Warren doesn't mention it in this post, but the trade deficit is also increasing, and the federal government fiscal balance is headed toward surplus as the administration having promised to reduce the deficit and debt.
The Fed has just raise the interest rate to 1%, which will have an offsetting fiscal effect but likely not large enough to offset the combined effect of 1) reduced domestic private sector borrowing, 2) an increasing trade deficit, which entails net saving on the part of the external sector, and 3) a tightening fiscal stance in order to impose "discipline" and reduce the public debt, which in reality is to lower aggregate nongovernment net financial USD savings
4 comments:
We average a recession every 7 years so we're overdue.
Trump's response to the recession will be one of the litmus tests of his presidency.
It will be interesting to observe if there is a foreign ripple effect from the Fed's rate hike. Will the Oz Property Bubble Finally Burst?
No doubt this triple whammy is more of Trump's idea of "winning". Meanwhile the pussy-grabbing birther is extending his winning rum by making a fool of himself in front of Merkel and slandering the British as spies.
Dan: "Trump's response to the recession will be one of the litmus tests of his presidency."
From what we've seen so far, it's going to be full retard austerity, especially where it matters most. There may or may not be some infrastructure, but given how the pussy-grabbing birther folds like a cheap suit at the first sign of resistance I wouldn't hold out too much hope for the government doing much to soften a forthcoming recession.
Brick and mortar retail property in free fall couldnt happen to a bigger bunch of assholes.... everybody is buying online... there is this new thing called the internet maybe some out there have heard of it ...
... hhgregg 88 stores closing... Staples another 70 stores closing ... Macy's 68...
And oil monopoly rent removal is a good thing for the non oil sector which is 99% of the US economy...
Leading USD flows are at all time highs... So leading income will be redistributed...
There was a $190m Mills mall in Pittsburgh area that the bank bought back for $100 at auction last month...
Post a Comment