The revived economy will not last indefinitely, according to Trump administration chief economic adviser Larry Kudlow, who says "sit back and enjoy it while you can" until the Biden administration flips the switch.
"The big thing is going to be this budget reconciliation bill, which, if it goes through, will inflict enormous damage to the economy, because of massive tax increases, big regulatory takeover by the government in the name of the Green New Deal, more entitlements, more transfer payments, no work requirements, no work incentives," Kudlow told Sunday's "The Cats Roundtable" WABC 770 AM-N.Y.
"That's going to be a turning point."
The Senate Budget Committee led by Democrat-socialist Bernie Sanders, I-Vt., is going to bring forward a $3.5 trillion budget packed with progressive spending agenda items, higher taxes, and able to pass with just 50 Democrat-only votes in the Senate under the budget reconciliation tactic.
Banks are flush with cash, "more money than they know what to do with," Kudlow added to host John Catsimatidis.
"The whole system is flush with cash with virtually zero interest rates, at least at the short end," Kudlow continued. "It’s kind of like free money, so if you put free money together with record profits or earnings, you've got yourself a good stock market
In the short term, Kudlow recommends "buying the dip" in the markets late this week.
"I would be a buyer across the board," he said, pointing to the index funds of the S&P 500. "You're buying the world country, potentially you're buying the whole world for that matter.
"There's a boom going on around the world, so enjoy."
Kudlow denounced the "green crisis" claims by the Biden White House, noting U.S. carbon emissions have dropped 25% since 2005 and is currently beating the goals of the Paris Climate Agreement that the Trump administration pulled out of.
Kudlow noted the 25% decrease was aspiration by 2025, "but we got there by 2020."
"No other country is even close to us," Kudlow added. "So, I'm searching for this climate crisis. I'm looking everywhere. I'm looking outside. I'm looking inside. I'm looking in my top drawer.
"I cannot find the climate crisis."
Kudlow pointed to fracking and U.S. energy independence under former President Donald Trump in helping America beat the world in reducing carbon emissions.
Kudlow noted the $1 trillion infrastructure initiates are packed "with green money" that will make "all power and electricity very expensive."
"That's going to hurt middle-income Americans and it's going to hurt lower-income Americans," Kudlow concluded. "The Trump policies gave us cheap and plentiful energy, and the biggest beneficiaries were the blue-collar middle class and the lower-income classes.
"And Biden's so-called climate crisis that I cannot find will do a lot of damage to the very people who can least afford it."
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