For my update on key economic events of this past week–i.e. US GDP report, Fed meeting & Powell’s press conference & status of latest infrastructure negotiations–listen to my Alternative Visions radio show today.
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SHOW ANNOUNCEMENT:
Dr. Rasmus discusses 3 key events of the past week and how they’re related: (1) What does the preliminary report on 2nd Quarter 2021 US GDP really indicate? Is it a ‘V’ or just the first half of a ‘W’ given economic indicators showing a slowing of US recovery in the second half 2021. (2) the Federal Reserve meeting showed chair Powell is intent on continuing pumping in $120B of free money to the banks and investors every month for at least another year. Plus keep a second $1T spigot is now permanently open in the Repo Market for stock speculators as well. Why then are banks and investors continuing to get all the free money, while politicians keep cutting the promised fiscal stimulus for working and middle class households and the poor? Why Sanders’ $3.5T Family Bill Dead on Arrival! (3) Rasmus next addresses the phony Infrastructure deal and the Dems latest concessions to McConnell & Republicans in the name of ‘bipartisanship’. .
Great overview of our on going economic crisis generated by Neoliberalism. And an answer to the rhetorical question endlessly repeated by “Liberal” economists: if 70% of the American economy is driven by consumer spending why doesn’t our economic house of cards collapse as the lower 90% drift deeper and deeper into debt? Two words: The Fed. The Fed has been instrumental—-and continues to be instrumental—–in the creation of two economies, the globalized financialized economy for the top 5% and the real economy. The Fed poured into the financialized economy $4 trillion last year, $1.20 billion a month this year and another $1 trillion into the Repo market. Meanwhile the lower 90% are supposed to survive on Mitch McConnell’s fiscal crumbs. Of note is that The Fed expresses fears over the global economy which it should: not every country in the world can throw trillions of dollars into financial markets so the crash may come from desperate countries, such as Greece or Turkey or Brazil of India.