Eurodollar University This Is What An Economic Collapse Actually Looks Like
Jun 4, 2025
Dive into the unsettling economic signals emerging globally. Discover why Swiss inflation has turned negative and how tariffs impact growth in Australia. The discussion highlights troubling indicators like the sharp drop in factory orders and construction spending in the U.S. It paints a picture of a complex economic landscape where multiple small issues contribute to a larger deflationary trend. As banks adopt a defensive stance, the stakes are high in the world of economic policy and forecasting.
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Small Issues Drive Economic Weakness
- Global economic weakness is not caused by one factor but many small, accumulating issues.
- Tariffs are no longer inflationary and rather contribute to a payback period causing economic strain.
Swap Market Predicts Deflation
- The swap market predicts long-term lower interest rates reflecting economic weakness.
- Despite stock market optimism, swaps and other real markets warn of deflationary pressures.
Swiss Franc Signals Deflation
- The Swiss franc strengthens as a flight-to-safety and deflationary signal.
- This contributes to negative consumer prices in Switzerland, reflecting wider global economic weakness.