Dr. Rasmus reviews the US central bank’s decision this past week to raise rates, with three more hikes coming in 2017 (and more after in 2018-19).
Alternative Visions – US Stock Bubble-Causes and Consequences + Italy Banks – 12.09
Jack focuses on the bubble growing in US stock markets, as money capital surges out of bonds and from Europe and emerging markets into US stocks. All US markets are at record levels, with the DOW having tripled since 2009 in value. Jack discusses the various causes and origins of the current bubble, including the global rotation from bonds, anticipated Trump infrastructure spending and massive corporate tax cuts, multi-industry deregulations coming, and devaluing foreign currencies. The recent Saez report on income inequality trends is reviewed in contrast. Why capitalists are switching from monetary, central bank policy now to fiscal policy to continue massive gains for the 1%. Other negative data for the US is reviewed, including productivity trends and public debt. The show concludes with a discussion of the recent Italian referendum and Italian banks and China’s pending currency devaluation and bank problems.