Lying About The Economy Will Only Make The Coming Crash Worse
I don’t know who needs to hear this. Wait, yes I do. The Biden Administration.
I really don’t know how to describe the disturbing trend over the last few months of the Biden administration, along with Treasury Secretary Janet Yellen, simply lying to the American people about the economy.
Months worth of political spin has culminated in embarrassing recent attempts to redefine the word “recession”: a futile effort to pull the wool over an American public that is growing increasingly suspect both Biden and Yellen’s competence to be overseeing the the country, and the economy, respectively.
By now, the administration’s pathetic falsehood of a narrative about our economy has been called out, ridiculed, dismantled and generally beaten to death by anyone with a shred of common sense.
However, there is something far more important that people aren’t talking about: the administration lying about the health of the economy could wind up exacerbating any financial crisis that we have in the near future.
Put simply, the more you tell people that “everything is fine” when it isn’t, the more surprised and shocked they are going to be when markets start to panic.
I don’t think a market crash is an outrageous scenario that has no chance of happening, either. I noted in my latest portfolio update that I thought the market could have a short-term rally based on the idea of participants thinking that the Fed is preparing to pivot.
But over the course of the longer-term, the rate hikes that have already been put into place are going to eventually make their way to the economic-narrative-foreground in the form of huge forthcoming aftershocks throughout the economy.
…click on the above link to read the rest of the article…
