The Rising Influence of Rising Affluence

[jbog]

Second, government money is just as “real” as any other money flowing through the economy.

You're correct the governments money is just as real as it enters the economy but the Governments spending occurs without regard of recessionary times. You original statement was using Cat as a bellwether dealing in recessionary times.

The governments recent multi-trillion spending bills touch every sector.

We have seen a supplyside eruption in the commodity sector and eventually it'll all come back to norms. Some months ago when HRC was in the $900 range I said it'll eventually get back to a normal level today it sits in the mid $600 range.