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Due to the Fed’s aggressive banknote printing and interest rate suppression, asset prices have experienced the largest and fastest rise in history, and Americans’ sentiment towards the economy has deteriorated sharply because their wallets have been hit by inflation.

This is now documented in a variety of ways, including the University of Michigan Consumer Confidence Survey, which fell to its lowest level in a decade, mainly due to concerns about inflation.

Soaring inflation is eating up wage growth, and some things are quickly becoming more expensive, such as some food, new and used cars, and housing-these prices are rising much faster than the overall inflation index.

Political opinion polls also show that low sentiment and inflation concerns have led to dissatisfaction with the economy. The ABC poll released this weekend is another blow to the government and the Democratic Party-driven by inflation concerns.

Well, a poll of 1,001 Americans based on landlines, including 882 registered voters, like this poll, may lead to uncertain predictions. But now all the polls are consistent: people are frustrated with the economy because they worry that everything is becoming more and more expensive, they blame the government and politicians because this is the question they are asked, and they don’t blame the Fed , Because polls never ask the Fed, and because many people don’t even understand what the Fed does and how it does it.

Among the interviewees, 62% said that the Democratic Party is out of touch with the concerns of most Americans-this is the source of inflation. But Americans don't think much of the Republican Party, and 58% think they are out of touch.

The economy is one of the key factors-the Fed is driving up the cost of ordinary Americans with huge asset price inflation and now massive consumer price inflation: 70% of people said that the economy is in poor condition, up from 58% in the spring.

About half of them directly blame Biden for inflation. And his support rate for dealing with the economy plummeted to 39%. 55% of people disapprove of his way of handling the economy.

Biden has no control over prices. But he can nominate the Fed governor. Early next year, he will succeed Fed Chairman Powell and Fed Vice Chairman Clarida. If both completely step down, he will fill four of the seven seats on the Federal Reserve Board of Governors, and he can install four inflation hawks and reach a political agreement with them to break this inflation-will be described in detail later.

For people who make a living by working, instead of sitting on a pile of inflated assets, well, they now see that the purchasing power of their labor is swallowed by soaring rents, soaring house prices, soaring food prices, soaring old and new assets. . -Car prices, gasoline prices soaring, medical care costs soaring...

The salary increase they received for hard work and productivity compensated for inflation. The 20% salary increase they received when they switched to a better job a few months ago is now being swallowed up by soaring costs.

The broad consumer price index (CPI-U) rose 6.2% year-on-year. As well as the consumer price index of all urban wage earners and civilian workers, CPI-W soared by 6.9%, the highest level since June 1982:

1982 was the Volcker era of the Federal Reserve. In July 1979, about 17 months before the end of President Carter's term, President Carter was nominated by President Carter, and Volcker was subsequently used by President Reagan to tame inflationary monsters for 40 years.

The Federal Reserve began to increase its policy rate, the federal funds rate, from less than 5% in 1977 to more than 10% in mid-1979. When Volcker began to take charge of the Fed, he raised interest rates further, triggering the first recession, which caused him to cut interest rates again. But this still failed to defeat the inflation monster, so he raised interest rates to a peak of 20% again in June 1981, which triggered a second economic recession, which broke the back of the inflation monster.

Inflation has fallen for decades, triggering the biggest bond market rebound and various other good things. The Fed has won the credibility that it can beat inflation, which in itself helps control inflation.

Now the Fed has released this monster again. It destroys the credibility that it can defeat inflation, because it does not even want to defeat inflation.

The Fed does not need to raise short-term interest rates to 20% as it did in the early 1980s. That would be nonsense. Because of this heinous printing of money, it has a huge balance sheet that it can replace.

The Fed may raise the short-term policy rate to 4% in the next 12 months, which is still stimulating because the interest rate is lower than the inflation rate and the resulting "real" short-term interest rate is still negative.

