Jason Furman is the former Chairman of the National Economic Council under Barack Obama; he is currently a professor at Harvard teaching economics. If you ever wondered why the economy under Obama included the weakest economic recovery in history, the advice of Furman might explain it.
In an interview with CBS this morning, Jason Furman says the best way to get inflation under control is to raise taxes and stop people from spending money. This approach will impact the demand side of the economy and as a result, with no one purchasing stuff, it will lower prices. Seriously, no joke, he said this. WATCH:
Jason Furm: …”Congress should be trying to do their part and helping out if they can cut the deficit, including raising taxes on high income households, that would reduce a bit of spending in the economy, it would cool the economy down a little bit, and actually take some pressure off the Fed.”…
Create a deeper recession to control inflation, brilliant!
Like I have been pointing out for months, these ideologues believe inflation is being driven by the demand side, by consumers purchasing too much. They pretend not to know it is the supply-side issue of energy policy that is driving the CORE inflation they seek to reduce.
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Harvard Economics Professor Jason Furman reminds me of this:
The only way to deal with inflation is to remove the cause of it: The Federal Reserve Bank. The rest of the chatter around the subject is misdirection.
Not only The Federal Reserve Bank, ALL of the central banks cause inflation everywhere.
Indeed. All fiat currency is a lie. Value comes from production, savings, investment, research & development, and peaceable cooperation in free markets – not scribbling more zeroes on paper or typing them into digital ledgers. Value cannot be wished into existence, and if wishes were carrots, we could make stone soup out of ’em.
The article seemed to be about USA specifically, so I only mentioned our central bank, but all the nations’ central banks and the great international banks – the IMF, BIS, World Bank – are all in collusion. Add in the artifice of the ridiculous instruments of the derivatives indices – bundled debt, such as mortgages, being listed on the asset side of ledgers – when have you, in personal finance, ever considered debt as an asset?
An involuntary planet-wide debt jubilee is coming very rapidly and it will be a relief, but only after near-total collapse – Fight Club’s Operation Mayhem to the nth degree. Look out below! Unfortunately, it won’t be real, because the bankster/technocracy want to set up their own digital money system of central bank cryptocurrency, where they’ll assign us social credit scores and deny us food and shelter via blockchain to coerce our compliance – the mark of the beast control of commerce.
Thats what THEY want, meanwhile I’ll be opening my OWN bank, to replace fiat currency finally recognised as being worthless, with ammunition.
The purpose of currency is to faccilitate transactions beyond a two party barter, to have a commonly recognised ‘currency’, because the shoe maker can never make enough shoes for the housebuilder.
Anyway, comes in different denominations, and easily divisible amounts, not practical to counterfeit, and unlike fiat currency, which isn’t even useful as toilet paper, ammunition has intrinsic value.
What you’re saying is Important!
In the book “This Time is Different,” the authors point out that there has never been a Govt-run reserve currency that hasn’t failed.. Not a single one.
Can’t agree more. The banks that make up the Fed are predominantly owned by the Rothschild family.
Govt’ bodies overtaxing people, via inflated and phony assessments, etc. is a bigger cause of Inflation than the Federal Reserve.
No, it’s not.
Central bank counterfeiting of currency is inflation. You clearly need to educate yourself on the subject.
Here is the indispensable Dr. Ron Paul, Fed Slayer, on inflation and its effect on penguins and the rest of life:
The problem with the Federal Reserve is not that it pursues “bad policies.” The problem is the very existence of a secretive and unaccountable central bank with the power to manipulate the money supply and interest rates. Money’s function is to provide an objective unit of account, so market actors know the value of goods and services. When the central bank manipulates the money supply, it arbitrarily changes the value of money, making it impossible for market actors to determine those values. The Fed’s manipulation of interest rates also creates economic chaos by distorting the signals sent regarding economic conditions. This leads to widespread malinvestments, resulting in booms followed by busts. Since this system leaves elements of the market intact, it can survive and even appear to thrive for an extended period of time. But eventually the fiat money system will collapse.
Since the fundamental flaw with the Federal Reserve is its very existence, reforms, such as making the Fed follow a rules-based policy, will not “fix the Fed.” The only way to return to a rational economic system is to end the Fed. If there is not sufficient support to end the Fed, Congress should still audit the Fed and create competition by repealing the legal tender laws and ending all capital gains taxes on precious metals and cryptocurrencies.
