If labor is tight because all laborers in the world died, then it is not appropriate to call that tight labor market a “hot” market. It is, in fact, a DEAD market. Now, reduce the extremes, and you understand what is happening here.
It's clear that Powell and the Fed don’t know what they’re doing. Their monetary policy is based on conjecture, wild guesses, and hope, and it continues to enable wild U.S. government borrowing and spending on the over-taxed backs of We the People.
Mike Maharrey delves into the complexities of the current economic landscape including that of China as a member of BRICS, Federal Reserve policies, and stagflation.
Songpol's confusion notwithstanding, he's wise to allocate more investment to commodities - especially gold. Higher interest rates increase the likelihood that the stock market bubble will begin to deflate.
Active risk management along the way to speculating in this bubble (it simply should not be called investing) is required. As the bubble in confidence in policy-making (both fiscal by government, and monetary by central banks) continues, we note the absurdity here.
So, there you have it: the Fed decided to give less intensity to its fight against inflation in order to make the Treasury’s job a lot easier right when everyone can see the Fed needs to fight harder.
Armstrong explains that gold prices aren't just responding to inflation; they're reflecting a loss of trust in governments globally, driven by escalating debt and a push for militarization.
It’s important to understand that the real risk isn’t from China. It comes from American policymakers who continued to ignore the ramifications of their reckless policies and keep kicking the can down the road.
The gold standard offers a strict check against the inflationist tendencies of governments. In such a system, the government cannot create new units of money to finance its spending, so it must resort to taxation, which is notably unpopular.
The bottom line is the death of inflation was greatly exaggerated. Some might call it transitory. Meanwhile, economic growth slowed far more than expected in the first quarter.