And it can offload the $5 trillion in assets purchased since September 2019 and reduce its assets to the level that was still huge in September 2019 ($3.8 trillion). It can do this in the next 24 months, roughly equivalent to the average rate of quantitative easing since September 2019, but the other way around, thereby offloading about $210 billion per month. This will free up long-term interest rates and allow them to float higher.

But on the contrary, the Fed spent months denying the existence of inflation, scorning what Americans see in front of them every day, and then spent a few months calling the problem "temporary." The government foolishly followed this strategy.

The Fed is still holding short-term interest rates close to 0%, and is still printing money to curb long-term interest rates. This week, it will start printing 105 billion US dollars a month at a slightly slower rate instead of 120 billion US dollars a month, and said it will stop printing completely by June next year. I mean, wow.

The Fed’s policy has created the best prosperity ever for the largest asset holders, thereby creating the largest wealth gap in history in the shortest possible time, between the highest 1% households and the lowest 50% households According to the Fed’s own household wealth data, even between 1% and the bottom 99%, it is in line with the official dogma of its wealth effect.

The bottom 50% (green) have almost no assets because they don't make enough money to put anything aside, and they get nothing from rising asset prices. But they can afford higher housing costs. Even the top 10% to 50% (purple) is rarely compared to 1% (red). The real rich (0.01%) and billionaire class are not on the chart at all:

The current Federal Reserve is managed by Republicans. Lael Brainard, the only Democrat on the Federal Reserve Board of Governors, is not much better. Although she often voted against deregulation of banks (honor), she never voted against the monetary policy decision that led to the largest gap between rich and poor in history and the worst inflation in 40 years.

The council has seven positions. When Trump left office, six were full and one was vacant. By the beginning of next year, there may be four vacancies:

The four vacancies in the Committee of Seven should be filled by hawks, who are focused on reaching a political agreement with the government to defeat the inflation monster and end the use of monetary policy-money printing and interest rate suppression-to create greater wealth Inequality caused by asset price inflation.

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If WS can be placed in a "general position," then a position may point to the failure of Congress and its only creation of the Federal Reserve. The responsibilities of voters have not been ignored. A keen eye must focus on the strong. This is not from opinions, but from a continuous flow of facts, data and humanized detoxification observations to support rendering. I am very grateful for this. Every time Heck Mug is loaded, I also admire its Kitty Lopez art. When I spoke, it was filled with black and tan. cheers.

You know one way the Fed prints too much money is the price of gold. Mining gold from the ground at a price of $1,860 (to provide an alternative to fiat currency) has a higher return than many industries that make useful products. If gold reaches the level of 2250 US dollars, it means that the gross profit margin is 100%, which will truly indicate that the Fed has overprinted money.

I don't think your assessment is as clear as you said. Gold mining requires a lot of energy-and energy is expensive and increasingly expensive.

This is true, but if I understand correctly, one of the top three CEOs said they might be able to increase the cost to about 3% in the next 12 months.

@Old School I don't think any CEO's mouth movements are reliable. One of the main reasons I am negative about investing in gold miners (except for not wanting to enter the scam stock market in the first place) is that their business is actually a derivatives business. That is to say-regardless of their productivity in gold mining, their actual performance depends on the execution of their hedging strategy. Or to put it another way: a gold mine is a lot like a farm. You have to invest a lot of money, time and risk, and hope that the input price (energy, land rights, the political pattern of gold; fertilizer, farmers' weather) can pass the output (gold price, crop price). The peasants lost in this battle for almost 100 years. Why would anyone think that gold mines are different? I mean, the gold mining industry, like agriculture, is controlled by bankers. go through.

I believe that the long-term stock price is 3.4 times the average selling price, so basically everything since the 2000 depression is the phantom wealth brought about by the Federal Reserve policy. This is a course about running it.

At the same time, I think the super rich 0.01 is borrowing their stock from the Federal Reserve at (again) 0.01% interest rate and storing it in a safe place? When the market crashes, they have no problem, because the Fed may provide some kind of insurance for these loans or they will be forgiven.