READ REST: https://www.lewrockwell.com/2022/07/ron-paul/inflation-even-hurts-the-penguins/
Amen. Look at M1 ( was H3…). 5x the dollars printed after Covid. Obama went from 1.3T to 4T. Under Trump the Fed cut him back to $1.3T. Now $20T.
MMT, now policy. In economics, people no longer act in self interest. People act for the collective good. This is taught. So glad I got my degrees before MMT, now policy, wS invented. This crap is why we are in this mess. That and the re-imagine BS.
And that law chic from the other day. And the new Supreme Court Justice.
I think these economists don’t have jobs….they become professors or try to catch on with think tanks and write an occasional article they get paid little for….they look around and say, “Gee, which party’s can use me to say anything they want me to say.” Voila. Then, they become spinners on tv.
Well, if one is a union employee in IL, if there are two employees eligible for the second shift of mandated OT, you will see a cat fight. The second mandated shift is double time.
In IL if OT is involved, there is no such thing as ‘collective’ good.
I seen folks that would kill their own grandmother for that overtime.
Here’s Why The Media Don’t Want You To Know About The Massive Protests Going On Around The Globe
https://thefederalist.com/2022/07/15/heres-why-the-media-dont-want-you-to-know-about-the-massive-protests-going-on-around-the-globe/
Thanks for the link Charlotte but it is interesting the Dutch farmer’s protest barely rates a mention.
Push for a depression and we could have deflation so much more helpful for socialism.. to take hold.
And they get paid well to plunge main street of economic recession. They want to be on top of burning rome. s/
This “economic professor ” must’ve received his degree from the bottom of a box of Cracker Jacks.
Harvard. Same thing.
In 1920-1921 there was a very sharp and relatively short depression, without all the dumb ass interference by Hoover and FDR the great depression would have been another short & sharp one. Idiots like Furman will cause a permanent depression that will never end.
WHATS THIS??????
Ukrainian cargo plane which crashed in fireball explosion in Greece was carrying 11 TONS of weapons including mortar shells and land mines to Bangladesh – as all crew members are confirmed dead
Mortar shells and landmines to BANGLADESH?
What nefarious games are the US and Ukraine playing at?
https://www.dailymail.co.uk/news/article-11021799/Ukrainian-cargo-plane-crashed-Greece-carrying-11-TONS-mortar-land-mines.html
The floggings will continue until morale improves.
Jason Furman says the best way to get inflation under control is to raise taxes and stop people from spending money
Why isn’t he telling this to Congress. Raise the taxes on foundation, university endowments, anyone in Federal government, and stop spending money.
Magic Wand Mentality.
Communists are always stupid, crazy, and evil.
Rodney Dangerfield’s son in this was the guy in Christine.
I did catch one gem at the end of this block-what’s her name asks him if 4 or 5 states send out “inflation checks” to their citizens would that impact the national inflation rate-Prof. Furman answers with emphatic YES!
Great the govt theft of more of my own money, it is bad enough I am slowly getting into debt again and now they want to take more to keep me there, I was thriving under Trump I am starting to drown under Obiden. The sad thing is I knew this was coming and I didn’t prepare enough.
The guy isn’t wrong.
The inflation we face now isn’t from an overheated economy. It’s from flooding the money supply with $6,000 Billion over 2 years.
That money has to be destroyed. How? Devaluing real estate, taxation, rising interest rates, stock market crash, all in addition to rising inflation.
There is no easy painless way around this. The only way through is straight down the middle until we get to the other side.
High taxes are the root cause of inflation. The more the Govt’ steals from the common worker, or business… the more he has to charge. Then the customer has to work more hours and he gets taxed more.
Correct. How do you wring useless $ out of the economy? We’ll, just give it back to the government! That’ll take it out of the hands of those millions of consumers and the inflation numbers will go down.
Problem is that that hurts people too! Those egg heads always seem to forget that there a people out there in the economy.
There is no way around this, OKI.
Its a shit sandwich but printing more monopoly money which is what Biden and the Globalists in the WH as well as all the DAVOs Eurotrash want is worse.
Plant your victory garden.
Way way way more than $60B. Look at M1 since Biden… $4T to $20T.
yes.
there is no way around this- this Ponzi scheme needs to collapse.
Recession is the cure for the sickness we created during the boom.
