Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Presidential Election a Sign Economy Is in a Mess

  by    0   0

Economists say election uncertainty is subduing economic growth. But it seems more likely the horrible economy is driving this strange election cycle.

sanders and gang

For months, Peter Schiff has been saying if the US isn’t already in recession, it will be in one soon. Former Reagan Office of Management and Budget Director David Stockman recently told Neil Cavuto on Fox Business that the next president will inherit a recession. Last Month, Mike Maloney said the data screams a recession is already here.

For the most part, Peter and others are still voices calling in the wilderness. The mainstream keeps towing the line and pushing the idea that the economy is fundamentally sound and improving. But Americans know better, as the unrest and turmoil evident in this presidential election cycle makes clear.

And even when it comes to the mainstream, we are starting to see cracks in the “everything is fine” narrative.

Earlier this week, the Associated Press ran a story reporting economists are becoming more pessimistic in their outlook about economic growth this year:

The median estimate from economists surveyed by the National Association for Business Economics calls for gross domestic product growth of only 1.8%, down from the 2.2% forecast in March. The outlook for next year calls for 2.3% growth. The survey released Monday also shows the forecast for growth in corporate profits swinging from a 2% gain in March, to negative 2% in June.”

The AP story points out that the shockingly bad May job report deepened doubts about the economy. The only seemingly good employment news was the official unemployment rate dropped below 5%. But this was only because so many people simply stopped looking for work and dropped out of the job market completely. Nearly a half-million jobless Americans stopped hunting for a job.

Keep up with the latest news and its impact on the gold market. Subscribe to Peter Schiff’s Gold Videocast

Meanwhile, the brief April bounce in US Services economy died. PMI slipped back to 51.3. As Markit put it, “The service sector reported one of the weakest expansions since the recession.” US auto sales also took a nosedive in May. And construction spending dropped 1.8%, marking the weakest April since 2011.

It’s always interesting to look at how the mainstream frames things. According to the AP report, uncertainty about the upcoming presidential election is a big factor in economists downgrading economic growth expectations this year. It makes it out as if it’s just a little temporary blip on the radar. It seems like a stretch to blame awful jobs numbers, a crashing services economy, plunging auto sales, and a drop in construction spending on the upcoming election. Which came first?

Buried in the AP story, we stumble across something that gets closer to the truth, a point relating to the election Peter has made several times:

Americans especially worried about the economy have been more likely to support outsider candidates like Donald Trump and Sen. Bernie Sanders.”

Think about it; that’s an awful lot of Americans “worried about the economy.” Peter made this point back in March during an interview on Fox Business:

Talking about the elections – why do you think Donald Trump is getting so many votes. All the exit polls show that the number one concern facing voters is the economy. Yet Janet Yellen said that consumers are confident. No they’re not. Those consumers are voters, and they’re voting for Trump because they’re not confident…These are lousy jobs. These are low-paying jobs. These are Trump voters. These are Sanders voters. That’s why they’re there – because they have a part-time job and it’s lousy, and the pay is lousy.”

In other words, average Americans understand what the policymakers and mainstream media pundits don’t seem to want to admit – the US economy is a mess.

It’s not that the election is driving economic uncertainty. Economic uncertainty is driving the election.

Photo by Donkey Hotey via Flickr.

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Feds Run Second-Biggest Budget Deficit in History; Spending Up from 2020 Record

The federal budget deficit for fiscal 2021 came in at $2.77 trillion. It was the second-largest deficit in US history, just behind last year’s $3.13 trillion shortfall. Despite falling shy of the deficit record, Uncle Sam spent even more money in 2021 than it did during the depths of the 2020 coronavirus recession.

READ MORE →

Stagflation Warning: Atlanta Fed GDP Estimate at 0.5%

As governments shut down the economy in response to COVID-19 and the Federal Reserve put money printing into hyperdrive, we warned that it was a recipe for stagflation. Today, it looks like stagnation is here. Stagflation is an economic environment with rapidly rising prices, a weak labor market, and low GDP growth. It’s looking more […]

READ MORE →

Chinese Gold Demand Continues to Strengthen

Gold demand in China was up in September, as the country approaches a peak gold-buying season. Both gold withdrawals from the Shanghai Gold Exchange (SGE) in September and gold imports in August were up, a sign that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.

READ MORE →

JP Morgan Chase CEO Worried About Higher Than Expected Inflation

With CPI data once again coming in hotter than expected, it’s getting harder and harder for the mainstream to swallow the “transitory inflation” narrative. And some people are starting to worry. During an earnings call, JPMorgan Chase CEO Jamie Dimon expressed concerns about higher than expected and persistent inflation ahead.

READ MORE →

American Consumers Continue to Run up Credit Card Debt

Consumer borrowing has slowed somewhat from the record level we saw in June, but Americans continue to pile on the debt. Consumer debt grew by $14.4 billion in August to $4.35 trillion, according to the latest data from the Federal Reserve. That represents a 4% increase. This follows on the heels of a 4.8% increase in […]

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now