It’s all a ruse; an economic shell game being played for politics – nothing more.
Consider this quote from Fed Chair Jerome Powell today, “Inflation remains well above our longer-run goal of 2 percent. Over the 12 months ending in September, total PCE prices rose 6.2 percent. Excluding the volatile food and energy categories core PCE prices rose 5.1 percent. And the recent inflation data again have come in higher than expected. Price pressures remain evident across a broad range of goods and services. Russia’s war against Ukraine has boosted prices for energy and food and has created additional upward pressure on inflation.” (source)
You can argue Powell’s points of demand side inflation all day long, it matters not. It’s nonsense. Take interest rates to 10%, or even eleventy percent, and that will not stop inflation because demand is not creating it. Current inflation is a supply side issue, driven by a radical change in energy policy. I have made this case for well over a year, sooner or later people are going to have to stop believing the demand side nonsense.
As Powell himself noted, “with today’s action, we’ve raised interest rates by 3 ¾ percentage points this year,” and yet inflation hasn’t flinched. Why? Because there was no excess consumer demand to tame all year. Demand for consumer goods has been in a freefall since the fall of 2021, while the prices of those goods have remained on an upward trajectory because costs associated with producing them continue rising. That’s a supply side inflation issue, not demand – but Powell cannot admit it.
Powell […] “Even so, we still have some ways to go. And incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected. Our decisions will depend on the totality of incoming data and their implications for the outlook for economic activity and inflation. We will continue to make our decisions meeting by meeting and communicate our thinking as clearly as possible.
We’re taking forceful steps to moderate demand so that it comes into better alignment with supply. Our overarching focus is using our tools to bring inflation back down to our 2 percent goal and to keep longer-term inflation expectations well anchored.”
If you want to take the pretending out of the paragraph and make it truthful, insert the word energy:
“We’re taking forceful steps to moderate [energy] demand, so that it comes into better alignment with [policy driven energy] supply.”
There. THAT’S THE TRUTH !!
Ask yourself, or anyone else, this simple question:
...At what point in the process of raising interest rates does the price of gasoline, home heating, natural gas, electricity, diesel fuel or food start to drop?
How does a 15% federal interest rate lower food prices?
.
No sane or rational person believes that crap.
Vote accordingly next week
Simple fact, the private banking club misnamed the FED makes more money when they charge more. They’re not the ones borrowing, they’re the ones lending.
On the other hand elections are fake as f$ck nowadays.
In 2017 wife & I sold everything, quit our jobs & now leave isolated on a lake.
Less government + less Internet = happiness
Really? So by disengaging you have become more engaged with this society.
you are living your dream life – hope reality doesn’t bite you in the behind!
Unfortunately there are many insane and irrational people now in America. They are called DEMS
And don’t forget to include RINOs with that broad brush stroke.
I love these guys… Keep your foot on the gas and completely ignore that bridge out sign ahead.
May this farce end more quickly… I’m good with it!
It’s like when you’re on a long road trip and see that you are seriously starting to run low on gas, so you drive faster.
Especially if you have a diesel.
This is funny, I never heard it before!
Eat the bugs.
I try to explain to otherwise sensible people that increased interest cost and more restrictive regulation increase supplier prices and decreases supply. Most readily agree. The rest vote for these damned fools.
That’s a great idea for a Christmas gift to my Biden-voting friends : a box of bugs, full of protein.
They can coat them in chocolate and eat them. I’ll get the bugs and kill ’em but I’m not about to waste the time of prepping them for eating.
Live crickets from the bait store. They can package them in a cool round wire mesh display to place by the party trays.
Reminds me of the simpleton who stated he was going to vote for Fetterman because “he cares for the average guy, not like Dr Oz who’s a millionaire with 20 mansions”. First, I doubt if even Donald Trump has 20 mansions. And this guy seems unaware that Fetterman has never worked a day in his life because his family is rich too.
And the worst part is, people like this will vote. And breed. God help us.
They don’t typically breed on purpose. Combine new sterilization of the offspring that do occur, and those who target abortion, and you begin to realize, these people do not, and will not continue to breed. It is a very sick world, when such a thought is a comfort for the future…
They will not continue to breed. Fauci and Klaus Schwab have taken care of that.
