What's new
US Message Board 🦅 Political Discussion Forum

Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

US economic downturn could get 'very serious' as Fed risks crushing demand with rate hikes: Judy Shelton

Lesh

Diamond Member
Joined
Dec 21, 2016
Messages
49,718
Reaction score
21,887
Points
2,300
US economic downturn could get 'very serious' as Fed risks crushing demand with rate hikes: Judy Shelton

Former Federal Reserve Board nominee Judy Shelton warned Friday the Fed's strategy to combat inflation with rate hikes could crush supply and make the nation's economic situation worse. On "Mornings with Maria," Shelton also criticized Treasury Secretary Janet Yellen for endorsing the "wrong initiatives" like more government spending policies and regulations.

JUDY SHELTON: I think it could get very serious the longer it drags on, because if the Fed's efforts to crush inflation are instead just crushing supply, then you won't see much of an improvement on the inflation outlook, which the Fed will take as a sign that they need to be even tougher. And so they end up ratcheting higher and higher. And so I think we're looking potentially at the worst of all worlds - at an inflationary recession or stagflation. And that's what we would want to avoid. But I don't see how they're they're going to get out of this. If you have the Treasury Secretary, Janet Yellen, in her comments yesterday also included remarks praising the Inflation Reduction Act and she knows better. She was endorsing the green agenda. And she said the unfinished business of the Biden administration is to increase taxes on the wealthy and on corporations. These are exactly the wrong initiatives if you're trying to increase supply. What we really need is lower regulation, lower taxes, better energy, better trade policies, and we need to expand supply. Economic growth is not inflationary. Low unemployment is not inflationary. It's the fiscal overspending.

TheReaper says: If there is a wrong choice to be made here you can bet that Taliban Joe will make it. Of course, his choice will be bad but his timing will be impeccable, AFTER the elections.
Do you want to deal with inflation or not?
 

B. Kidd

Diamond Member
Joined
Jun 15, 2010
Messages
36,820
Reaction score
19,924
Points
1,905
Location
Western Lands
Prices go up when demand exceeds supply. The democrats' policies are all anti-business when they should be trying everything they can to assist economic growth, thereby increasing the supply of stuff. That fucking Inflation Reduction Act does not help do that. But if the GOP takes back the House and/or the Senate, then that shit oughta stop come next January.

The scam called the Green New Deal puts China in the driver's seat economically and globally speaking if Joey and the Neo-Marxist Dimm's can eventually pull it off!!
 
OP
TheReaper

TheReaper

Diamond Member
Joined
Sep 13, 2022
Messages
1,697
Reaction score
2,017
Points
1,893
US economic downturn could get 'very serious' as Fed risks crushing demand with rate hikes: Judy Shelton

Former Federal Reserve Board nominee Judy Shelton warned Friday the Fed's strategy to combat inflation with rate hikes could crush supply and make the nation's economic situation worse. On "Mornings with Maria," Shelton also criticized Treasury Secretary Janet Yellen for endorsing the "wrong initiatives" like more government spending policies and regulations.

JUDY SHELTON: I think it could get very serious the longer it drags on, because if the Fed's efforts to crush inflation are instead just crushing supply, then you won't see much of an improvement on the inflation outlook, which the Fed will take as a sign that they need to be even tougher. And so they end up ratcheting higher and higher. And so I think we're looking potentially at the worst of all worlds - at an inflationary recession or stagflation. And that's what we would want to avoid. But I don't see how they're they're going to get out of this. If you have the Treasury Secretary, Janet Yellen, in her comments yesterday also included remarks praising the Inflation Reduction Act and she knows better. She was endorsing the green agenda. And she said the unfinished business of the Biden administration is to increase taxes on the wealthy and on corporations. These are exactly the wrong initiatives if you're trying to increase supply. What we really need is lower regulation, lower taxes, better energy, better trade policies, and we need to expand supply. Economic growth is not inflationary. Low unemployment is not inflationary. It's the fiscal overspending.

TheReaper says: If there is a wrong choice to be made here you can bet that Taliban Joe will make it. Of course, his choice will be bad but his timing will be impeccable, AFTER the elections.
 
