A contrarian view on the US economy. Livewire met with well renowned Austrian School Economist, Dr. Frank Shostak of MMG in Sydney yesterday. Dr. Shostak is surprisingly positive on China due to the process of cleansing being undertaken, but has grave concerns regarding the economic health of the US. Dr. Shostak predicts that continued low-growth may force the Fed to increase QE -- which is a recipe for wealth destruction. He also predicts US unemployment will rise during 2014 which is based on quite a significant decline in the rate of growth of money supply, while long term interest rates will continue to fall. Dr. Shostak says his models suggest a recession is now firmly on the cards and believes the downturn could be quite nasty. Watch the exclusive video:
agree with a lot of this - good video
There are definitely some pretty polarised views in there. The call on unemployment spiking in the US is an interesting one particularly given last nights FOMC minutes seemed pretty calm on that front.