President Trump appeared for an extensive interview with Maria Bartiromo on Fox Business. The interview is essentially broken down into two interrelated contexts, the Iran conflict and the overall economic issues. There are two segments, in this post we focus on the first segment.
Here Trump is discussing the overall economy and there is an unusual dynamic in the background. As the Iran conflict unsettles the oil/gas markets and the overall global energy sector, there are two facets to the USA impact.
On one hand, say the Main Street side, Trump understands the price of gasoline is being impacted by the overall price of oil. For Americans the increase in gasoline price is moderate compared to the rest of the world; however, each dollar spent on gasoline is a dollar the middle-class doesn’t have to spend on something else. That can have a negative impact on GDP overall, but the dollar spent stays in the U.S. economy.
On the other hand, say the Wall Street side, Trump also understand as more global markets seek to export U.S. oil, the U.S. energy sector expands GDP through increased export value. In my estimation, the Quarter #2 GDP is expanding at a much higher rate (due to the export of Oil/Gas) than the internal impact from higher gas prices. I expect to see significant increases in GDP growth as a result. Those Q2 calculations will come at the end of July this year.
Trump also hits on a good -albeit politically incorrect-point about the preceding illegal alien influx, supported by Joe Biden. The economic migrants who entered the country illegally were not -as a whole- the type of migrant looking to be responsible for their own economic outcome. These were illegal aliens comfortable with govt handouts and govt subsidies. This is why it remains critical for the U.S. economy to capture and deport those who entered illegally during that period.
American Buddhist Net 