You will own nothing and be happy.
Net-zero will save the world from climate change.
Clot-shots are safe and effective.
Keep on gaslighting. The more you sycophants continue to press it, the more resistance you will generate. But, I do not expect any sane rationality from the likes of you malevolent, misanthropic, minions.
Previous borrowers at low fixed rates…the leveraged…do very well during inflationary periods, and savers do not. Our government is very leveraged, and they are doing this intentionally to inflate their way out of the trillions in debt they hold. Everybody else pays. It’s a hidden tax.
Everything you said is correct. What I can’t grasp is whether these elected morons even are aware of anything you said.
It is probably correct, but I have some doubts. The Biden Administration is so economic-illiterate that I doubt that they understand the concept of monetizing the debt..
blue chip dividend aristocrat type stocks have provided me the best shelter.
I have some of those, that have large cash balances to pay dividends. I can’t afford to sell everything.
Is that why I am making near 3% on my savings, paying 3% on my mortgage, and the debt payment will be more than the military budget.
I’m a saver.
The gov’t (read taxpayers) are paying me 13.18% right now on my I bonds.
It’s equivalent to an extra social security check every month.
The above is NOT an endorsement of the current regime.
My mom made an absolute killing on Reagan’s sky high interest rates for the same reason.
I was young, with tiny children & was pushed out of another job every 4-6 months.
There are 2 sides to the coin.
About that demand. I was at my local Home Depot on Saturday about 3:30 in the afternoon and I wandered through the garden department. It was a ghost town. And what struck me was, every single plant group in the displays had zero missing plants. The inventory was untouched on a beautiful Saturday afternoon. It was like nothing I have ever seen. Zero demand. I live in a huge metropolitan area, Fort Lauderdale. And it did not look like anybody decided that they needed to go buy a plant at Home Depot that Saturday.
Were they watching Fl and Ga?
Same in a south-west suburbs of Chicago Home Depot….When I am in St. Lucie region,, I go to local (Martin County and other areas) nurseries. Privately owned by individuals and not corporations.
My favorite mantra about the home ownership market….raising interest rates drops the price of homes due to the outside cost of a mortgage. And makes a new or used home unaffordable…Companies are not really ‘hiring’.
Home ownershipt is still an American dream. Made unaffordable by the democrats.
Then the lollipalooza of discretionary spending when people buy-or don’t buy, a new home….people are not buying new curtains new towels, new appliances, new lawn tools and related stuff…curtain rods, nails for fixes, new tools, lawn equipment…you name it…
The beginning of the end was the 30-year mortgage. After WWII, a buyer put 50% down on a house, and paid the other 50% Off over 10 years or so.
This enabled a family of four to live on one income, fed taxes were about 2%, and local taxes were negligible. This also meant that home prices were tied to local wages. This made for COMMUNITIES.
DEBT, DEBT, DEBT.
My favorite part is they’re on the brink of collapsing the housing market which would throw the country into a depression.
FJB.
These people are going to have to be REMOVED from power. No election results next week, none, will deliver this. The GOP could win 100 House seats and a filibuster proof Senate, and these CRIMINALS would not be removed.
There’s a reason why the Republicans have been playing along with the regime’s lies.
This doesn’t end without a reckoning. There will be just enough fraud next week to prevent that reckoning.
Electing Republicans to replace Republicans to change Republicans has always been an obnoxiously stupid strategy to me. Yet I’ve been hearing it all my life.
No one seems to notice.
You can’t change this by elections and everyone knows that in their gut. The problem is most are too scared to face the reality of what that means.
Denial is far more comfortable and profitable, let’s pretend it’s just a football game.
Another one of my worn out mantras…
The Republicans capitalized on American/Conservative disatisfaction of the American citizenry with Obama…the Republicn party has always been about big money…ours, that is…
The GOPe has always been about their money…not us or ours….they don’t really care…given how they ‘go along to get along’…They have never been about the little guy…until Donald J. Trump.
And after capitalizing on Obama, here we are again; same show and same channel.
Does anyone think that Lindsey Graham is any different that Chuck Schumer? Not me!
