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You can argue either side to this, and make a good case. My personal preference is to trigger a recession and reduce inflation. The easy cop-out solution is to say a "big f*ck off" to pensioners, lower middle class, and poor people and let inflation soar, but I believe that long term this would be more destructive to the general economy. Better take the long term view here and not kick the can down the street.
You can argue either side to this, and make a good case. My personal preference is to trigger a recession and reduce inflation. The easy cop-out solution is to say a "big f*ck off" to pensioners, lower middle class, and poor people and let inflation soar, but I believe that long term this would be more destructive to the general economy. Better take the long term view here and not kick the can down the street.
Tanking the economy will hurt these people the most. But yes, inflation would flatten.
Earlier quoted context omitted.
In fairness, inflation seems largely driven by energy prices, which in turn are driven by the Russian invasion of Ukraine. Not the top event I'd imagine a bank predicting well.
Agree the Russian invasion doesn't help matters... but this is not the primary cause of inflation. The amount of money that the US has simply created and spent in last couple of years in unprecedented. The amount of money inserted into the US economy dwarfs that of the TARPP and related bailouts of 2008 by a factor of 4. You just cannot create and hand out that much cash in an economy and not expect inflation.
They are currently 1800.
If all that extra money had devalued fiat currencies globally (at roughly the same value), why hasn't gold increased?
It seems the Fed is stuck in a state of overreaction. First they overshoot on money printing, then they disregard early signs of inflation, and now they're in a panic in the opposite direction. Seeing the news this week that Bernanke said that the Fed should be able to pull off a soft-landing now in 2022 gave me an uncomfortable déjà vu -- he said the same in 2006 and 2007, right before he raised rates enough to kick…
In fairness, inflation seems largely driven by energy prices, which in turn are driven by the Russian invasion of Ukraine. Not the top event I'd imagine a bank predicting well.
Reminder: https://www.csis.org/analysis/biden-makes-sweeping-changes-o...
Earlier quoted context omitted.
In fairness, inflation seems largely driven by energy prices, which in turn are driven by the Russian invasion of Ukraine. Not the top event I'd imagine a bank predicting well.
then why was the administration dismissing it as temporary before the invasion? inflation was clearly caused by injecting trillions into the economy for "covid" slush funds. as far as energy goes, we were net exporters until the federal restrictions started coming in, only then did we start relying on foreign production. blaming your domestic problems on a foreign adversary is routine, but it's not accurate, helpful,…
Yes, that juiced the demand side. At the same time, the supply side was kneecapped by shutdowns and other "mitigation" measures. More money + fewer available goods.
This is actually a positive for taxpayers as the federal debt will become cheaper. Obviously we’re still spending a ton and are issuing debt at higher rates now, so it’s not some kind of magic cure or anything.
> Seniors, should reap the benefits of higher bank savings rates after years of piddling returns. Not to any significant degree. Bank rates won't come close to offsetting the effect of inflation. The big winner will be the IRS, as intended. .
How does IRS win here?
Earlier quoted context omitted.
In fairness, inflation seems largely driven by energy prices, which in turn are driven by the Russian invasion of Ukraine. Not the top event I'd imagine a bank predicting well.
Get out a calendar. Look at when the inflation started (last fall!). Then look at when the Ukraine war started. Has the Ukraine war made the inflation problem worse? Yes. Did it cause the problem? Absolutely not!
I don't intend to pile on against President Biden, but his recent speech before the labor union sounded like a kid blaiming the dog for eating his homework, when he never did his homework.
I will probably make a bunch of people here mad at me, but there is so much to blame on both political parties. Putting Wall Street's and the War Industry's interests unapologetically before the American public's interests can only go on for so long before everything crashes.
Earlier quoted context omitted.
In fairness, inflation seems largely driven by energy prices, which in turn are driven by the Russian invasion of Ukraine. Not the top event I'd imagine a bank predicting well.
Agree the Russian invasion doesn't help matters... but this is not the primary cause of inflation. The amount of money that the US has simply created and spent in last couple of years in unprecedented. The amount of money inserted into the US economy dwarfs that of the TARPP and related bailouts of 2008 by a factor of 4. You just cannot create and hand out that much cash in an economy and not expect inflation.
Earlier quoted context omitted.
no one here buys the 'putin price hike' excuse
I was blown away when the president claimed he "has never seen anything like Putin’s tax on both food and gas". When did Putin get the ability to raise taxes in the US??