U.S. customer spending grew briskly in August and a key inflation gauge firmed, which could lead the Federal Reserve to tighten up interest rates.
Economy
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Podcast Summary
0:00 -5:00 introduction
5:00 -9:18 the U.S economy is based on customer spending and customer spending is down in 2015. Conversation of the weather condition’s effect on consumer spending and financial experts’ forecasts. In spite of the “robust” non farm payroll numbers, consumers are not “buoyant” and do not have the tasks or the income to sustain retail sales development.
The only economic data that has been good the past few months is the non farm payroll number. Yet Wall Street fixates on that as if it, in addition to the rising stock market, are signs of the health of the general economy.
When will the mainstream media understand that the public doesn’t believe their rosy characterization of the economy?
9:18 -11:12 The upcoming Fed conference and direction of brief term rate of interest is discussed. The Fed probably will do a. 25 % rate hike at some time for integrity sake. Rate of interest, nevertheless, will not be enhanced in any significant way because the U.S. economy is bad and the U.S. government can’t pay for greater rate of interest. Once it ends up being clear to the Fed and the general public that there is no financial recuperation and the media can not press the “strong” economy narrative, the Fed will certainly reverse course, lower rates a start a new stimulus program in the form of “hoily accalmaudative mawnetree paulicy”.
There are no “Currency Wars”.
11:12 -13:55 Refutation of the typical meme that the world is taken part in “currency wars”. Rather the world’s central banks (U.S. Federal Reserve, Bank of England, European Reserve bank, Bank of Japan, Swiss National Bank et.al) are engaged in coordinated control of rate of interest, mainly to keep sovereign loaning costs low and to have assistance for their multi-national export companies. All reserve banks want lower rates.
Central Banks Use Monetary Policy to Mask Structural Defects in their Economies.
13:55 -17:54 Main banks have dug themselves a hole so deep that stopping the digging wont counsel.
Conversation on the perpetual babble over the Fed and whether/when they may raise rates. Discussion of how the financial numbers are going in the opposite instructions the method the Fed wants them yet they are still talking about raising rates. The Fed printed trillion to produce inflation and by their own numbers they have actually failed as the CPI was negative last month.
17:54 -22:10 The non farm payroll number is the only good variety of the month which sustains the narrative that the economy is doing well. The other reserve banks are reducing their interest rates, all the economic information is flat or declining and the dollar is rising. Under these conditions from the Fed’s point of view, it would not make good sense to raise rates. Yet the durable economy story continues to assist construct or sustain self-confidence in the Fed’s ability to backstop the economy via boosting the stock exchange. Conversation of reserve bank involvement in the stock futures markets.
22:10 -24:10 A recent survey shows that a lot of Americans do not understand who Federal Reserve President Janet Yellen is. The impact of such ignorance is discussed.
24:10 -35:35 discussion of Zillow and other business that make no revenue and their potential customers. Income growth is the crucial to a high stock valuation. Revenue can often be purchased a loss. Conversation of equity value and stock value. Today losing cash is not an obstacle to a greater stock rate.
35:35:37:02 discussion of alternative Fed stimulus strategies.
37:02 -39:20 how democracy devolves in to bulk guideline where 51 % can vote to tax the 49 %. Warren Buffett’s views on wealth inequality and his thank you letter to the united state government are discussed.
39:20 -42:48 A great portion of the U.S. economy is “monetary services” What financial services does the general public get? Greater bank fees? Discussion of bank costs.