OP
TheReaper

TheReaper

Diamond Member
Joined
Sep 13, 2022
Messages
1,697
Reaction score
2,017
Points
1,893
 
OP
TheReaper

TheReaper

Diamond Member
Joined
Sep 13, 2022
Messages
1,697
Reaction score
2,017
Points
1,893
Recession under Democrat Policies is now certain

Focus on the 2yr, 5yr, 10yr, and 30yr. An inverted yield curve. The Biden economy first turned the curve flat and it was not good but not questionable. The curve has been inverting and vascilated, in the last two weeks it's decidedly inverted. This means recession, i.e. job losses as companies seek to reduce expenses.

I don't understand the democrats, they seem to think that a good business is one that losses money. It's the small and medium sized businesses having to borrow for monthly operations that will be crunched with higher borrowing costs, unless they raise their prices (the sticky inflation thing again).

Full recap of the Fed’s rate hike and Powell’s comments on the outlook for future increases (cnbc.com)
 

Flopper

Gold Member
Joined
Mar 23, 2010
Messages
29,462
Reaction score
7,469
Points
280
Location
Washington
US economic downturn could get 'very serious' as Fed risks crushing demand with rate hikes: Judy Shelton

Former Federal Reserve Board nominee Judy Shelton warned Friday the Fed's strategy to combat inflation with rate hikes could crush supply and make the nation's economic situation worse. On "Mornings with Maria," Shelton also criticized Treasury Secretary Janet Yellen for endorsing the "wrong initiatives" like more government spending policies and regulations.

JUDY SHELTON: I think it could get very serious the longer it drags on, because if the Fed's efforts to crush inflation are instead just crushing supply, then you won't see much of an improvement on the inflation outlook, which the Fed will take as a sign that they need to be even tougher. And so they end up ratcheting higher and higher. And so I think we're looking potentially at the worst of all worlds - at an inflationary recession or stagflation. And that's what we would want to avoid. But I don't see how they're they're going to get out of this. If you have the Treasury Secretary, Janet Yellen, in her comments yesterday also included remarks praising the Inflation Reduction Act and she knows better. She was endorsing the green agenda. And she said the unfinished business of the Biden administration is to increase taxes on the wealthy and on corporations. These are exactly the wrong initiatives if you're trying to increase supply. What we really need is lower regulation, lower taxes, better energy, better trade policies, and we need to expand supply. Economic growth is not inflationary. Low unemployment is not inflationary. It's the fiscal overspending.

TheReaper says: If there is a wrong choice to be made here you can bet that Taliban Joe will make it. Of course, his choice will be bad but his timing will be impeccable, AFTER the elections.
The purpose monetary tightening is to slow the economy down and thus lower inflation but that pushes it toward a recession. Nine times since 1961, the central bank has embarked on a series of interest rate increases to rein in inflation. Eight times a recession followed. The only true “soft landing” — as significant rate hikes with no subsequent slumps are called — occurred in 1994, according to a March 25 report by investment bank Piper Sandler.

The other side of the coin is increasing inflation will lead to decreasing savings, lower spending on non-necessities, and finally economic collapse if not constrained. If too little monetary tightening is done, inflation will continue to increase and if too much is done we have a major contraction in the economy.

The stock market and most businesses want inflation controlled but they don't want to see an economic turndown. In short, they want their cake and they want to eat it too.
 
Last edited:
OP
TheReaper

TheReaper

Diamond Member
Joined
Sep 13, 2022
Messages
1,697
Reaction score
2,017
Points
1,893
The purpose monetary tightening is to slow the economy down and thus push it toward a recession. Nine times since 1961, the central bank has embarked on a series of interest rate increases to rein in inflation. Eight times a recession followed. The only true “soft landing” — as significant rate hikes with no subsequent slumps are called — occurred in 1994, according to a March 25 report by investment bank Piper Sandler.

The other side of the coin is increasing inflation will lead to economic collapse if not constrained. If too little monetary tightening is done, inflation will continue to increase and if took much is done we have a recession. The stock market and most businesses want inflation controlled but they don't want see an economic turndown In short we want our cake and we want to eat too.

I am a simple man, and I have a simple solution: Government needs to keep its fat parasite nose out of the economy and let the market do its thing. The more government tinkers, the more they fuck it all up.

