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We should I think take note that the head of the Fed is a Trump appointee, and Trump's definition of a "good economy" is one with a booming stock market. Which

by neffy 6y ago

We should I think take note that the head of the Fed is a Trump appointee, and Trump's definition of a "good economy" is one with a booming stock market. Which is something that pumping $3 trillion into M2 will certainly achieve. https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2 What else it will achieve is another matter entirely

beachbau 6y ago
I think it’s very unfair to paint trump in that light. Stock market is the main focus for any president, but that’s because companies on the stock market employed A TON of PEOPLE. Of course there are companies who lay-off while stocks go vertical, but in general, stock prices rise allow companies to raise capital and hire more workers. Also, this administration has been very active in getting money into the hands of the consumers directly. And also trying to shift work away from China back to the states
- avmich 6y ago
  You're having things backwards, and I don't know where to start educating you, so I won't. Just remember some good rules of thumb: stock market isn't economy, allowing hiring workers isn't the same as hiring workers, US government is quite able to pursue conflicting goals at the same time. And welcome to Hacker News.
- stubtoe 6y ago
  You have a 12 year old’s understanding of the world.
- arxv33 6y ago
  While I think it is unfair to downvote someone just for offering their point of view but I do disagree with your point of view. Trump got elected because of the working class who typically don’t see the light of increasing stock market. May be they should and may be having some kind of mandatory 401k match the administration was proposing at some point would help them but by and large they don’t. China is one area I think he has been more consistent with. But the market largely doesn’t benefit from that. That’s why market cheered when the trade deal was signed and now Wall St is largely behind Biden camp hoping the status quo persists. If anything stock market wants to see rising China and stable relationships even though it might hurt long term bottom line and jobs here in US.
bertjk 6y ago
Don't you think you might be viewing this through an excessively partisan lens? Before Jerome Powell was the Fed Chair, he was a 5 year veteran of the Fed Board of Governors, having been nominated by Barack Obama. His appointment was approved in votes that included the vast majority of Democrats. Are his dovish views all that different from his predecessors, Janet Yellen or "Helicopter Ben" Bernanke? You seem to be insinuating that he is an undeserving lackey, something like a Betsy DeVos. But I just don't see the evidence for that.
- neffy 6y ago
  Possibly, but let me put that another way. Something like this has never happened to a systemically import currency before in the history of reserve currencies of the world - the US dollar since Bretton Woods, Sterling roughly the hundred years before that. The quality essentially required of a reserve currency being that it doesn't do this. Definitely popcorn time - also don't own long date low interest rate bonds time. Which would be most of them. Oops.

by neffy 6y ago

beachbau 6y ago

I think it’s very unfair to paint trump in that light. Stock market is the main focus for any president, but that’s because companies on the stock market employed A TON of PEOPLE. Of course there are companies who lay-off while stocks go vertical, but in general, stock prices rise allow companies to raise capital and hire more workers. Also, this administration has been very active in getting money into the hands of the consumers directly. And also trying to shift work away from China back to the states

avmich 6y ago
You're having things backwards, and I don't know where to start educating you, so I won't. Just remember some good rules of thumb: stock market isn't economy, allowing hiring workers isn't the same as hiring workers, US government is quite able to pursue conflicting goals at the same time. And welcome to Hacker News.
stubtoe 6y ago
You have a 12 year old’s understanding of the world.
arxv33 6y ago
While I think it is unfair to downvote someone just for offering their point of view but I do disagree with your point of view. Trump got elected because of the working class who typically don’t see the light of increasing stock market. May be they should and may be having some kind of mandatory 401k match the administration was proposing at some point would help them but by and large they don’t. China is one area I think he has been more consistent with. But the market largely doesn’t benefit from that. That’s why market cheered when the trade deal was signed and now Wall St is largely behind Biden camp hoping the status quo persists. If anything stock market wants to see rising China and stable relationships even though it might hurt long term bottom line and jobs here in US.

bertjk 6y ago

Don't you think you might be viewing this through an excessively partisan lens? Before Jerome Powell was the Fed Chair, he was a 5 year veteran of the Fed Board of Governors, having been nominated by Barack Obama. His appointment was approved in votes that included the vast majority of Democrats. Are his dovish views all that different from his predecessors, Janet Yellen or "Helicopter Ben" Bernanke? You seem to be insinuating that he is an undeserving lackey, something like a Betsy DeVos. But I just don't see the evidence for that.

neffy 6y ago
Possibly, but let me put that another way. Something like this has never happened to a systemically import currency before in the history of reserve currencies of the world - the US dollar since Bretton Woods, Sterling roughly the hundred years before that. The quality essentially required of a reserve currency being that it doesn't do this. Definitely popcorn time - also don't own long date low interest rate bonds time. Which would be most of them. Oops.