And this is also how you break Davos.
The Euro trash in the Davos set are spitting blood at J Powells not going along with their ECB BS.
By blowing up this massive credit bubble that’s inflated all these asset prices- all this fake money buys real gov’ts, real militaries, real policies purchased that destroy your life.
We have to get back to pre- 2008 before all this monetary chicanery started….
Zelenskiy fires Ukraine’s spy chief and top state prosecutor
SBU’s Ivan Bakanov and war crimes prosecutor Iryna Venediktova sacked after their officials found to be collaborating with Russia
https://www.theguardian.com/world/2022/jul/17/zelenskiy-fires-ukraines-spy-chief-and-top-state-prosecutor
Is Zalensky getting paranoid, or are the people around him realising he is a sinking ship,…either way this doesn’t look good,…for those rooting against Putin.
I’m going with door #2, Monty.
If inflation is caused by too many dollars chasing limited products this might work. But if the cause is lack of supply to an existing market raising taxes only makes the recession worse
I guess halting the profligate spending isn’t an option with these people.
I’m sorry I accidentally flagged your comment as I was scrolling down to read.
AdRem please ignore the flag.
Furman doesn’t even believe what he is saying.
He’s just throwing some mess out there to see if anyone buys it.
Wow, I would suggest his former students seek a refund from Harvard.
If more people would die, inflation would be reduced since demand would be down, NUTS!
iirc, it used to be that professors earned their positions in academia because they had useful knowledge to share with students.
Something progressively changed. It’s who u know… (instead of what you know)
p.s.
say prof,
the idea to
-raise taxes (while govmt is wasteful in spending )
-to reduce amount of funds that taxpayers can spend (while the govmt, over spends, cuts off energy supplies and causes inflation and the costs of things rises)
-to reduce the demand for products….
….would exacerbate job losses, since fewer products are needed…
-which would reduce the amount of funds that the govmt could gather from higher taxes…
Back to the top, repeat in a circular miss fashion
( it looks like the dystopian hunger games … a huge contrast in the haves, and have nots…..
until eventually, over time, haves – also incrementally become the have nots….
Is that the (untold) true meaning of a progressive (selfishly and incrementally going backwards)?
Where is the life, liberty and pursuit of happiness?
Where is the love?
p.s.
with high costs of living, due to miss created inflation,
the demand for some products (tech product$) will likely decrease,
and the jobs to produce the products will decrease,
and the prices of some of products will decrease to try to get the warehoused over supply off of the inventory – but with fewer people working at jobs,
there would be fewer people that could afford to purchase products.
….Another circular, incrementally worsening type of problem.
I do not know
imho
Affordable energy can help…. (that notion is taboo to the cc believer$ )
Love thy neighbors …
Who you know, or who you blow?
asking for an old friend,…
Energy availability determines how many products can be made and therefore obtained. Two paths are possible. Make more energy or use the products available at the current energy level.
I expect the government or the market to determine who gets the available products.
Biden’s Energy Policies trigger higher fuel cost, resulting in higher manufacturing cost and higher transportation cost to produce retail products costing more.
Biden’s Energy Policies trigger higher fuel cost, resulting in lower effective wages since more income is directed towards food and transportation by retail buyers.
Lower effective wages are forced to buy retail products costing more. Resulting in fewer retail products being used. Resulting in higher manufacturing and transportation costs. Resulting in fewer retail products being used. Inflation!!
The product availability will not conform to demand. The amount of available fuel/energy determines product availability. You can demand all you want, but it does not mean you will get it.
No Fuel, No Availability
Socialist economic advisor, says all you need to know about why America is circling the bowl.
20+ years ago I was an analyst on a call regarding the overall economy.
The guest speaker was reviewing much of the great technology that was coming forward at the time.
But we had an oil price spike at the time.
So……during q and a I asked this speaker what impact these increased oil prices would have on the economy?
He said little, if any as it was becoming a technology driven economy.
I realized right then this was a young, ignorant, guest speaker and hung up.
Does Furman know he is living in a glass house?
He’s technically correct. They printed too many dollars, the fastest way to get dollars out of the system and destroy demand is to raise taxes. This would be economically catastrophic and politically untenable of course.
Luckily Furby doesn’t have to worry about people not spending money. Obidenomics has taken care of that.
