We know that for the past year or so, interest rates have been on the rise. Inflation is growing, and recession is happening or is possibly going to happen, depending on your political ideology and which economists you want to believe. The main takeaway is that no matter which talking heads you listen to, things are changing in the global economic outlook.
So what is a simple breakdown of why it?s happening, and what can be done to fix the issue?
We turn, once again to Dr. Matt Roberts of Terrain Ag. He talks about how labor shortages are the main causes of the economic state we are currently in.
We have heard that interest rate hikes are not having their desired effects, because consumer spending has been slow to curtail. Dr. Roberts talks more about the message the Fed & Chairman Powell have been sending.
So, what is the solution to the situation? Dr. Roberts jokes at first, but sadly the humor has a tinge of truth to it.
Now with OPEC deciding to curtail oil production starting in May, that is going to be a bigger obstacle for the Fed and other global entities to get the economy back under control in an organized fashion. AgMarket.Net?s Jim McCormick talked about this in today?s Opening Market Podcast.
The thing to remember is that economics are predictable, but always fluid. What we predict one week, may not hold true for the next. We will have to see how this all plays out, especially with it seeming to hit all countries in the energy marketplace.
