US: Probability Of Interest Rate Cuts Increases
687 sats \ 7 comments \ @TomK 23 Jul econ
This week we will find out more about the state of the US economy. Despite the gigantic artificial demand programs, made by record government's debt creation, economic growth seems to be slowing down dramatically.
On the labor market, rising unemployment figures and the reduction in full-time employment suggest that in the end the government will be the last man standing creating artificial fake jobs to save itself until the election date.
This increases the pressure on the Federal Reserve to make money cheaper again, to provide liquidity in the markets so that the threat of rising loan defaults that is threatening the banking system will be mitigated to a certain extent.
But despite all the anticipation of interest rate cuts, always remember: when the central banks panic and cut their interest rates, it is already too late, the economy is already deep in recession and things are going downhill. The illusion that you can operate macro-control with a complex economy is more than just stupid, it is the spawn of political naivety and petty childishness, a sign that economics as a science has actually not moved a millimeter forward in the past 100 years
Chart: @crossbordercapital
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95 sats \ 0 replies \ @Coinsreporter 23 Jul
You're right. It's stupid to even think about controlling economy at a level where debt is increasing in leaps and bounds. However, US thinks that the supremacy of Dollar is gonna save them every time is really childish!
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56 sats \ 2 replies \ @IamSINGLE 23 Jul
Does US have any other option? I think, there's no option as of now!!
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32 sats \ 1 reply \ @TomK OP 23 Jul
but it is always possible through gradual shifts to return to a decentrally organized market economy system, to a private formation of capital, and I think that will happen in the USA as well
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56 sats \ 0 replies \ @IamSINGLE 23 Jul
Yes, this may work if they honestly apply this!
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45 sats \ 1 reply \ @DawnoftheDead 23 Jul
Some European countries are entering negative GDP growth and China seems to be more or less desperately stimulating its economy.
So it seems like the US has exported its recession?
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0 sats \ 0 replies \ @TomK OP 23 Jul
as far as China is concerned, I think the decline of the real estate sector, which was artificially inflated, is responsible for this. the eurozone has its own structural difficulties, which lie in the centralization of power in Brussels, in the eternal tendency of politicians to subsidize, in overregulation and in demographics.
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0 sats \ 0 replies \ @Winitober 23 Jul
There have been great thinkers in economics including giants like Mises and Rothbard. Unfortunately, modern economics is bought and paid for by fiat money. Bitcoin fixes this too.
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