Posted on 08/22/2019 12:51:36 PM PDT by Kaslin
RUSH: How long ago was it that the economy was booming and they were trying to say it’s Obama’s economy, right? Now all of a sudden U.S. Steel’s laying some people off, negative bond yields in Germany and all of a sudden we’re on the verge of a recession and all of a sudden it’s Trump’s economy again!
Look, I could provide you ongoing evidence of the fact that these people are losing their minds predominantly because none of what they’re doing to try to destroy Trump is sticking.
In fact, you saw just before the program began the AP has a new poll out. And don’t forget. I haven’t dropped it. Laurence Tribe claiming that Trump’s objective here is to reverse the outcome of the Civil War. How exactly would that be done? What is Laurence Tribe actually saying? That Trump is trying to bring back slavery? That Trump is trying to reconstitute slavery? Anybody paying scant attention to this can clearly see who is losing their mind and who’s off the reservation.
BREAK TRANSCRIPT
RUSH: Kevin in Houston, great to have you on the EIB Network. Hello, sir.
CALLER: Hello, Rush! Real quickly you and I met back in the nineties at Mile High Stadium when you did a brief broadcast of the Broncos-Bills game, and I today still have your autograph on that press pass. So thank you very much.
RUSH: (laughing) That was the opening game of the season that year.
CALLER: Yes, it was.
RUSH: The Monday night game. I remember. Thank you, sir.
CALLER: You betcha. Hey, real quickly, this inverted yield stuff, in my humble opinion, is being looked at completely wrong by virtually everybody. Let me tell you why. The two-year bond now has a greater return than the 10-year bond. Why? Because over the next two years, the Trump economy is still gonna be in play. Down the road, a couple of two-year bonds here, two-year bonds there, Trump’s economy’s gonna be in play. Ten years from now, even when Trump is reelected in 2020, he will be out of office, and it will be somebody else’s economy and probably not one you want to take a long-term bet on.
RUSH: Well, that is one way of looking at it, the two-year versus the 10-year bond. The problem is you can’t just buy two-year bonds alone. You have to buy and you have to sell a mixture. The real evolution of this story is the blockbuster news that you people have been aware was coming because you listen here. Germany actually did it. They sold 30-year bonds at a negative interest rate, meaning the people who bought bonds to finance Germany’s debt agreed to take no return on their bonds. They agreed to lose money on the deal. The reason why is what is fascinating.
BREAK TRANSCRIPT
RUSH: I want to get back to the yield curve. I could go on for another 10 minutes about this because it’s so irritating. There’s big news today out of Germany. We’re talking about negative yields, particularly in the bond market, and I mentioned that I had an interview with Larry Kudlow, the council of economic advisers to the president for the latest issue of The Limbaugh Letter.
And I asked him, ’cause he was really praising the U.S. economy, speaking about it glowingly, what great shape our economy’s in. And he was going down all the things that make it strong. I said, “What’s the biggest vulnerability?” He said, “The rest of the world.” I said, “What do you mean?” He started describing the economies of our allied nations as being very, very unstable and trending down.
I said, “Well, how can this be? How can they look, Larry, at the United States economy, not just now but over the course of the history of our countrym, I mean, we’re the largest market in the world. We’re one of the youngest countries in the history of the world, and we have a higher the standard of living, we have more disposable income, prosperity, all the measures of economic success that you could have, and we dwarf the world. Why do these other nations, particularly our allies, not emulate us?”
He said, “A-ha. This is a good question.” He said the first answer is, “Well, they’ve got their own answers, Rush, and they’ve got their own computer models. And they’ve got their own ways. And they think their ways are better. They don’t want to emulate us. They’re tired of the United States being so strong.”
“But we protect ’em, Larry! We’re not their enemy!”
“But, Rush, there are a lot of socialists in these allied nations, western socialist Democracies, and they’re gonna run their economies the way they want.”
“But the model, Larry, you talk about models, the model for how to have a growing, robust economy with market freedom for the great bulk of the population is right here in the United States. He said they’re not gonna do it. They’re gonna stick to their models. They know better. They’ve been around longer than we have. And they’re not free marketeers, Rush.”
So I said, “Okay. Give me an example of the vulnerability you’re talking about.” He said there’s nowhere in the world right now. If you have money to invest, there’s nowhere in the world but the United States. This was kind of a foretelling of what happens. Would you invest in Germany right now? Would you buy bonds in Germany when the money you spend buying the bond is gonna lose value over the course of your ownership of the bond? Would you spend a thousand dollars buying a bond and in 30 years get $900 back for it? No. You wouldn’t.
So you come to the United States, you invest in the United States. Well, that causes a flood of activity in the American market. The laws of supply and demand take over. And our own yield curve ends up getting affected because there’s nowhere else in the world to invest. On the one hand it’s great. On the other hand, it creates problems.
Let’s focus on Germany. Imagine lending money to somebody and having to pay them. That is what’s happening in Germany. Or, another way to look at it. They ask you to invest, they ask you to buy bonds in Germany, government bonds to finance German debt, and they ask you how much are you willing to lose? Negative yields, negative interest rate. There is no interest rate gain of 1%, one and a half, five percent, nothing.
You buy a one-thousand-dollar bond in Germany, after it matures it’s gonna be less than a thousand dollars you get back. Why would somebody do this? There were people that made tracks in Germany, all kinds of people participated in an auction to buy such bonds in Germany yesterday. Why? Well, there is an answer. It’s coming up.
