The Jay Martin Show Abuse, Waste, And Fraud: The TRUTH about US Government Spending
May 31, 2025
Economist David Rosenberg, from Rosenberg Research, shares critical insights on economic risks that often go unspoken. He critiques the latest U.S. budget bill, suggesting it may significantly hinder GDP growth. Geopolitical tensions and a shift in global trade dynamics are discussed, with Japan highlighted as an overlooked concern. Rosenberg offers a contrarian investment strategy advocating for cash, gold, and defensive stocks, preparing investors for a potentially turbulent market ahead.
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Misunderstood Budget Bill Effects
- The so-called stimulus in the big, beautiful budget bill is mostly just an extension of 2017 tax cuts, not new stimulus.
- The bill actually restrains spending and will reduce real GDP growth by 0.5% annually over the next decade.
Policies Halve Economic Growth Prospects
- Tightened immigration policies and end of student debt relief will subtract about 1% from US baseline GDP growth.
- Together with fiscal restraint, this may cut growth from 2% to about 1%, increasing economic slack and reducing inflation pressure.
Trade Policy Volatility Risks Credibility
- US trade policy under Trump is highly volatile with tariff threats and phone-call deals causing market volatility.
- This behavior risks eroding credibility internationally and may worsen geopolitical risks over time.
