A U.S. recession is predicted for the Spring of 2017. Déjà vu all over again. Liquidity is drying up. There has been five successive quarters of declining corporate profits. The Fed is methodically draining money through "reverse repos". We are on a course for rising interest rates and the Fed has no margin for error according to Ambrose Evans Pritchard. The growth rate of the nominal GNP has been on an unbroken fall pattern since the beginning of the year. The velocity of money in the U.S., a measure of the health of the economy is at a 40 year low.
| Wait a minute! This is beginning to read a lot like what Donald J. Trump said in the 3rd debate last night. He just might have had all this right. Just maybe he is the right guy to be in charge of the economy rather than Bill Clinton. |
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