Kevin McCarthy is not the savior who is going to eliminate corruption in DC.
I have a rant about that as well… The Republicans have never been about the little guy, but they have Trump to mislead them into believing they might have a choice.
I base that on the actions taken, not the words spoken.
There is an answer. TERM LIMITS.
That possibly could have worked as a preventative measure but it it a century too late for anything besides and absolute blow up to produce the level of change now required.
You.. can.. not.. out.. vote.. this..
This, this ,this. End the govt class that feeds at the trough of our earnings. STOP FEEDING THE PIG!
See my worn out ideas in my response to ‘starfcker’, upthread.
My thoughts are…don’t spend money unless absolutely essential.
Jerome is delusional, like his boss at 1600…
If based on “hot” demand, it is the cost that has been allowed to surge out of control and needs to be fixed. These people are sick.
Not to sure what difference a GOP sweep next week would make. The Demented Fraud’s puppet masters will just keep right on their quest of destroying America using EOs. It’s not as though the eunuchs of the GOP will do anything to reverse the crushing of US energy production. Every bit of the inflation pain inflicted on Americans comes back to energy production or the lack there of.
I’m gonna go out on a limb and say, once the dust settles after next weeks election, the Uniparty will still have a sizeable majority in Congress.
The government will be victorious!
So true, lol
Hearings. We’ll get hearings. A few small fish will resign from the regime to take 7-8 figure jobs and money laundering book deals. The GOP will vote to approve their replacements.
I’ll believe things are changing if the GOP Senate candidates that McConnell is fighting against wind up winning and remove him from his leadership role along with Thune.
This has never been about Biden. It’s about the backstabbing duplicitous traitors in our own party.
And don’t forget the lobbyist positions on K street.
What happened to Trumps plan to restrict DC politicians from lobbying jobs, for 5 years after leaving the government world?
One slight correction. It is not our “own party.” Our party is comprised of Patriots, not totalitarians.
Really? Biden has nothing to do with this?
Oh, ok. Back to your delusion.
It’s a uniparty bird, both parties are culpable.
It’s about BOTH…As the marvelous late Angelo Codevilla wrote back in 2010…The Political Class vs the Country Class, or Peggy Noonan (puke) said, the Protected Class vs the Unprotected Class.
That’s a good question to ask. I like it and will pass it on every chance I have. I have posted many, many times on every social media site where I can that “this is SUPPLY side inflation due to input costs of diesel, gasoline, fertilizer, raw materials, electricity. That interest rates won’t fix inflation; the economy is already contracting because people aren’t buying.”
I am buying still, though, things that are lasting and improve my home or my quality of life into the future. Insulation, firewood, building materials to fix stuff, appliances on sale. Contractors are beginning to hurt for jobs, so you might be able to negotiate a good deal.
Your approach is a sound one..firewood, building materials and gas powered generators are becoming increasingly expensive in Greater Vancouver B.C.
Just this week we bought a nice gas generator for $200.00 (Can) $130.00 or so U.S. On F.B. Market Place.
We now have three in the family and are the hunt for more.
Our older son won two tickets in the annual Moose lottery here in B.C and has one with him this week on the hunting trip.
He and his buddies have rifles for the bears, but should the sight a Moose they are pledging to use their crossbows.
Although not a hunter myself, we will appreciate the meat and be sure to spread it around.
Cheers!
We could replace all politicians with animals from the zoo. Wouldn’t change a thing. Bankers and bureaucrats will take of governing. Yes, I’ll vote Tuesday. I’ll buy a Powerball ticket, too.
BE careful with Powerball….heard a blurb on WLS that the ‘algorithms’ used for, really prevent one from winning…and many spend food money on the tickets….
Don’t know if its true or not….as far as algorithms go…Treeper statisticians, what say you?
If we get into a world war with Russia, the interest rate will go up to about one million degrees.
Over the last few months, my response to people I know who complain about inflation, shortages, and fuel prices is:
Gosh, if you were in Congress you could send Putin a stern letter.
They never complain twice.
