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More like the federal government causes massive problem and Fed comes to the rescue
by drexlspivey 3y ago
More like the federal government causes massive problem and Fed comes to the rescue
- nostromo 3y agoBoth were the problem. The Federal Reserve buying up 1.5 trillion dollars of mortgages around 2020, for example, surely contribute to housing cost inflation. https://fred.stlouisfed.org/series/WSHOMCB https://fred.stlouisfed.org/series/WSHOMCB
- jjoonathan 3y agoIt was eye-opening to watch how the news reported the two prongs of stimulus. Garden-hose of money aimed at poor people? Wailing, gnashing of teeth, pearl clutching, hand wringing. Fire-hose of money aimed at rich people? Complete silence. On the few occasions it was reported, it was dropped like a boring but inevitable fact without any accompanying inflation rhetoric, despite the much larger dollar amounts.
- drexlspivey 3y agoThat's because "Fire-hose of money aimed at rich people?" (I assume you mean QE with that) does not cause CPI inflation which is the main problem.