Sign In  |  Register  |  About Burlingame  |  Contact Us

Burlingame, CA
September 01, 2020 10:18am
7-Day Forecast | Traffic
  • Search Hotels in Burlingame

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Industrial production, retail sales, unemployment claims, comments

This index is settling in to about a 3.5% annual rate of growth. No recession indication here: No recession here either: No sign of recession here: Markets are being driven by the understanding that the Fed will continue to raise rates until there is a recession, not realizing that rate increases, with debt/GDP as high […] The post Industrial production, retail sales, unemployment claims, comments appeared first on Mosler Economics / Modern Monetary Theory .
This index is settling in to about a 3.5% annual rate of growth.
No recession indication here:

No recession here either:

No sign of recession here:

Markets are being driven by the understanding that the Fed will continue to raise rates until there is a recession, not realizing that rate increases, with debt/GDP as high as it is,
result in a sufficiently large increase in government deficit spending on those interest payments to support both the growth of private sector total spending on goods and services as well as to support prices.

So what happens each cycle is the Fed raises rates and supports growth until something else causes a recession. Recent history has seen the automatic stabilizers (tax receipts rising and transfer payments falling with growth) bring down gov deficit spending sufficiently to end the cycle, while at the same time the Saudis have raised oil prices until the economy and demand collapses.

Share

The post Industrial production, retail sales, unemployment claims, comments appeared first on Mosler Economics / Modern Monetary Theory.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Burlingame.com & California Media Partners, LLC. All rights reserved.