I’ve been much more vocal at work and at home and just look at people and say “How many more times are you gonna let them lie to you before you get it? Think about all the stuff we now know is a lie that they told us was true whether it was the many hoaxes against Trump, Afghanistan, covering up Hunter and Joe’s criminal enterprises, vaccines, masks, lockdowns, inflation, Afghanistan, “the war”, you name it. It’s all a lie.”
“I choose not to believe the lies.”
My poor daughter has a part time job but gas prices are just killing her costing $40-$50 to fill an 11 gallon tank on the car we let her use. “Always remember that this is what happens when you let liars get installed in power. This is not an accident or bad luck. This is being done intentionally.”
I know several people who understand the vaccine con. They follow Dr Malone and others. They talk about graphene, t cells, clotting, etc. They know the Biden admin and big pharma and Gates, etc. are the manipulators.
But, they absolutely don’t believe they are being lied to about anything else. Elections, Ukraine, Deep State, etc etc. Nope, no questions. No suspicion.
Its bewildering.
Until someone gets glued screwed and tatoo’d by a big corporation…and or government…it will be, undeniably, impossible to fix.
And truly understand what has been done to them and why, things will never change.
I am sorry for your daughter…and the many others in this vise grip.
Yes, the youngsters today are getting a lesson in budgeting and decision making based on ‘income’ and outgo…affording ‘wants’ and ‘needs’.
It also reminds me of one big bank that was pushing a debit/credit card with limits enforced for teens to “teach them about finance….” This was about 1-2 years ago.
Creating financial addictions for our children, based on consumerism and affordability?
I have a friend who has TDS so bad that she still believes all the lies. All of them.
It’s just astonishing.
The modern world we call the West is a world created by fossil fuels – first coal and coal gas, then petroleum products.
The enlightenment, the industrial revolution, the birth of America and western democracy are all intertwined and dependent on the wealth that can only flow from fossil fuel products.
Our enemies are feudalists. They strive for a return to the medieval world of a few rich ruling a sea of peasants. No capitalism, no democracy (and their concept of science is very eccentric). And these agrarian peasants had windmills and waterwheels for subsistence-level energy, with no hope of real progress.
Leftism is intensely regressive. They are not seeking a better world or a better life for the average person.
EXCEPT they aren’t really “fossil fuels” just like the Earth’s topography was NOT created over “billions” of years
Exactly! I don’t use the term ‘fossil fuels’, instead I use the term ‘earth’s plentiful natural resources’.
Got my bugs on the grill…let me go flip them! And apply some BBQ sauce….
Here is my (unpopular) hypothesis in the peoples republic of IL….”there has been unprecedented wealth for the middle class and that must be curbed, big time as the middle class has become too uppity”.
The lower end of middle class aspired to a higher level…middle middle and upper middle class aspire to higher levels, too.
Since the post WW 2 era, and the beginning of “Levittowns”, it was a tough go. Fast forward to the last 10-20 years, we as middle classers, have had unprecedented wealth, purchasing power and all the trappings.
Lets hope the ‘red wave’ becomes a tsunami…and see Schumer and McConnell both lose their jobs.
I like to think of them as “Luddites”. Some of us are old enough or historically well read enough to grasp my meaning.
“Excluding the volatile food and energy categories…”
….and they think we will then be more confident about their problem-solving prowess.
……………………
last edit: I’m so mad I cant either type or think straight—-so I deleted my whole comment except for this.
I understand exactly how you feel. No sense in typing it all out. I did exactly the same thing and noted it in my brief comment.
God bless the Treepers who keep up with the machinations of the enemies of the Republic. It gets overwhelming at times.
I really wish we could stop pretending there is a real “war in Ukraine”.
We here of all people should know better.
Like “Two weeks to flatten the curve”?
Ukraine needs to be financially cut off.
Very little makes any sense to me.
The U.S. dollar continues to rise against most currencies.
Sure it this the reserve currency and all, but still the U.S. Congress simply prints, and prints.
What happens when other nations curtail demand for the dollar.
We live 5 mins from the U.S. border, and are well aware of costs.
How on earth middle class working folks are getting by, is beyond me.
I am grateful we warned our sons a year or two to watch out as run away inflation was on the way.
We are grateful to be back stops” for our sons and grandkids.
