Get ready for democrats to blame the Fed for the failing economy

[pknopp]

You are an idiot, has anyone ever told you?
Poopeypants vowed to destroy fossil fuels and has done everything possible to thaat end...that is why gas costs so much.
And selling from our Emergency Reserve does not make us an "exporter".

Gas is around $3 most places. Not exactly "so much". We were told that gas went to $5 because of the war in Ukraine and Biden was president. Biden is still president and the war rages on. Gas is $3.

 

[1srelluc]

The other day I was comparing 1992 prices with todays prices and found that a '92 dollar is only worth about .48 cents now.

 

[Votto]

You are an idiot, has anyone ever told you?
Poopeypants vowed to destroy fossil fuels and has done everything possible to thaat end...that is why gas costs so much.
And selling from our Emergency Reserve does not make us an "exporter".

You walk into a store what do you see?

1. Everything there brought to you buy trucks and fossil fuels. Check
2. Everything is wrapped in plastic, fossil fuels. Check.
3. How did the food grow? Fertilizer and fossil fuels. Check.

To think you can divorce yourself from the rising costs of fossil fuels and the cost of everything is insane

So they raise interest rates instead of fixing the never ending problem that is the war on fossil fuels.

 

[Moonglow]

You are an idiot, has anyone ever told you?
Poopeypants vowed to destroy fossil fuels and has done everything possible to thaat end...that is why gas costs so much.
And selling from our Emergency Reserve does not make us an "exporter".

It does if we export it.

 

[jbrownson0831]

You walk into a store what do you see?

1. Everything there brought to you buy trucks and fossil fuels. Check
2. Everything is wrapped in plastic, fossil fuels. Check.
3. How did the food grow? Fertilizer and fossil fuels. Check.

To think you can divorce yourself from the rising costs of fossil fuels and the cost of everything is insane

So they raise interest rates instead of fixing the never ending problem that is the war on fossil fuels.

Gotta get rid of Poopeypants and the Reich.

 

[BluesLegend]

You can add price gouging to your list.

The entire automotive industry PRICE GOUGED. Charging "ADL" additional dealer markup $5000 to $20,000 above MSRP, itself a fake price nobody with a brain paid.

 

[jbrownson0831]

The entire automotive industry PRICE GOUGED. Charging "ADL" additional dealer markup $5000 to $20,000 above MSRP, itself a fake price nobody with a brain paid.

What does lazy Dimmer ilk know about price gouging?
SNAP just absorbs the cost of the 40 oz malt liquor, they never see it.

 

[Independent thinker]

Elizabeth Warren asks Fed Chair Powell to 'speak directly' to the people he's 'planning to get fired over the next year' by continuing to hike interest rates

"Chair Powell, you are gambling with people's lives," said Sen. Warren as she grilled the Fed Chair on the economic effects of rising interest rates.

www.yahoo.com

Elizabeth Warren has begun to blame the Fed for the worsening recession because they keep hiking interest rates to try and reach the unattainable inflation rate of 2%, which it was while Trump was in office. Warren says the Fed should speak directly to the American people on how they will all get screwed with higher interest rates.

But does Warren have to explain why inflation is bad in the first place, namely, all the spending she is doing in the Swamp?

Idiots.

Hell, they're still blaming Trump and even Reagan.

 

[g5000]

Elizabeth Warren asks Fed Chair Powell to 'speak directly' to the people he's 'planning to get fired over the next year' by continuing to hike interest rates

"Chair Powell, you are gambling with people's lives," said Sen. Warren as she grilled the Fed Chair on the economic effects of rising interest rates.

www.yahoo.com

Elizabeth Warren has begun to blame the Fed for the worsening recession because they keep hiking interest rates to try and reach the unattainable inflation rate of 2%, which it was while Trump was in office. Warren says the Fed should speak directly to the American people on how they will all get screwed with higher interest rates.

I had to check the date of your post because you claim we are in a recession. We aren't.

In fact, unemployment is lower today than it was under Trump. But of course your propagandists are keeping that fact from you.

And GDP has been steadily growing.

Why are you tards so desperate to see America suffer?

Idiots.

Irony!

 

[g5000]

The Fed is largely to blame for the current inflation. They kept interest rates artificially low for over a decade after the Great Recession as a way to bail out the zombie banks at the expense of the public. QE1 was arguably necessary. QE2, QE3, and QE4ever were not.

The massive overspending by the Obama and Trump administrations is also to blame.

