Peter Navarro Discusses MAGAnomics, Tariffs and GDP with Maria Bartiromo

Conservative Treehouse ^ | August 1, 2019 | sundance

[BeauBo]

Navarro outlines the background of the second quarter GDP result... the two primary drags on the Q2 release are also the most volatile: Export/Import contributions (-.65%), and Inventory contributions (-.86%). However, consumer spending was much stronger than anticipated (+4.3%) showing the internal strength of the U.S. labor market and the impact of wage growth which now exceeds 5.5 percent. The rebound in Q3 is going to be very, very good.

[BeauBo]

He estimates that without those temporary fluctuations in inventories, and other factors (which are all likely to normalize or reverse in Q3), we would have been closer to 4% growth than 2%.

Inventories will likely have to re-stock because of the exceptional growth in consumer wealth and enthusiasm. Trade balance will likely improve as the interest rate cut adjusts the dollar - and the rate cut itself, as well as ending quantitative tightening will also stimulate growth in a few ways.

0.4% came off of growth last quarter, just from the Boeing 737 Max being put on hold - a one time hit.

He also anticipates the USMCA coming up for a ratification vote in September, where it will almost certainly be approved.

[Vendome]

He also didn’t include the unusually long winter which contributed to slower construction starts and other seasonal attributions to this quarter...

[Migraine]

If a smarter woman exists anywhere, I ‘d like to know.