They work hard, but each month every expenditure is costing significantly more.
Here in Canada mortgage rates hit 21% in 1981…
Canada Savings bonds paid 19%
THEY said we will never see rates like that again.
We will see..
Cheers to all!
The dollar and the US stock market are responding to the collapse of other economies such as Japan, China, Europe, particularly Britain.
These economies are getting hit far worse than we are, so far at least. The well off citizens there have declining stock markets and are on the short end of the inflation the US is imposing on the world with regulation, embargoes, and currency manipulation.
Our stock market hasn’t declined nearly as much as it could have, manipulation again, so foreign investors buy dollars to put them in the US stock market. Priced in their local currency, the strategy is their best bad option.
I would argue that the value of the stockmarket has very little to do with the state of the REAL economy nowadays.
It has become so hyper financialized in the Western economies.
Speculative investment based on cheap credit (zero interest rates) over tangible value.
What we are beginning to see now is shift of influence from Western financialized economies (cheap credit/ spenders favored over savers) towards goods producing/resource producing economies (energy/resources/production)
The West at this point is mainly exporting a bunch of Dollars and Euros that are becoming increasingly useless because of inflation. So tangible assets will be more powerful than paper.
You don’t have to argue. No one disagrees with you!
When the interest rate gets higher than SP500 returns, don’t sell any puts.
excellent startegy
So here is the other item and I need to research a bit more. But the fed has created a direct loan for the repurchase agreement market. This was an over the counter and off balance sheet short term loan of 1-30 days I think. Mostly overnight to 1 week between two banks to bolster the borrowing banks “Reserve Requirements” at the Fed
It is now reaching $ 2 trillion dollars a night if the collateral is structured correctly it would not go on the Fed’s balance sheet. Last I checked the bulk of these overnight loans are being made to less than 100 borrowers and they are a lot of non bank intermediaries showing up for their free monopoly money.
When I say non banks I mean the unregulated Hedge Funds and Private Equity pools that are unregulated with limited liability. Some analyst are saying we are witnessing a new market being created. We are witnessing a bunch of Financial Pirates on both sides of the deal, and I am confident in saying that a lot of those dollars are ending up in the City of London Pirate hidey hole which is also known as “Treasure Island” for it’s unregulated structure
They are just a bunch of common criminals but they want to paint the citizens of the world as the immoral and corrupt overspenders that caused the National Debt all around the Globe. They are trying to write history books as they go
I need to clarify a point that did not come out above. Your tax paying ability as Americans is collateralizing loans intended for Banks that are being re-routed to Private Partnership for ultra high net worth investors.
Those partnership are most likely redirecting some of their loan proceeds to financial institution in the City of London or more likely taking direction from the bank of England to defend the British Pound directly.
Your tax dollars supporting Bank Of England’s currency operation which is backstopped by the Federal Reserve.
Anybody remember Corzine/MF Global illegally “borrowing” his futures customers’ funds, sent to the City, which can hypothecate those funds over and over, and were invested in worthless Spanish and Portuguese bonds? … And then he got off because the case was tried under securities law, when the funds were FUTURES CUSTOMERS’ FUNDS (absolutely forbidden to touch).
Got off scot free.
If I was an American investor a look at any one of our “ Big Five” banks may prove wise.
Healthy dividend growth…
At least a 5% quarterly dividend… and all are well off yearly highs.
Your dollar has increased significantly against ours..
Hard to go wrong IMO…we are buying with our toilet paper $
Cheers!
Oops..meant dividend paid quarterly. ( it’s late)
US banks have 6 trillion in excess reserves. They are going to make staggering yield spreads. Like Interested Patriot said above, the whole blooming show is rigged to make Wall St proper, not us.
Like when a NY utility offers a penny increase in dividend payments….right, got it!/s
And JNJ is going to make an offshoot of their businesses…once again, got it./s
Wall Street will not exists as we no it. There will be Non Fungible Tokens traded in the Metaverse to give the depiction of Central Bank Digital Currency.
All fiat currencies fall and eventually go to zero.
The US dollar is a fiat currency not backed by anything.
