Posted on 09/25/2022 4:13:07 PM PDT by MtnClimber
No matter who wins, the American people lose.
The game of chicken, learned by most teenagers, provides a reasonable description of current financial market conditions. The Federal Reserve is playing chicken with financial markets.
Usually the game of chicken determines a winner by whoever "blinks" first. In this case, there can be no winner, at least long-term. In order for the Fed to win, it must crash markets. In order for markets to win, they must call the Fed's bluff. The twist in this game of chicken is that the American people lose regardless.
If the Fed "wins," inflation presumably comes back under control, but market values destroy the retirement assets and jobs of many. If markets win, inflation continues to destroy the standard of living of all.
Obviously, this game involves a third party who never intended to play: American citizens.
Where Do We Stand Now?
Another rate hike of 0.75% this week by the Federal Reserve. The dollar, because of higher interest rates, is strong against other currencies, but financial assets are weakening.
Everything was down (red) this week and seriously so! Since the closing prices of July 26 (the day before the first of three rate increases), all tracked securities are negative and becoming increasingly so. Markets reluctantly believe that Powell means what he says.
(Excerpt) Read more at americanthinker.com ...
Or both simultaneously, which is what we have. Keep in mind that economics is NOT a science, and some of the worst decision making and predictions comes from economists. The pure mathematicians I know think economists are amusingly pathetic.
“No matter who wins, the American people lose.”
The American people’s loss has taken a couple of years to ripen. The ordinary American person will take the hit and the colluders will make out like bandits.
Our current inflationary issues are not the result of the Fed. While what you say is true it is only a small part of the problem.
True, inflation comes from excess federal spending .
The fed doesn’t start or contribute to inflation beyond cheap money
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