Larry Kudlow, idiot-fool.

Kudlow is out yesterday saying that the economy is not a "sugar high".

He's quoted by the article as saying, “The economy is booming. We're in a boom. It’s not a sugar high... And the expansion of this economy is coming from the tax cuts and so forth... It looks terrific”.

All I can say is that this is what I would expect to hear near significant tops.  Morons like Kudlow always shoot behind the duck.  The fact that his lips are moving right now is much more likely to mean a big pullback is neigh than anything else. And this is what my subscriber blog models are saying as well.  Prepare for near term volatility followed by another sudden "unpredictable" collapse.

For those with brains, consider what Kudlow is saying: The economy is booming based on tax cuts.  Seems to make sense, right?  And if we were overpaying in tax and running a surplus budget then I would be inclined to agree with him.  But we're NOT running a surplus budget; it's a big fat deficit!  We had tax cuts but no spending cuts.  So all of the money that was added into the economy over the short term simply came out of the national credit card.  How is that not a "sugar high?  It's the very definition of sugar high!
 
This boom is being paid for with debt and that is never a sustainable thing, and no its not going to be different this time and yes, only a fool believes otherwise.  Keep watching for signs that the world is losing confidence in the issuing authority (the USA) of the global money supply (the dollar).  They are happening all around with currency swap deals between South American countries like Brazil and China, Russia and China, and now even US Ally S. Korea and Iran.  Each of these deals is another vote of no confidence in the global leader of fake money, the USA.  At some point they will all throw in the towel on the US dollar and simply decide that we've had too much exorbitant privilege in the taxation of the world for using our fake money over someone else's.

If you are new to the blog, I suggest you check out the sticky posts that appear under the "Insight" tab above.  For example, here is the sticky post that briefly yet succinctly explains the history of the global monetary system.  For people who really don't understand what is going on, this post, along with the others in the Insight section, is a great way to gain a base understanding.  Even (or perhaps especially) people with economics degrees (which I do not have) will benefit IMO because what they were taught does not cover some of the obvious truths that I uncovered when doing my own research and forensic analysis of what is happening using an engineering mindset rather than a political one.  If you think about it, why would the con man clearly explain the con to people?  He would not! He would have a nice story that skirts important facts that call him out for what he really is.  The engineering view cannot do that.  It explains everything regardless of how politically correct it may or may not seem.