LETTER: Current economy

Technically anyhow, we are at an economic top.

But I’d like to put our situation into perspective by having a look at the stats.

Our central bank has been pouring liquidity into the economy at record rates.

This, when technically, the economy is doing well?

This is highly unusual, especially considering that the president has also funneled shiploads of money to the (rich) economy via tax cuts and even more tax cuts for the rich via corporate foreign tax re-repatriation.

Yet our economy is still just puttering along at a 2 percent GDP and poverty and income equality are still floundering.

Also our stock market is way overvalued.

Just look at nominal stock market earnings, which have been flat since about 2012 yet the market has charged higher.

And why?

Partly because of corporate stock buy-backs facilitated by Donald Trump’s economic policies and a loose Federal Reserve.

This is a worldwide phenomena with negative rates in Europe and Japan.

Imagine buying a bond that doesn’t have a yield and pays you back less than you invested. Insanity.

And what does this portend?

Well, investor beware, and understand that the Trump economy is flying on hot bloviating Trump air.

Jeff Shamp

Port Angeles