The Sorry State of the US Economy: A Slow-Motion Train Wreck
Wild Sell-Off and Core PCE Miss the Mark
The US economy is in dire straits after a wild sell-off this week and a Core PCE that missed expectations by 0.2%. The writing has been on the wall for months, but it seems the Fed has been asleep at the wheel, failing to take the necessary steps to prevent this disaster.
Job Layoffs and Unemployment Claims
Massive job layoffs, particularly in the tech sector, have not hit initial jobless claims due to payouts received by the laid-off employees. However, when these layoffs do hit, we will see wave after wave of increases in unemployment claims, spelling even more trouble for the US economy.
Fed Must Increase Rates
The Fed must take responsibility for their failure to raise rates sooner. They must increase rates two more times this year and start tapering at the earliest next year. The housing bubble is bursting before our very eyes, and the Fed’s inaction is nothing short of criminal.
Blatant Cover-Up of Inflationary Measures
Inflationary measures have been revised upwards in one of the most blatant cover-ups in the history of the US economic landscape. The lessons learned from the 2006-08 housing bubble seem to have been forgotten, as the same mistakes are being made all over again.
Record Credit Card Debt and No Bailout for Student Loans
The record of credit card debt held by consumers at ridiculous interest rates is simply staggering. And yet, there has been no bailout for student loans, leaving millions of young Americans drowning in debt.
Reckless Spending and Doubling Gasoline Prices
Reckless spending on non-essential pork-filled bills has only exacerbated the situation. The price of gasoline has doubled in just three years, with no end in sight. Meanwhile, the US continues to fund foreign wars that it has no business participating in, further draining the country’s resources.
The Rich Get Richer, the Poor Get Poorer
As always, the rich are getting richer and the poor are getting much, much poorer. The internet is full of fake gurus and frauds, promising to help people get rich quick, but only succeeding in making themselves even richer.
The state of the US economy is nothing short of a slow-motion train wreck. The problems are vast and complex, but there are solutions out there. It’s time for the Fed to step up and take responsibility, for the government to rein in reckless spending, and for the people to demand real change. If we don’t act now, we may never recover from this disaster.
