Fed reverses self after 45 years and returns to the policies of Keynes .... and Trump

[bendog]

and those brave brave ex deficit warriors Brady and Meadows. LOL

Inflations not so bad.
Fed formally adopts new approach to balance inflation, unemployment

Maybe its a good idea at this point in time.

 

[Moonglow]

Oh yeah, just what we need more inflation to help the rich become richer.

 

[Gdjjr]

I call bullshit!

"And with the ever-changing economy, future reviews will allow us to take a step back, reflect on what we have learned, and adapt our practices as we strive to achieve our dual-mandate goals."

They obviously have learned very little- an ever - changing economy out paces deliberation on orders of magnitude and CANNOT be controlled successfully by an entity or computer programs. Trying to get ahead of the curve will cause unforeseen problems- Period. Then they'll have to change yet again- SMH-
Capitalism my ass. Keynesean economics.

 

[bendog]

Oh yeah, just what we need more inflation to help the rich become richer.

actually when I took economics in college it was before Reagan …. and Carter (by one year) and yes I am ancient. LOL. But the view is that if prices go up … say 3% in year one, then new hires' salaries/pay is 3% higher in year two …. and so on and so on.

In the 1970s my Dad owned his home, and he was banking money each month in CDs that were paying upwards of 10%. I was living in the basement and banking my pay to go to college. High times all around (esp for me cause weed was CHEAP)…. unless you were trying to get a mortgage with those interest rates.

Carter, and not Reagan actually, put in a Fed Chair (Volker) who jacked up interest rates so far that nobody was buying anything beyond what they absolutely had to have that day. It killed inflation, but ever since wages have been pretty much stagnant when measured in real/constant dollars.

But the gop is officially out of the deficit control business now … unless the issue is a corvid/unemployment stimulus. Then it's just too expensive. For the rich.

 

[Moonglow]

Oh yeah, just what we need more inflation to help the rich become richer.

actually when I took economics in college it was before Reagan …. and Carter (by one year) and yes I am ancient. LOL. But the view is that if prices go up … say 3% in year one, then new hires' salaries/pay is 3% higher in year two …. and so on and so on.

In the 1970s my Dad owned his home, and he was banking money each month in CDs that were paying upwards of 10%. I was living in the basement and banking my pay to go to college. High times all around (esp for me cause weed was CHEAP)…. unless you were trying to get a mortgage with those interest rates.

Carter, and not Reagan actually, put in a Fed Chair (Volker) who jacked up interest rates so far that nobody was buying anything beyond what they absolutely had to have that day. It killed inflation, but ever since wages have been pretty much stagnant when measured in real/constant dollars.

But the gop is officially out of the deficit control business now … unless the issue is a corvid/unemployment stimulus. Then it's just too expensive. For the rich.

Prices have increased at greater than 3% what has changed since Reagan and the age of high inflation is the way the govt. records and recognizes inflation and deflation.. House during Reagan where I lived were 39k now they are 390k yet wages for me in the era of Reagan was $10 dollars an hour now they are $20 for those in the same job category I used to work in during Reagan. I took economics during Reagan and found out that when Reagan told us we were getting a tax cut he actually meant we were getting a tax increase..

 

[Mac1958]

and those brave brave ex deficit warriors Brady and Meadows. LOL

Inflations not so bad.
Fed formally adopts new approach to balance inflation, unemployment

Maybe its a good idea at this point in time.

Trump and the Fed are making Keynes look like Milton ******* Friedman.

Keynes believed in government stimulation of the economy during recessions. Trump signed and applauded a massive spending increase in a period of growth, just to please his ignorant base. And now the Fed is just as important to the economy as the consumer.

Keynes is spinning in his grave.

 

[my2¢]

I found the 4 reasons the Fed provided are the most interesting part of the article. Read into them what you may.

• The U.S. economy was on track to grow at a slower rate than the Fed initially assumed;
• borrowing costs around the world were declining for reasons unrelated to central banks;
• the record-breaking length of the post-2008 economic expansion reached millions who had been left behind in past times of prosperity;
• the strength of the labor market did not force inflation higher

What totally confused me:

In a Thursday speech, Fed Chairman Jerome Powell announced that the central bank would aim to keep price and wages increases at an annual average of 2 percent instead of aiming directly at that target.​

 

[bendog]

Oh yeah, just what we need more inflation to help the rich become richer.

actually when I took economics in college it was before Reagan …. and Carter (by one year) and yes I am ancient. LOL. But the view is that if prices go up … say 3% in year one, then new hires' salaries/pay is 3% higher in year two …. and so on and so on.

