While admitting that consumer spending had dropped; and while admitting that production of goods and services had “slowed significantly”; and while admitting that consumers have “lower real disposable incomes and tighter financial conditions; and while stating that “activity in the housing sector had weakened”, housing purchases have fallen; and while accepting that “business fixed investment seems to have declined in the second quarter,” Fed Chairman Powell announces his intention to continue targeting excessive demand.
If we accept that monetary policy can only impact the demand side of the economy (regulatory policy impacting the supply side); and if we accept all off the currently existing realities of a declining demand side, as outlined by Powell; then you might wonder what excessive demand is it that he’s targeting? The answer to that question is the secret sauce. They want less energy demand. WATCH (2 mins):
The federal reserve, just like all the central banks around the collective western alliance, is trying to reduce the economy in order to reduce energy use. This is the monetary policy side supporting the Build Back Better, Climate Change, regulatory policy side. {Go Deep}
They cannot admit openly what they are doing, but the bankers are trying to help the globalist politicians by shrinking their economy. Raising interest rates into preexisting economic contraction is against their legislative mandate, because it only leads to unemployment and a smaller economy.
Powell is using the pretense of demand side inflation as a justification to raise interest rates. It’s not demand driving inflation, it’s the energy policy.
Powell is managing the monetary side of the transition to a New Green Deal economy.
Powell is managing the economy into a recession to support the “energy transition”.
This is all being done on purpose.
[…] Mr. Powell said in his news conference following the Fed’s decision to raise rates by by 75 basis points that future rate decisions will be made on a meeting-by-meeting basis now that the federal funds rate target range is between 2.25% and 2.5%, which he deemed roughly neutral in terms of its impact on economic activity.
Mr. Powell said the 75-basis-point moves in June and July were unusually large and something similar at the September FOMC “could be appropriate.” But he said that the Fed can no longer provide “clear guidance” and will let the data determine what happens next. He said he still believes monetary policy will need to move to a restrictive stance and will likely be between 3% and 3.5% by year end. (LINK)
In case you hadn’t noticed we are being governed by economic illiterates
IMHAO, they are purposely obtuse to anything but their own power, greed, corruption & perversions. Let the masses eat ****.
At least someone seems serious about tamping down inflation – currently over 9% on official figures – probably over 20% in reality!
If Inflation is really at 20% you need interest rates at 21% to really attack Inflation – otherwise it’s just expansionary.
The attack on energy demand is sick and deranged but the prescription is correct – rising interest rates for the forseeable future until inflation is destroyed. Inflation is the fastest way to destroy a civilization, just as venezuela and weimar germany. The fundamental definition of inflation is too many dollars chasing too few goods. Our nation’s productive capacity has not kept up with money flooding the economy. I don’t care if interest rates go the 25%. This is necessary medicine. Once this demented freak is out of the WH then we can begin healing the economy. We’re still a strong nation. Thinking that we must avoid a recession by putting the breaks on interest rate increases is nuts – if inflation is not under control. If the fed truly believes that more interest rate increases are necessary GOOD. Slaying inflation is job one before anything else.
But if you’re going to weaken the U.S. military, economy, destroy the middle class, make our streets unsafe, kill people in their own homes, shut down food production & distribution, don’t prosecute violent, repeat criminals? People die.
What better way to collapse a country then turn off the spigots to fossil fuels?
High interest rates are tolerable if there are jobs, transportation, some infrastructure, some health care, ability to heat your home & cook, goods to buy. If you take energy out of the question, you’re screwed.
Printing money & spending money you don’t have doesn’t stop inflation. Higher interest rates & non-stop inflation will crater this country faster than the 2.5 yrs FJB has left because we can’t afford green energy & losing our fossil fuel energy infrastructure.
There is an interesting alternative theory for the Fed rate hikes: to break the EU and its eurodollar market sporting super low and negative rates. There is a schism in which US Banks support this. War by the dollar, and wresting control of the dollar back to the US. The LIBOR rate has been replaced with SOFR – no more is the London Interbank Offered Rate the base rate for US lending. How long did we expect the ultra low interest rates to last? Got us out of the 2008 mess but can’t hang around forever, and hold on tight : new higher rates trigger a repricing of all assets, meaning deflationary pressure. We live in interesting times. Look up Tom Luongo and Mark Wauck, at an interesting perspective.
That’s generally true, and it’s looking more and more like Tom is right. It’s always been a given that those cooperating with the BBB/NWO project were a mixed bunch from the get-go and that we would see infighting and splits as things went along. For example, my guess is that China has now separated from Davos, having gone along with it as long as it suited her needs.
And Tom Luongo’s thesis is that the US commercial bankers were not about to hand the keys over to Davos. Instead, what we may be seeing is an all-out assault on the ECB and the EU, the centerpiece of Davos’ program of world domination, as well as an attack on the off-shore dollar markets that fund BBB.
More purple ties!
“The beatings will continue until morale improves”