Stephanie Kelton, Bloomberg Radio, David Weston discussed on BTV Simulcast


Which one of us Bloomberg surveillance Must watch I think they made a great decision step permission We did mornings at 7 eastern on Bloomberg radio and Bloomberg television As we kick off 2022 we've got the rebound in the U.S. economy still facing a good deal of uncertainty Bloomberg David Weston talked with Stephanie kelton prof of economics at the state university of New York Stony brook she also formally served as a chief economist at the Senate budget committee In terms of the economic outlook it is always a foot race between the tailwinds that you hope are strong enough to propel you forward and keep you keep the economy expanding Allow us to continue to add jobs at the sort of pace that we've been adding over the last number of months now It's been very strong But the risks are obviously you know what you're coming up against in terms of headwinds And David for me the big headwind has been from the very beginning of this The virus itself And as we got vaccines and as we got more of the population vaccinated and we began the reopening we started to see just how resilient the economy had been through this And then of course we get hit with Delta And then here comes on the cons So you know if we are lucky and what we're hearing from a lot of the experts turns out to be correct that all Macron is more transmissible but less difficult to deal with in terms of the health impacts and so forth And we're going to see maybe after the next three weeks or so will be This will be kind of rearview mirror in terms of on Macron So if there's not another mutation and another variant that we have to deal with And I think the outlook looks pretty good to me The big headwind is the virus From your mouth to God's ears basically the vaccine really taking care of the problems for us we're getting past the overcrowd At the same time as you look back at what we saw last year is the virus hitting the supply side of the equation of the demand side more because I think one thing that surprised some people was how much it hit the supply side which really drove inflation Oh I think that's absolutely correct I mean there are both things are at play here right It is the case that we had extremely robust fiscal support this time unlike after the financial crisis and the fiscal fiscal response from Congress after the 2008 economic downturn this time was much different We had much more robust fiscal support People had more money They had more income to spend coming out of the sort of reopening part of all of this And so there were demand impulses there at play that helped to allow consumers to go racing back in And it's really been a question of what people are trying to spend money on It isn't the case I don't believe that what we have is just a generalized case of too much money chasing too much too few of everything else right Goods and services That was Stephanie kelton prof of economics of the state university of New York In stony brook Now do you have a stomach for volatility Do you believe that you'd like a little bit of Bitcoin to help you at whether the inflation storm ten days that didn't change the narrative but we drifted downwards by over 6% Where do we go from here Well Bitcoin could make it to a $100,000 Why Because as Goldman Sachs say it's all about the.

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