Fed Drops MOAB on Wall Street, Swamp Creatures Sack D.C.

Wall Street and our central bank are in for a rude awakening very soon! The idea that the US economy is on stable footing and about to experience a surge in growth is ridiculous. Hence, the consensus that the Fed can normalize interest rates and its balance sheet is nothing short of a bad joke…and it’s on them. For starters, the government’s fiscal deficit for the month of March came in at $ 176.2 billion, which means the deficit 6 months into fiscal 2017 is $ 526.9 billion and running 15% over last year. If not for the calendar timing of receipts and payments, our government’s deficit would be a year-to-date $ 564.0 billion or 23% above last year. In addition, there was an 18% decline in corporate income tax collection. We all know there was no corporate tax reform passed. So the credible conclusion must be reached that corporations are not growing there profits…they are actually shrinking.
The Market Oracle

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