After the economic shock of the pandemic, followed by even more massive overspending by the Trump Administration and Congress, followed then by a huge economic surge in demand, inflation was unavoidable.

These are basic economic facts, folks.

 

[g5000]

You walk into a store what do you see?

1. Everything there brought to you buy trucks and fossil fuels. Check
2. Everything is wrapped in plastic, fossil fuels. Check.
3. How did the food grow? Fertilizer and fossil fuels. Check.

To think you can divorce yourself from the rising costs of fossil fuels and the cost of everything is insane

So they raise interest rates instead of fixing the never ending problem that is the war on fossil fuels.

There is no war on fossil fuels. You are being hoaxed.

Biden approved more drilling permits than Trump did. Did your propagandists tell you this, or are they keeping you in the dark as they usually do?

Oil production increased by 30 percent in Biden's first year, yet only by 20 percent in Trump's first year. And they both started from relatively the same amount of production. Did your propagandists tell you this, or are they keeping you in the dark as they usually do?

 

[g5000]

By keeping interest rates so low for so long, the Fed was fueling over-borrowing. Over-borrowing by the government, and over-borrowing by the corporate world. The government and the private sector went on a massive spending spree.

Now all the bond holders of those over-borrowers are deeply underwater. Their bonds aren't worth the imaginary paper they are printed on.

Just like all those subprime borrowers were underwater when the Great Recession hit.

 

[citygator]

The inflation was the result of, in chronological order:

1. Trillions of stimulus over several years, through the previous administration
2. Collapsed global supply chains coming out of the lockdowns
3. The failure of the Fed to address inflation earlier, about 8 to 10 months too late

So Warren is wrong to complain about the Fed. They're backed into a corner now.

And ignorant partisans are, as usual, wrong about the cause of this inflationary period.

Nope.

1. Collapsed global supply chains coming out of the lockdowns
2. Corporations taking advantage of shortages and raising prices to capture profits
3. OPEC oil output reductions agreed to by Trump
4. Reduced labor participation from elderly retiring for safety and reduced labor pool from covid deaths

Stimulus only replaced lost income and was distributed during reduced GDP time periods leading to almost no inflation. Maybe the last one but that didn’t drive WORLD WIDE inflation.

It’s lazy to blame replaced income as some sort of economic issue. You’ve fallen for the argument of simple. The cause is much more complex than “free money”.

 

[Mac1958]

Nope.

1. Collapsed global supply chains coming out of the lockdowns
2. Corporations taking advantage of shortages and raising prices to capture profits
3. OPEC oil output reductions agreed to by Trump
4. Reduced labor participation from elderly retiring for safety and reduced labor pool from covid deaths

Stimulus only replaced lost income and was distributed during reduced GDP time periods leading to almost no inflation. Maybe the last one but that didn’t drive WORLD WIDE inflation.

It’s lazy to blame replaced income as some sort of economic issue. You’ve fallen for the argument of simple. The cause is much more complex than “free money”.

Nope.

The stimulus didn't replace income. It kept markets liquid and flush.

Oil has spiked before, and didn't cause inflation. The reduced labor pool was largely a function of the shutdowns and led to the collapse of supply chains.

I agree with my Broker/Dealer.

 

[citygator]

Nope.

The stimulus didn't replace income. It kept markets liquid and flush.

Oil has spiked before, and didn't cause inflation. The reduced labor pool was largely a function of the shutdowns and led to the collapse of supply chains.

I agree with my Broker/Dealer.

Then show me this graph where GDP spiked from stimulus causing demand driven inflation from “easy money”. You can’t.

Also, if free money is the culprit why are we still selling less things like cars? It’s because it’s not money driven it’s supply and profiteering.

 

[Mac1958]

Then show me this graph where GDP spiked from stimulus causing demand driven inflation from “easy money”. You can’t.

Also, if free money is the culprit why are we still selling less things like cars? It’s because it’s not money driven it’s supply and profiteering.

View attachment 763679

QE purchased shit securities and treasuries. Even some stocks. It didn't just pour money into people's pockets. That liquidity laid the foundation, the shutdowns created a massive pent-up demand, shit went sideways when supply chains collapsed, and off we went.

There is not a direct correlation between QE and money in people's pockets. It works because it's indirect and spread out.

 

[Resnic]

You can add price gouging to your list.

This was admitted to by corporate CEO’s, and everybody just apparently ignored it.

Oil prices have been in the $75-80 range for some time, and the US is currently an exporter.

Why is gas still anywhere near $3 a gallon?

