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the Fed thinking it can "fix" the economy is exactly how we ended up here they'll try again with rapid and deep rate cuts, and we'll be back to raging inflatio

the Fed thinking it can "fix" the economy is exactly how we ended up here they'll try again with rapid and deep rate cuts, and we'll be back to raging inflation and asset bubbles without the necessary wage growth at what point do people realize that the price of a forever-growing stock market is a four-digit weekly grocery bill? we're running out of corner to paint ourselves into

duxup 2y ago
[flagged]
bryanlarsen 2y ago
> how we ended up here? We ended up as an economy that survived COVID lockdowns, the supply shock, the outbreak of a de-facto war against a superpower, trade cutoff to one of the largest energy suppliers in the world, most of our trading partners tipping into recession without tipping into recession ourselves. We've got miracle makers in the Fed and White House and you all think that they're incompetent.
- deleted 2y ago
  [deleted]
- jgust 2y ago
  Might it be overly generous to attribute these outcomes to recent actions by people in these instituions vs. the USD still being the world reserve currency?
  - bryanlarsen 2y ago
    The Fed deserves a lot of the credit. Biden deserves credit for not screwing things up. "First do no harm", "a steady hand at the tiller". Trump has promised to meddle a lot more -- massive border tariffs, taking political control of the Fed, taking political control of the bureaucracy, etc. It's sad that not screwing things up is high praise, but it is.
kurthr 2y ago
LOL! I mean, I actually agree with your first comment a bit since the Fed has been reduced to a "jaw boning" organization, and they're not fixing anything. Hopefully, they don't cause a crisis. However, you both miss the goals of the Fed (yes they want long term inflation to be 2-3% without interest rates at the zero bound) and the causes of the recent "inflation". The rapid disinflation we've seen while wages increase is not a typical inflationary spiral, and neither were the supply chain disruptions that ripped through the entire world (I hear there was a pandemic). The dollar has been by far the strongest international currency for the entire run so monetary inflation this is NOT (Gold was flat from July 2020 until Feb 2024). Even then the Fed's intervention in both expanding/contracting balance sheets, and in bank regulation has had a miniscule effect relative to the pandemic spending at $4T (under Trump) and $2T (under Biden) of the US Treasury (and congress) in issuing more debt. I mean, if we've painted ourselves into a corner, then it's the biggest corner in the world (you certainly don't want to look to Asia or Europe for low debt/gdp numbers - only India seems relatively low). When geopolitical and environmental risks appear more immediate than fiscal, that's a strange and concerning place to be, and it should focus attention from the usual boogiemen. Don't talk about oil prices since it was more expensive in 2008 than any time in the last decade.

duxup 2y ago

[flagged]

bryanlarsen 2y ago

> how we ended up here? We ended up as an economy that survived COVID lockdowns, the supply shock, the outbreak of a de-facto war against a superpower, trade cutoff to one of the largest energy suppliers in the world, most of our trading partners tipping into recession without tipping into recession ourselves. We've got miracle makers in the Fed and White House and you all think that they're incompetent.

deleted 2y ago
[deleted]
jgust 2y ago
Might it be overly generous to attribute these outcomes to recent actions by people in these instituions vs. the USD still being the world reserve currency?
- bryanlarsen 2y ago
  The Fed deserves a lot of the credit. Biden deserves credit for not screwing things up. "First do no harm", "a steady hand at the tiller". Trump has promised to meddle a lot more -- massive border tariffs, taking political control of the Fed, taking political control of the bureaucracy, etc. It's sad that not screwing things up is high praise, but it is.

kurthr 2y ago

LOL! I mean, I actually agree with your first comment a bit since the Fed has been reduced to a "jaw boning" organization, and they're not fixing anything. Hopefully, they don't cause a crisis. However, you both miss the goals of the Fed (yes they want long term inflation to be 2-3% without interest rates at the zero bound) and the causes of the recent "inflation". The rapid disinflation we've seen while wages increase is not a typical inflationary spiral, and neither were the supply chain disruptions that ripped through the entire world (I hear there was a pandemic). The dollar has been by far the strongest international currency for the entire run so monetary inflation this is NOT (Gold was flat from July 2020 until Feb 2024). Even then the Fed's intervention in both expanding/contracting balance sheets, and in bank regulation has had a miniscule effect relative to the pandemic spending at $4T (under Trump) and $2T (under Biden) of the US Treasury (and congress) in issuing more debt. I mean, if we've painted ourselves into a corner, then it's the biggest corner in the world (you certainly don't want to look to Asia or Europe for low debt/gdp numbers - only India seems relatively low). When geopolitical and environmental risks appear more immediate than fiscal, that's a strange and concerning place to be, and it should focus attention from the usual boogiemen. Don't talk about oil prices since it was more expensive in 2008 than any time in the last decade.