Posted on 07/01/2022 8:24:18 AM PDT by Browns Ultra Fan
Yesterday I paid more than six bucks for a quart of milk!
Q1 GDP was already admitted to be negative. Then it got revised this week to an even lower number.
Today, Q2 GDP was reported negative. So the economy is so bad they can’t even try hiding it with fake numbers.
For sure the interest rate hikes are harming the economy. But even now the Fed rate is way lower than the historical average. And inflation is hot, and about to get red-hot.
Is Powell nevertheless wrong to be raising rates?
Or is he wrong by not raising them fast enough?
Side note: Powell’s job is of course being made more difficult by Biden’s many stupid moves. But I guess that’s a topic for another thread.
In think the Fed pivots on rates this summer. Today’s PMI numbers were pretty bad.
Lead to a recession? LOL
Powell is wrong no matter what he does.
Government deficit spending and the financing of that spending by issuing bonds is the immediate cause of inflation. Powell cannot address this root cause.
Raising rates will protect the bankers - for a while. That will also crash the economy rather quickly. Sustained inflation will crash the economy a little more slowly. We have both features in progress now.
Where? In Hilton restaurant?
I just paid 99 cents for half a gallon here!
“Is Powell nevertheless wrong to be raising rates?”
IMO Powell and the central bankers are making the correct decision on raising rates.
Cheap money leads to inflation and unsustainable speculation in non producing activities.
It also tends to bloat real estate and equities.
The bankers are one of the few parties, actually being “somewhat” responsible in this reckless spending era.
The Fed should have started raising rates earlier than they did. Now they are playing catch-up.
And it should be noted that Powell does not raise the rates. That is done by the Fed Open Market Committee where he is one vote in twelve.
Just went to grocery store. Cheap item I used to get on sale for 1.25 per is now on sale for 3.99. Absolute insanity if the GOP doesn’t have a majority like the Rats did in 1974-ish.
shes a little slow on the uptake
If the repubs are able to win a majority in November, the media will report that we are in a depression. That is also a big if.
If the Fed backs off QT and rate hikes prematurely, inflation will again rear its ugly head.
Biden-Powell, off topic but humorously reminicient of Gen. Robert Baden-Powell, founder of scouting after a successful military career largely in INdia and Africa. Naturally considered a racist by leftists since commanded whites killing black Africans. Not to mention his use of the swastika (like Rudyard Kipling) on scouting badges. Several of his statues in England were temporarily hidden during the George Floyd riots as they were thought to be targeted. A shame he's not in our government instead of Biden-Powell.
I’m predicting 2 rate hikes then they flip flop.
“In think the Fed pivots on rates this summer. Today’s PMI numbers were pretty bad.”
I want to be the first to ask the question “when does the Fed re-pivot on the rate pivot and start raising rates again?”
It probably doesn’t matter at this point what the fed does on rates. They won’t raise rates enough to quash inflation because it will cost too much in service to the national debt if they do.
So they will print if they raise rates, and they will print if they don’t raise rates. They will print to oblivion either way, and then blame Trump, global warming, Putin, greedy corporations, hoarders, gas station owners, etc.
Printing is the easiest way for them to steal from us. That’s what they will do.
Milton Friedman - Only Government Creates Inflation
https://www.youtube.com/watch?v=F94jGTWNWsA
Milton Friedman - Understanding Inflation
https://www.youtube.com/watch?v=GJ4TTNeSUdQ
Sorry, I love this guy! :D
Milton Friedman -
Milton Friedman Crushes Man’s 3 Questions like Dixie Cups
https://www.youtube.com/watch?v=rQLBitV69Cc&list=RDLV6W_9I0nk8uI&index=7
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