Econ Recovery Reality: No Pain, No Gain

As Moody’s warns of a worse-than-expected housing recession & WSJ says a Midwest drought is adding to grain pricing pain, the sign says: “Problem with economy’s bulls waiting for a “soft landing” is REALITY.

Put another way, optimism is great, but to ignore the imperfect world’s knack for, well, being imperfect, leads to people being misled about what is most likely to happen in the future. EVERYONE wants the post-pandemic recovery to continue and the apparent recession to be short-lived. The left-leaning MSM propagandists are filling us with stories about just that. Yet, who’d have thunk Mr. Biden would add another $400-500 billion dollars to the $30 trillion national debt with his college student loan scheme? Was it so hard to predict Putin would squeeze the EU on the natural gas it supplies them as the Ukraine invasion drags on, especially after Biden’s war on fossil fuels in America made it all the harder to make up the difference as Trump had planned? And, then, on Friday, Federal Reserve Chr Powell basically told his central bank colleagues inflation was NOT under control, significant higher interest rates in the near term are a certainly & households & businesses could expect more “pain”.

Most likely, then, the “hits” on the economy will keep coming in the near future. If not inevitably. As Chrm Powell warned, won’t the Fed be forced to keep raising its interest rates to fight inflation yet, therefore ironically, increase the cost of doing business & getting consumer loans? Put another way: Where there’s no pain, there’s no gain, no matter what the wishful thinkers want to believe.

Davd Soul