With all the Brexit talk I neglected to write about the final revision for US Q1 GDP. It came in at a robust 1.1% annualized or 0.2525% for the quarter. To show where we are, that number beat the last revision of 0.8, which was also near consensus.
Just short of eight years under Obama and the US still has put up a 3% growth for a year. FDR had one during the Great Depression. Eight years are a long time to suffer under stagnant growth. And the White House has done nothing for the middle class except suck resources from them. No wage growth, in fact most Americans are making far less salary now than in 2008. Without wages rising the US economy will suffer from anemic growth for the next eight years.
And yet compensation at the upper end has flourished, with none of the “trickle down” effects being realized.
As I wrote here, the Obama administration will be tagged by historians as the presidency that oversaw and facilitated the greatest transfer of wealth ever seen in the world.
This White House makes the colonial Spanish explorers look like pikers in comparison with its looting of gold from Central America.
Brexit exited the markets yesterday as the all-clear sign came that we would not have a Lehman moment as a result of the break up.
It all makes perfect sense that the pound sterling should strengthen against the dollar as the UK debt is downgraded and the Brits need to rework most of its more profitable trade agreements. Perfect sense.
So, nothing to see here boys, keep it moving, now. All good. Don’t look behind the curtain and see Deutsche Bank, Barclays or RBS. Keep it moving please.