Paulitical Economy™

Post 353: A New Fed Chair and an Old Problem: Money, Markets, and Division

Paul Musson

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  • Politics in the U.S. is significantly more divided than back in the 1950s/60s.
    • But the country is not divided because of the politics.
      • The politics is divided because of monetary policy.
  • Dick’s Sporting Goods continues to have impressive sales growth.
    • They have bought Foot Locker which had been struggling for some time. 
  • French luxury goods company LVMH is still experiencing weak sales growth.
    • Particularly in wine and spirits.
  • Nike finally halts its sales declines.
    • And growing strongly in the U.S.
  • In Financial Ructions: 
    • The big and important news is that Kevin Warsh has been nominated as the next Fed Chair.
      • I quote extensively from a recent op-ed and from three of my previous posts.
    • How the Canadian government suppresses mortgage rates, contributing to the housing affordability crisis.
    • Investment in the private sector in the U.S. has been declining.
      • Primarily due to the Federal Reserve and the financialization of the U.S. economy.
    • The 60 day delinquency rate on subprime auto loans is hitting all-time highs: 
      • Yes, higher than the GFC.