Ah, someone has nailed it. (You.)
The situation in Europe is NOT good. The West is afraid of giving the Ukies sufficient weapons to win quickly (Pooty would get mad), but can’t let Russia win either, so the bloody war drags on & Europe looks increasingly headed for serious energy shortages and a deep recession this next winter.
China for (mostly) different reasons (but given the EU still IS China’s biggest trading partner) is not looking great either.
Biden will try to spend money like crazy (as if he isn’t already!) to avoid a serious recession or worse, but, rarely does MORE gov’t meddling in the economy on this scale work without serious “unintended” bad consequences.
Exactly. During a recession the US government has very little power to stop it from happening. The international banks hold all the chips at the table.
One of the few ways the government can keep pretending things are fine is to encourage its citizens to take on my debt (while promising some sort of tax credit or stipend for doing so).
Remember things like "Cash for Clunkers" back in 2008?
People should ask themselves a question. Why would the government ENCOURAGE new debt in the face of an economic downturn when people are losing their job and businesses are struggling to survive?
It's because a recession is a plunging of the money supply - and our debt-based money supply is simply measured by the total outstanding debt in the nation. The way to prop up the money supply is to encourage new debt.
Our government did this on the backs of are most ignorant populace during the last recession - students.
Student loans went from a total of $400 billion in 2006 to now more than $1.8 TRILLION - just so the government could get new debt issued to keep the economy from collapsing.
Be careful of the market "exuberance" right now. In economics it's known as "The Greater Fool Principle" - or finding a bag holder that thinks the bottom has been hit in the markets and we're on a rocket ride back up.
There are absolutely no indicators globally showing this to be the case. The wealthy are transferring their holdings to those who don't know any better.