Posted on 06/16/2022 9:15:47 AM PDT by Browns Ultra Fan
I couldn’t sleep at all last night … after The Fed cranked up their target rate 75 basis points.
The odds of a recession grew to 71.7% as The Fed hikes rates.
The NASDAQ index tanked -4% today on the fallout from yesterday’s Fed actions.
Do I detect a trend in The Fed’s latest Dot Plot??
So, will The Fed continue to go head-over-heels on monetary tightening?
(Excerpt) Read more at confoundedinterest.net ...
Odds of a recession are 100%. What could possibly happen to prevent it? A serious question.
We should be thankful it’s not a depression.
I hope so. The real questions are:
Will Democrats and RINOs learn that this was all caused by spending taxpayer dollars that do not exist?
Will voters get an economic clue and only vote for candidates that promise to radically cut spending and useless government that is the root of these economic problems?
Yet!!!
“We should be thankful it’s not a depression.”
yet ...
You double the input cost of those goods and services and everything becomes twice the price. The turbulence from day to day is just the arguing about leading and lagging indicators.
You want to kill inflation, you get petroleum flowing again. Think of every cup of oil as a dime. Like oil being our money supply. You tighten the money supply and it ripples thru the economy.
Jumped out of bed
Turned on the light
Rolled up the shade
Went to the kitchen for a bite
I pulled down the shade
Turned off the light
I jumped back into bed
It was the middle of the night
Dow lower than it was on Jan 6. First time below 30,000 since diaper-brain took office.
That may not be far off.
Yup. We there now.
Their only worry is about how to keep public anger and frustration focused on each other instead of against them. That’s where the importance of a state run media kicks in. The ministry of information.
While the war on oil didn't help, the crux of this economic disaster is irresponsibility by the Democrats: an epic fiscal policy fail.
Even if oil had stayed below $60.00 we would still be in the same mess.
Covid response mobilized trillions in damage control. Covid dropped the market (Dow) to 28,000. So Joe has become a larger threat than Covid. When are they going to mobilize to “Beat Joe” like they did to “Beat Covid”?
The covid lockdowns have a lot to do with it. Spending trillions to keep people in their homes, not producing. Done all around the industrialized world.
That’s not to say there could not have been structural changes before the pandemic which should have been addressed. Principally overall debt was/is way too high historically and that could have been addressed years ago.
That’s what Ross Perot was warning about in 1992. So it’s been forty years since our problems started and thirty years since Perot’s warning.
There’s only one thing that can bring the U.S. back from a recession, which we’re actually suffering from now.
It’s not the federal reserve hiking rates up by .75, which they did in order to reduce public and business spending.. That won’t help at all. In fact, they could bring up the rates by 5 full points, and it won’t help.
What needs to occur, which the Biden administration won’t do, is to open up the spigots and start producing more oil to get the American economy rolling again.
It’s the oil, stupid!
It would be very hard to prevent a recession now. The only question is how deep.
I don’t argue its not both. But I do argue any recovery from both bad policy situations will not happen until until oil flows domestically.
Hear, hear.
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