TSX:AX.PR.E - Post by User
Post by
Torontojayon Sep 01, 2024 6:51am
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Post# 36204444
People are spending more
People are spending more Because everything costs more.
The government is lying to you about the strength of the US economy. Let's take a look at real gdp. Revisions came in at 2.8% which I highly doubt is accurate. You don't have to take my word for it. If the consumer is so resilient then why did Home Depot,McDonald's,Starbucks and Dollar General report declining "nominal" sales y/y in Q2? Wouldn't you say these companies are a great barometer for the consumer? Anyway, I decided to dig a little deeper in the data and here is what I find. Nominal gdp grew at precisely the same rate as inflation over the first 2 quarters. This tells me that real gdp should be flat over the first 2 quarters. If you believe inflation should be higher than what's being reported then real gdp should be negative. In other words, people are spending more because everything costs more. The economy is not growing, it's the inflated numbers at the store that is growing.