Posted 2/20/2024, 7:08:58 PM
Government Spending Fueled Stock Market in 2022; Tax Drain Could Spell Trouble
- Knowing where money driving the economy comes from is key for stock market profits, though it's an "open secret"
- Government spending creates money; taxes withdraw money
- Tracking the government deficit shows net money transferred to the private sector
- Last year's $1,750B net transfer rate fueled stock market growth; current $1,625B rate means less money in the economy
- Market pressure expected in March-April as tax collection further drains private bank accounts