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US Economy and Stock Market Addicted to Deficit Spending

Stock-Markets / Stock Market 2022 Oct 22, 2022 - 07:17 PM GMT

By: Nadeem_Walayat

Stock-Markets

What to know what tends to drive the stock market into the stratosphere? US Deficit Spending! (actually twin deficits including Trade).


Here's the Dow divided by the annual US budget deficit. Usually the lower the reading the better the prospects for the stock market because the stocks are being fuelled by rampant money printing deficit spending that gets monetized by the central bank on an epic scale, all whilst MSM focus on smoke and mirrors.

The smaller the bars the more the US government is pumping the economy and stocks! As you can see despite the US Government attempting to reign in the budget deficit to $1 trillion, the US government literally continues to inflate stock prices because most of the spending that's going on is for consumption and NOT investment, or a one off such as for a war, so it CANNOT STOP without triggering severe economic contraction!

What's the price for rampant money printing?

INFLATION!

This article is an excerpt form my extensive analysis that concludes in detailed stock market trend forecast into the end of 2023Stocks Bear Market Max PAIN - Trend Forecast Analysis to Dec 2023 - Part1 was was first made available to patrons who support my work.So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.

Recent analysis includes -

So for immediate first access to to all of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.

My Main Analysis Schedule:

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Your watching the British pound burn at the official rate of 10.1% per annum analyst.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2022 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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