| 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.
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Frank Shostak is an Associated Scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He received his bachelor's degree from Hebrew University, master's degree from Witwatersrand University and PhD from Rands Afrikaanse University, and has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.
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