Posted on 08/15/2023 8:03:10 AM PDT by Kaiser8408a
Inflation is a killer to the middle class and low-wage worker. Yet there are always apologists for terrible Federal spending and Federal Reserve monetary policies. Like Alex Bereson with his “How we stopped inflation without a recession (hint: by not stopping inflation).”
Before I look at Berenson’s plea for more inflation, let’s see where Federal spending and Fed Monetary policies have left us. As of this morning, the REAL US Treasury 10-year yield (nominal yield less inflation), is now the highest since two crises ago, meaning The Great Recesssion and the first major overreaction of The Federal Reserve in late 2008.
Here is Berenson’s chart showing changes in inflation (CPI YoY) from 1966-1982 compared with recent inflation (orange) from 9/30/2013 – 06/30/2023. A charist might get confused and assume that inflation is will start rising again. But it is far more complicated than a simple projection.
Inflation is a horrifying by-product of Federal spending and Fed monetary policy (especially under Fed Chair Janet Yellen). Unfortunately, Yellen is now the US Treasury Secretary. For example, REAL average hourly earnings are declining thanks to inflation.
Berenson closes his piece with this sobering statement: “Ultimately, this pattern is why inflation is so problematic. It is addictive, and breaking the addiction means damaging the economy.”
Its Federal spending that addictive, and eventually Congress has to cut its insane spending levels. Even if it lowers GDP and increases unemployment. Take a look at China, a command economy, that is really suffering despite massive government spending.
Under Obama/Biden, the US economy is transitioning from a demand economy to a Soviet/Chinese-style command economy where central government directs economic traffic. We need to bite the bullet and return to a deamnd economy.
(Excerpt) Read more at confoundedinterest.net ...
How to stop infatuation? Dump President Sniffer and elect Republicans..
der!
but whats in it for the professional political class?
Has Congress ever cut spending? They had a chance recently and caved.
“Green” energy credits need to end. Shuttering “fossil” electric generation needs to stop. Encouraging bad investments to build inefficiency into the electrical grid is idiocy. The US consumer will pay through the arse as this intermittent stuff comes online and brownouts increase across the country.
Both parties love spending. Its the only thing they know how to do and their “answer” to every perceived problem.
This isn’t just a problem with Obama and Biden. Bush and Trump both were OK with out-of-control spending and government interference in the economy. Its a myth that its only the Democrats who created this problem.
You know why the Government spends so much?
Because that’s what the voters want!
Oh sure, they are all for lower spending, unless it’s THEIR pet program.
You can’t bring down inflation without risking a recession. You have ti take the risk. It’s impossible to reduce the federal balance sheet when a Repuboican is in office, how could we do it with Biden in office. Remember, Trump raised spending in a hockey stick over Obama. How could we get anyone elected who would do it. Congress isn’t exactly willing go either.
20 years of low interest rates hot us here. Higher interest rates will be the solution. The reality is, you can’t keep interest rates that low. Look at Japan.
Regardless, we are “IN” a Recession already.
Trump can turn it, but not if the ☭Dems continue in power much longer.
Nonsense. Republicans spend just as insanely as the Democrats, so that won’t fix anything.
scarcity increases control
Democrats spend to fill the pockets of criminals, the ‘homeless’, sexual weirdos, criminals and ‘elites’. They don’t give a damn about anyone beyond their ‘base’.
Democrats are trying to destroy the country. The only reason we have jobs is because Biden and his goons were too stupid to find all the regulations Trump cut so we could have jobs. If they could have found them they would have put them back in place.
Yup. Remembering the odd/even gas lines of the 70s
LOL!
This is like arguing I should appreciate one thief stealing from me over another because the one thief spent my money on schoolbooks, while the other spent it on liquor.
I DON’T CARE. They’re both thieves, and I’m still getting robbed no matter which one is robbing me.
Trump both were OK with out-of-control spending
The govt IS the economy. It is not like what it good for GM is good for the country any more.
You cut the spending by 10 percent think of the impact of that. That causes a recession. The best that can be done it hold spending and work on the other things like reduced regulations and promote small business which Trump did.
MAGIC BULLETS DO NOT EXIST. NO MATTER WHAT WE DO, THERE IS MUCH PAIN AGAIN.
Trump focused on the right things and was not ok with spending. You need to look at it from higher ground.
ping
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