Posted on 06/19/2022 8:27:40 AM PDT by Browns Ultra Fan
Where is Stanford’s John Taylor when we need him?
Even since the housing bubble burst and ensuing financial crisis on 2007-2008, The Federal Reserve under Ben “The Savior!” Bernanke, Janet Yellen and Jerome Powell let their zero/low interest rate policies be too low for too long that anyone with common sense knew would lead to serious problems when The Fed was forced (this time by inflation) to end the massive OVER monetary stimulus. We are now living through The Great Reset of the US economy.
Since Biden was sworn-in as President (or El Presidente) in January 2021, 30-year mortgage rates are up 108% to 6%, regular gasoline prices are up 108% to $5 a gallon nationally. Inflation is up to 8.6% YoY.
Bernanke, Yellen and Powell did not follow any rule per se, just a “seat of the pants” panic button approach. Using the Mankiw specification of the Taylor Rule model, the Fed Funds target rate should be 13.25% based on CORE PCE. Notice starting in 2014, The TR suggested target rate started to be higher than the actual Fed target rate. And since the Covid monetary blast of 2020, the gap between the Taylor Rule and Fed target rate (red area) has grown to near the highest level in history. Even now Mohamed A. El-Erian, Chief Economic Advisor at Allianz, is starting to admit that The Fed’s ZIRP policies are beginning to hurt.
But if we use total inflation rather than core inflation, the measure that picks up the actual pain that Americans are feeling from rising gasoline prices and mortgage rate, we get a Fed Target rate of 22.10%. Since The Fed’s current target rate is only 1.75%, The Fed has “Room To Move.”
And in a painful. bad way.
(Excerpt) Read more at confoundedinterest.net ...
Which outcome is better
More Democrats or more RINOs?
I would say that the BEST WAY to start to tame inflation would be Drill, baby, Drill. Similarly get out of the way on other critical items, like food.
However, one big problem, even if ‘The Administration’ stated that would be the new policy, it would be far different than, say Jimmy Carter, saying the same back then...as we knew who Jimmy Carter was and that he was likely to keep his word (as he pretty much did during his term). Now, not only can we not trust ‘The Administration’ on policies like that, we don’t even know who’s running it.
More RINOs. Any more democrats and they can push anything that they want through Congress and Biden (or his handlers) will sign it.
Build Back Brandon funneling trillions of tax dollars to far left-wing causes? Done. An additional nine far left-wing liberals packed into the Supreme Court? Done. Stasi inspired speech police sending anyone who expresses less than appropriately liberal thoughts to re-education camps? Done. Gutting the Second Amendment? Done. Freedom of Religion becoming Freedom From Religion? Done.
The U.S. will become a socialist utopia like Cuba, Venezuela and Zimbabwe.
If RINOs tip control of the House and Senate to Republican control it cannot get any worse and at least has a slight chance of getting better (depending on who is elected Speaker of the House and Senate Majority Leader).
I agree with you. But many low IQ people here dislike RINO’s more than democrats. The way I look at it is with RINO’s we do win on some issues. With democrats we win NOTHING, ZIP, ZERO, NADA.
Civil war, done.
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.