The Big Switch..
It seems many market players are missing the “Big Switch”. This is the switch that has been building for many years, for over 40 years. As you all recall , this started with Reagan’s Supply-Side agenda that was designed for a kind of growth that would move money to the top. Looking back it appears that it ended with Trump’s tax cuts combined with the FED’s QE programs. Growth with inequality plus budget deficits were the result.
Again, looking back to 2021, a spirit of renewal has emerged, which today is being named “Bidenomics”. It is focused on changes that relate to growth that includes increased equality. Conservatives will call it big government, but in reality it is an approach that has to be led by government. Positive Outcomes on things like Climate Change and Budget Deficits do not start in the private sector where greed is the number one factor.
I will have much more to say on this matter in the coming year, but it is interesting and heart warming to see the old line elites, economists, and big money traders, along with their stooges at the FED, continue to fight the new economy move that started a year ago. This is as it should be, the Big Players lose as they ignore what is changing.