by John Galt August 18, 2019 13:15 ET
In what can only be called a weird twist of irony, Larry Kudlow, who just happens to be President Trump’s Director of the National Economic Council in the White House said this on December 6, 2007 (From the National Review):
There ain’t no recession.
Sadly for Mr. Kudlow, the NBER disagreed with home some 24 months later and pegged the start of the “Great Recession” as starting in December of 2007. Many of us proclaimed it started in October of 2007, but that’s water under the bridge now. Today on the various mainstream media Sunday “news” programs Larry Kudlow uttered the party line like this:
If I were President Trump, I would start preparing to star in a new reality TV show in 2021.
In the same National Review article referenced above, Mr. Kudlow penned in 2007, he also pointed out some ironic and frightening parallels:
-The fact is, America is working.
-Look at how close the reports parallel one another. So here’s my point: Jobs aren’t folding. Jobs aren’t plummeting. Jobs are strengthening.
-Now let’s move on to our second chart’”productivity. The latest productivity report was staggering. In fact, it was the best in four years.
-Finally, a look at financial profits.
-After-tax, they are doing better than people think. We’re talking about 300,000 companies here, from the IRS based GDP reports. They are profitable. Sure, S&P financials are down about 35 percent. But NIPA financials are up 8 percent on the year.
Those items are the bullet point references worth mentioning from Kudlow’s article in 2007. Which are almost IDENTICAL to what he is saying about our economy today. In fact the current economic data is an ominous parallel to that era.
But to be fair, as I was then, I shall be consistent and say that without a doubt the majority of all economic reports are tainted by political tinkering and unlike the 2008 election period, I look for the various government agencies to perform some 2012 Obama like economic voodoo to swing the numbers in the incumbent’s favor.
Many of us recognized the shortcomings and problems brewing in 2006 and 2007 which collapsed in 2008, almost destroying our nation’s economy and financial system. The cheer leading by the Trump supporter’s is obvious as the 2020 election year is just around the corner. The sad part is the financial “news” community continues the same practice as 2007 where they are dismissive of warnings from smaller or alternative analysts who are warning about the recent signals from credit markets on a global scale.
Mr. Kudlow has a job to do and what he is saying as a dedicated life long Republican supporter is understandable. Sadly, this perversion of reality allowed and encouraged by political and economic elites overshadows one reality they can not change:
The bills were never paid in full for the insanity of 2001 to 2009 and now they are coming due.
America, and the Western system of finance is about to endure the greatest test in history as the political economy established by the old elites is about to experience an upheaval unseen since the collapse of the Roman Empire.