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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (183673)	1/9/2023 7:14:03 PM
From: GROUND ZERO™	2 Recommendations Recommended By Drygulch Dan sixty2nds Read Replies (2) \| Respond to of 220624

Who knows, anything can happen... The real problem is that growth is only 1.7% annually but has been at 3.6% annually for so many years previously... The bigger the government then the weaker the economy because that same money that would be used to manufacture and stimulate consumer spending is only being spent on nonproductive government maintenance and entitlement programs... Right now the debt to GDP ratio is more than 130% and still increasing... So, even if the FED slows and allows inflation to increase, there's still no real potential for legitimate economic growth since the federal government is growing rapidly and is draining the money that would otherwise be used for the private economy That same money is now being used only to keep the government itself running... The math is very simple, the bigger the government, the less private economic growth... This is part of the secular change I've mentioned before... With a cyclical condition then we can see a recovery, that's what cyclical means... But with a secular change as we now have there is no cyclical recovery bounce... So, sure, we could see a market rally, but there's no underlying basis for genuine growth to sustain that rally... Even with a Republican House, they can reduce government spending all they want but they cannot stimulate private economic growth... This is a very serious long term problem... The only solution is to reduce the size of the government and good luck with that... GZ