No matter what happens, you can be sure that a plan is in place to protect the rich. Downstream of the food chain, everyone does it for themselves.

If your net worth is hundreds of millions of dollars (or more), you don't need some special government wealth protection. You have bought all your six houses and 30 cars with no debt. If your portfolio is hit by 25%, then it will not affect your standard of living at all, "it will come back eventually." People with this kind of money find that their wealth is growing faster than their spending. Unless they decide to run around on some kind of symbolic yacht, they can survive any market crash. It really takes some incredibly wasteful lifestyles to surpass this wealth.

According to reports, the "Federal" Reserve was created through lies and misreports to the American people and the U.S. Congress, even though the Wikipedia entry once said it was "edited" (censored) so that it was not even politely commented on. . Reports such as "Creatures from Jekyll Island" have not yet been fully censored.

The "Federal Reserve" may be a product of the devil, but if you can blame it for all the evils it does through lies, then it is a product of Congress. The liquidation is here now, maybe.

Jeffrey Lacker said that interest rates may have to rise to 3% to 4%. If this happens, how will the U.S. government pay all the bills and fund major programs such as the U.S. Air Force, Army, or medical insurance? Remember that forcing the super-rich to pay any huge taxes is forbidden: almost most political parties simply remove it from the bill under consideration. If government revenue cannot increase, interest on treasury bond rollover will increase because the "Fed" cannot continue to print U.S. dollars to buy treasury bonds, and the U.S. government will either have to drastically cut spending or impose taxes on treasury bonds. The rest of us, who are not super rich, will have to fly into the sky.

Let us say that interest rates will not rise until after the midterm elections. How serious is the crash we have seen.

For most people, the collapse has already happened. Since wages cannot keep up with inflation, the standard of living of most people is declining.

As for the financial assets that are only related to the top 10%: Why don't they collapse like the 2007-2009? Keep in mind that the market peaked in October 2007 and severely collapsed before the fall of 2008 election, but it was not until the spring of 2009 that there was a final plunge.

The Fed has made almost everyone a better investor than Warren Buffett. Because the Fed supports risk-taking and leveraged operations, people are beginning to overestimate their financial decisions.

I see this especially in the fees people pay for the second property. If they were geniuses, they would buy it at a 50-70% lower price 3 or 4 years ago. The Fed did it in terms of wealth impact.

I also saw rampant greedy speculation.

It is no longer a "wealth effect", now it is a "wealth infection"...

I remembered the famous saying "Nothing can save a man who is determined to suddenly become rich".

Biden will now begin to rely on the Fed to solve this problem.

The only way Biden can rely on anything is whether he is asleep. Look at his record; he spent 40 years trying to guess the simple way to solve the problem, and usually he would choose the worst COA.

Congress is considered to be the financial aspect of the US government, and they have disappointed the American people.

The coming recession will be global and ugly.

As Hussman likes to say, during the Great Depression, stock prices fell by 2/3, and then fell by 2/3 due to policy errors, resulting in a total loss of 89%.

Now that valuations are higher, many people believe that the Fed is in a policy error. Any 35-year-old has invested in the 12 years of the Fed's easing policy 99% of the time. They have not experienced policy normalization or heavenly prohibition of tight monetary policy.

I am not sure whether modern central bankers believe in austerity policies anymore. It seems that they have created a world with them as the center of the universe.

Another comment. GE's spin-off is a rationalization of the once great company.

The lesson is that under the leadership of Jack Welch, they devoted themselves to the financialization of the American economy and became the most valuable American company that went bankrupt and rescued during the global financial crisis. This happens to many large companies, and stock holders will become holders again.

Crash is not the word...reject unrealistic values ​​and return to a more stable assessment of normal.

