The Federal Reserve operates on the false claim that economic growth causes inflation.
Is Faux News in some kind of time warp? It's May and June starts this week.
The Federal Reserve operates on the false claim that economic growth causes inflation.
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When rising costs show up in every class of goods, it is easy to call it inflation. Wages are up. Taxes are up. Energy is up. Services are up. Medicine and health care are up. Food varies by season, but wages, taxes and energy costs push it up.
Technology has created new classes of ‘necessary utilities’.
People pay as much for data and communication as they used to pay for a car payment.
Cars cost more than houses did 30 years ago. Houses and land are beyond the reach of most people. There is a shortage of available homes. This means there is pent-up demand.
Lower rates and that demand would break through to the market.
We’ve been here before. There is some reason to be cautious of a white-hot economy and market. Nothing goes up in a straight line forever. Eventually, there is a crash. Then pain. Then a hangover. Then, it begins all over again.
Fed interest rates seem to be lower than REAL inflation rates. CPI would be be more than double if the formula from 15 years back was still in use.
Housing inflation is the worst culprit. My condo in Seattle area has inflated from $159k in 2011 to $325k currently!
And with rise in property values, property taxes follow.
Another item with much higher inflation is medical & health services, which many seniors can not avoid. Medical bills is #1 cause of personal bankruptcies.
Eliminate the Federal Reserve.
Trump repeatedly called for higher rates under Obama. He has some now. Death to savers is the mantra of the ‘economy’ these days. Enough of this hyping up markets with rates.
It seems only a handful of Freepers and Donald Trump understand long term marco economics.
The Fed has always been afraid of economic growth. (Maybe it’s because they’re afraid others might catch up with their elite buddies.) They call it “overheating.”
The Federal Reserve has been hurting the economy from the day it was established. We need to abolish the Fed.
“We want the Fed dead.”
They did it anyway, the market fell 20%, the Fed reversed course and reduced rates in January, and the market recovered the losses by March.
He's warning them not to try that again going into the Presidential election.
- PJ
Japan has a negative interest rate. Maybe the President would want that?