By Richard Russell
Economist Richard Koo calls this the balance sheet recession. The problem here and in the whole world is a four letter word -- debt. Despite the fact that the Fed has been spewing forth trillions of dollars of fiat money, the retail public, chocked up with debt, is saving and paying off debt rather than spending more. The balance sheets of the retail public, the US, and the world, are loaded with debt.
The Fed is gung-ho to normalize this situation and is convinced that the economy is expanding and will be able to function with higher short rates.
The big question is whether the US economy is actually improving.
John Williams of Shadow Statistics claims that the expanding US economy is just wishes, lies and propaganda. Williams claims that the US is stumbling and sinking into recession.
This is the first time in my 65 years of writing about the stock market that I ... Log in or subscribe to continue reading.