Skip to main content

Uh-oh, the Economic Crap Hits the Fan

By April 25, 2024Commentary

You may wonder about that saying, but it should be obvious what happens when the shit hits the fan–it sprays all over everyone.  And today’s economic news certainly fits that description.  Reported economic growth was far lower than anticipated, only 1.6% versus 2.5% average expectations.  Even worse, the deflator number–a measure of inflation, was much higher than expected, indicating that stagflation is here or certainly on its way.  The markets, which are grotesquely overvalued, reacted as you might expect–down about 650 points, and US debt yields are up.  No rate cuts are likely no matter what the economy looks like as long as inflation remains high.  And I repeat for the 100th time, the Federal Reserve no longer controls yields on US debt–supply and demand factors do, and the supply is overwhelming demand.  You can find all the economic news at

Finally, we also got a report on productivity today and it also wasn’t pretty.  Productivity is the key to real economic growth, we have to get more output for every unit of input.  But for most industry segments, productivity declined in 2023.  (BEA Report)    From a selfish political perspective, this is playing out both as I thought it might and as will most hurt the whackos currently running our federal government.  It looks like inflation and rates will stay high and the economy weak just as we are hitting the summer and fall.  Since the whackos have caused the mess, it is quite just that they have to live with the consequences.  But I feel for the American public, particularly low income persons, as they by far bear the brunt of this economic mismanagement and have endured a decline in living standards.

Join the discussion 3 Comments

  • John Oh says:

    It would be very refreshing and help a lot if the people most hurt by this would connect it to the people doing it to them and vote them all out. This would be the perfect election to vote against every incumbent without regard to party.

  • pamelbers says:

    Love reading your “emails”, even though they show the doom and gloom of our current Gov’t! Wish we had more actual intelligent, decent people running this poor sick USA, then the current ISH party…actually the word used to describe the dem “party” is a really bad name choice, considering how this Country is currently being run is NO “PARTY”! I feel truly sorry for the younger gen growing up into this current democrap debacle! DEMON(c)RATS are causing what will be another big RESET of the Country….IT AIN’T GONNA BE PRETTY! DEMON RULED = DEMONCRATS….the middle letters N and C, stand for Never Christ! Sneaky buggers they are!

  • Rob says:

    A lot of low-income Americans voted for the whackos.

Leave a comment