Needless to say that the US economy shows strong resilient despite of continued pressures from the authority to tame the aggregate demand through monetary policy. Our analyses months ago not only correct to point-out direction of the growth, but also have been proved again and again that they are credible analyses. Why are the Association’s analyses on the economy are credible–because it is applying simple logic and use data. The inflation is caused by strong aggregate demand because people have jobs and that they can afford to buy stuff though under higher interest rates or higher retail prices. Strong labor market occurs because the industry, both manufacturing and services are growing as results of great US manufacturing responses to relocate their business and production facility back to the US. So, the positive impacts are coming from the input market, and it has less to do with monetary or fiscal policy. It is the productivity of labor that makes it happens. We come to the conclusion that the monetary policy to tame the inflation as it always said so–actually is directed toward the equity market–not to tame inflation. The authority is trying to tame down or control too much speculations that have been played out in the market.

Disclaimer: This post has nothing to do, and therefore not intended as the reason or implies any suggestions to make any current and future investment in any forms.