Council of Economic Advisers Chairman Kevin Hassett: “The Uniquely U.S. Boom”…

CEA Charman Kevin Hassett is a happy MAGAnomic warrior as he continues to explain the disconnect between the strength of the U.S. economy -vs- the world; and how the disconnect impacts the multinationals (Stock Market).

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The interview is in two segments. Part II is below:

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This entry was posted in Auto Sector, Big Government, Big Stupid Government, China, Decepticons, Deep State, Economy, media bias, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

71 Responses to Council of Economic Advisers Chairman Kevin Hassett: “The Uniquely U.S. Boom”…

  1. Absolutely correct..
    While the Wall Street Market, being down today..

    We get this news from overseas..
    China tightens control of local economic data ahead of expected weak growth next year

    Authorities in Guangdong, nation’s manufacturing powerhouse, told all future purchasing managers’ indexes will be produced by National Bureau of Statistics
    Ruling comes ahead of what is likely to be tough start to 2019 for China’s economy as trade war bites
    https://www.scmp.com/economy/china-economy/article/2178220/china-tightens-control-local-economic-data-ahead-expected-weak

    AND..
    Europe Slammed By “Retail Apocalypse”
    https://www.zerohedge.com/news/2018-12-17/global-stock-rally-fizzles-europe-slammed-retail-apocalypse

    AND…

    Canadian Stocks Hit Lowest Level Since Sept. 2016
    https://www.bloomberg.com/news/articles/2018-12-17/canadian-stocks-lowest-since-sept-2016-as-crude-prices-retreat
    Europe’s Retail Apocalypse Spreads to Online From Stores
    https://www.bloomberg.com/news/articles/2018-12-17/asos-cuts-guidance-after-significant-deterioration-in-november

    Liked by 14 people

  2. trumpismine says:

    Is the People starting to see the importance of the USA economy on the world?

    Liked by 12 people

  3. trumpismine says:

    Is the People starting to see the importance of the USA economy on the world?

    Like

  4. fleporeblog says:

    I wrote this on Friday because the difference between economic news from China and France compared to us was night and day yet the markets dropped across the board by nearly 2% because MAIN STREET is WINNING while Wall Street is losing!

    They are starting to find different reasons for leaving China 🇨🇳 and coming back home!

    Liked by 19 people

    • Donna in Oregon says:

      Worldwide…..I think it is also this:

      Charges in Panama Papers Probe Shine Light on ‘Enablers’
      Law firm served as an intermediary and allegedly enabled money laundering

      https://www.wsj.com/articles/charges-in-panama-papers-probe-shine-light-on-enablers-11544626800

      The allegations serve as a reminder to company-service providers, such as lawyers, accountants and others, to ensure they are conducting appropriate due diligence to prevent people from committing misconduct through the companies they create, said Shruti Shah, president and chief executive of the Coalition for Integrity, a nonprofit anticorruption watchdog and advocacy group.

      “If this were just to go after wrongdoers, it is one thing. To go after the enablers, it is a stronger signal,” Ms. Shah said in an interview.

      Ms. Shah added that the charges against the four people suggest the defendants didn’t just fail to conduct effective due diligence, but also affirmatively enabled wrongdoing.

      The allegations come nearly three years after millions of leaked documents from Mossack Fonseca revealed how the firm created shell companies and offshore accounts for the rich and powerful world-wide. The ensuing scandal became known as the Panama Papers.

      Liked by 8 people

      • Pale rider says:

        Business and congress accepted corruption in basically everything pertaining to money. A business plan would include navigation of the corruption. Trump slowly rights the ship and it causes a new paradigm to business, and legislation.
        The group thought of congress, not so much business, is criminal. Removing those who are criminals or will not acknowledge the crime takes time. Demms keep the ballots full of criminals.
        Depending on how low the fruit is, makes a difference on criminal occupancy and activities. Congress has no law enforcement or accountability. Change that, change the nation.

        Like

      • SwampRatTerrier says:

        Donna if you want to see worthless CPA’s and lawyers, just watch the first case on this “Cooking the Books” program.

        Like

    • GB Bari says:

      That’s all great except for the millions of folks who have retirement 401K’s that are nosediving. Hopefully they will once again skyrocket before the folks actually retire.

      Liked by 2 people

      • carole says:

        GB: Couldn’t agree more. I am retired a recent widow, newly dependent on dividends from investments, which are suddenly almost non-existent and praying I don’t end up an old lady eating catfood.

