So-called recession and recovery are false metrics. The falsity comes from focusing on the total earned by all people, not the total earned on average by a given individual.

If in total, people earn one percent more, but in total, the population is two percent more, then on average a given individual earns one percent less. On average, a given individual is in a recession if the total earnings per person are decreasing. On average, a given individual is in a recovery only if the total earnings per person are increasing.

As the citizens of the European Union and the United Kingdom are increasingly struggling to make ends meet due to record levels of inflation, and as the winter draws closer, a serious cost of living crisis is set to spiral out of control. Skyrocketing energy costs, combined with galloping prices for food and other essential goods and services are bound to erase whatever was left of the “middle class.”

Most commentators believe a growing economy requires a growing money stock because economic growth gives rise to a greater demand for money, which then must be accommodated. Failing to do so will lead to a decline in prices of goods and services which, in turn, destabilizes the economy and leads to a recession or, even worse, depression.

The main role of the Fed, then, is to keep the supply and the demand for money in equilibrium. An increase in the demand for money should be accommodated by the Fed. This is necessary to keep the economy on a path of economic and price stability.

Ivy League professor and Nobel Prize winner, Joseph Stiglitz recently spoke to CNBC providing 3 reasons why the Fed’s rate hikes will make (price) inflation worse. It begins with his analysis, in which no further details were provided, just his conclusion. According to the interview:

Stocks reacted positively to the jobs report released Friday morning before selling off sharply that afternoon on geopolitical fears. The report, which showed non-farm payrolls increased by 315,000 for the month of August, was largely in line with the expectations of market watchers, with major surveys held in the run-up to the release of the report yielding predictions of roughly 300,000.

The number who actually consented to the Constitution of the United States, at the first, was very small. Considered as the act of the whole people, the adoption of the Constitution was the merest farce and imposture, binding upon nobody.