Monday, April 11, 2016

What if the deficit grows (as it is doing) and then the economy tanks? What will the "deficit is too small crowd" say then?

Don't laugh. This could happen.

The deficit is growing again and flows (thankfully) are still strong, however, I am seeing some things that may suggest rising risk for the economy even though the deficit is now rising for the first time in six years.

What will the "deficit is too small crowd" say?

I'm pretty sure they'll say, "it's still too small," wihch woiuld be a total admission of the fact that they don't know what the hell is going on and are completely confused, but still trying to look smart.

It should also be the final proof that we are right at looking at flows.

If you want to see what "risk" to the economy I am talking about (and remeber, who told you BEFORE ANYONE that the deifici is growing--ME, right here at Mike Norman Economics where you get info you don't get anywhere else), then get my report MMT Trader for a free 30-day trial. Sign up today.

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