Yesterday's employment report was strong. Payrolls increased by 162,000, household employment grew more than 500,000, and the average workweek increased. The economy was cranking in August.

Many will see more inflation and Fed tightening. I see something bigger.

Headline inflation is 3.7%, but other measures are much closer to 2%. Oil could fall toward $30. Equities are hitting all-time highs as rates rise. Capital spending has broken through a ceiling that held for more than 20 years. Bitcoin is breaking away from gold. Companies embracing artificial intelligence are creating jobs faster.

These are not disconnected signals. They could mark the beginning of stronger real growth and powerful technology-driven deflation.

The consensus is pricing the old economy. I believe a new one is taking shape.

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