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Out rising US inflation.
The fallen Chinese growth that we're so worried about all sparking global economic fears but my next guest says that slowdowns in Europe and China can actually help the United States joining announced Lindsay gets up at the end financial economist.
-- -- -- so funny because -- gonna break I was saying if bills like reading your work.
Non that you guys doing affirm our finding fewer -- -- -- silver linings but at least he think the slowdown in China and Europe would actually help us.
Well it -- -- it's a double edged sword certainly it would hurt our US exports as we do reliance selling a lot of equipment oversees as they develop their infrastructure but.
What -- -- also translate into is a lower demand for raw materials and a lower demand for commodities which would help the consumer and business investment.
If it did translate into suppressor pre.
Which one is better -- a report -- global economy word commodity prices are higher but we can sell us up all over the world or the situation we just thought.
Well right now I think it's better that -- -- -- the latter because the consumer in the US is still struggling to clean up their balance sheet.
Number we had decades of ramping up -- they finally just a precipice in the past several quarters we've been deleveraging.
We have made considerable -- in that outstanding balance sheet but we still have quite a ways to go as the price reprieve will be very welcome -- for the US yeah.
-- talked about this and you know I did and the trends and I'm seeing bother me I do last couple of reports from the Fed at -- -- with respect to credit.
So credit cards -- I was down in these credit card -- was down.
Earnings are moving that much there you know fractionally.
Savings are plummeting and yet people are still buying stuff and this is not a combination that can last period won't.
No you know and if you think about it we turn the corner into the new year there was a lot of optimism.
We had three back to back plus 200 nonfarm payroll reports the consumer was outspending during the fourth quarter that holiday season -- the summit -- we were out of the woods.
But it's really hard to find that silver lining when you look at business spending.
That's sidelines when you look at real consumption the consumer has been stuck in neutral since October.
Real income growth is trending negative housing is bouncing along the bottom Clinton proving difficult to.
Understand why we continue to see such -- deleted.
Optimism for this recovery to come at a faster.
Case I -- a change in nickname.
Well they rose colored glasses PX I don't know what they had to call -- -- -- scared the heck out of it.
-- affect our let's talk about what them whenever we start talking about these pessimistic scenarios than everyone brings up money printing right now we're hearing about LT RO three within the European version of -- -- printing.
You think that's realistic and -- so.
What would it help I mean how many times can we go through that so that you know particular -- -- He saw this morning's reports as expected three times on the headline two times on the court and what -- I think it's more inflation impression they're gonna stay there right for the consumer price inflation index.
And I think the take away there's been an -- on an annualized rate we continue to see inflation pressures come down and we have for the past six months.
Hello it's that now hello way way way do it so you buying these government numbers -- -- CPI number I think do you buy that.
That's a legitimate the read on inflation there there were some seasonal effects so when -- especially when we look at energy because we expect.
Let's say -- 10% increase in gasoline and non seasonally adjusted 8% increase.
Actually did translating to a 2% decline so their -- -- little bit of a sell right now want to just -- -- Philadelphia gas thing.
And you Monsanto or are -- on the Jersey -- like is -- crazy is she not know there's no topic consumers do feel that -- for food and energy but when we're talking about making monetary policy.
It's more important -- the Fed does but I found that underlying core and that sort everything that they've got the Green light to continue to print money well -- they want to make sure the bulk mandates are under pressure so that's too high unemployment and slow inflation.
So we continue to see these reprieve come along in the inflation reports -- to -- -- very disappointing employment reports as we saw last month.
That is taking a step in the direction of an additional round of quantitative -- Those -- that too official mandates -- -- -- third unofficial mandated housing it feels like Ben Bernanke really keeps an eye on housing and somehow he's frustrated.
That he can't get -- inflated got the stock market's inflation but why Kenny stop -- bumping along the housing that you.
But I really think the federal government has been pushing housing all long its been fix housing fix the recovery but remember housing isn't as important as it wasn't 2007.
That's when consumers were using their homes -- ATMs to supplement spending.
Now we need to find another way to -- what support spending an organic fashion IE job creation so that's really the crux of the issue and that's where we find the solution.
And for the Fed with respect to job creation just really continue to print the money try to somehow eventually will -- out get out of the bank vaults.
Make it the main street and maybe that's cycle that virtuous cycle.
Remember the Fed and the federal government these are not the engines of job creation in the private sector is the engine of job creation so what we need to do is loosen up the private sector and allowed them to.
It bring -- that entrepreneurial and innovative spirit that's what will put people back to work.
You know -- -- -- -- -- believe that businesses have the world fall right now different backed as they thought things were okay that they will go out there and they would start to put that corporate balance it is incredibly good health what I'm Bob billions of dollars that could be put to work but.
Why invest in this environment right now success profit is a dirty words yep and I -- yeah I agree that thousand -- -- -- that in financial thanks I appreciate it thanks.
Right now here's my take on China's so -- at least slowing economic growth I think all the.
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