Tag: Gross domestic product

Economic Growth Up On GDP Revision From Consumer Spending

29/06/2017

GDP for Q1 was revised upward to 1.4% on an increase in consumer spending. The US economy enters its ninth year of economic growth in July. The first GDP estimate for Q1 was originally reported at 0.7%. So Q1 GDP grew at twice the rate as originally thought. That’s great. Obviously 1.4% growth is not Read More »

Fed Rate Hikes Are More About Slowing GDP Than Improving GDP

22/06/2017

The pitch by the Federal Reserve is that GDP is growing which is why they are hiking rates. The Fed has said that rate hikes are representative of their belief that economic growth is picking up and so really, rate hikes are something that is bullish for the economy and GDP going forward. If you Read More »

Trump Says GDP Numbers Are Going To Be Shockingly Good!

15/06/2017

President Trump just said that GDP numbers are going to be shockingly good! Did the President just leak the GDP number two weeks early? But more importantly, does he know something we don’t? GDP Numbers Are Shocking Bad The gross domestic product is on a bad trajectory. The economy and hence GDP has been contracting. Read More »

Dodd Frank Wall Street Reform and Consumer Protection Act Repeal Through House

9/06/2017

The Dodd Frank Wall Street Reform and Consumer Protection Act took a hit this week after the House passes a bill that guts many parts. The House passed a bill called the Financial Choice Act that would allow banks to opt out of some regulations if they hold enough capital and would repeal the Volcker Read More »

3D Printing Stocks For Playing Trump Trade War With China

27/11/2016

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Here Comes Supply-Side Economics and the Laffer Curve

10/11/2016

Increases in government regulation, taxes, environmental regulations, and ObamaCare on businesses, shifted the aggregate supply (AS) curve inward and thus reduced aggregate demand (AD). With the explosion higher in the cost of doing business, businesses hired fewer workers. In fact, many small businesses reduced the size of their workforce in response to ObamaCare. Less hiring Read More »

Frictional Unemployment and The Employment Situation Report

2/11/2016

As traders, we track the monthly Employment Situation report closely. The market often does a short-term move on the first Friday of every month when the Employment Situation report for the previous month is released. Do you understand what the Employment report is showing? I bet many traders do not. As traders, we have to Read More »

Macroeconomics of Rising Interest Rates

30/10/2016

The prospect of a Federal Reserve rate hike is driving up the US dollar. The rising US dollar has a significant impact on the US economy and thus stock market. It’s important that traders understand the implications of a rising US dollar from a macroeconomic perspective. Rising US interest rates mean that a lot of Read More »

Guess Who Is On Trump’s Economic Team, SWEET!

30/10/2016

Do you remember when the WSJ, CNN, CNBC, NBC, ABC, CBS, Bloomberg, Forbes, and Reuters ran stories at the start of the year about how no one even knows who was advising Trump on economic matters? They even went as far to say that Trump had no support of any economists. That never sat right Read More »

Microeconomics and Taxation

23/10/2016

Most government revenue comes from the taxation of transactions and labor. Taxes impact both the supply and demand curves. Taxes cause a buyer to pay more for something and suppliers to receive less. The loss of value for both buyers and sellers is called the deadweight loss of taxation. Taxation has an enormous impact on Read More »

A supply and demand chart showing equilibrium at the center axis of where supply and demand cross.

The Aggregate Supply-Aggregate Demand Model

17/10/2016

Looking at the aggregate supply (AS), aggregate demand (AD) model, we can see where the US economy is currently at in the economic cycle. It is critical that traders and investors understand where we are at in the business cycle so as to be in on the right side of the trade. Timing Bull/Bear cycles Read More »

With So Much Debt In the US Economy, Is It Even Possible To Grow Faster?

25/09/2016

The US national debt just broke above $19.5 trillion. Both Democrats and Republicans are to blame, but it is important to note that President Obama and Democrats increased the national debt more than all President’s before combined. George Bush exploded the national debt by $3 trillion in response to an imploding economy and 911. Obama Read More »