Part 12/13:
The slope of the US Phillips Curve indicates that inflation-fighting efforts might need to be more aggressive, potentially triggering a recession. Key economic indicators—housing, factory orders, corporate profits—are signaling deterioration, with the housing sector leading the downturn. Historically, these indicators have reliably foreshadowed economic deficits and downturns.
Moreover, China is on the cusp of significant deflation, which could spread globally given interconnected markets. Energy prices remain a bright spot—solar energy costs have plummeted 85% over the last decade, making renewable solutions more accessible and supporting off-grid living.