Adam and I discuss oil, government spending, the Fed, food prices, the stock market, price controls, cryptos, housing, and de-globalization.
Here's one set of comment in particular that I made and want to emphasize.
- "This is the big thing the Fed is fighting. We've gone from just in time production with global wage arbitrage, to every country for itself."
- "Looking ahead, the Fed, every time it got in trouble, could slash rates."
- "And it had a tailwind at its back, a tailwind of [disinflationary] globalization. We now have a headwind of de-globalization smack in the face of the Fed and that de-globalization is inflationary."
- "The Fed's got it work cut out for itself."
My point was that when recession hits, the Fed will not have the same ability to slash rates as before without triggering more inflation.
This post originated at MishTalk.Com.
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