Back in February and March when everyone was panicking and selling stocks I was telling readers and viewers of my videos to stay calm and buy. My analysis told me that fiscal flows (spending) was strong enough to support the economy and that all the selling was just pure emotion or, based on a completely flawed view of what was happening.
People were trying to make a case that falling oil (removing monopoly rent) and cheap gas prices were somehow a bad thing. They were worried about a China debt collapse when that was not even possible. The selling was completely irrational.
All along the way I was producing figures from the Daily Treasury Statement that showed strong levels of government spending. Yes, there were headwinds, however, the headwinds were being offset by the high levels of spending.
Moreover, the dollar was going down, something that would be positive for corporate earnings. The dollar's decline, by the way, is something else I had forecast, along with the rise in gold prices going all the way back to last December when I said that investors should buy gold when the Fed raised rates.
At the time I explained that rate hikes were the equivalent of price hikes as everything hinges off the price of credit. When the Fed raises rates that price increase trickles through the economy and all prices tend to follow higher. That was why gold was going up and it was why the dollar was falling, too. It is inflationary. All my flows-based MMT forecasts proved to be correct.
Understanding the Daily Treasury Statement can put you way ahead other investors and for that matter, all of mainstream economics. It is the most concise reading of what is going on in the economy. All the major investment banks and asset managers pretty much got it wrong, however, following and understanding the flows allowed me to get it right.
If you are interested in learning how to analyze the Daily Treasury Statement, then you should buy my video course entitled, Understanding the Daily Treasury Statement. It's only $99, but I guarantee it will be the best $99 you ever spent.
Get the course here.
Check out some of my other courses here.
And don't forget the MMT Trader.