Institute for Supply Management’s Purchasing Mangers Index slipped to a reading of 50.3 in February, below economists' expectations at 50.5, according to FactSet. The new orders index fell to 48.6 from 55.1 in January. The prices index jumped to 62.4, up from 54.9 in January.
This if the first real confirmation that the regime of firing, deportations, and Tarrifs are creating an environment of slow growth and high prices.
Throw in an extra 5 trillion dollars of new debt from tax cuts for the top 1 percent and you get the perfect storm.
This is otherwise called STAGFLATION.
It is impossible for the Fed to combat stagfation. If they attack the slow growth by loosening monetary conditions, inflation carreens out of control
If they attack inflation by tightening monetary conditions, the economy could spin into a depression.
This wound is entirely self inflicted.
Yet once the geers are in motion it is very difficult to stop them from griding on into oblivion.
Of course, there seems to be no interest in turning things around. According to the current administration there is no inflation except that which was caused by the previous administration, and growth is entering into a GOLDEN AGE.
Sounds good. If you're holding a cellar full of gold.
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