Panic first, analyze never: Media flubs Trump’s economy



On April 2 — Liberation Day — Donald Trump did exactly what he had promised for over a year: He imposed a slate of reciprocal and punitive tariffs on America’s trading partners.

The left and corporate left-wing media erupted in predictable fashion, and the stock market plummeted. Before a single tariff was announced, doomsayers in the press predicted economic collapse. CNN warned the economy was “flashing yellow lights,” and the BBC claimed Trump’s move risked “economic turbulence — and voter backlash.” A former Biden economic adviser forecast disaster.

Confidence among working Americans remains high. And that confidence will continue driving this economy forward.

When first-quarter GDP numbers showed a 0.3% contraction, the media pounced. They blamed the tariffs — despite the fact that none had taken effect by March 31, the end of the quarter.

While liberal economists celebrated the downturn and declared a recession imminent, they failed to look at the numbers. A closer analysis shows the economy remains fundamentally strong.

The GDP dip came primarily from a 5.1% drop in federal government spending. In other words, a major cause of the decline was the one thing fiscal conservatives have long demanded: smaller government. Isn’t reducing government spending, or at least the growth of government spending, a good thing?

Meanwhile, the rest of the economy showed strength. A Harvard University/HarrisX poll released Monday found that 51% of registered voters believe the economy is "strong" for the first time in four years.

The numbers back up their belief. Nonfarm payrolls rose by a seasonally adjusted 177,000 in April. The unemployment rate held steady at 4.2%. The household survey — used to calculate the jobless rate — showed an even larger gain, with 436,000 more Americans reporting that they held jobs. All told, the economy added 556,000 jobs in the first three months of Trump’s second term.

That growth comes despite the Department of Government Efficiency cutting more than 120,000 federal jobs. Private-sector employment continues to expand even as Washington shrinks — a trend critics said was impossible.

RELATED: Debt spiral looms as Trump tests tariffs to tame rates

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What about inflation? Didn’t the media insist tariffs would bring back the dreaded 1970s stagflation?

Instead, the Consumer Price Index in April came in at 2.3% — the lowest level since February 2021, just before “Bidenflation” took off. The drop came as prices fell for food, gas, used vehicles, and clothing.

Grocery prices alone dropped 0.4%, the sharpest decline since late 2020. Egg prices plummeted 12.7%, their biggest single-month fall since the Reagan era. In other words, the items working families care about — food, fuel, and clothing — are more affordable now than under Biden.

Meanwhile, Trump’s trade strategy is forcing results.

The United Kingdom quickly reached a trade deal. Other countries have accepted temporary “tariff holidays” in exchange for coming to the negotiating table. China and the United States agreed to a “tariff truce.” Canada slashed its U.S. tariff rate to nearly zero. According to Bloomberg, U.S. exports and manufacturing should surge in coming quarters.

Since Trump’s return to office in January, his critics have eagerly predicted economic doom. They cheered “transitory” inflation. They hyped “Bidenomics.” They got both wrong.

They’re wrong again.

Confidence among working Americans remains high. And that confidence will continue driving this economy forward — tariffs, tantrums, and all.

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Can America survive another four years of Bidenomics?



While the Biden administration claims it has everything under control, inflation continues to rise, housing prices are insane, and the government just keeps spending.

“The United States government is printing one trillion dollars every 100 days,” Glenn Beck says, adding, “Just put that in your pipe and smoke it for a minute.”

And the American people are suffering, despite attempts at raising wages to deal with inflation — like they’ve done in California.

“$20 minimum wage for fast-food workers,” Glenn says, adding, “Kind of putting people out of business. First of all, McDonald’s, Wendy’s, Burger King, hiked prices to offset the higher cost. Who would have seen that coming?”

“How many times does it take before people understand basic economics? The price of the goods or service goes up when it costs the company that is providing those goods or services, when it costs them more to get that to you, they raise the price. That’s the way business works,” Glenn explains.

“This is what every business is going through right now,” he adds.

The economy is so disastrous under Biden, that Glenn believes if he wins the 2024 election, it will be a sign of something far more ominous than just rising prices.

“I will be absolutely convinced that this is a fraudulent election if for the first time in history, the economy doesn’t play a major role,” he says. “Can America survive another four years? Can you survive another four years going down this road? Can you afford it?”

As the prices continue to go up, the chances Americans have at owning basic necessities will continue to go down.

“You’re not able to buy a house, you’re not able to get a loan on anything that is reasonable, and it is only going to get much, much, worse,” Glenn warns.


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Call It Whatever You Want, The Economy Sucks

No recession? Ok, let's call it stagflation.
Inflation Deflation: The Democratic Failure to Distract Us
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Inflation Deflation: The Democratic Failure to Distract Us

 

Warren Buffett slams Wall Street for becoming a 'gambling parlor'



Warren Buffett, the CEO of Berkshire Hathaway, condemned Wall Street for encouraging speculative behavior in the stock market, effectively turning one of America’s largest financial institutions into a “gambling parlor.”