The US dollar is falling as well as all the other fiats. It’s just that the US dollar falls less fast. It has a reserve currency status and the “petro-dollar” is a thing.
The US Dollar came off the gold-standard in 1971 and it has been getting more useless since.
Gold and silver prices are heavily manipulated through Comex and such, though these are the only true money and this is the reason why the world central banks (the smart ones) have so far purchased record amount of gold this year.
They know what is coming.
The US Dollar is losing its hegemony over energy / oil payments, and Russia / China are creating a fairer gold exchange next to Comex. (Part of “BRICS” and the multi-polar future of the world) You can see the pillars of the US dollar slowly being taken away and it will mean hardship to the US economy is incoming as the dollars return home. More hardship than you have seen to date.
Cheers to the both of you!
We need Trump back in the Oval Office….to fix this.
👍
China was buying a LOT of gold through 2015, buying enough shares in GLD, to take redemption in physical gold (100,000 shares minimum?)…
The response is called BRICS.
monetary policy to fight demand inflation will kick us into a deep recession and that will cause an increase in unemployment.
From SD post above
“We’re taking forceful steps to moderate [energy] demand, so that it comes into better alignment with [policy driven energy] supply.”
There. THAT’S THE TRUTH !!
Jerome Powell is saying he is using fed monetary policy to help implement Biden’s energy policy to transition away from crude oil and into the green renewables. This is not part of the fed’s dual mandate of low unemployment and 2 % inflation . The fed is helping the President with his to do list and ignoring their own list as well as well as middle class America.
To me it is a traitorous as Biden selling out our strategic oil reserves.
The idea is to smother and demoralize you until either you stop resisting and submit, or stop moving.
I think they are trying to help usher in a replacement currency for the U.S. Dollar which will replace the dollar as a world reserve currency and be digital complete with the intelligence community’s surveillance attached.
I also think there are some patriotic Americans in our military completely aware of this situation
I am sure. Too early to say what difference some in the military could make, but we will know one way or the other.
Yep.
Nuclear war or hyper inflation, place your bets now on what will happen first.
Meanwhile the criminals will keep stealing the average Joe’s money.
Below average Joe stole all the money he’s got.
Why are progs or prog enablers so darned unattracive, at all ages?
To paraphrase an Undeniable Truth of Life from Rush Limbaugh:
Liberalism was created so as to allow the unattractive, unmotivated, and undesirable easier access to the resources of the mainstream of society.
I get what your saying.
But I believe we also have had, paradoxically, an increase in household savings. A bit confusing.
Maybe the folks with 200k or 800k in equity in their homes and $0 on their credit cards saved a lot of the Covidcstimulus monies.
My dad always said, “don’t be fooled by the politicians out there…there is a lot of ‘unprodouctive’ money out there within the middle class”
do all the evil actors have the same mother?…..Garland and Powell could be brothers
Yes if you go back aways. More I say not.
Mueller is in there too..he might be the oldest.
Rather than posting a long, thought out post, TL;DR, I’ll just opine sometimes it’s more expedient to just blow it up and rebuild from the ashes. The enemy isn’t going to change, compromise or capitulate. It is what it is.
Actually, in a very ironic way, the government vis a vis the Fed is raising interest rates thereby increasiong the treaury’s cost of borrowing, which will cause them to print more money on and on in a self destructive cycle.
Buckle up, it’s going to get very bad.
I’m glad I’m old, but I weep for my kids and grandkids.
And use that excuse to raise our taxes.
I am living in the Twilight Zone.
They gonna rename it the Metaverse
If Powell was dealing with demand inflation he would have to raise rates to approximately 12%. That is based on the last publish inflation number of 10% and at least an added 2 % baseline increased inflation as stated in the fed’s dual mandate.
The fed’s $9T balance sheet x 12% would be a debt service of $1.1T
Please understand that is not the reality , but merely an illustration of how far Jerome Powell should expect to go if he maintains this false interpretation of demand.
Powell isnt trying to help me or you
I typed above late last night. The numbers are correct, but that is simply the Federal Reserve’s gross cut. The national debt is $32T so the annual service with the above included would be $3.6 T. Of course the Treasury cannot pay this so 3.6 T USD would be added to the already unpayable national debt before day 1 of the next fiscal year
I was encouraged last night to see on Sky News Australia, host Rowan Dean had guests Alexandra Marshall and James McPherson who both said that the problem was energy. And that energy was impacting everything else.
the worst mafias are the quiet ones.
