Inflation is coming in around 2%. Easy call.
Growth will pick up in the second half. The manufacturing plants have been rolling out and will continue to gear up.
The market fall last week was minor in regards to the moving averages. The story is not much. See the charts.
So why would all be well? Check out the growing money supply while inflation has been falling. Great stuff.
Why is money supply increasing?
Govt spending and borrowing?
Perhaps money supply growth and quantitative easing are needed to maintain these stock valuations. Interest rate cuts may not be sufficient maintain valuations. The Fed certainly does not want the bottom to fall out of the stock market so close to the election.
No not at all.
The money supply increases with an increase in the GDP. The factory production needs a corresponding Money Supply growth.