In the 1970s my Dad owned his home, and he was banking money each month in CDs that were paying upwards of 10%. I was living in the basement and banking my pay to go to college. High times all around (esp for me cause weed was CHEAP)…. unless you were trying to get a mortgage with those interest rates.

Carter, and not Reagan actually, put in a Fed Chair (Volker) who jacked up interest rates so far that nobody was buying anything beyond what they absolutely had to have that day. It killed inflation, but ever since wages have been pretty much stagnant when measured in real/constant dollars.

But the gop is officially out of the deficit control business now … unless the issue is a corvid/unemployment stimulus. Then it's just too expensive. For the rich.

Prices have increased at greater than 3% what has changed since Reagan and the age of high inflation is the way the govt. records and recognizes inflation. House during Reagan where I lived were 39k now they are 390k yet wages for me in the era of Reagan was $10 dollars an hour now they are $20 for those in the same job category I used to work in during Reagan. I took economics during Reagan and found out that when Reagan told us we were getting a tax cut he actually meant we were getting a tax increase..

I'm not gonna argue with that.

 

[Moonglow]

Oh yeah, just what we need more inflation to help the rich become richer.

actually when I took economics in college it was before Reagan …. and Carter (by one year) and yes I am ancient. LOL. But the view is that if prices go up … say 3% in year one, then new hires' salaries/pay is 3% higher in year two …. and so on and so on.

In the 1970s my Dad owned his home, and he was banking money each month in CDs that were paying upwards of 10%. I was living in the basement and banking my pay to go to college. High times all around (esp for me cause weed was CHEAP)…. unless you were trying to get a mortgage with those interest rates.

Carter, and not Reagan actually, put in a Fed Chair (Volker) who jacked up interest rates so far that nobody was buying anything beyond what they absolutely had to have that day. It killed inflation, but ever since wages have been pretty much stagnant when measured in real/constant dollars.

But the gop is officially out of the deficit control business now … unless the issue is a corvid/unemployment stimulus. Then it's just too expensive. For the rich.

Prices have increased at greater than 3% what has changed since Reagan and the age of high inflation is the way the govt. records and recognizes inflation. House during Reagan where I lived were 39k now they are 390k yet wages for me in the era of Reagan was $10 dollars an hour now they are $20 for those in the same job category I used to work in during Reagan. I took economics during Reagan and found out that when Reagan told us we were getting a tax cut he actually meant we were getting a tax increase..

I'm not gonna argue with that.

Today I work part time and live on SS and raise food on my farm. What amazes me is the fed chair doesn't recognize the inflation which occurred during the pandemic..which is more that 3%....

 

[Gdjjr]

Reagan's "trickle down" policy is Nixon's "I guess we're all Keynesean now" policy rephrased.
Borrow to spend is borrow to spend regardless of the letter after the name. Trickle down means there is a beginning- borrowing is the beginning- spending is the down- a debt based society is the result. Good for the goose, good for the gander comes to mind. Example being the best teacher- of course where the "spending" goes is subjective. A good deal of it goes back to the lender- therefore, user fees, called taxes- making the fed gov't a liar again. And again- good for the goose good for the gander- example is the best teacher.

 

[Biff_Poindexter]

Oh yeah, just what we need more inflation to help the rich become richer.

actually when I took economics in college it was before Reagan …. and Carter (by one year) and yes I am ancient. LOL. But the view is that if prices go up … say 3% in year one, then new hires' salaries/pay is 3% higher in year two …. and so on and so on.

In the 1970s my Dad owned his home, and he was banking money each month in CDs that were paying upwards of 10%. I was living in the basement and banking my pay to go to college. High times all around (esp for me cause weed was CHEAP)…. unless you were trying to get a mortgage with those interest rates.

Carter, and not Reagan actually, put in a Fed Chair (Volker) who jacked up interest rates so far that nobody was buying anything beyond what they absolutely had to have that day. It killed inflation, but ever since wages have been pretty much stagnant when measured in real/constant dollars.

But the gop is officially out of the deficit control business now … unless the issue is a corvid/unemployment stimulus. Then it's just too expensive. For the rich.

