The David Lin Report · Wednesday, August 12, 2026
The speaker questions the traditional economic playbook where rising nominal GDP typically leads to steeper interest rates. They suggest that this time may be different, as economic growth is driven by the supply side, partly due to the 'AI war' and the need to manage national debt.
“Right now we have a situation where the deck keeps going up, but interest rates also keep going up.”
“When you look at the old playbook, and I'm sure you talk to a lot of folks that use the old playbook. When you have nominal GDP growing, real rates or or interest rates long and go steeper. That's not going to be the case this time because the economic growth is going to be generated by the supply side, not the demand side.”
“The the looking glass, right, where everything is weird is the way Wall Street is interpreting this new era with an old lens.”