Posted on 09/03/2023 4:38:14 AM PDT by Phoenix8
KEY POINTS U.S. inflation started to gain pace in early 2021 as the economy emerged from the Covid-19 pandemic, rising from an annual 1.2% in December 2020 to a 40-year high of 9.1% in June 2022. “The Fed thought the source of the inflation that began in the post-pandemic era was excess demand, and you could understand why they may have thought that if they didn’t do their homework,” Stiglitz told CNBC’s Steve Sedgwick at the Ambrosetti Forum. Instead, the economist said that the price rises were often driven by other factors, such as a shortage of key components like semiconductor chips.
(Excerpt) Read more at cnbc.com ...
As a guy that Decided to retire early I am regretting my decision 7 years ago.
I hear you brother. If Trump got a second term, I would have retired last year. Now, I have to wait to see who wins the next election. Sad state of affairs in this country when one’s life is so affected by the ideology of the democrats and their horrible policies.
Having lived through the 1970s and their disaster way back then, the FED ALWAYS gets it wrong and makes it worse (IMHO).
I delayed early retirement due to inflation fears. Stinks!
Inflation solves excess debt from federal spending. A tax on savers. They didn’t get it wrong. They just lied about intent.
in 2000, the national debt was circa $5 trillion.
22 1/2 years later it rises rapidly to $ 33 trillion in debt, against a smaller GDP. The debt limit has been repeatedly raised by both parties, and looks to be raised again shortly.
Ergo the entire government -- Congress and "administrative" state and both parties -- has gone wrong. Wildly wrong.
Where the feds went wrong was injecting trillions of dollars in the first place. The second thing they went wrong is not removing the money to reduce the dollars floating in the system.
The “learned” article doesn’t mention the primary cause of monetary inflation: government issuing fiat currency.
Having a Nobel Prize in Economics doesn’t mean you know anything about economics. Paul Krugman has a Nobel Prize in Economics.
Just a few days ago I looked up the total NATIONAL budget in 1981, year I graduated from HS. Glory days.
It was 1 trillion dollars, now the interest on our deficit is about 3/4 of a trillion dollars…alone per year.
How long can it continue like this? Or is money just numbers with no intrinsic value and we can function with a debt of say a trillion X trillion dollars?
(current inflation to me makes it seem like it does have a real value)
“Wildly wrong”
The folks who received the billions of federal dollars loved it...for them it was wildly right.
;-)
If you are the world reserve currency you can inflate forever.
If you are not you crash and burn rather quickly.
That is what history tells us.
“Congress and “administrative” state and both parties — has gone wrong. Wildly wrong.”
Agreed. We are massively in debt. It’s like a financially irresponsible person going wild with credit cards, charging anything and everything imaginable.
There are so many areas money has been wasted on, such as foreign wars that are either none of our business or that have been invented to keep the military industrial complex alive.
And the “administrative state” is our deep state. A collection of high ranking embedded for life senior executive employees making decisions that congress should be doing. This consortium is whats running the country and running it into the ground in the name of socialism.
"The Fed had no idea of the effect of the IRA"
Only brain dead zombies would 'believe' this. Gasoline, heating oil, natural gas, and electricity don't need chips. They need sane government policy.
Any government policy maker that is unaware that $ trillions in spending doesn't cause inflation is clearly brain dead (or a Woke Leftist, but I repeat myself).
For my entire life and despite college level classes in classic Austrian economics, I believed exactly as you have stated.
Over the last couple of years thru Covid and now the disaster we are living in and I have begun to question if the Congress, President and Federal Reserve are actually wrong or wildly wrong.
If you trying to destroy the constitution and economic system we live under, what else would you do other than what is currently being done.
If you want to usher in a CBDC, destroy the current monetary system system, which is being done.
Destroy the economy and economic system, which is being done, then spend trillions more than you take in.
Create a giant gap between the rich and the poor is being done, despite spending trillions on poverty programs.
I submit what is being done is wrong if what your end game is, is to create a new form of government.
Correct, what is being done is NOT wrong if your goal is to destroy the constitution and usher in a new form of government aka “The Great Reset”.
It’s the uniparty..
Time to repeal the 17th Amendment and eliminate the Senior Executive Service via a Convention of States.
“a Convention of States”
When the leftists and big corporations (ah but I repeat myself!) were done with that we would have a lot of fancy words designed to make sure the boot was on our face forever.
“Yet he still tries to throw a few weak defenses for Biden on like computer chips caused car prices to go up, which I guess he is inferring caused our inflation??? (LOL)”
Yeah, like this line:
“American auto companies forgot to put in orders for chips”
As if that was going to happen.
The purpose of the Inflation Reduction Act was to provide funds to pay off the loyal democrat apparatchiks
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