From a definitional standpoint the U.S. economy dodged a
recession in 2022
GNP was up which is always a good sign but dig deeper and the future may be
blue
Not since the Great Depression has personal disposable income decreased by such
a large percent
Some $1 trillion of income in 2022 did not into our wallets be sent
But to avoid in our life style such a massive dent
We have depleted our cash and added to credit card debt to not reduce what we
spent
If we were in an noninflationary environment it would be easier to reduce
spending
But here as prices go up, the amount of necessities of life
purchased is reduced in a manner never-ending
We have reached our national debt ceiling and instead of
curtailing spending
What is feared to be the Biden response is to the brake imposed by debt ceiling
be ending
To fight a recession with fiscal policy with a debt ceiling
maxed out
Only monetary policies of more money or lower interest rates can we bring about
2023 will be a tightrope across the economic widening chasm
And the chaos of China/Taiwan or Russian/Ukraine deadly spasms
© 1/26/2003 Michael P. Ridley aka The Alaskanpoet
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