Wall Street realizes there is nothing they can do to stop 🛑the Economic Train 🚂! They also realize that the remainder of the world will pay a severe price for their stupidity if they continue.
We are seeing MAIN STREET destroy WALL STREET!
It is absolutely amazing to see the disconnect at this point in time between Main Street versus Wall Street. The Economists and talking heads aren’t able to explain it because it is completely foreign to them. The data they are reading suggests we are headed for a major recession when the look solely at the Markets.
The Global Economy is in far worse shape than ours. I have no doubt that Germany 🇩🇪 and France 🇫🇷 will be in a major recession in about 6 months. The same can be said for Canada 🇨🇦.
Never forget the fact that 70% of our real GDP rate comes from Consumer Spending.
Sundance is right that China 🇨🇳 front loaded a lot of their trinkets in the third quarter knowing that our 25% tariffs were going to begin on January 1st. Also keep in mind that China 🇨🇳 just recently began to buy our soybeans and pork. That will be felt in the 1st Quarter of 2019.
The third and final estimate for the 3rd Quarter was released on Friday. The real GDP rate feel by 0.1% to 3.4%. A very solid number.
You can find the report below:
From the article linked above:
The deceleration in real GDP growth in the third quarter primarily reflected a downturn in exports and decelerations in nonresidential fixed investment and in PCE. Imports increased in the third quarter after decreasing in the second. These movements were partly offset by an upturn in private inventory investment.
PCS IS ANOTHER LOOK AT INFLATION USING A DIFFERENT LENSE THAN CPI
The price index for gross domestic purchases increased 1.8 percent in the third quarter, compared with an increase of 2.4 percent in the second quarter (table 4). The PCE price index increased 1.6 percent, compared with an increase of 2.0 percent. Excluding food and energy prices, the PCE price index increased 1.6 percent, compared with an increase of 2.1 percent.
Last year the 4th Quarter was initially released at 2.6%. The 2nd Estimate had it fall to 2.5% while the 3rd and final Estimate was 2.9%.
The Atlanta Federal Reserve currently is predicting the following for the 4th Quarter:
Bottom line is that our President in his second year is going to accomplish what BHO couldn’t do in 8 miserable years and that is to have an Annual real GDP rate > 3% for 2018.
The MSM, Democrats etc. will be out in full force on January 30th when it is released. They realize the optics are terrible since it never happened under BHO and the last time was 2005. They will tell you it was a sugar high from the Tax Reform Bill and that it will not be reached again because the world economy is contracting. They will point to the Markets to try and paint a picture.
It is ALL a lie because Main Street is WINNING again and they account for 70% of our real GDP rate. As more and more businesses come home, more and more products are made here. Shrinking our imports while our exports will continue to rise because of the trade deals.
We haven’t seen anything yet! It is a year or two away!
China 🇨🇳 realizes they have lost and are doing everything humanly possible to save face and their paper economy!
From the article linked above:
China announced another round of tariff cuts, lowering import taxes on more than 700 goods from Jan. 1 as part of its efforts to open up the economy and lower costs for domestic consumers.
There will also be cuts to some export tariffs, and temporary import tariff rates will be as low as zero for some goods, the Ministry of Finance said in a statement on Monday.
The ‘temporary’ rates can be changed ad hoc and can be lower than the current Most-Favored Nations standard though they are also available to all World Trade Organization members.
This is the third round of tariff cuts announced this year, as China looks to cut costs for consumers and implement President Xi Jinping’s promises to open up further.
U.S. exports will get the benefit of the reductions as well, although most products will still be subject to the retaliatory tariffs until there is a breakthrough in the ongoing talks.