Posted on 04/08/2022 9:22:08 AM PDT by Browns Ultra Fan
Can The Federal Reserve ACTUALLY tighten monetary policy? Let’s look at the facts.
Under Biden, we have seen inflation rise from 1.4% to 7.9% (the latest inflation numbers will be out Monday). And we have seen Treasury public debt rise from $27.8 trillion to $30,346 trillion (actually, $30,371 trillion in real-time). Meanwhile, REAL average hourly earnings are declining. Well done, Washington DC! You deserve the Washington Redskins Commanders.
With real GDP growth less than 1%, a war raging in Ukraine, and 20% flexible price growth, the US economy is in a shambles, relying on The Federal government and The Federal Reserve to continues its insane level of spending and stimulus.
I am going against the box on this one and think The Fed will back off by summer when they realize that they have made another in a long line of policy errors.
Doctor, doctor (Yellen, US Treasury Secretary), we’ve got a bad case of UNAFFORDABLE HOUSING thanks to BAD government policies.
(Excerpt) Read more at confoundedinterest.net ...
we’ve got a bad case of UNAFFORDABLE HOUSING thanks to BAD government policies.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Which is only going to get worse with the mass wave of humanity pouring across our southern border unchecked.
And that IS a really BAD government policy.
Bipartisan, too.
loose money is why housing is so expensive. Everyone is bidding everything up with the extra cash.
I think the FED will continue to move slowly 1/4% rate hikes. I wouldn’t be surprised to see them back off the balance sheet shrinking.
Oil prices are likely to cause a recession.
Food prices aren’t going to help as they are going to be affected by fertilizer shortages and the disruption of Ukraine’s farming.
Consider the Source and get out your largest grain of salt.
As them bubbles continue to grow......
Smell another housing bubble about to burst.
How can housing ever be unaffordable?
Answer: If some government sets the price of housing.
But in our free housing market, someone who has to sell will find some price where that sale can be made. So, for me, the idea of unaffordable housing is nonsense.
That doesn’t mean that housing sales cannot slow down. That is just the way the market responds to those “unaffordable” prices being asked. But in the end the market adjusts and life goes on.
Senile Sleepy Joe's Amerika: Housing prices skyrocketing across the country. Mortgage rates rapidly rising across the country. A double whammy. But don't worry - you can totally depend on senile Sleepy Joe to quickly solve all the problems ...... right? .......
This is a very geeky Zero Hedge article that explains why the Fed cannot raise interest rates above one percent without crashing the entire economy:
It is worth book-marking—we will know soon enough...
I guess we shall see...
I have a hunch that they will follow Volcker’s model instead. Will it work again? No idea.
Paul Volcker was vilified for years because of the steps he had to take to break the back of inflation. “Wanted” posters targeted him for “killing” so many small businesses. Yet he remained resolute, doing what he knew was best for the country in the long term. We are also fortunate that President Ronald Reagan supported Volcker and the cause of price stability. https://www.stlouisfed.org/publications/regional-economist/january-2005/volckers-handling-of-the-great-inflation-taught-us-much
You'd think the fact that the left-wing Democrats control the Presidency, Senate, House, all big-city mayorships, most large corporation CEOs, virtually the entire MSM, socialist/communist academia, a large number of state governorships, and all the major social networks, and successfully added a far-leftist (a woman who's incapable of defining the word, "woman") to the U.S. Supreme Court (with RINO Romney's enthusiastic "YES!" vote) would at least make the Democrats a little happy, but instead, all the angry Democrats continue losing their minds ... maybe their extreme anger 24/7/365 means they're still hiding something ..... maybe the fact that they stole the 2020 election?
The 1980s seem like a million years ago...
The elephant in the room these days is derivatives.
They have created a financial house of cards that is very fragile.
We got a taste in 2008.
The real thing may be here soon.
Exactly, things are not like they were in the 1980’s.
I say they laid the trap, but are caught in it themselves. Just a few months ago I was reading articles about the new monetary policy they are following and that money printing is meaningless.
This morning I was watching a video interview from a month ago with Warren Buffet. He was saying if you have earning power, you are going to be just fine. If you have been on the sidelines or just skating by in your job, you are going to be in a world of hurt. I know in the 1980’s, I worked 3 jobs and did quite well at the time for a young adult. https://youtu.be/dhsPVqyU5Wc
Right now, this afternoon, I am surfing for a side hustle I can do from home after my business closes for the evening. Do I need it right now? No, but that is going to change for a lot of people in about 8 weeks. (BKMK: Early June crash).
I do expect my business to slow down. I do anticipate I will need to draw on my other skills.
I am retired—but I thought the way you do—I did not retire until I had a large cushion—and stocked up (most would say hoarded) non-perishables of every possible kind.
That is starting to pay off big time since inflation has hit—I have been able to reduce spending at a time when many others have no choice but to increase it.
The trick is to live below your means—which you can do either by increasing income or reducing expenses.
I totally agree. Look for them to have to back off and lower rates.
The major cause of inflation is when the government issues currency that is not in exchange for an item of value.
The money is created out of nothing. Government simply says “here, you stupid fools, these new bills here are worth as much as the ones you have in your wallet.” But they aren’t.
Raising interest rates is not going, by itself, to eliminate inflation.
I didn’t say it - Milton Friedman did.
But now, over the last two years the Demorons over did it and we now have inflation in the mainstream economy. We learned in the 70's and early 80's just how hard that is to stop once it starts. I'm not counting on these over credentialed idiots to figure out how to stop what they have started.
FTA: “Under Biden, we have seen inflation rise from 1.4% to 7.9%”
Inflation more like 10% at the minimum and as high I have seen in other news of 15%.
Stocks started to nosedive when the Fed chairman announced back in early Dec 2021 of at least 4 rate hikes for 2022. Down about a 1/3rd for my AMD stock and the list I look at for other stocks are similar.
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