In today's podcast, Greg tackles the GLOBE, from Europe to the US to Asia, to show howstagflation is intensifying amid a further tightening in global monetary conditions, andan appreciation in the US Dollar, as Central Banks are lining up to hike official short-term interest rates, and credit conditions are becoming dangerously "tight". Against this backdrop sustained high US price inflation in services, and a fractured labor market has pushed Consumer Confidence to new all-time lows, while Retail Sales growth is dominated by rising Sales (AKA prices) at Gasoline Stations, while spending at Eating and Drinking Establishmentsand Vehicle Sales are DISINFLATING at an alarming pace.
Yes, CAPEX spending on AI data center build-outs is skyrocketing and output of Semiconductors-Computer Peripheral Equipment SOARS, the FACT is that these three things account for only 16% of GDP, while Consumer Spending and the Service sector still accounts for 71% of GDP. The disconnect between Consumer final demand disinflation, and new all-time high in US stock indexes has NEVER been greater. Moreover, thecurrent long-term momentum driving the US stock market higher is as stretched and extended as it has EVER BEEN. Throw in the fact that Gold is now breaking down versus nearly every paper currency on the planet...
...and the stage is all but set for an all-out "asset price deflation event"!
This IS..."The Great Divide; the Stock Market vs the Economy”
Podden och tillhörande omslagsbild på den här sidan tillhör
Greg Weldon. Innehållet i podden är skapat av Greg Weldon och inte av,
eller tillsammans med, Poddtoppen.
