8.3%. Fed's previous 4 rate increases hardly making a dent...get ready for another 3/4 point this month, and more in November and December. Economic nosedive.
Let's keep spending money!
Let's keep spending money!
August CPI
- Thread starter sanforddawg11
- Start date
Great job, Joe! You ole bastard.....MAPA!....Make America Poor Again
Has anyone asked the fed why raising interest rates is the solution when the problem is empty shelves due to supply chain disruptions and not extraordinary demand?
The fed are the only ones even attempting to curb this before it's off the reservation, by the only means available to them. What other recourse do they have against congressional and executive branches that continue their nonchalant and irresponsible spending?
Rate increases reduce demand. We have a supply crisis. Excessive monetary and fiscal policy and high oil prices have all been contributing factors to inflation, but the primary cause of hot inflation IMO is that Chinese manufacturing is still largely closed. Even goods that are manufactured in the US depend on Chinese parts that they can't get. I oversee large construction projects and can tell you that demand has dropped, but the supply chain is still broken and is not getting better. The Fed can't fix the supply crisis, it can only send the economy into recession.
Well, that is my point. What does raising interest rates do to address the things that are driving inflation? Imo, very little and may actually be making it worse. Imo, the issue is government created and manipulating the private economy that is barrelling towards a recession seems to me to be exactly the wrong thing to do.
At this point, businesses are struggling to hire employees and government regs are making it tougher for private companies to maximize their contributions to the supply chain. If the fed wants to address inflation, maybe they should start advocating for cutting spending, incentivizing those sitting on the sidelines to get back to work and encouraging business investment instead of destroying it.
Yep, that is what I'm facing. I just spent about 150K on some equipment last week that I was buying a couple of years ago for around 80K then if I was financing, I'd be hit with about a 5% rate increase and this was to keep my business operating at current levels. The increase wasn't due to higher demand but because availability is almost non existent due to a shortage of chips and sensors. I fail to see how raising rates is going to address this issue.
Everyone is too busy focused on the magic trick. The problem is fixable. It isn’t rocket science. Yet no one is lifting one finger to solve it. Mind blowing.
You seem to have a good handle on the economics of this mess. Doesn’t the Fed’s monthly dumping of the bonds on its balance sheet create excess supply which drives bond prices lower and is therefore a cause of higher rates? It’s been 40 years since I had economics or finance in grad school but it seems like some sort of spiral to me. The Fed raising rates to fight inflation while its massive bond sales put upward pressure on rates. Or have I got something wrong here?
You right dead one! I am back in at 30,000 dow in Nov. after mid terms throw the dems in the fire of hell! 65 Tucked
IMO, the Fed is killing the patient to cure the disease. They are slowing demand by raising rates, but we aren't facing runaway demand, we are facing a supply crisis. Ultimately raising rates will lower inflation but it will wreck the economy in the process.
I’ve been over 40% cash for a couple years. If the Nasdaq bear became 40% off 52 week high I would be back in. if SPY hit 35% off I’d be in. I also intend to buy short term treasuries if they hit 4%., which is a loser if inflation stays at 8%. Short term because I’m not sure this joint has a long term.
As somebody mentioned above, the Fed is fighting both inflation and democrats. Spending is out of control, pure lunacy, and the moron in charge of transportation does not even try to fix supply issues.
They have no desire whatever to help private business. The next step is to bankrupt farmers and ranchers, forcing them to sell their land or have it confiscated to satisfy debt. Cargill, ADM and Bayer will get a windfall of cheap farmland.
Large corps. will survive, regardless, and have complete control of markets once the middle class, small and private business are eliminated.
Had a regulator tell me yrs ago the feds hate small business because it's easier to oversee 100 huge business than 1,000,000 small businesses. Throw in the fact that the mega businesses buy influence and...
I’m no pro on monetary policy, to be sure. Theoretically QT should put upward pressure on rates, which would assist in their overall goal right? Also an attempt to get money out of the market by selling bonds. But I’ve seen some that are convinced that the level of QT they are undertaking could create a legit liquidity crisis. What is frightening is the lack of response to it all at this point.
Because Mayor Pete is gay. There are 2 groups that shalt not take blame for anything.
We are teetering on the legitimate edge of a rail strike with disastrous consequences.
Amtrak canceled long-distance trains today. Just in case....
www.nationalreview.com
Amtrak canceled long-distance trains today. Just in case....
The Ticking Time Bomb of a Freight-Rail Strike | National Review
You would think Joe Biden would be able to persuade union allies to not launch an economy-crippling strike six weeks before the midterm elections.
www.nationalreview.com
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