5 ms·

This isn't about the President, at least not directly. Obama doesn't deserve credit any more than Bush Jr. deserved credit for navigating us through the .com bu

This isn't about the President, at least not directly. Obama doesn't deserve credit any more than Bush Jr. deserved credit for navigating us through the .com bust. Since days of Alan Greenspan, the Fed has been inflating us out of recessions, into longer and more unsustainable booms, which are naturally followed by even worse busts. Our economy is like an over-correcting tightrope walker in slow motion. It's teetering back and forth further every time and you know at some point this whole thing is coming down, it's just a matter of when. To use a different metaphor, the Fed and the Presidents are playing a game of musical chairs with their successors and no one wants to be the one standing when the music stops.

jacksproit 8y ago
Are the busts worse by % or just by $ amount?
neffy 8y ago
That's not actually the case. If you look at the money supply for the US it has a pretty constant growth rate over the last 8 decades - while the Federal Reserve claims to be messing around with the interest rate to control the economy, the actual evidence that this is the case is quite lacking. (Illusion of Control problem) So yes, it's not about the President, but the nature of control over the financial system is not through the interest rate channel either.
- vivafrance 8y ago
  The Fed stopped publishing the amount of M3 money a long time back. Do your homework. They literally printed 4 trillion dollars to buy up everyone's debt following 2008.
- codexon 8y ago
  "If you look at the money supply for the US it has a pretty constant growth rate over the last 8 decades" I'm not sure how you can come to that conclusion given it is common knowledge and fairly obvious that the Fed has been inflating the economy at absurd amounts to get us out of the 2008 crash. https://fred.stlouisfed.org/series/BASE https://fred.stlouisfed.org/series/BASE

jacksproit 8y ago

Are the busts worse by % or just by $ amount?

neffy 8y ago

That's not actually the case. If you look at the money supply for the US it has a pretty constant growth rate over the last 8 decades - while the Federal Reserve claims to be messing around with the interest rate to control the economy, the actual evidence that this is the case is quite lacking. (Illusion of Control problem) So yes, it's not about the President, but the nature of control over the financial system is not through the interest rate channel either.

vivafrance 8y ago
The Fed stopped publishing the amount of M3 money a long time back. Do your homework. They literally printed 4 trillion dollars to buy up everyone's debt following 2008.
codexon 8y ago
"If you look at the money supply for the US it has a pretty constant growth rate over the last 8 decades" I'm not sure how you can come to that conclusion given it is common knowledge and fairly obvious that the Fed has been inflating the economy at absurd amounts to get us out of the 2008 crash. https://fred.stlouisfed.org/series/BASE https://fred.stlouisfed.org/series/BASE