As I wrote yesterday, the Trump/Russia fiasco is sucking all the oxygen out of the room, causing a political standstill in DC, which is benefiting markets and hurting the average American.
While the markets see there is little cause for panic of having a Trump impeachment, the circus is keeping any new regulations or even filling in new Trump Administration appointments from moving forward, keeping the volatility index near single digit levels.
Unfortunately, the US economy cannot run on its own during this “do-nothing” time. Looking at projections for the Q2 GDP, you will see how growth is falling off the table.
The Atlanta Fed’s GDPNow monitor started the quarter with a 4.3% growth projection in early May. It’s current measure of GDP is down to 2.5%, which is in the center of Wall St.’s consensus. The low on the Street consensus is 2.2% and falling.
So as the straw-man focus on Russian involvement in the election continues, the economy suffers, while the investment classes pull in more profits from their scare-free capital deployments.
This environment does little for the typical Trump supporter who is suffering in perhaps two part-time jobs, with no benefits. Remember this as well, these people have been suffering for as long as a decade in this situation.
How long can the family accept this stress and suffer in near-poverty before they breakdown? The suffering can be shown with the growing number of divorces and separations, but it also shows up in illnesses as diet gets worse due to lack of cash to buy healthier food. Over the last decade you can see in studies how Americans have put on weight due to poor diet.
The left-wing media’s vendetta against losing the elections by propagating false narratives to keep the White House on the defensive is doing some real, direct harm to Americans, who can least afford stand still, because they are dying.