My God, don’t you all just hate these reckless, filthy, souless operatives, liars and activists, holding such positions of power?
Treeps, have you had enough?
Their plan now, knowing the R’s will sweep is to jack up rates. The second the new Congress gets sworn in, they will immediately shift all the inflation crisis on the new Republican congress. and unfortunately, they will be half right.
“….and sooner or later people are going to have to stop believing the demand side nonsense.” I wish that were true, but to borrow a line no one ever went broke underestimating the stupidity of the electorate. Or something like that.
Drill, baby, drill — or have a cold, hungry winter.
Discretionary spending is down.
Food and energy, are up.
Credit card use for essentials (food and energy) are also up. What a fool….trying to pass this ‘inflation’ joke off on the citizenry.
Soon, there will be foreclosures on homes. And people are priced out of the home ownership market. Home owners insurance in Florida, is thru the roof.
Who wins in this scenario? big money, big banks, and those on public aide.
I say we don’t give them that chance. Time for the adults to take control of the room and make Sleepy Joe sit in the corner with his Dunce cap on.
Here in Australia we are in lockstep with the US,interest rates are climbing along with the cost of living,fuel,electricity,property taxes etc.The same Government ideology prevails here of course with the labor party now in power pursuing zero emissions while we are emitting nearly nothing (coal power generation is being phased out)not counting flatulence of course(mostly from politicians) All the while exporting coal, gas and a whole suite of minerals to predominantly China (and other major emitting)nations and without the tax receipts from this abundance the Australian welfare state would be finished as downstreaming and manufacturing are nearly nonexistent. Both crooked major left wing political parties have been and are all in on the Green/FreeTrade/
Globalism/Covidism/RussiaRussia fantasy nonsense agenda that has led us to this crisis.CTH is entirely correct about what’s really going on.
It looks like Powell is pushing everything back on Joe. But, he had better be careful. Joe has some bad character flaws. He is a liar, and he won’t take responsibility for his own actions. Joe will accuse Powell of being a MAGA extremist and let him take the blame for crashing the the economy. He may even accuse him of colluding with Putin.
“These people are sick”
Donald J Trump
Our 45
IF consumers would simply stop needing things like vegetables and bread and gasoline to get to the store, the shortages would no longer be a problem. What a government we have. If only people could find happiness in having nothing we’d “solve” so many national problems.
THEY JUST WANT US DEAD…
“I have made this case for well over a year, sooner or later people are going to have to stop believing the demand side nonsense.”
It is not the case that the people are listening, or even believing this shit, we have no choice. Since the 1960s and maybe even before then, Washington (The Leviathon) has slowly dumbed down its citizens to where it is now feeding us whatever shit-sandwich they want to maintain their power over the people.
We long ago ceased being a country Of The People, By The People and For The People and have eroded into of the elites, by the elites and for the elites.
The priviliged class has become the dominant class and they will not surrender their status unless we wrest it from their greedy fingers.
In 2022 The Great Awakening Yamamoto spoke of is happening again. We The People who established this Country, or our forebears did, will take back a piece of Our Country from these idiots.
The task before us is to continue to maintain the ideals of Our Founding Fathers and water the Tree Of Liberty with the blood of these Tyrants.
Ignore Ukraine and the rest of the world, we must repair Our Broken goverment first!
This is the stuff that gets in KJP’s binder, which needs a pallet jack to bring to the podium.
“longer run goal of 2%” ? Pfft. That was Feb/Mar of 2021 or so.
Inflation, too much money chasing too few goods. The creation of currency without corresponding increases in productivity. Been going on all my life.
No. It is not too much money chasing too few goods. That is the definition of demand-side inflation. We have falling demand, fewer people buying with too many goods for sale.
This is supply side inflation. The rising costs of inputs (supply costs) are driving up prices of goods. When these supply costs like diesel, fertilizer, transportation, seeds, crop sprays, raw materials, electricity rise, the cost of the goods rises.