        Liked by 5 people

        • WSB says:

          See if your manager can concentrate in American only firms that manufacture things, and do not trade globally.

          Only my own opinion and not for professional advice, but ask anyway.

          Liked by 2 people

          • Thinker says:

            I am a little confused. I have some bank stock that is going down– about 30% in last 4 months. Earnings in 3rd quarter were up pretty good. This bank is regional and has very little “global” business. Why the drop– for all the econ experts?

            Liked by 1 person

            • dayallaxeded says:

              So you can back up the truck and load up on shares cheap! Subject to your own due diligence, of course.

              Like

            • WSB says:

              I think you would have to do some research on the particular bank, and if any of the major players were cashing out for some reason. That doesn’t sound like just a year end profit take. If you have someone who manages your account you should dig a bit deeper.

              Like

        • GB Bari says:

          Sort of along WSB’s advice, there are financial managers who develop their OWN portfolio of stocks (both common and preferred), bonds, mutual funds, etc. and can tailor your own prtfolio to your particular financial needs. I had a local one a while back and they were pretty good. They watched the market carefully and moved stocks and other investments in and out of my portfolio as they saw fit. The returns were a little above market averages which was good.

          For two years preceding my retirement, I became a LOT more fiscally conservative and unwilling to take much risk of my principle. That was still Obozo’s economy and it wasn’t promising. So for the time being now I think the investment has to be more targeted and shed a lot of the exposure to foreign woes. Talk to your advisor.

          Liked by 2 people

        • starfcker says:

          If you’re worried about the market dropping, cash out. You’re still close enough to the top that your gains would be substantial. These aren’t risk-free Investments. The system has been rigged for asset inflation for a long time, that’s not the normal state of the world

          Like

        • Sammy says:

          LOL … Are you for real, Thanks troll. Retire, widow did miss anything else, maybe blind.
          Dividends don’t fluctuate with a stock price., so how would the daily stock market affect you.

          “Nearly non-existent” LOL what does that mean, do all stock profile value go to zero. The stock market capitalization is still up by 5000 thousand since begining of 2017, it took Obama 8 years pre 200$ stock before crash to increase by 5000.

          Especially light of the fact many companies increased dividends with tax breaks.

          Like

      • Sammy says:

        “Nose diving” …. The stock market Nov 4 2016 to 2017 went 18 thousand to 25 thousand, 8 thousand increase, pre-crash of 2008 to 2016 didn’t grew in 8 years by 8000 under Obama .

        And same people were 8 years with zero interest rate for their saving. No who living off of 401 K’s have merits in stocks, they money market.

        Like

    • Mark L. says:

      This is exactly the case. My whole working career has been associated with companies that made a product. Ever since the 70’s the move to overseas has been obvious. All due to cheaper labor, health care cost, retirement, taxes, trade laws. Things may be changing.

      Liked by 1 person

  5. fleporeblog says:

    We are WINNING folks! People are coming off the sidelines to get a piece of the action!

    From the article linked above:

    U.S. steel mills have seen almost a 5 percent jump in shipments so far this year, a sign that it’s benefiting from stiff 25 percent tariffs on imports the Trump administration imposed last year.

    The American Iron and Steel Institute reported Monday that U.S. mills shipped 8.1 million tons in October, up 4.6 percent from the previous month and up 6 percent from the same period last year. So far this year, the industry has shipped 79.6 million net tons, 4.6 percent more than it had by this point last year.

    According to U.S. Census Bureau data, U.S. imports of steel mill products declined 11 percent during the first 10 months of 2018 compared to the same period in 2017.

    INCREDIBLE ARTICLE THAT EXPLAINS WHY THE ECONOMISTS, DEMOCRATS & MSM WILL BE WRONG ABOUT NEXT YEAR!

    From the article linked above:

    Liberals are tripping over themselves to explain why the economy has performed so much better under Donald Trump than it did under Barack Obama. The economy has grown by nearly 4% over the past six months, and the final number for 2018 is expected to come in at between 3% and 3.5%. The U.S. growth rate has doubled since Mr. Obama’s last year in office.

