America’s CEOs are beginning to understand that the recession denied by the Fed yet intended by the Fed has already arrived, and the current economic unraveling is simply that recession getting progressively deeper.
Findings published by Stifel Financial show that 18% of corporate executives, business owners and private equity investors believe the economy has already contracted and is in a recession. That compares to about 79% of whom expect a downturn within the next 18 months.
By comparison, just a small fraction of executives — about 3% — think a recession will be avoided altogether.
Jay Powell, for his part, continues to deny that recession is happening or even that it is going to happen.
“We think it’s necessary to have growth slow down,” he said in July. “We actually think we need a period of growth below potential in order to create some slack so that the supply side can catch up.”
A “growth slow down”, of course, means people having less means and buying less. That’s the only way to “create slack” for supply to “catch up.”
The Fed’s solution to excess consumer demand: eliminate the consumer demand.
There are so many obvious negative issues that the Fed (and others) seems to ignore.
1. The Fed's dual mandate is contradictory. (If I were on the Fed, I would resign because of that contradiction.)
2. Europe has no natural gas, thanks to Russia. Europe is a pretty important economic power.
3.. The US seems eager to start a war with China, which just happens to be the place from whence the world's "stuff" comes from. Some of that "stuff" could even be considered necessities.
4.. The US's "forced" transition to renewable energy will be bumpy to say the least. Prosperity and energy must have each other at all times.
5.. Earth's humans still have not recovered completely from the insanity of "social distancing."
Eliminate consumer demand, except for food, of which "they've" killed off making that.
Edit: Oh and I forgot power, including heat.
Of course, additional tax burdens on producers will tend to slow down the supply catch-up thereby extending the pain.
There are so many obvious negative issues that the Fed (and others) seems to ignore.
1. The Fed's dual mandate is contradictory. (If I were on the Fed, I would resign because of that contradiction.)
2. Europe has no natural gas, thanks to Russia. Europe is a pretty important economic power.
3.. The US seems eager to start a war with China, which just happens to be the place from whence the world's "stuff" comes from. Some of that "stuff" could even be considered necessities.
4.. The US's "forced" transition to renewable energy will be bumpy to say the least. Prosperity and energy must have each other at all times.
5.. Earth's humans still have not recovered completely from the insanity of "social distancing."
Necessities like medicines? Made in Chiii-na?
Who are the 3% who think a recession can be avoided? Executives of the cannabis industry?
Some of the same people that show up for the polls to say that Joe Biden is performing well . . .