On today’s show we are taking a look at the Macro economy. The bureau of Labor and Statistics published the latest CPI data which came in a bit hotter than expected. This is implying that the Fed will need to keep interest rates higher for longer to combat inflation. The Fed keeps saying that rates needs to be maintained higher for longer so that aggregate demand is reduced to stamp out inflation.
At least, if you read the mainstream media, that’s what they would have you believe.
The narrative is that the economy is still strong and that the GDP growth is high and unemployment is low.
In order to understand what is real in the economy we have to look closely at what is driving the economy.
When you look at all of the growth that has happened in the economy in the past year, it’s been as a result of increases in government spending. It's artificial growth, an illusion.
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Host: Victor Menasce
email: podcast@victorjm.com