    Liked by 12 people

    • Bigbadmike says:

      It’s really about ROI, (return on investment). Do you put your money into the stock market or invest in your company by buying equipment and paying your employees higher wages to retain them? The tariffs have been great for companies manufacturing in the USA. Unfortunately, the lunatics are doing everything they can to crash the economy. It won’t work because Defense spending is guaranteed for 716 Billion next year and most of that will be spent with US Manufacturers. The farm bill has passed with 873 Billion over the next 10 years and everyone in the world who has money is investing it in the US. The only thing that sucks is that many of us will have to keep working because the millennials can’t and won’t do an honest days work. But they have plenty of time to protest, pick their noses, and vape.

      Liked by 10 people

    • Deplorable_Infidel says:

      “Liberals are tripping over themselves to explain why the economy has performed so much better under Donald Trump than it did under Barack Obama.”

      They would be better off going off in the corner, curling up on the floor and chewing their toenails.

      Liked by 2 people

    • dobbsfan says:

      I work for a Steel & Wire mill in Illinois. We are making record-breaking profits like never in this company’s history (130 years). We thank the Lord for President Trump every day.

      MAGA

      Liked by 3 people

    • Reloader says:

      ” … we are now pulling people off the sidelines and into jobs!”
      That’s my situation, after industries that I used to work in went to Asia many years ago. Now I’m employed at a regular job again. MAGA!

      Liked by 2 people

  6. The Boss says:

    Supposedly President Xi is delivering a major address right now. I haven’t found a link yet, and will go back to looking in a minute. Has anyone else found a link? Thanks.

    Liked by 1 person

  7. starfcker says:

    I thought Mr. Hassett’s explanation of the current state of affairs in the world economy was spot on. If anybody needs it boiled down even further, it’s simple. If we stop everybody else from robbing us, yeah, they’re going to have a slowdown until they get with the program. So they need to get with the program, the quicker the better.

    Liked by 15 people

  8. Abster says:

    So is there any simple way to explain how you end the Fed? Looks like continuous rise in interest rates is a real problem. Intentional?

    Liked by 2 people

  9. trapper says:

    Benedict Arnold, Inc. is now down for the year, and it appears it will continue its downward slide with no end in sight. Oh my!

    Liked by 2 people

  10. Rip Tide says:

    So how can we remain invested without getting punished by exposure to multinational companies which are now in most every mutual fund or ETF? Bonds have also been going down and very correlated to equities since Oct 1st?

    Liked by 1 person

    • It won’t be long before a mutual fund or ETF leader breaks from the pack with a MAGA Fund concentrating investments in growth-industry companies with predominant Supply, Production and Sales in the USA.

      Liked by 5 people

    • WSB says:

      Again, just a hunch but any US small cap, start up and American based company, service or supplier.

      Ask your manager/broker. Nothing outside the US because PT is crawling back all of the traditional business that used to take place in the US.

      Liked by 1 person

    • starfcker says:

      Maybe it’s time to sit in cash for a while. Deflation is very good to those who have cash

      Like

      • LafnH20 says:

        It is, indeed.

        I also agree with, WSB, and others, about diversification in small, mid-cap companies (due diligence and All that) with a MAGA/biz model.
        Investment locally in small credit unions/Banks who loan locally (CD’s etc. – short term b/c of possible rising interest rates, etc), is interesting.

        But, THAT’S just me.
        Not investing advice…
        In any way

        Like

    • Rip;
      Respectfully your premise is flawed. “remain invested” should be executed as “Sometimes I’m in cash- on the sidelines, liquid, waiting for the opportunity to buy the tradable low”. Said another way- sometimes it’s wisest to just sit quietly in cash with zero exposure to the market.
      I cashed out in October. I locked in a nice double digit win for 2018 and I’m excited to go back in and buy the same good assets (or maybe some others) which are now beginning to go on sale.
      Let this silliness play out and keep a watchful eye on the most important “tell” of a good company- solid profitable growth. In fact use William O’Neal’s CANSLIM analysis tool. There will be some VERY good assets in the clearance bin when this market gets done being irrational. Keep your powder dry and reverence the 11th commandment: “Thou shalt do thy homework”

      Like

  11. GGHD says:

    In school, they teach you, there are 3 historical methods for determining the value of stocks. Of course, the stockbrokers say, ‘There are more ways to value to stocks now days.’
    The old way:

    1. The dividend rate. …. Can a person buy stocks, and receive a dividend return larger than the interest paid on a government bond or a bank account? The stock market is a greater risk and should provide a larger return.
    [Are there any ‘blue-chip’ companies paying good dividends now?]

