Posted on 04/18/2023 7:42:10 AM PDT by Kaiser8408a
Alarm!
America’s mega bank, The Federal Reserve, is slowing M2 Money growth so rapidly that it looks like it is depthcharging the US economy.
Inflation in the US has been booming since 1) Biden attacked fossil fuels, 2) The Fed’s overresponse to Covid (+27.48% YoY on February 22, 2021 near the beginning of Biden’s Reign of Error). and 3) out of control Federal spending under Biden, Pelosi and Schumer.
Fed Funds Futures point to two more Fed rate hikes before The Fed drop rates like a depthcharge. This depthcharge will help create a rekindling of asset bubbles.
The Taylor Rule suggets a Fed Funds Target rate of 11.77 while the current target rate is only 5%. This is called “leading from behind.”
Here is The Fed monitoring the US economy in order to decide on firing more financial torpedos!
(Excerpt) Read more at confoundedinterest.net ...
> …and 3) out of control Federal spending under Biden, Pelosi and Schumer. <
Republican presidents (including Trump) have done no better in this regard. So it’s not a party problem. It’s an institution problem.
Agree but lets not leave his party out of the blame with out it Biden would be helpless.
The democrat party is cheap and easy everyone owns one.
We woke up one morning, read the paper and learned the USSR was bankrupt.
IT HAPPENDED THAT FAST.
The Fed is absolutely CORRECT to raise rates, and they should raise them at twice the current pace...twice as high.
Let the chips fall as they may.
Someone once asked author Ernest Hemingway how he went bankrupt.
His reply: “Two ways. Gradually and then suddenly.”
It is my observation that right wing fringe wackos are even more wacko than left wing fringe wackos, and make no mistake, the left wing types are not mild.
https://fred.stlouisfed.org/series/M2SL
There is truth, unedited by the wacko who wants a graph to look explosive. Note what truth looked like when money was poured in to combat virus effects. The Fed is trying to adjust.
Not a Fed advocate. They create printed pieces of paper from nothingness on a whim, but depthcharge is an absurd description.
Yes. But this post is written as though it is code. I guess I’m too old to get it. Learning a new language isn’t on my bucket list.
Oh, and btw, countries can’t go bankrupt. If they have a central bank with independence. That bank can pay off any debts via created pieces of paper.
It is VERY popular to talk about the Soviets in terms of not being able to spend enough to counter Reagan’s SDI. Nope, that’s not what happened.
Two issues existed. First and foremost, their Central Bank was constrained to create money only in amounts aligned to the Interior ministry’s 5 year plan. They were not allowed to whimsically create Rubles to maintain the illusion of internal function, like the Fed can.
And second, the price of oil collapsed in the mid 1980s as Alaska arrived and then the North Sea discoveries arrived in the early 90s.
Of course M2 is coming dow.
That’s the entire reason you would raise rates. The purpose is to soak up the extra cash in the system. If it wasn’t soaked up by interest rates, it would continue to chase products causing the prices to increase.
This article sees to hyperventilate over a basic economic “function.”
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