The 2 Biggest Economies Are Both Breaking — And Both Are Hiding It

The gist

1. Snider says lower interest rates signal economic weakness, not recovery, because they reflect banks pulling back from risky lending.
2. When banks stop lending, money literally disappears from the system through accounting, creating the deflationary spiral China is already experiencing.
3. US consumer spending and labor force participation are falling together, and Snider warns a psychology shift toward saving will deepen the downturn.
4. For everyday investors, Snider recommends diversifying away from AI speculation and increasing holdings in short-term US Treasuries.