    2. The book-value of the business. … If the company closes its doors, and values the company by its assets and obligations, does the company have a book-value?
    [ Does the company have any ‘book-value’ at all, or does the company use an ephemeral business model?]

    3. The price to earnings. … Is the company earning any money in terms of a ‘profit?’
    [Sometimes people are buying stocks in companies that have never earned a profit, on the books. Apparently, the buyers hope the value of the stock will go up, and they can sell the stock to someone else.]

    Some of us would think: Average people that invest in stocks, should want to receive something of actual value for their money.

    Liked by 2 people

  12. Ghost says:

    Observations from a smaller branch.

    This is for those who enjoy this kind off thing. I posed a question to myself . How do we find out what is really happening economically in China. We all think we know but we also know you can’t trust their numbers.

    I zeroed in on China’s largest supplier; which is Australia, and previously posted their export numbers on LNG, Iron oar and coal, China is their biggest market for these items as well as other goods as services.

    Current Account:

    This is the difference between imported and export goods. If you want to buy Australian you need to convert to their currency to do that. So they have a current account index. A rising surplus is good and falling surplus is bad. Here are the numbers from the Australian Bureau of Statistics. I’ll begin at the start of 2017 since this is a quarterly report.

    2017
    February; -3.9B
    June; -3.1B
    September; -9.6B
    December: -9.1B

    2018:
    March; -14.0B
    June; -10.5B
    September; -13.5 B
    December; -10.7B

    There numbers are based on total trade not just China. May be good to point out they are also a major supplier of gold as well as agriculture products.

    The report states Trade with China was down 8% and states that Metal Ores and minerals were down 6% and strangely to me sugar and beverages were volumes were down 14%. The report is all bubbles and roses about how great thing are. But I’m not buying it.

    http://www.abs.gov.au/

    Link if you want to search deeper.

    Liked by 4 people

  13. Mo says:

    Liked by 2 people

  14. mj_inOC says:

    I like Kevin, he definitely is a pro, in the best sense…

    Anyone looked into this? I liked the fact that it has the potential to replace GPS.
    [Did not invest more than I can afford to lose.
    Did not go to San Diego, invested earlier.]

    https://www.spatialsummit.com/spatial-2018?cpid=91c6ac63-90c0-465c-85ce-926227b72cf5&__s=vovauddnoconjyaufewa

    Like

  15. Stillwater says:

    Wow. 5 on 1.
    This interview reminds me of Wilbur Ross being interviewed by a CNBC panel. Kevin did a great job.

    Liked by 2 people

  16. These are very revealing interviews, with a lot of good topics discussed.
    My thoughts, fwiw, for those Treepers with investment portfolios to consider:
    1) Be sure you know your risk tolerance and invest accordingly. President Trump campaigned on, and is delivering a major reset economically which as the questions in the interview reveal, is not fully understood by all the players. Plus, with a reset there is more uncertainty/risk so the big increase in volatility would be expected.
    2) Selling in down markets is typically a losing strategy, unless you absolutely need your invested cash quickly. It is far far better over the medium/long term to continue to invest in up and down markets (which gives some level of “dollar cost averaging”)
    3) Most investment pros will encourage investors to diversify asset classes (stocks, bonds, RE, etc). I would posit that with this particular tilt toward our domestic economy that it might be worthwhile to analyze stocks to determine how much of their income streams/cash flow arise from domestic vs. international markets. Some industries will do much better than others. Remember too that the market indices are heavily weighted toward tech stocks, some of which face potential regulatory or other pressures to their current business model.
    4) Dividend rates, yes, typically do not change much quarter to quarter. But you can look at the “yield” of a stock, esp. if you need income, as a percentage of the stock price. Right now markets are adjusting to higher interest rates and comparatively, this hurts stock values. This has been a major factor in all the large market move periods I’ve lived through.
    5) Forbes brings up a great point in discussing the Philipps curve, and potentially Fed assumptions about inflation. Hassett’s responses were interesting. Many economists will agree that a risk in productivity reduces the inflation risk of rising wages–and this is, I think, what is happening. In the medium/long run these developments are GREAT for America and Americans. Friedman’s economic views would be more relevant to the current situation, imho.
    6) Finally, the BEST way to “value” stocks is using their future projected cash flows, discounted at a rate (typically tied to interest rates, plus a premium for the greater risk of equity investments). P/E is just a measure of the price vs. earnings of a stock, and can be affected by accounting issues and special charges so it is much better to look at the actual cash thrown off by an investment. Book value is, again, an accounting term and can be greatly impacted by such issues as marking to market for foreign assets, depreciation, etc.