You will own nothing, but you ain’t gonna like it.
Add the FED to the list of governments and institutions controlled by the globalist cabal. All the lies and deceptions lead back to the same ideology. Mass psychosis and brainwashing has worked to advance the agenda. We have reached the tipping point. They will do anything it takes to advance the agenda including destroying our culture, standard of living and fixing the outcome of elections.
The Bank of England owns the Fed
Well, if consumer demand is still too high, the obvious solution is to cull the herd.
If we work at it, we can get that demand down to almost nothing.
Problem solved!
Very good question sundance offers insights I have not seen elsewhere.
I just finished listening to Lords of Easy Money aby Christopher Leonard. In 2010, there seems to have been a radical, (at the root), shift in Federal Reserve policy that deviated from the original, core purpose of the Fed Reserve and the course of action that had been pursued by the Fed until 2010. This shift “fundamentally transformed” (my words) the role and operation of the Fed Reserve.
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This is YouTube summary of the key point which Christopher Leonard details and documents in his book. (with mandatory and gratuitous Trump bashing inserted to signal he is “one of them”). This is quite a book and written in clear and low-key style about a very hot topic. Christopher Leonard: How the Federal Reserve Broke the American Economy
“The gap between the rich and the poor has grown dramatically, stock prices are trading far above what many consider justified by actual corporate profits, corporate debt in America is at an all-time high, and this debt is being traded by big banks on Wall Street, leaving them vulnerable—just as they were during the mortgage boom. Middle-class wages have barely budged in a decade, and consumers are buried under credit card debt, car loan debt, and student debt. If you asked most people what forces led to today’s unprecedented income inequality and financial crashes, no one would say the Federal Reserve. However, Christopher Leonard is here to tell you otherwise.”
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In his new book, The Lords of Easy Money, Leonard goes into shocking detail about how quantitative easing is imperiling the American economy through the story of the one man who tried to warn us. He says this will be the first inside story of how we really got here—and why we face a frightening future.
Join us as Christopher Leonard takes us through the world of the Federal Reserve, and why you should be alarmed.
I would quibble with sundance that there is a difference between inflation of the currency, a devaluing of the dollar,and artificial price increases driven by artifical policies. Nevertheless…..this is a succinct question that opens the mind.
Ask yourself, or anyone else, this simple question:
...At what point in the process of raising interest rates does the price of gasoline, home heating, natural gas, electricity, diesel fuel or food start to drop?How does a 15% federal interest rate lower food prices?
Higher energy costs mean a lower standard of living. sundance makes a key point that seems ignored by every other analyst or commentator.
Pretending is a continuum. We’re all guilty of it by varying degree.
Anyone still pulling levers behind a Dominion curtain hoping to avert a homo borg genesis (see Todd Calender) future is a pretender of a differ stripe. Choose your illusion.
The argument is that interest rates need to get in front of (in fact need to exceed rate of inflation due to the latter’s headstart) in order for normalcy to resume.
Powell is bringing you $10,000/mo. ARM mortgage payments so you don’t have to pay $10/gallon milk i.e. two paths to middle class destitution.
As PK Dick once asked, Do Androids Dream of Electric Sheep? The same speculation holds for homo borg genesis: do they drink milk?
These quaint arguments over the relative merits of Tweedledumb vs Tweedledumber warming a seat on Cap Hill or the price of tea in zero-covid China have been superseded by the dystopia that awaits us.
We need to shut the federal government fown.
Don’t get me wrong, I love President Trump, but I must say, he promised to bring in the best people around him, and outside of his economic team there were few shining stars. Powell sucks, Wray sucks, Barr/Sessions sucked, all deep swamp creatures.
He did; were you not paying attention? Wilbur Ross was my favorite.
Speaking of paying attention, Gipper said, “and outside of his economic team there were few shining stars.” Wilbur was part of his economic team.
I have often wondered why Trump seemed to have free reign to appoint a stellar econ team that promoted American interests, the middle class, and good foreign and energy policy — which also goes against the green new energy globalist cabal in office now. Why weren’t his hands tied there the way they were with the other swamp picks McConnell “let” him choose from?