Rickards: The Fed has been tightening into weakness
from Boom Bust, via The Victory Report It was a tragic scene in Philadelphia on Wednesday, a day after an Amtrak train derailed, leaving seven people dead and dozens more injured. It’s believed to be the worst accident along the Northeast corridor since 1987. While investigators are hard at work determining the cause of the crash, others are left determining how to get to and from the places that are now obstructed as a result. Boom Bust guest host Ameera David weighs in. Then, Erin is joined by Jim Rickards – chief global strategist at West Shore Funds and author of “The Death of Money.” Jim tells us that he thinks that the depreciation of the dollar will take some pressure off the US economy but that the US economy still remains weak. His view is that the Fed has tightened into weakness as data from the Atlanta Fed shows second quarter GDP growth tracking at 0.7%. Rickards says the Fed’s data dependence would suggest it will hold its fire on rate increases. Jim also gives us his take on the future of Greece and Europe, the threat of contagion and the chances of a Greek default or Grexit. After the break, Bianca gives us a look at other major business headlines of the day including an attempt to put Harriet Tubman on the $20 bill, the Trans Pacific Partnership, student loan debt, and T-Mobile. Afterwards, Ameera is joined by Lionel – Emmy-award winning news decoder, trial lawyer, and legal analyst. Lionel tells us if he thinks the Amtrak crash was a long time coming and gives us his take on why interest rates are so low. And in The Big Deal, Ameera and Edward Harrison further discuss infrastructure, looking specifically at Europe and China. They also take a look the latest data out of Europe that contrasts to weak data in the US. Edward’s view is that US data weakness is not just about the consumer but a broad-based decline based on trade numbers, capital investment and inventories, putting the Fed in a bind on its desire to raise rates.