Super-MAGA-nomics: American Economic Optimism Soars, Main Street is Back…

Last Friday the New York Federal Reserve raised its estimate of U.S. GDP growth for the fourth quarter of 2017 to four percent.  That’s officially the unattainable, impossible magic-wand-level of GDP growth all the ‘experts’ said was impossible.  Why did they make that ‘unexpected upward’ re-re-re-revision?  Because the underlying economic activity represents facts that cannot be denied. The economy is on-the-move.

…”Hold on to your economic britches peeps – throw dem ju-ju bones out the windows – grab hold of the young-un’s, squeeze em tight and introduce them to ‘capitalism unchained’. We are in uncharted MAGA territory now. Q4 will be well beyond 3.2% 3.8%  3.9% 4.0%… Well Beyond.”…

The actual economic activity noted in virtually every region in the U.S. is so strong the polling measures of economic optimism are reaching new records.  Today, as an example, for the first time in their 11 year CNBC All-American Economic Survey  more than half of all Americans responding to the questions rate the economy as good or excellent.  Additionally, nearly 41 percent of Americans say they expect the economy to be better a year from now. These represent the most optimistic results CNBC has ever recorded.

We would be remiss if we didn’t note a specific choice of words used to describe the economic conditions being measured:

…”We’re not measuring a marginal change in the economy, we’re measuring a different economy.”…

Sound familiar?

It should….

…And it’s and entirely accurate way to describe what is happening.  When we reviewed the President Trump 2015 strategic economic plan, that included trade shifts and Main Street policy, we called it a “new dimension in American economics“.

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 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 to mid-term fall surreptitiously, seemingly unattached to the larger expanding economy.

Until the two economies gain parity -sometime late in 2018- any fed activity, taken as a consequence to their familiar traditional measurements (interest rates etc.), will have minimal to negligible impact on Main Street. (March 2017 Discussion)

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This entry was posted in Big Government, Donald Trump, Economy, Legislation, media bias, President Trump, Professional Idiots, Uncategorized, US Treasury, USA. Bookmark the permalink.

257 Responses to Super-MAGA-nomics: American Economic Optimism Soars, Main Street is Back…

  1. jmclever says:

    So Janet Yellen can’t stop the Trump Train and her replacement won’t try (hoping).

    Like

  2. MIKE says:

    Sooner or later, the Fake Usurping Kenyan will shrink to such a small insignificant figure that the REAL President will have to scrape him off the bottom of his shoe, like doggy-doo.

    Liked by 1 person

  3. wodiej says:

    “hold onto your economic britches peeps….” LOL, well anyone who tries to deny these numbers really is going to have a lot of explaining to do. Thank you, God, for all of the people who seen Trump’s dedication and commitment to this country and voted for him. God bless you PT and the First Family.

    Like

  4. dayallaxeded says:

    I have always scoffed at people who try to correlate the nation’s economic performance with a current, first term POTUS or any political event with such a short time frame. The USA economy is a very large ship, so it just doesn’t turn very fast—until now. I think private enterprises at every level had been so restricted by the overwhelming uncertainty and over-regulation of the 3 prior admins that they were storing up more capacity for expansion than anyone would’ve suspected (except PDJT and his Killas, apparently). As stated somewhere by someone in an earlier post, we’re not looking at a changing or changed economy. We’re looking at a new economy, operating and growing on principles that haven’t applied since maybe the late 50’s/early 60’s. NO BRAKES ON THE MAGA TRAIN!

    Liked by 1 person

    • formerdem says:

      economies usually bounce back from recession and imo Obama thought that was a sure thing in 2009 and that’s why he passed health care so quick; he thought when the inevitable bounce came, he could attribute it to obamacare. but lo… No Bounceback. Obama truly did not know that it would not be automatic, he’d have to tend it. Did not know. He kept it penned up for years with regulations and dumb stuff he did. imo Jack was ready to jump out of the box ALL that time. PDJT knew, and he let im go.

      Like

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