“The University of Michigan consumer sentiment for the US fell to 68.8 in January of 2022, the second lowest level in a decade and below market forecasts of 70, mainly due to the spread of the delta and omicron coronavirus variants and escalating inflation, preliminary estimates showed. Three-quarters of consumers in early January ranked inflation, compared with unemployment, as the more serious problem facing the nation. Also, confidence in government economic policies is at its lowest level since 2014. The economic conditions subindex went down to 73.2 from 74.2 in December and the expectations gauge dropped to 65.9 from 68.3. Meanwhile, inflation expectations increased for both the year ahead (4.9% vs 4.8%) and the next 5 years (3.1% vs 2.9%).” source: University of Michigan
What goes up, must come down. We are living in interesting times, again. The narrative is rapidly changing as the mid-term elections approach. Hopefully this will mean good things for the public.
The current economy is similar to the very bad one of the 70s, with high unemployment, the gas crisis and which led to the end of the gold standard and the beginning of an oil based dollar. Things were pretty good for the public under Reagan, until we began to see rising inflation and the Fed intervened and we had a major recession in the 80s which hurt a lot of average people.
The public enjoyed a boom in the 90s after another recession. The tech boom burst in 2000, followed by 9/11, and then the banking/housing crash of 2007. Now Covid has crashed the economy again after the roaring Trump years.
What will this current economic crisis lead to? I predict more media/internet restrictions, increasing control over banks, eventual transition to a digital currency and forced transition to alternative energy, and universal healthcare. What do you think?