A ‘must watch’ segment as Marc Ostwald, Strategist at ADM Investor Services International explains in detail the reason for demand destruction in Europe, financial repression and presents a compelling case in favor of fiscal stimulus as a solution to economic malaise like unemployment. Ostwald’s take on stimulus may not impress traditional Austrian economist, however, his comments on low rates and the resulting demand destruction may cheer them up. Keynesians are sure to have a good time!
Key quotes
Markets grudgingly factoring-in a September rate hike. The incoming US data suggests 3% GDP in the second quarter and that could force us to ask why the Fed hasn’t moved rather than when it would move
Demand destruction in the Eurozone as savings are being eroded away via low rates
Financial repression and income deficit all around
Fed rate hike and the resulting rise in US dollar could weigh over US equities
UK, Canada – we have got few people breaking away from the austerity mould
Infrastructure spending is a great way to address the issue of unemployment across Europe
Most advanced nations in need of infrastructure revamp
Austerity is dead