For those who do not understand what just happened:
First, Q1 2024 GDP growth slowed to just 1.6% which is less than HALF of the 3.4% Q4 2023 number.
This reading is roughly 50% BELOW Goldman Sach's expectations.
But it gets even worse.
At the same time, the US Core PCE Price Index soared from 2.0% to a staggering 3.7%.
This crushed estimates of 3.4% and further suggests that inflation is on the rise.
We have a weakening economy with rising inflation.
The worst possible outcome for the Fed.
Interest on US Federal debt is out of control:
The annual interest expense on US debt is literally moving in a straight line higher, now at $1.1 TRILLION.
To put this in perspective, less than 3 years ago the annual interest expense on this debt was $450 billion.
That's a 144% jump as total US debt has surged by over $11 TRILLION since 2020.
Even in 2008, at the peak of the Financial Crisis, annual interest expense was just $450 billion.
As interest rates surge and debt levels hit record highs, we are paying the prices for decades of deficit spending.
The era of "free money" is over.
The federal government has added $11 trillion in debt over just four years. That's $84,000 for every household in the country.
In comparison, it took 220 years (1789 to 2009) for the debt to reach $11 trillion.
This problem requires serious leadership, but most of Washington just wants the gravy train to keep rolling. The only thing that will change this is for the political incentives to shift - meaning the public makes it clear that business-as-usual will no longer be tolerated.
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How dare these guys put law enforcement and all inside and out of this - the seat of government - in such pointless, unnecessary danger? This is not protest. It’s a petulant tantrum.
Every American has the right to peacefully protest. What’s happening right now at the U.S. Capitol building is wrong and un-American. We are better than that.