The S&P 500 just erased all losses from the COVID-19 pandemic, even setting a new all-time high. At least, that is how the headline reads at CNBC.
Unfortunately, I believe this is due to inflation caused by government spending. The recent bailout bill totaled some $6 trillion dollars. $2 trillion at the Federal level and $4 trillion for the Federal Reserve.
Those newly created dollars made the cash we have in our pocket worth less.
In the end, who received that money?
Bad Economic Data
Megacorps, not Mom and Pop shop businesses that is for certain.
We know the record-setting gains of the S&P 500 are artificial in nature. We still have 10.2% of the population out of work, which translates to roughly 16 million Americans. Do not forget about the other 82 million Americans who have been out of the workforce for years.
As of July, there are a total of 98 million working-age Americans out of the workforce. The working-age population is around 160 million. That means there are only about 60 million people working in this country, yet we have all-time market highs?
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Come on.
Real Economy Is Down
In reality, and concerning businesses that actually contribute to a real economy. We find that global air travel is down 85% this year.
Then we find the world’s largest shipping company, Maersk, says demand will ‘significantly decline’ this week.
In fact, due to massive government spending programs, faith in the dollar continues to decline now hitting a 27 month low.
This is not good economic data. If our country was doing well economically, there would not be ticked off Americans like this Californian who just warned his county to stop the lockdowns or else…