Can blame the gas on the Biden administrations attack on fossil fuels for the gas prices. He only takes credit when it comes down, but says he can't control it when it goes up.

And I don't ever remember any company saying they are price gouging. But that's how it all works, when inflation hits us it hits companies as well so they have to raise prices. Inflation can cost us thousands a year, to a company that translates into hundreds of millions and that cost is translated to the consumers. Quarterly and annual profits mean everything to a company if they want to keep shareholders and the stock market happy so they have to do anything they can to not have bad sales figures. I don't like it but it's the reality of things. When people can't afford as much companies raise prices to compensate for fewer purchases.

 

[citygator]

QE purchased shit securities and treasuries. Even some stocks. It didn't just pour money into people's pockets. That liquidity laid the foundation, the shutdowns created a massive pent-up demand, shit went sideways when supply chains collapsed, and off we went.

There is not a direct correlation between QE and money in people's pockets. It works because it's indirect and spread out.

Our economy runs on creating, selling, and buying of things and services. The financing of it all drives the creating, selling, and buying of things and services. None of the financing that you are implicating drove more creating, more selling, or more buying of things/services. A few months of low interest rates drove no giant business start ups or business momentum because there was no demand to invest in. You are listing off characteristics of the monetary cycle that have no correlation to pricing of products and services to the consumer which is how inflation occurs. Just because there was the normal protection offered to rich investors from the government doesnt mean it drove higher prices. But feel free to draw a more direct line than just saying it must have had an effect.

 

[Mac1958]

You are listing off characteristics of the monetary cycle that have no correlation to pricing of products and services to the consumer which is how inflation occurs.

Yes, correct.

Quantitative Easing by itself does not cause inflation. Over time, the Fed sells the shit securities it bought, back into the system. That process is what I call Capitalism 2.0, as the Fed has now become damn near as important to the economy as the consumer. Buying when needed, then selling when the coast is clear, back and forth, back and forth. To be honest, I'm not quite sure what I think of Capitalism 2.0 yet.

Anyway, this inflation was essentially the good ol' fashioned supply and demand issue. Demand exploded out of the lockdowns, supply (chains) immediately collapsed. Bingo. Inflation.

The difference here is that QE put massive liquidity into the system, i.e., kept credit markets working and (very) healthy, saturated with cash, setting the stage for that catastrophe, ready to provide everything demand needed. Connected to that was Fed policy, which not only flooded markets with liquidity, but it also held interest rates down (far too fucking long).

So everything was in place: Massive systemic liquidity, artificially low interest rates, exploding demand and collapsing global supply chains.

I hope that makes sense. I don't usually have someone here who can handle this, so I'm out of practice explaining it.

 

[citygator]

Yes, correct.

Quantitative Easing by itself does not cause inflation. Over time, the Fed sells the shit securities it bought, back into the system. That process is what I call Capitalism 2.0, as the Fed has now become damn near as important to the economy as the consumer. Buying when needed, then selling when the coast is clear, back and forth, back and forth. To be honest, I'm not quite sure what I think of Capitalism 2.0 yet.

Anyway, this inflation was essentially the good ol' fashioned supply and demand issue. Demand exploded out of the lockdowns, supply (chains) immediately collapsed. Bingo. Inflation.

The difference here is that QE put massive liquidity into the system, i.e., kept credit markets working and (very) healthy, saturated with cash, setting the stage for that catastrophe, ready to provide everything demand needed. Connected to that was Fed policy, which not only flooded markets with liquidity, but it also held interest rates down (far too fucking long).

So everything was in place: Massive systemic liquidity, artificially low interest rates, exploding demand and collapsing global supply chains.

I hope that makes sense. I don't usually have someone here who can handle this, so I'm out of practice explaining it.

I appreciate the perspective. I get the general consensus that I am swimming upstream against. People think the answer to the current inflation cycle is raising interest rates to hurt the economy enough to cause a demand crash and massive unemployment. Here is why I think differently.

The current inflation cycle and employment cycle are super unique. Labor is a shortage. Its not that there are too many jobs, there are too few workers. Crashing the economy is a temporary bandaid to not enough workers. It will just recover and we are back.

Likewise the product inflation isnt from a demand spike. Again, everyone is selling less stuff. Hurting demand of stuff that is already in low demand is again only a temporary band aide.

We need more laborer's and more production to return to historical norms. That actually takes investment which the interest rate kikes hurts. Again... I get that all that flies in the face of common practice but this is a unique problem not solved with common solutions.

GOOD NEWS: In 6-12 months one of us can pull up this exchange and rib the other one about who was right.