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Monday, June 10, 2024

Fed Has Financial Conditions Where They Need to Be, Zandi Says

 https://youtu.be/0JcvSUC-V4s?si=xv8_eQnqmexZn-Zu

*Why is there inflation? Primary , the rest of the world is trying to reject America but America wants what the rest of the world has: manufacturing capacity. Or at least this is a hallucination of the China-America trade dynamic. Evidence: inverted yield curve with higher inflation, trade war/tariffs placed by politicians trying to re-shore American factories (up the labor price per good equals more price at the store.)  This is a recipe for more taxes, inflation, or interest rates. There is no way to escape one without a trade-off of the other; especially in a declining demographics environment. 

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