21 Wednesday Jun 2017
Posted | June 21, 2017 6:05:14 | Economics
Once a month I get together with Gordon Long for a videocast of the month’s hot news topics.
This month we discussed the Fed rate hike, the State of Illinois, loan creation, autos, housing, the yield curve, the Fed’s balance sheet, and GDP prospects.
The video is about a half-hour long.
Mike “Mish” Shedlock
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MISH, I find it rather humorous when you mentioned the “Free Market” in terms of market rates.. The Free Market has never existed or will it ever exist.
A free market in interest rates did exist before the Fed
Economic growth depends upon 1. repatriation of $2 Trillion corporate profits 2. 15% corporate tax rate 3. Border adjustment tax 4. Repeal of the O’care $2500 head tax.
All true Galbraith. However, points 1,2,3 won’t make any difference if the tax cuts end up in the pockets of the top few %. Trickle down doesn’t work, it just shrinks the middle class.
Long Term Economic growth depends on: growth in the labour force and growth in productivity. Labour force growth is not just quantity of workers, but also quality. To grow and compete in the future requires more highly skilled workers. Productivity improvements require more technology and more highly skilled workers.
The US seems to be facing a shortage of skilled workers. This is a limiting factor on growth, no matter how big corporate profits get. US corporations will continue to expand outside of the US as a result.
I continue to project US growth of 1-2% and world growth of 2-3%.
Great talk. Would probably be even better over a few beers…. 🙂
It would be nice to see what you both think as what the lowly serf individual can do to mitigate the risks of the “bubble of everything” and public unions/democrats taking everything you own through ever increasing property and income taxes.
1. Leaving Chicago and Illinois and moving to a fiscally sane state not run by democrats
2. Cash?
3. Gold and miners?
4. The Pound?
5. Coal?
Thanks
The Fed is actually correct to hike rates. Rates should have been higher for years and the sooner we get to more normal short tern rates, the better.
The Fed hiking and cutting and managing the economy is a joke. The right choice would be to stop this.
Just stop expanding the balance sheets. The crap is already in the system.
Cut taxes, cut regulations and cut the health insurance costs.