Set low taxes for people, cut spending, have better business tax rates than the rest of the world, then sit back and let the American miracle work.
 

Flopper

Gold Member
Joined
Mar 23, 2010
Messages
29,462
Reaction score
7,469
Points
280
Location
Washington
The purpose monetary tightening is to slow the economy down and thus lower inflation but that pushes it toward a recession. Nine times since 1961, the central bank has embarked on a series of interest rate increases to rein in inflation. Eight times a recession followed. The only true “soft landing” — as significant rate hikes with no subsequent slumps are called — occurred in 1994, according to a March 25 report by investment bank Piper Sandler.

The other side of the coin is increasing inflation will lead to economic collapse if not constrained. Even a flat inflation rate such as 8% is not good because families with lower or fixed income are forced to spend more and more of their income on necessities which if not good for the economy or the families. I also results in people saving less, particularly reducing retirement savings which again bad for the family as well as the country.
 
OP
TheReaper

TheReaper

Diamond Member
Joined
Sep 13, 2022
Messages
1,697
Reaction score
2,017
Points
1,893
The REAL fun will begin when the food shortages begin to bite.
. . . and militia men in the hills start plugging holes in hippies looking for food. LOL
 

Flopper

Gold Member
Joined
Mar 23, 2010
Messages
29,462
Reaction score
7,469
Points
280
Location
Washington
I am a simple man, and I have a simple solution: Government needs to keep its fat parasite nose out of the economy and let the market do its thing. The more government tinkers, the more they fuck it all up.

Set low taxes for people, cut spending, have better business tax rates than the rest of the world, then sit back and let the American miracle work.
Simple solutions are not necessary the best. And this certainly is the case with the US economy. Prior to Great Depression which gave birth to most government controls and management of the economy, the country had 34 recessions and after we have had 14. Before government got involved, the economy would expand rapidly followed by crashes, bank failures, and panics. In the 19th century when there was almost no controls on businesses and the economy, real economic growth for the 19th century is estimated at 4.3 times. In the 20th century, the US economy grew by factor of 22.3 with real growth after inflation 13 times. Although there are many factors in this growth, the transition away from a boom or bust economy to an economy with more stable prices, employment and growth has been very significant.
 
Last edited:

Lisa558

Diamond Member
Joined
Oct 12, 2021
Messages
15,206
Reaction score
15,655
Points
2,288
Actually I'm hoping for a recession. I've been looking all summer for an asphalt contractor to repair a driveway of mine, and most don't return the calls. The few that did never came out, and the one guy that actually did come out I told him he was hired, and he never got back to me.

My cousin has his own remodeling business. He claims he never made so much money in his life. No matter what price he gives the potential customer, they hire him because they can't find anybody else willing to do the work. It's a sad day in America. Hopefully if a recession hits, these people will do anything to make money and we can have competition again.
The problem is that a recession will see continued deterioration in the stock market, and most retirees live on a combination of social security and savings.
 

Ray From Cleveland

Diamond Member
Joined
Aug 16, 2015
Messages
90,456
Reaction score
31,889
Points
2,290
The problem is that a recession will see continued deterioration in the stock market, and most retirees live on a combination of social security and savings.

Don't I know it. I actually had a bigger saphalt job I needed done and was going to withdraw from my IRA. No fn way now. So then I thought I'd get a 0% credit card, and now few places are issuing those anymore since the interest rate is so high.
 

ColonelAngus

Diamond Member
Joined
Feb 25, 2015
Messages
43,794
Reaction score
39,155
Points
3,615
ORANGE MAN BAD…so a depression is ok.
 

ColonelAngus

Diamond Member
Joined
Feb 25, 2015
Messages
43,794
Reaction score
39,155
Points
3,615
Again, Last week Jerome Powell straight up said the labor market must soften to reduce demand.

The Biden admin really screwed the pooch.

You idiots who voted for this asshole fucked the planet. Thanks.
 

ColonelAngus

Diamond Member
Joined
Feb 25, 2015
Messages
43,794
Reaction score
39,155
Points
3,615

đź’˛ Amazon Deals đź’˛

New Topics

Forum List

Top