Is the American Economy ready to explode? Probably not right now., but if the Federal Reserve starts listening to those nervous Nellies who keep predicting high inflation and stops buying bonds because of those who wrongly say there is to much liquidity in the country. And that the Federal Reserve must increase interest rates to fight off systematic inflation.
Well the travel industry is hit by high oil and despite record prices for tickets for plane travel there aren’t enough planes taking off because there aren’t enough employees. The profits aren’t there. The same will be true fo cruise ships.
There’s drought in the farm belt, and California because of the heat is a disaster. The auto industry maybe making huge profits, but those who need cars to go to work need cheep money to afford those expensive (cheep) used cars. There are plenty of small businesses that can’t find employees so they have to raise the pay, and prices go with it and hopefully for them their customers remain loyal.
What I haven’t mentioned yet is the lack of 21st century infrastructure which is needed to for businesses to compete. Those building the infrastructure needs to borrow, the cheaper the better.
What I’m trying to get at, is a good many of our businesses need cheep money to survive and thrive. As I’ve have said before cutting off money is more dangerous toward inflation then have slightly too much money.
* There is an indication that the stock market has risen because of the high liquidity. Is that a bad thing?
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