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Fed Should Resist Market Pressure to Do More

1 points by Elof 6y ago

aurizon 6y ago
All over the world people on various forms of lockdown are suffering various levels of income loss. Civil servants still get their entire pay packer. All the others are in a mixed bag - some are fully laid off and some may have unemployment benefits, some have cash that has been trickling down from federal/state coffers as they sit at home. Look into the history of the great depression - the lack of purchasing power in the great mass of the population created a self perpetuating depression. It was only the "New Deal" in the USA that ended it. Google that and see, then WW2 came along = stuff made and paid for to be blown up to wage the war. Landlords and mortgage holders are salivating as months of rents/payments accumulate to the point where the coming depression enables a huge era of foreclosure on homes/apartments/shops/cars etc - all of which will drop into their hands a a year or so from now, they will be able to sell rent etc. So the Feds/states/cities must act to print the cash to give to each of the people at the very bottom (with income taxes witheld) so they are able to keep their homes/cars/apartments etc. If not the sustained recession will cause the treasury to lose even more due to the recession's decline. Look at 1929-1939 - do we want 10 years of that? an extract from the web:- Did you know? Unemployment levels in some cities reached staggering levels during the Great Depression: By 1933, Toledo, Ohio's had reached 80 percent, and nearly 90 percent of Lowell, Massachusetts, was unemployed. The next day, Roosevelt declared a four-day bank holiday to stop people from withdrawing their money from shaky banks. On March 9, Congress passed Roosevelt’s Emergency Banking Act, which reorganized the banks and closed the ones that were insolvent. In his first “fireside chat” three days later, the president urged Americans to put their savings back in the banks, and by the end of the month almost three quarters of them had reopened. The First Hundred Days Roosevelt’s quest to end the Great Depression was just beginning, and would ramp up in what came to be known as “The First 100 Days.” Roosevelt kicked things off by asking Congress to take the first step toward ending Prohibition – one of the more divisive issues of the 1920s – by making it legal once again for Americans to buy beer. (At the end of the year, Congress ratified the 21st Amendment and ended Prohibition for good.) In May, he signed the Tennessee Valley Authority Act into law, creating the TVA and enabling the federal government to build dams along the Tennessee River that controlled flooding and generated inexpensive hydroelectric power for the people in the region.
- digitaltrees 6y ago
  Thank you for this thoughtful reply. I agree with you. I would also point out the history of depressions being a catalyst for tyranny, especially under right leaning fascist leaders, because the population is scared and hurting and look for stability through my a powerful controlling leader and are further persuaded by visions of a return to the good times before the depression and a future of a “restored” stronger country. We saw that in parts of the world after 2008 and this climate will likely strengthen the trend.
  - aurizon 6y ago
    Thanks for the support. I fear the republicans will choose to enrich business interests at the expense of the common man = the top 5% will own more of the USA than before. We sorely need some form of redress - capital taxes? The democratic candidate is a total loser. Good time for a hird party = but it will not get enough traction with the electoral college system - that must have been thought up by the ghost of King George...;)
digitaltrees 6y ago
Why. What’s the risk? An over heated economy? Inflation and wage growth? Sounds what the world actually needs after years in a liquidity trap. Actually the fed should ignore political pressure to do less.

1 points by Elof 6y ago

All over the world people on various forms of lockdown are suffering various levels of income loss. Civil servants still get their entire pay packer. All the others are in a mixed bag - some are fully laid off and some may have unemployment benefits, some have cash that has been trickling down from federal/state coffers as they sit at home. Look into the history of the great depression - the lack of purchasing power in the great mass of the population created a self perpetuating depression. It was only the "New Deal" in the USA that ended it. Google that and see, then WW2 came along = stuff made and paid for to be blown up to wage the war. Landlords and mortgage holders are salivating as months of rents/payments accumulate to the point where the coming depression enables a huge era of foreclosure on homes/apartments/shops/cars etc - all of which will drop into their hands a a year or so from now, they will be able to sell rent etc. So the Feds/states/cities must act to print the cash to give to each of the people at the very bottom (with income taxes witheld) so they are able to keep their homes/cars/apartments etc. If not the sustained recession will cause the treasury to lose even more due to the recession's decline. Look at 1929-1939 - do we want 10 years of that? an extract from the web:- Did you know? Unemployment levels in some cities reached staggering levels during the Great Depression: By 1933, Toledo, Ohio's had reached 80 percent, and nearly 90 percent of Lowell, Massachusetts, was unemployed. The next day, Roosevelt declared a four-day bank holiday to stop people from withdrawing their money from shaky banks. On March 9, Congress passed Roosevelt’s Emergency Banking Act, which reorganized the banks and closed the ones that were insolvent. In his first “fireside chat” three days later, the president urged Americans to put their savings back in the banks, and by the end of the month almost three quarters of them had reopened. The First Hundred Days Roosevelt’s quest to end the Great Depression was just beginning, and would ramp up in what came to be known as “The First 100 Days.” Roosevelt kicked things off by asking Congress to take the first step toward ending Prohibition – one of the more divisive issues of the 1920s – by making it legal once again for Americans to buy beer. (At the end of the year, Congress ratified the 21st Amendment and ended Prohibition for good.) In May, he signed the Tennessee Valley Authority Act into law, creating the TVA and enabling the federal government to build dams along the Tennessee River that controlled flooding and generated inexpensive hydroelectric power for the people in the region.

digitaltrees 6y ago
Thank you for this thoughtful reply. I agree with you. I would also point out the history of depressions being a catalyst for tyranny, especially under right leaning fascist leaders, because the population is scared and hurting and look for stability through my a powerful controlling leader and are further persuaded by visions of a return to the good times before the depression and a future of a “restored” stronger country. We saw that in parts of the world after 2008 and this climate will likely strengthen the trend.
- aurizon 6y ago
  Thanks for the support. I fear the republicans will choose to enrich business interests at the expense of the common man = the top 5% will own more of the USA than before. We sorely need some form of redress - capital taxes? The democratic candidate is a total loser. Good time for a hird party = but it will not get enough traction with the electoral college system - that must have been thought up by the ghost of King George...;)

digitaltrees 6y ago

Why. What’s the risk? An over heated economy? Inflation and wage growth? Sounds what the world actually needs after years in a liquidity trap. Actually the fed should ignore political pressure to do less.