Listen to my August 2 ‘Alternative Visions’ radio show discussion of last week’s Fed rate cut and Trump tariff hike announcements and their fall out. The show also addresses my prediction that both fiscal and monetary policies will have little effect at stimulus in the next recession, and why. (Check out my tweets daily for updates to the trade and Fed, and other, economic events at @drjackrasmus.)
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TO Listen Go To:
http://alternativevisions.podbean.com
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SHOW ANNOUNCEMENT
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Dr. Rasmus reviews the two major events of this past week: the Fed’s first rate cut since 2009 and Trump’s announcement of 10% more (maybe 25%) on remaining $300B of China imports to US. How the two announcements are related. The response of markets and investors to the Fed cut + the response of China to Trump’s latest trade tantrum. Why the Fed cut will have little to no effect on the real economy and investment and won’t stop the US economic slowdown. Why it also has had a negative effect on financial markets. Trump’s next moves vs. Powell and the Fed. The likely responses of China, as the US and China continue to slip from a tariff spat to a full blow economic war. No trade deal in 2019 but possible in 2020 as US and global economy slip toward recession. The bigger consequences: why fiscal and monetary policy were once tools used to stabilize the economy (per mainstream economics) but now have been neutralized after having been used since 2008 as means to redistribute income to corporations, investors and wealthy 1%. What are consequences for next recession around the corner?
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