Is The Fed About To Drop The MOAB On Wall Street?
by Michael Pento via PentoPort.com,
ZeroHedge.com
Apr 24, 2017
Wall Street and our central bank are in for a rude awakening very soon! The idea that the US economy is on stable footing and about to experience a surge in growth is ridiculous. Hence, the consensus that the Fed can normalize interest rates and its balance sheet is nothing short of a bad joke…and it’s on them.
For starters, the government’s fiscal deficit for the month of March came in at $176.2 billion, which means the deficit 6 months into fiscal 2017 is $526.9 billion and running 15% over last year. If not for the calendar timing of receipts and payments, our government’s deficit would be a year-to-date $564.0 billion or 23% above last year. In addition, there was an 18% decline in corporate income tax collection. We all know there was no corporate tax reform passed. So the credible conclusion must be reached that corporations are not growing there profits…they are actually shrinking.
The nation will now bump up against the $20 trillion debt ceiling on April 28th and is facing a possible government shutdown. This will happen to coincide with day 100 of Trump’s Presidency.
Unfortunately, Trump resembles more like a swamp creature as the days go on. Sadly, he becoming a flip-flopping carnival barker that duped the American public into believing he was actually going to cause an earthquake in Washington that shook the government back down to its constitutional foundation.
He no longer wants a strong dollar and an end to endless interest rate manipulations that has been robbing the middle class of its purchasing power for decades. Instead he’s become a Yellen supporting, bubble blowing, XM bank funding, NATO backing, China loving, card carrying member of the neocons in D.C.
But even though Trump now loves low interest rates, the Fed has probably already tightened monetary policy enough to send stocks into a bear market and the already anemic US economy into recession. More proof of recession and deflation came from the economic data released on Good Friday: CPI down 0.3% in March and even the core rate fell 0.1%, Retail sales fell 0.2% in March and February sales were revised sharply lower to minus 0.3%, from previously reported up 0.1%.
Housing starts, Empire State Manufacturing and Industrial Production have all recently disappointed estimates. Housing starts fell a very steep 6.8 percent to a 1.215 million annualized rate. Empire State Manufacturing dropped from 16.4 in March, to just 5.2 in April and within Industrial Production, the manufacturing component shrank to minus 0.4 percent.
The sad truth is Trump isn’t draining the swamp… he’s flooding it with more of the same swamp creature from Goldman Sachs that have mucked up D.C. and the Fed for decades.
The Fed is About to Drop the MOAB on Wall Street
The Rest…HERE
