Saturday, June 24, 2017

Waiting for regime change

The US aggregate measures since the Nixon Shock.

Note that we spend more time taking zero or tiny price hikes these days.  And a rising government deficit always precedes a recession, all ex post, of course.

But the recent deficit rise is smooth, well anticipated. This looks like an economy ready to bounce along at near zero.  I keep thinking, we know what's coming, a regime change; a bit of accounting between generations.

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