We have people calling for more rate cuts while others claim the economy is strong and healthy. How…
We have people calling for more rate cuts while others claim the economy is strong and healthy. How do we reconcile these two points of view and how is the economy really doing? Don't look at the GDP for the answer.
The GDP is a very poor indicator of growth fed by factors such as soaring healthcare cost, a ballooning military budget, and wasteful government spending. Please note, much of the rising GDP comes from government generated spending whether from direct purchases or fueled by money people receive from entitlement programs or government assistance.
At some point, both investors and the public will realize that central banks can only do so much through printing money and lowering interest rates. This is not the way to make the economy stronger. More on this subject in the article below.