It’s the Spending, Stupid.


Posted: Sep 18, 2022 12:01 AM

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Bill Clinton’s political braintrust famously wrote on the blackboard in their campaign headquarters,“It’s the economy, stupid.” In reality the economy was on a stronger footing then. Inflation was a fraction of what we’re experiencing today. Nonetheless, the Clinton campaign rode their economic message to victory over President George H. W. Bush that fall. 

Fast forward. Today we have a Democratic administration celebrating the fact that the inflation rate was slightly less this month than last. They called it “welcomed relief.” It’s still the highest in 40 years!  The modest decline is likely aided by slightly lower gasoline prices  (also still among the highest in 40 years). Incredibly the White House held an event to tout the passage of the Inflation Reduction Act. With a straight face the President claimed that the 8.3% number represented “progress.”

Wall Street wasn’t buying the spin. They were selling.  Smart money “celebrated” the worse than expected numbers with a 1276 point rout. Investors expect the Fed will be

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