They have been out of the deficit control business (WHILE A REPUBLICAN IS PRESIDENT) for decades.....

But this need by many (including the media) to pretend they are deficit hawks isn't going anywhere.....

As soon as another Democrat is in the white house -- these republicans will be right back on the deficit talk again...not to repeal the Trump taxcuts -- but to justify why we need to cut social security and medicare

 

[22lcidw]

Oh yeah, just what we need more inflation to help the rich become richer.

actually when I took economics in college it was before Reagan …. and Carter (by one year) and yes I am ancient. LOL. But the view is that if prices go up … say 3% in year one, then new hires' salaries/pay is 3% higher in year two …. and so on and so on.

In the 1970s my Dad owned his home, and he was banking money each month in CDs that were paying upwards of 10%. I was living in the basement and banking my pay to go to college. High times all around (esp for me cause weed was CHEAP)…. unless you were trying to get a mortgage with those interest rates.

Carter, and not Reagan actually, put in a Fed Chair (Volker) who jacked up interest rates so far that nobody was buying anything beyond what they absolutely had to have that day. It killed inflation, but ever since wages have been pretty much stagnant when measured in real/constant dollars.

But the gop is officially out of the deficit control business now … unless the issue is a corvid/unemployment stimulus. Then it's just too expensive. For the rich.

Homes are not supposed to be an investment. They became that.

 

[Gdjjr]

What amazes me is the fed chair doesn't recognize the inflation which occurred during the pandemic..which is more that 3%....

Only certain things are considered (and time frame) for intuiting inflation- gas has gone up I know that.
I would never pay 100 bucks for tennis shoes- my guitar purchases since this past April ( 5 in all) don't reflect a great deal of inflation though. The most expensive one I've bought retailed at 349 bucks- I bought one so long ago I don't remember when it was that was about 200 bucks- the cheap ones today (like I buy) are much higher quality and they're all made in Indonesia- as was the one I bought long ago- car prices were what I always used to pay attention to. I remember reading in the news paper the car manufacturers lamenting about why the cost increases- I don't know if they do that now since I don't read news papers anymore- but, I do know whistles and bells aren't that expensive when produced in mass quantity- but, a certain margin has to be kept to stay in business- my first house cost as much as my oldest son's property taxes- 11k
I had a buddy (the guy that owned the sprint car I crew chiefed on) sold his home (about 4 years ago) because the property taxes pissed him off- (he moved to the Keys- LOL)- they were going to go to $11,500 IMS-

 

[bendog]

and those brave brave ex deficit warriors Brady and Meadows. LOL

Inflations not so bad.
Fed formally adopts new approach to balance inflation, unemployment

Maybe its a good idea at this point in time.

Trump and the Fed are making Keynes look like Milton ******* Friedman.

Keynes believed in government stimulation of the economy during recessions. Trump signed and applauded a massive spending increase in a period of growth, just to please his ignorant base. And now the Fed is just as important to the economy as the consumer.

Keynes is spinning in his grave.

and those brave brave ex deficit warriors Brady and Meadows. LOL

Inflations not so bad.
Fed formally adopts new approach to balance inflation, unemployment

Maybe its a good idea at this point in time.

Trump and the Fed are making Keynes look like Milton ******* Friedman.

Keynes believed in government stimulation of the economy during recessions. Trump signed and applauded a massive spending increase in a period of growth, just to please his ignorant base. And now the Fed is just as important to the economy as the consumer.

Keynes is spinning in his grave.

Well my post was about the FED changing course … for good or bad I don't know.

I mentioned Brady and Meadows because they've hidden behind "oh deficts are bad we can only cut rich peoples taxes to get 4% growth." IF GW had pulled that shit, he might have beaten Bill Clinton, but Greenspan told him he's raise rates, so HW raised taxes to cover the bill for his Savings and Loan bailout. I should not have posted their names because it derailed my own thread. LOL

 

[Gdjjr]

Ostensibly, the fed was created to smooth out the peaks and valleys in the economy- what the higher educated intentionally fail to recognize is that creating a peak or valley is not smoothing- it's intentionally making to control- based on politics. That said, with the exception to the rule rule, they have done a pretty decent job of the original stated to sell it goal- however, the power greedy by the "higher educated" soon learned to use it to their benefit- we the stinky tourist get the trickle down from their plunder.