Fake GDP breakouts come with the territory—–and the 4.1% reported for Q2 this morning is no exception. Perversely, it amounts to a “thanks, but no thanks, Donald” because much of it reflected one time gains in exports and personal consumption.
To wit, 1.1% of the gain was due to a surge in exports—mainly soybeans which soared by 200% during the quarter to beat China’s 28% retaliatory tariff that became effective July 8. So anticipatory buying by Chinese speculators and pig farmers are what actually put the “4” in this quarter’s GDP report.
SUBSCRIBE TO CONTINUE READING