"No Recession in Sight": Translating Trump and Kudlow

Please consider Trump 'Not Ready' for China Trade Deal, Dismisses Recession Fears.

Consumers Doing Well

• Trump: “We’re doing tremendously well, our consumers are rich, I gave a tremendous tax cut, and they’re loaded up with money.”
• Trump Translated: The "tremendous tax" cut primarily benefited the wealthy. Consumers are tapped out. That's why housing and autos are on the ropes.

Deal With China

• Trump: “I’m not ready to make a deal yet [with China].”
• Trump Translated: China is damn sick and tired of my tactics. They prefer to wait hoping for a Democrat president.
• Trump: “I would like to see Hong Kong worked out in a very humanitarian fashion,” Trump said. “I think it would be very good for the trade deal.”
• Trump Translated: I have completely abandoned the idea there will soon be a trade deal unless I further capitulate to the demands of China. I was forced to give Huawei Another 90-Day Reprieve and sadly, I Chickened Out by Delaying my Trade War Tariffs to Save the Holiday Season.

Recession

• Kudlow: “There is no recession in sight. Consumers are working. Their wages are rising. They are spending and they are saving.”
• Kudlow Translated: Judging from manufacturing, Recession is Imminent. Real wages are falling fast. New Buyers cannot afford to buy a home, because the Housing Bubble Reblown: Last Chance for a Good Price Was 7 Years Ago. Consumers are spending by going further in debt. The setup is not sustainable. It's the Debt Stupid. Expect Panic Rate Cuts.

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