Former Wall Street money manager and financial analyst Ed Dowd of phinancetechnologies.com is back with more data on how the Biden Administration propped up a failing economy during the 2024 election year.
Dowd contends “crisis level spending” was being administered, along with some bigtime “fraud.”
Dowd says, “We had 10% deficit to GDP during the Great Financial Crisis (2008 – 2009) when we actually had a crisis. We had 8% deficit to GDP during this election year. You have to ask yourself, what was the crisis?”
“The crisis was to get the Biden Administration (and Kamala) re-elected. So, they went on binge spending. They borrowed from the future to try to ensure they won.
They did it two ways: They hired massive amounts of government personnel to float the economy, and they also did illegal immigration.
We are thinking it was 10 million to 15 million illegal immigrants that came in the last four years. The majority of the illegal immigrants came in the last two years. That stimulated the economy and raised the velocity of money as those people were given money.
All the NGO’s that facilitated the illegal immigration also got money, and that stimulated the economy. This deficit added $2 trillion, and that was unproductive assets. So, we borrowed from the future to create more government jobs and imported unprecedented amounts of illegal immigrants that don’t add to the economy.
That’s what we have, and President Trump’s policies are going to reverse all that sugar juice. There are going to be mass deportations and reduced government spending.
That short term juice is going away, and it was not sustainable anyway. The bond markets are revolting, and that could not have gone on much longer.”
But it was not just massive money printing and debt creation that hid how bad the real economy was, it was very crooked data. Dowd says,
“We also had bureaucratic incompetence or fraud or whatever you want to call it. They were padding the non-farm payroll numbers to the tune of 1.25 million jobs…
If you look at the chart, which we don’t have here, it’s insane.
It’s one of the biggest misses between reality and estimates we have ever seen.
It’s a seven-sigma event. It’s 1.25 million jobs. It’s already started downward revisions…
The 3rd quarter GDP of 3% will be revised down, and when we get . . . the data in February, there will be more GDP economic revisions down. . . . The capital markets made bad decisions on this data. The Fed made bad decisions on this data, and corporations made bad decisions on this data. The price tag is coming due in 2025. Not only that, but we have a slowing economy across the globe…
The amount of foreign assets in our stock market has never been higher, and this is all going to reverse. The price will be paid in 2025. . . .What’s coming is coming. It’s how low do we go, and when do the animal spirits kick in? So, there is pain coming, and it’s up to the Trump Administration to get all their policies enacted. Then we have a hope and a prayer coming out the other side that we will be way better off.
The bottom line is there is pain coming regardless. The question is how fast can we restart with Trump’s policies?”