On Sun, Nov 12, 2023 at 8:37 PM smitra <smi...@zonnet.nl> wrote: *> I don't think the US and other major economies will escape a severe > recession next year, because the fundamental problem facing us is that > we're gong cold turkey on the zero interest rate policy (ZIRP) and > quantitative easing (QE). These policies were kept in place long after > economy had regained its footing after the 2008 financial crisis.*
And after that the country suffered a bungled response to the worst epidemic in its history. Forget recession, after a massive shock to the economy that huge it's a miracle the economy didn't enter a 1829 style depression, and we can thank the Federal Reserve's low interest rates and the Federal government's liberal spending for averting that catastrophe . Today the US economy is healthier than that of Europe, the UK, Japan and even China, and unemployment is lower than it's been in 50 years. The only negativity was a brief pulse of high inflation but it didn't last long, today it's only 3.7%, last year at this time it was 8.2% . *> What should have been done a few years after 2008, was to gradually stop > the ZIRP and QE policies.* Europe and the United Kingdom kept doing what you advised even after the pandemic, and as a result today they are both mired in a deep recession while the US economy handled things differently and is thriving. *> So, while it is true that so far things look like moving in the right > direction, this is only because of a large lag effects of the rate hikes.* That's exactly what people were saying one year ago, but still no sign of th e prediction coming true. Fiscal conservatives are always predicting economic catastrophe, but with the exception of 3 years during the Bill Clinton administration (who was a democrat by the way) the US government has never had a balanced budget since 1835. John K Clark See what's on my new list at Extropolis <https://groups.google.com/g/extropolis> otb I posted my comment here: > > https://nyti.ms/40AQJCh#permid=129092606 > \ > -- You received this message because you are subscribed to the Google Groups "Everything List" group. To unsubscribe from this group and stop receiving emails from it, send an email to everything-list+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/everything-list/CAJPayv2w7X7xzA0ypK0fjTmX%2B3dobhMXUc27VT-PvOjma4vq1Q%40mail.gmail.com.
