"And THAT is how you wreck a nation's economy."
Posted on 12/15/2023 9:39:44 AM PST by davikkm
In a deja vu moment, the Federal Reserve’s swift rate cuts raise unsettling parallels with the inflationary misstep of the 1970s. Back then, premature optimism led to soaring inflation after initial rate reductions. Today, historical cues point to rising unemployment during rate-cut cycles, contradicting the Fed’s sanguine predictions. The specter of a challenging economic future looms large, emphasizing the importance of cautious policy navigation.
(Excerpt) Read more at citizenwatchreport.com ...
Is this a trick question?
Probably too early. We’re still expecting inflation. You’ll cut the rates after people are no longer anticipating inflation.
They’ll cut rates until Trump is back in the WH.
$34 Trillion in Fed.gov debt means, very simply, deflation is politically impossible. It will NEVER be allowed to happen
In a hard-money world, deflation would occur (or debt would have never got so high in the first place)
But the Federal Reserve runs a printing press, and they and Fed.gov will use it. They have no choice
"And THAT is how you wreck a nation's economy."
Watch the treasury bonds. Looks pretty bad.
Deficits 8% of GDP how does this not lead to inflation
The rate cut won’t do any good. The inflation is not driven by consumer spending, it’s driven by massive government printing. High interest rates are used to cool off an economy that’s getting too hot. So a repeat of high interest rates of the 70s and 80s won’t do a bit of good. Furthermore, back then we were the worlds creditor nation, now we are the biggest debtor in all of human history… So when the rates go up, the US government has a bad problem. On the other hand, if they don’t cut rates, the already frail economy will do even worse. Real estate is in the tank, car sales are plummeting , the only spending being done is out of fear that the money will be worth 25% less in another year or two. So basically, we’re screwed, they have to cut rates, and that only fuels further inflation. Because all of the inflation is coming from the government printing $1 trillion every hundred days or so.
Yes
One thing for certain with the election year upon us is the lying, obfuscation, distortion,distraction, etc. from Washington will be off the charts. We could find ourselves in a depression, major war, and waves of domestic terrorism, but reporting would all be adjusted and sanitized to a more palatable narrative.
Don’t worry, everything will be fine, we won’t run out of money, they can and will just print more...
Time to bring out the old WIN buttons!(Whip Inflatin Now)
right now the prices of needed items and services are still SKYROCKETING
everything.
FOOD especially.
restaurants including burger joints too
insurance
rent
car repairs
cough syrup
coffee
gasoline
electricity
gas
water
sewer service
garbage pickup service
taxes
almost everything online including amazon
entertainment
up up up up up
"More than any other time in history, mankind stands at a crossroad. One path leads to despair and utter hopelessness. The other, to total extinction. Let us hope that mankind chooses wisely." - Woodie Allen
Regards,
Wonder how much money the feds are pumping in the the markets to keep it alive dead end street sign ahead.
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