“Back to Better is Bunk!” — Paul Ebeling
The state-run MSM, analysts, and many CEOs are loyal to a promising narrative of recovery. But, pay attention, there is another message.
The Big Q: Is recovery on the horizon?
The Big A: Yes. But, is a sustainable return to pre-virus chaos imminent? No.
These are indicators pointing the other way.
One example of this is business loan sentiment. Rates are low and money is plentiful. Interest rates are extremely low for a big business.
More Big Qs: So, why are healthy, strong, solid businesses not choosing to borrow cheap money that they could use for expansion?
This is atypical and likely a signal of what many CEOs are actually thinking. If they are passing on taking advantage of this “great economic recovery,” how much faith do they really have in it?
Maybe they understand that if we were to annualize the last 5 CPI numbers, inflation would be 10.2%. Maybe they also realize that this 10.2% is far more than the Fed’s claims of “moderately over 2%” and that much of this is not temporary.
During a time when the lending window is wide open, no 1 is expressing concern over this steep decline in demand. To do so would be treasonous to the narrative of booming economic growth.
Instead, CEOs continue to praise the Biden administration in spite of its anti-economic-growth agenda. But if you follow their money instead of their platitudes, you will find them hunkering down and playing it safe rather than exuding confidence.
The CEOs and CFOs of these major corporations understand that there will not be a return to the pre-virus chaos economy lasting more than 3 Qs because we are not returning to pre-virus ideologies and principles.
We are dealing with 2 different administrations that are direct opposites in many ways.
The Trump economy, which kept us on much firmer ground than any other country in the world during the pandemic, cannot be reproduced by an administration defined by higher taxes, irrational spending, and globalist ideals to say nothing of a potential energy crisis being exacerbated with the Obama-era mentality of “keep it in the ground” in order to satisfy the ‘intellectuals’ of Hollywood. We need to remember that the stability of our economy was built on a very different foundation.
Mr. Biden is laying a framework that is not conducive to economic success for America. With $7.5-T added to our national debt in just over 7 months, that assuming his $3.5-T spending bill is passed, every effort is being made to undo the foundation President Trump (45) laid in our economy and in our global relations. Due to a position of government growth rather than economic growth, a return to a thriving, stable economy is obviously not on Mr. Biden democrat agenda.
Any analysts who suggest a return to a Y 2019 economy are acting as if we have the same administration in the White House. As if we still have a pro-growth, pro-lower-tax, anti-regulatory-burden, pro-American-corporations, pro-American-manufacturing, pro-American-worker President.
Contributing LTN economist Bruce WD Barren asks, “Was I just dreaming?
“Why should Mr. 46th do that for it would just be admitting that the policies of Trump were correct, a thought not appealing to the social left which is where our current President’s focus is. In my opinion if this philosophy continues, our current President will go down in history as ‘Mr. Give-away’ who accomplished nothing but added to our burdensome inflationary rate and our dangerous Federal Deficits.”
What they do not recognize is that, of all the detriments to our economy in Y 2020, losing our “America First” administration was the greatest!
Have a prosperous day, Keep the Faith!