The 91-year-old executive made the comments on Saturday during his company’s annual shareholder meeting. The primary targets of his criticisms were investment banks and brokerages, CNBC reported.

Buffett said, “Wall Street makes money, one way or another, catching the crumbs that fall off the table of capitalism. They don’t make money unless people do things, and they get a piece of them. They make a lot more money when people are gambling than when they are investing.”

Buffett suggested that American companies have become “poker chips” for market speculation citing the drastic increase of call options since brokers make more money from using them instead of simple investing strategies.

He also suggested that the current situation could cause market dislocations that ultimately benefit Berkshire Hathaway by giving them new opportunities. Buffett indicated that his company unleashed its cash hoard and spent $41 billion on stocks in the first quarter of 2022.

“Markets do crazy things, and occasionally Berkshire gets a chance to do something,” Buffett said.

Charlie Munger, Buffett’s 98-year-old long-time partner and Berkshire Hathaway vice chairman, said, “It’s almost a mania of speculation.”

Munger continued, “We have people who know nothing about stocks being advised by stockbrokers who know even less. It’s an incredible, crazy situation. I don’t think any wise country would want this outcome. Why would you want your country’s stock to trade on a casino?”

The two executives took aim at the apparent abundance of retail traders, many of whom journeyed into the stock market for the first time during the early stages of the COVID-19 pandemic boosting prices in their wake. Their spending frenzy was marked by meme-inspired spending trends from Reddit and other online message boards.

However, it appears that the beginner’s luck of these investors has run out as the stock market is currently putting many in the red with a considerable downturn. So far in 2022, the Nasdaq Composite index is down 21%, the S&P 500 shrank by 13%, and the Dow Jones Industrial Average has fallen by more than 9%.

Buffett has a long record of disparaging investment bankers and their institutions, suggesting that they encourage mergers and spinoffs to “reap fees” instead of prioritizing the improvement of companies.

Buffett also noted that his company would always be cash-rich and would be “better than the banks” at extending lines of credit to companies during periods of economic distress.

Ghost of stagflation haunts Biden economy as GDP decreases in Q1



The U.S. economy shrank in the first quarter of 2022, surprising economists and renewing fears that a recession is just around the corner amid high inflation.

Real gross domestic product, a measure of all the goods and services in the economy, decreased at a 1.4% annual rate in the first three months of this year, according to data released by the Bureau of Economic Analysis Thursday morning. This disappointing negative economic growth followed a GDP increase of 6.9% in the fourth quarter last year.

"The decrease in real GDP reflected decreases in private inventory investment, exports, federal government spending, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased," the BEA report said.

A record-high trade deficit accounted for the largest hit to GDP, subtracting 3.2 percentage points from overall economic growth. Exports of goods fell sharply while imports of goods and services rose, showing that consumers are still spending but doing so on goods purchased from abroad. It's also the case that businesses are restocking inventory after supply chain disruptions last year, which may account for the increase in imports, economists told CNBC.

An increase in COVID-19 cases, continued pandemic restrictions and disruptions in some parts of the country, and a decrease in government spending on COVID-19 assistance programs each contributed to the decrease in GDP, according to the bureau.

There was some good news in the report. Personal consumption expenditures increased at a 2.7% rate. Of particular note is that spending on services increased from 3.3% last quarter to 4.3% in this quarter, showing that the U.S. is transitioning away from the pandemic economy, where people were buying goods like groceries, instead of spending money on services, like restaurants.

Business investment increased at a high 9.2% rate, with companies investing in equipment and intellectual property products, showing that U.S. businesses are still growing even though the overall economy shrank.

Still, negative economic growth is a step in the wrong direction for President Joe Biden and national Democrats, who are facing massive losses on Election Day based on voter dissatisfaction with the economy. While unemployment remains low, Americans say that higher prices caused by inflation are making it harder to buy gas, put food on the table, and afford to travel or spend money on entertainment.

While GDP may be revised upward next month when the BEA releases a second estimate for the first quarter based on more complete data, the fear for Democrats is that high inflation and slow economic growth would raise the specter of stagflation just before the election.

It remains to be seen whether the trade deficit and lingering effects of the pandemic are temporary drags on the economy, or whether inflation will cause long-term stunting of economic growth, triggering the next recession.

The Real Cause Of Inflation Is Insane Government Spending

Watching the screen on a gas pump while filling your vehicle’s tank is liable to induce a panic attack. Paying for a used car almost requires taking out a second mortgage. Speaking of mortgages, members of the middle class are being priced out of the housing market as home prices march relentlessly upward. Many price increases are […]