America has already slipped into a recession that could be as bad as the 2008 financial meltdown according to key consumer data, a Dartmouth College professor has warned.
David Blanchflower, of Dartmouth, and Alex Bryson, of University College London, say that every slump since the 1980s has been foreshadowed by 10-point drops in consumer indices from the Conference Board and University of Michigan.
They say the U.S. is in a recession – but government spending (money printing?), direct payments, and so on, has held it at bay.
I do not know. But there is much that is messed up – the supply chain situation is bizarre, as is the apparent shortage of labor. Something is amiss. With official inflation running YoY at 5.4%, the Fed will likely act soon to begin raising interest rates. That diminishes borrowing, which eventually means less spending, which means less demand, which means moderating price pressures. The stock market will not like that much, nor will Congress, which is up for election in 2022.