Posted on 12/17/2023 7:57:02 AM PST by Chad C. Mulligan
[Arthur]Burns, former Fed Chair, was infamously literally assaulted, being shoved up against the wall, by Nixon because he was not sufficiently "nice" in his decision-making at the time. "Nice", of course, meant lower rates. What followed was the second and extremely destructive run of inflation that defined Carter's Presidential term after Ford lost to him and, I might add, which was not his fault.
Such is the nature of all economies; they take time to process what happens at a policy level whether intentional or not, simply because producing things doesn't happen instantly and thus when you change something on the input side it requires time before it comes out the other end. This isn't good or bad -- it just is.
Of course today we have a very different Federal Reserve board. You might think not but if so you're ignorant. The decisions then were nearly-autocratic; whatever debate there was is in the "minutes" but the practice today of announcing Fed decisions to the public immediately commenced in 1994. Many people do not know this; you were either a child, not-yet-born or simply not paying much attention to how this has evolved over the years.
Nonetheless one has to ask here: What happened to Powell and his stance in the last short while that caused him to decide to take at least the claim that continuing to tighten policy might in fact reverse before inflation does?
Prepare accordingly.
As long as the worthless, anti-American unipartiers print $1,000,000,000,000 a month to cover bills and the interest on the debt as they don’t have the money for, inflation will continue as long as we live. That is until a balanced budget and dramatic cut in spending is reached. The end of this decade seems about right for the inevitable crash.
Let there be no mistake and no doubt:
The Fed has thrown the towel in on inflation, complete surrender. And the same can be said of the US Congress.
Abject surrender.
Strap in, it’s going to be a wild ride.
As I recall, the Arab Oil Embargo of 1973 had something to do with the inflation of the 70s and I don’t think Nixon saw any of that coming. This is not to say that the fed is not being pushed around or that inflation will not be back, printing trillions of dollars seems to have something to do with that and it has not stopped.
1. I didn’t hear Powell say what is being claimed. I’d have to see the transcript (if it can be trusted).
2. I liked it better when the FED didn’t talk. That change has made things much worse in my opinion.
📌
They POS Carter gave me a 13.5% mortgage.
It was Paul Volcker who deserves credit.
Volker crashed the econamy and ruined my early career start. It took decades to recover. CRASHING THE ECONOMY IS A SHITTY AND STUPID WAY TO SLOW INFLATION.
True, but Reagan gave him a clear field.
Volcker was a Carter appointment. He was an advisor to Obama too.
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