    It will be interesting to see what the Fed does on Wednesday. Some of the articles published of late may be signals that the Fed will hold off on a rate increase, but then again they may hold to their original plans esp. because many Board members have been agitating for rate increases for a while (and thought we stuck with QE2 for far too long). And if this is a good Christmas season, they might use that as an excuse to raise rates.

    Liked by 1 person

  17. Pyrthroes says:

    Sooner or later, even academic economists –mostly Keynesian monetarists, with pronounced Central Banking dirigiste fixations– will have to acknowledge the socio-political reality (vs. collectivist/Statists’ accounting fictions) behind Trump Prosperity.

    Of course, this has been painfully self-evident since German Chancellor Ludwig Erhard’s late 1940s “Economic Miracle” (Wirtschaftswunder), which set Western Germany’s BRD against Stalin’s grotesquesly dysfunctional GDR. Since Richard Cantillon (d. 1734) and Nicholas-Francois Canard (d.1833), mathematical/quantitative analysts have definitively refuted facile commentators’ abstruse, manipulative, withal self-serving pretensions to transactional omniscience.

    Given this country’s real-world comparative experience, arguing an infantile-regressive Nanny State (read, “Socialist”) will be impossible within a generation.

    Like

  18. Daniel says:

    All this change as a result of tariffs just goes to prove the “global economy” was dependent [parasitic] on the US consumer market. That and other things were visibly destroying the USA. Correct that and that explains the growing prosperity of the USA while the rest of the world suffers. It’s simply a flip on “the world economy growing while the USA was dying!”

    What could be more clear?

    Liked by 1 person

  19. Ausonius says:

    Italian scholar/novelist/social critic Umberto Eco predicted the attitudes of our present “globalist” overlords in an essay now c. 30 years old. (I believe it was in a book called Travels in Hyper-Reality ) He was noticing even then that the elites in various countries were uniting in the same way that the aristocrats of medieval and early modern Europe were uniting: business deals, the rise of the “mutli-national” or even “supra-national” corporation, businesses so large that they could dictate terms to governments (cf. the recent scramble among cities and states to bow down to Amazon), the rise of the bureaucratized European Union, and even inter-marriage.

    Eco even noticed how the elites avoided contact with their own fellow citizens, e.g. skyscraper hopping via helicopters, or whisked away in waiting cars to enclaves filled with other members of the elite. And 30 years ago Eco wrote that the elites are not patriotic, that they find nation-states a nuisance to their international businesses, and that therefore an upper-class person in New York will find he has much more in common with a similar neo-aristocrat in Tokyo, Berlin, Singapore, or Rio de Janeiro than with his fellow Americans in Brooklyn or the Bronx or Ohio.

    He called this neo-medievalism: at that time walled, gated, guarded compounds of expensive neighborhoods were just beginning to arise, an echo of the medieval castle or walled and gated medieval towns trying to keep out the barbarians, or wandering criminals.

    Sound familiar?

    Liked by 2 people

    • TwoLaine says:

      Corporate welfare, Tucker Carlson has been talking about it a lot.

      Liked by 1 person

      • Ausonius says:

        I was just reading an essay from the 1930’s by Albert Jay Nock (q.v.) who excoriated businessmen of his day for supporting a large government (he was much against the New Deal and a “paternal” busybody government), which they intended to manipulate for their own purposes.

        So it is today, when the businessmen have “gone global” and want to manipulate governments to do things in their own economic interests, rather than of their individual countries.

        Liked by 1 person

  20. Zippy says:

    https://wolfstreet.com/2018/12/17/who-bought-1-33-tn-of-new-us-government-debt-over-the-past-12-months/

    The US gross national debt has ballooned by $1.33 trillion over the past 12 months to $21.8 trillion as of December 14, according to Treasury Department data. Over the past six months alone, this debt has ballooned by $740 billion, despite a strong economy: Fueled by a stupendous spending binge and big-fat tax cuts, the government has been increasing its debt at a rate of $123 billion a month on average over the past six months.

    Like

  21. Wayne Robinson says:

    If hydro carbonsdrop another fifteen percent and remain for twelve months Russians will beeating their pets like Venezuala . Russia is screwed . Maybe they can eattheir military ?

    Like

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