Talking Economics with Jim Bianco: Why US Growth Limited to 2% or Less

Dec
16


 

TrimTabs’ President and CEO Charles Biderman speaks with Jim Bianco of Bianco Research about the current state of our economy in the first episode of a three-part series.

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One Response to Talking Economics with Jim Bianco: Why US Growth Limited to 2% or Less

  1. Ed_B on December 26, 2013 at 7:35 pm

    Charles:

    I could not agree with your thesis on headwinds slowing US economic growth more. I believe that we have reached the point where we have to choose between growing the US economy and growing the US Government… and we have chosen poorly!

    As to the “growth” in the US economy, this must surely be net of inflation, for if it is not then inflation could be masquerading as growth when it is not growth at all. I base this statement on the work of economist John Williams who calculates US inflation in the same way that the US Gov itself did prior to about 1990. At that time both food and fuel were counted in the CPI and there were no substitutions or “hedonic” adjustments allowed. Back then, we got the real deal and not some heavily massaged number preferred by those in power who very much desired to remain so. Williams shows the current US annual inflation rate at about 9%. If we supposedly have 2% or so “growth” and nearly 9% inflation, do we have any real growth at all, or is some of this inflation simply be counted as growth? Yes, this is a rhetorical question, as few among us can fathom what lurks in the minds of the bureaucrats in NY and DC.

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Charles BidermanCharles Biderman is the Chairman of TrimTabs Investment Research and Portfolio Manager of the TrimTabs Float Shrink ETF (TTFS)

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