I said, “Well, how can this be? How can they look, Larry, at the United States economy, not just now but over the course of the history of our countrym, I mean, we’re the largest market in the world. We’re one of the youngest countries in the history of the world, and we have a higher the standard of living, we have more disposable income, prosperity, all the measures of economic success that you could have, and we dwarf the world. Why do these other nations, particularly our allies, not emulate us?”
He said, “A-ha. This is a good question.” He said the first answer is, “Well, they’ve got their own answers, Rush, and they’ve got their own computer models. And they’ve got their own ways. And they think their ways are better. They don’t want to emulate us. They’re tired of the United States being so strong.”
“But we protect ’em, Larry! We’re not their enemy!”
“But, Rush, there are a lot of socialists in these allied nations, western socialist Democracies, and they’re gonna run their economies the way they want.”
“But the model, Larry, you talk about models, the model for how to have a growing, robust economy with market freedom for the great bulk of the population is right here in the United States. He said they’re not gonna do it. They’re gonna stick to their models. They know better. They’ve been around longer than we have. And they’re not free marketeers, Rush.”
So I said, “Okay. Give me an example of the vulnerability you’re talking about.” He said there’s nowhere in the world right now. If you have money to invest, there’s nowhere in the world but the United States. This was kind of a foretelling of what happens. Would you invest in Germany right now? Would you buy bonds in Germany when the money you spend buying the bond is gonna lose value over the course of your ownership of the bond? Would you spend a thousand dollars buying a bond and in 30 years get $900 back for it? No. You wouldn’t.
So you come to the United States, you invest in the United States. Well, that causes a flood of activity in the American market. The laws of supply and demand take over. And our own yield curve ends up getting affected because there’s nowhere else in the world to invest. On the one hand it’s great. On the other hand, it creates problems.
Let’s focus on Germany. Imagine lending money to somebody and having to pay them. That is what’s happening in Germany. Or, another way to look at it. They ask you to invest, they ask you to buy bonds in Germany, government bonds to finance German debt, and they ask you how much are you willing to lose? Negative yields, negative interest rate. There is no interest rate gain of 1%, one and a half, five percent, nothing.
You buy a one-thousand-dollar bond in Germany, after it matures it’s gonna be less than a thousand dollars you get back. Why would somebody do this? There were people that made tracks in Germany, all kinds of people participated in an auction to buy such bonds in Germany yesterday. Why? Well, there is an answer. It’s coming up.
Far from Obama’s economy. To say the least. The media is trying to talk the USA into a recession. There is not one.
NOT ONLY do Republicans NOT want slavery - then or now - but we don't even want the CHEAP LABOR EXPRESS slipping in from Mexico. NO slaves No 'wetback cheap labor'....
Laurence Tribe has confused us with democrats - people who wanted and kept slaves and people who want and fight for cheap labor illegals.
There is an impending Global recession which is why our strong economy is slower than it could be. We should benefit as our companies can purchase goods for manufacturing at cheaper prices from abroad given the slowdown, we just have less of an advantage export currently.
BS. It’s the GOP driving the Cheap Labor Express. Only a nit wit would think otherwise. The Democrats want illegals for their vote and the social welfare suck. Nice try, FAIL.
As a proof if you took away all of our exports how much would GDP fall?
Democrats are POS.
In 2018, U.S. GDP was 69% personal consumption, 18% business investment, 17% government spending, and negative 5% net exports. so if exports slow further it will still negatively impact GDP, let’s say it could decrease it by .25 percent in an environment of about 2 or 2.5% growth that is still significant.
Wow, that is a long link. I won’t post the article because not all of it is of value. I have to confess actually I was under the impression that quantitative easing was still ongoing, not curtailed as the writer suggests.
The short of it is those “indicators” are just not valid.
I almost hate myself for posting something from CNBC, that I loathe like nothing else, but Credit Suisse says no recession.
4 of the 7 indicators indicate expansion.
So why not answer the question?
Bush gave us the crash
Obama gave us depression
Trump gives us the greatest BOOM in history
You’d think that with all of the lying, the MSM would lose credibility. It is like math teacher who claims that 1 + 1 = 3 or an English teach who can’t spell. Accurate news should be at the core of their being. Hey, maybe we Americans have lowered our standards.
YOU won's see that anymore...
Today guilty white liberal elites have dumped all black 'help' because they want to see themselves as the great defenders of blacks. (They'd all be in chains if it weren't for white liberal elites like Biden after all, right?).
It's NOT stylish to hire blacks for ANY in-house work. YOU know that central va...
So liberal 'elites' dumped black 'help' and replaced them with illegals... Illegals work cheap, under the table and are grateful. Just like blacks use to be when democrats lorded their superiority over them...
There's a piece of the story missing . . .
The number one indicator of an economic downturn is actually RV sales. Yeah. You heard that right. RV sales. They are a better indicator than any economist. They’re down 20% this year. Year over year delivers started to collapse last year. The RV industry has always been the canary. Right now the canary is gasping for breath.
Answer the question.
Which is why we don’t need to be lowering interest rates right now. We need to raise them. When the global economy tanks-we need to give investors a flight to safety. If we are sitting at zero interest rates too, we don’t look any better Han the other guys.
about 12%
WHAT question
The media seized on that very very minor discrepancy in prices so one of them could say the word “recession.” Immediately the rest of them picked up on it and are doing their best to talk the economy down.
Obviously, they have stopped talking about the obama economy.
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