By Richard Russell
Industrial output has been down five months in a row. This suggests that the US economy is on the edge of dipping into recession. Quietly, the Fed and the government must be scared to death with what’s happening. The idea of raising rates must be the furthest thing from the Fed’s mind at this time.
Turning back to the 1930s, I believe the government will repeat the Great Depression solution. That means make-work programs backed by massive new borrowing.
With Russia and China teaming up against the US and building up their respective military power, I expect the pentagon to scream “HELP” and ask for a massive new military buildup. The only thing more expensive than actual war is a buildup in preparation for war. I expect a huge new military program to be put in place.
As I look at my computer one-hour before the close, Industrials are up 10 and Transports ... Log in or subscribe to continue reading.