This sea change, and the wealth effects from it, are just one part of the story. Conservation and lower costs for renewable energy mean we may finally have a thumb on the energy price scale, allowing more growth in the private economy, which brings down deficits naturally. Times should be getting better, and in the long run they are.
But in the short run the two may just balance out. Cut government by 2.5%, and maybe the Conference Board is underestimating the impact of energy and the private economy may grow by 2.5%. But the optimistic result is a Nothingburger. It all balances out.
That's not a platform for higher stock prices. That tells me a stock market correction is in the offing, once traders realize what's going on.
As I say, it's natural for government to apply a brake to growth, in the form of austerity, when times are good. But too much of a brake just breaks things, and that's what has been placed on your economic calenda, starting next week.Thanks, Washington. Thanks, Brussels. Thanks, Austerity Fairy. Thanks for nothing.
At the time of publication, the author has 17% of his investments in cash Follow @DanaBlankenhorn This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.