The world has more cycles than the recession cycle

The World May Have a Bigger Problem Than a Potential Recession

 The latest outlook and policy prescriptions from the Paris-based group mark a step beyond its repeated warnings about threats to growth from U.S.-China tensions, weak investment and trade flows. Those remain, but it also flags more systemic challenges from climate change, technology and the fact that the trade war is just part of a bigger shift in the global order.

For OECD Chief Economist Laurence Boone, the worry is that the world could continue to suffer in the decades to come if authorities offer short-term fiscal and monetary fixes as the only response.“The biggest concern… is that the deterioration of the outlook continues unabated, reflecting unaddressed structural changes more than any cyclical shock,” Boone said. “It would be a policy mistake to consider these shifts as temporary factors that can be addressed with monetary and fiscal policy: they are structural.”

It has the monetary cycles and the state structure cycle.  Both are hitting Europe at the same time, and hitting the USA and China the same time.  Neither understood by economists very well.

So this economists is discovering the old expectation function is spectrally incomplete. Goshdarn, they could have looked up the expectation function and found that it requires integration over a the complete spectrum.

USA has the same problem, the small state extinction cycle, the Nixon/FDR shock cycle, and recession cycles. Our politicians are clueless, collective intelligence has been dropping with the current wave of peasant immigration. It will be a mess, most senators to dumb to even understand how this happens, much less fix it.