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
#USA #economy #recession #fed
#interest ratesChart: @crossbordercapital