Posted on 06/15/2022 11:12:30 AM PDT by ConservativeInPA
The Federal Reserve on Wednesday hiked interest rates by three quarters of a percentage point, its most aggressive move yet to try to control inflation, as it squeezes the U.S. economy.
(Excerpt) Read more at washingtonpost.com ...
The thing of it is that a large part of this inflation isn’t related to monetary policy, but energy policy. The relative availability of energy can, by my way of thinking, mimic the monetary kind, since the cost of everything is related to the price of energy.
It’s all gonna CRASH!!!!!!
RUN AWAY!
That is facts.
Good.
Better late than never.
However, rates should’ve started going up within 4-5 years after the 2009 financial crisis.
Maybe it wasn’t viable at the time because of issues with the Europe & Asia zone banks. I don’t remember their positioning in that time frame.
The era of cheap money is ending.(Good riddance)
However, rates should’ve started going up within 4-5 years after the 2009 financial crisis.
*****
The era of cheap money is ending.(Good riddance)
Things are going to get VERY interesting.
Plus, debt servicing for the Treasury just went through the roof.
Sorry, it is directly related to monetary policy. Quantitative easing puts entirely too many dollars into the economy. That partly affects the price of oil since oil is traded worldwide in dollars and a dollar doesn’t buy as much oil in the past.. There is also a oil supply problem. The real driver to all economic problems is government and Democrats. Government has been overspending. The Fed is forced to do quantitative easing in response to the over spending. Government has been over regulating petroleum and related industries. This is an intentional perfect storm created solely by government including many Republicans that continue to kick the debt limit down the road.
I pray
👍
The system is on life support, and I wonder if this is going to “pull the plug”.
The Fed may need to sell off all those securities that it bought. Siphon off all of the extra dollars. Cut the overspending. Cut corporate taxes and regulations to increase production of goods and services. Yeah, I know, none of this is going to happen.
“The thing of it is that a large part of this inflation isn’t related to monetary policy, but energy policy. The relative availability of energy can, by my way of thinking, mimic the monetary kind, since the cost of everything is related to the price of energy.”
Good post on energy & monetary policy.
Another factor is lack of producers globally and nationally for the essentials, at the same time nonessential producers are being babied & coddled with woke ideology.
Combine that with an ageing global population that is done with their peak employment years, we’re looking at some huge supply & demand issues over the next 10 to 20 years.
the markets are thrilled
Biden lives in ‘Bizarro World’, which for Superman comic book fans remember the parallel world where everything was the opposite of reality in this world. Black was white, round was square, men were women, the economy was great and everyone is a liar, and Putin keeps trying to ‘rain’ on our parade by pissing on it.
The Fed chairman just said they gonna do another big bump again!
Banks thrilled,they gonna be Rollin in the Dough.
“The thing of it is that a large part of this inflation isn’t related to monetary policy, but energy policy. The relative availability of energy can, by my way of thinking, mimic the monetary kind, since the cost of everything is related to the price of energy.”
you’re 100% correct ... stuff costs more NOT because there’s too much money (CryptoTulip crash is taking care of THAT excess), but because energy is the primary input into everything that makes up modern living, including resource extraction, resource refining, manufacturing, transportation, farming, fertilizer and agricultural chemicals, food preservation, medical care, communications and telecommunications, computing, internet, online commerce, construction and construction materials, clothing, and heating and cooling ...
dementia joe’s energy policies have been DELIBERATELY designed to curtail domestic energy production, driving energy prices through the roof, thus making EVERYTHING cost more .... monetary policy can NOT fix the energy shortage, and thus is the wrong remedy for the wrong problem because the Fed is fighting the previous war ... however, raising interest rates WILL crash the economy, which is exactly what is going to happen now ...
Thanks, and yet I’m sure that monetary policy still has a large deal to do with it ... it’s like a double whammy; easy money and artificially reduced energy sources. There’s not much you can do right away for the first, but the second can be remedied by doing what Trump did when he took office in 2017 ... get the government monkey off the energy sector’s back.
The system is on life support, and I wonder if this is going to “pull the plug”.
I’m convinced at this point, considering the high number of wimps, dopes, and crooks infesting Congress, that a total crash of the system will be our best hope of trying to fix it.
The people who are going to “fix it” are the ones breaking it now.
Meanwhile he interferes with supply of essential goods and services. Forcing prices up up up
He’s burning on both ends of the economic meltdown dynamite stick
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.