Posted on 02/18/2022 5:40:29 AM PST by Browns Ultra Fan
The Shadow Knows!
Wu-Xia employs an approximation that makes a nonlinear term structure model extremely tractable for analysis of an economy operating near the zero lower bound for interest rates. It can be used to summarize the macroeconomic effects of unconventional monetary policy (ZIRP + QE). The Shadow Rate is now -0.1974%.
The good news? The Atlanta Fed Wage Growth tracker is showing a 5.1% wage growth. The bad news? Inflation is ruining that growth at a whopping 7.5% rate leaving REAL wage growth at -2.4%.
And the Atlanta Fed’s GDPNow Q1 forecast is a measly 1.285%. Apparently, the fiscal and monetary stimulypto has worn out.
And liquidity in the equity market has seemingly vanished.
The Biden Administration and Congress need a distraction from the awful inflation news caused by Biden’s energy policies, sheer wasteful spending and Federal Reserve policy errors (too much monetary stimulus for too long).
(Excerpt) Read more at confoundedinterest.net ...
A bidet
The real inflation rate is NOT 7.5%. I am so tired of the lies.
Dwarfs got a raise? What about the rest of us?
While a mess -- a very hot mess -- there is within proof that "the market" will always correct, in the sense of Adam Smith's "invisible hand."
The idiocy of the big government addicts is shining through, as their belief that reality can be changed is once again failing. One does not "correct" reality.
The reality? "It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our necessities but of their advantages." And yet the idiots Democrats and their assistant Democrats (RINOs) think "manipulating" and gaslighting and outright lying serve to "nudge" anything into their "correct" view of what "should be."
Beyond all those "nice" "caring" Lefties are people serving themselves while saying they are serving you. The invisible hand corrects. And many times closes to a fist, to do so.
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