“Modern Monetary Theory (MMT) is a macroeconomic framework that says monetarily sovereign countries like the U.S., U.K., Japan, and Canada, which spend, tax, and borrow in a fiat currency that they fully control, are NOT operationally constrained by revenues when it comes to federal government spending.
Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should NOT be shaped by fears of a rising national debt.”
This is Keynesian economics on steroids. This also has been the working hypothesis of the Federal Reserve for years now. It’s pure horse manure! Put simply, our own government, via the Federal Reserve, has screwed it’s citizens with cheap fiat money printing. . They have now gone too far and printed too much false money.
Their hinted solution to their own malfeasance will be a ‘digital currency’ system. So dangerous! At this point Americans have lost ALL their personal freedoms. This generation needs to wake up and stop with the false God of Easy Money aka: MMT.
WHEN are we the people going to CLEAR OUT ALL of these CORRUPT( Obama) Demons from our government????? That’s what it’s going to take…GET THEM OUT! So they will QUIT forming these SECRET clubs that go against our Amerucan Values!
The scary part is this economic imbecile is actually teaching at “Ha-vad.”
|“Presenting America’s Real Coup d’Etat” bats leadoff in this about-10-part series, “Murder of a Rebel Nation” (MORN), which will document the actual, done-deal takeover of the U.S. by corporate criminals over a decade ago. While the moving parts and pieces needed to effect that coup have been shifting into place for a very long time, the fulcrum event that irreversibly flipped the U.S. over the wrong side of the prison wall into the land mass of full-blown criminality was the TARP bailout in October 2008, as we shall see in future episodes. One month after that watershed event, Barack Obama was elected as the 44th President of the United States—a purely titular office by the time he took up residence in the White House three months later. …. |
https://www.bitchute.com/video/5S2XxhyeEKZZ/
Technically he is right. That’s one way to do it. It may not be the best way. Another way is to stimulate (increase) supply. Socialists hate that. It puts private sector (people/individuals) in control. So reduce regs, business inc. tax, and reopen the oil and gas industry and watch supply increase. C’mon baby let the good times roll, c’mon baby lemme thrill your soul. Nope, that cuts out the gov’t.
I have 0 respect for these people. In additon I am starting to lose respect for those who refuse to open their eyes and see what is actually happening.
In a similar vein you can cure any case of cancer, too.
Simply shoot the patient in the head.
Video not available in my Country it says. Odd. I didn’t know Arizona was a Country.
February 25, 1980, Wall Street Journal, page 20, “Review and Outlook: Why 18% Inflation?”, the fourth paragraph:
“The inflation was caused by the people who manage, or mismanage the dollar, the President, the Treasury Secretary and, to some degree even yet, the Federal Reserve Board. It has gotten worse in part because inflation feeds on itself; small initial mistakes grow to be large ones.”
The final paragraph:
“With this inflation machine roaring, we will be hearing calls for ‘new’ measures, controls, etc. What’s needed instead is to dismantle the machine, which requires no gift of imagination at all, just some bold and forceful leadership in the art of saying no. “
Former Obama Economic Advisor?
In real world, anyone who had this position would not want it to be known.
Many think inflation is everywhere and anywhere a monetary phenomenon as Milton Friedman stated it. They ignore or forget his definition of inflation. What we have today is some inflation of the monetary kind due to government and Federal Reserve policies of easy money and deficit spending but, as you correctly note most of it is pure supply restriction and hence not really inflation in the economic sense, but simple price increases and the natural result of policies intended to switch us to much costlier and less reliable forms of energy. The fact that energy prices translate into higher prices for anything needing energy as an input makes it appear inflationary. The price of energy will necessarily skyrocket were the words Obama used actually giving us a realistic preview and it was largely supported. The poor always seem to believe them when they claim they will make the rich pay for all their schemes. I have unfortunately been in contact with actual human beings who think earth would be better off without us. They never answer how they can believe this and yet are still here to communicate with me. Part of me wants to attempt to save their souls and part of me wants to encourage them to do the honorable thing and kill themselves. Who would want to live with that kind of belief rolling around in your brain wreaking havoc? I suppose that is the point.
He’s a well paid idiot. Smirk says it all. Harvard? Heh. Liberal haven not an education that is productive. Progressive (meaning regressive) yes. Productive for the average man? No. For the ruling class? Yes, they throw these useful idiots bone$ to spout the narrative. He’d be lost a a real job.
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