s paper economy has, as I see it, is the structure’s inherent instability. It is built on a blueprint where one man’s asset is another man’s debt, which man’s assets are another man’s debt, which man’s assets are yet another man’s debt, and likewise throughout the entire structure. But unlike in the real economy, there is nothing real backing it up. Its liquidation value is essentially zero. IOW, it’s all fakery.

    Should the wrong can be pulled, and a cascading liquidation event begin again, this go-round the real economy can be preserved for the long run, only by allowing debtors, who can no longer service their liabilities after the crash of their assets, to default and go bankrupt.

    The only other option will be to knuckle under, and allow the real economy to be looted yet again, by bailing out the paper economy, once more, at the expense of reality-backed assets. An action which IMHCO, at this juncture on the timeline, would render the U.S. economy to a permanent second-world status, and with the attendant political turmoil, could mean the end of the republic.

    Like

  34. Great piece. I am hoping we can reform our broken economic system that has, since Trump was elected, tremendously enriched the very same banking and technology companies that have opposed Trump, his agenda and his base each step of the way.

    Personally, i think if Trump is going to get his agenda pushed through we need a recession to happen sooner rather than later.

    This may be viewed negatively but i do not intend it to be. I just think the masses will only demand the policy initiatives Trump is pushing if they are forced to realize why they are needed. If stock market and property market bubbles continue to inflate and Trumps agenda is sidelined I see the markets turning down just before midterms and continuing through the third year of Trumps presidency putting him in a very difficult position in 2020.

    We want something similar to what happened in the early 80’s to Reagan that allowed his reform agenda to get pushed through IMO.

    Like

  35. ilovevictoriasbows says:

    Get ready: 4.3% “on the backs of the poor.”

    Like

  36. FLEEVY says:

    Yay, winning! It’s ogre for the shills.

    Liked by 1 person

  37. wodiej says:

    A friend is looking to move and purchase a different home. She said the realtor told her the houses were selling first day on the market and for asking price or more. They said they had never seen anything like it. That’s because the country has never seen a President Trump. And we’re just getting started. Thank you God.

    Liked by 1 person

  38. Flman78 says:

    Sundance, i be been reading CRY for about a year & “lurking” as some have said in the comments 😉 . Your basic synopses of econ are much more erudite & brief than my one semester of micro economics lol!!! Keep up the AWESOME job!!

    Like

  39. Russ Ingle says:

    VERY SIMPLE TO UNDERSTAND

    Like

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