Fed 'Fiddling' While the Economy Burns: Stephen Roach

The transcript discusses the challenges of slow GDP growth and the impact of monetary policy on consumer demand and asset markets. It highlights the need for fiscal authorities to address demand-side issues and the consequences of income polarity in the US. The discussion also touches on global economic trends, particularly in Japan, and the importance of repairing consumer balance sheets to stimulate economic growth.

Explain the relationship between consumer demand and business capital spending as outlined in the text.

What does the text suggest about the perception of trade as a culprit for the issues faced by American workers?

How does the current GDP growth compare to historical growth rates, and what does this imply for the economy?