I want to say that inflation is the main political issue of the Democratic Party/Biden. Failure to take any measures against inflation will make the already terrible defeat of the Democratic Party a historic event. Therefore, it is not clear whether the Fed and/or the Biden administration will continue the Fed’s printing policy. Let us not forget that the MBNA senator is not an inflation hawk-the bankers who have supported Biden for 4 years want low interest rates. However, failure to maintain control in one or two parts of Congress is already on the table. The Fed’s new policy will certainly leave a hole in this bubble — with the possibility of a complete collapse — which is the other side of the equation. The market collapses or loses control of the government?

Have you ever participated in the "Federal Reserve Listening" event, in which officials of the Federal Open Market Committee reportedly listen to Americans’ daily concerns about monetary policy-including "small business owners, union members, and retirees" (according to their Website)?

In a previous press conference, Powell said that the panel participants thanked and supported them to focus on maximizing employment, even at the cost of higher inflation. Assuming he did not lie, maybe our views are not fully reflected, we need to appear in these activities and make our voices heard? Or maybe it doesn't matter at all, because Powell accepts Wall Street's orders?

I have seen some reports on events in which people express dissatisfaction with rising prices, but these dissatisfaction does not seem to be reflected in the Fed’s own reports on these events. These dissatisfactions were reported before the current inflation. At the time, people complained that the Fed said inflation was not high enough.

There are a lot of changes in this part. Sources report that raising interest rates and reversing GDP, we have the famous double-dip recession, but this will narrow the gap between the rich and the poor. Powell formed an alliance with his boss, and as for (salary) inflation, let her tear it apart. (Prices should take care of themselves) The Fed should set a benchmark for raising interest rates, with inflation as the key, (amend the Taylor rule). When El Arian recently stated that the Fed’s mistake was not to show humility at the beginning of the process, that might be what he meant.

Does anyone, including Wolf, really understand the consequences of unloading 5T USD assets on the Fed’s balance sheet? Of course I won't. But why stop at $5T? Why not reduce it to less than US$2.5?

So, I believe someone can explain the different bond yields of these Treasury bonds owned by the Federal Reserve. But let's look at the products purchased in the past two years. Most of these will be very low interest rates. Therefore, if the Fed waits at least two years, as it did in 2015-2017, after completing quantitative easing, we are talking about the summer of 2024.

How high will the yield of national debt be? If they are higher than the Fed is trying to sell, who will buy these Treasuries?

This seems to be a reasonable question, doesn't it?

Another possibility is that participants want conflicting results, mainly because they do not understand monetary policy and economics, but it may also be because they want and believe that something is futile.

They want "stimulus" from loose money, not the current inflation that comes with it.

Wikipedia reviewed its entry regarding the creation of a "Federal" reserve private bank cartel. Read the following in its report. Now most of the content has been censored, but it is still related to bank cartels.

Citation: Rep. Louis T. McFadden, who was chairman of the Banking and Currency Committee of the House of Representatives from 1920 to 1931, accused the Fed of deliberately causing the Great Depression. In several speeches... McFadden claimed that the Federal Reserve is operated by the Wall Street Bank and its affiliated European banking institutions. In a speech in the House of Representatives in 1932..., he said:

Mr. Chairman, we have one of the most corrupt institutions in the history of the world in this country. I mean the Federal Reserve Board and the Federal Reserve Bank;... This evil institution has plunged the American people into poverty and destruction. .. Through the corrupt behavior of the wealthy vultures that control it. [END QUOTE

At least we know of a brave and honest politician who served in the US Congress. I guess other people are either bought or worried that if they do not act exactly according to the banker's wishes, a video of abusing your girl taken by one of their wealthy pedophile friends may be published. I love Louis T. McFadden!

Most people just blame the current government. I once asked my students if they knew the Federal Reserve. Just roll your eyes. I told them that the Fed will be responsible for lowering their standard of living. These children are now adults. I want to know if they have figured it out!

Breamrod, in the group of a dozen retired friends I met and drank coffee every morning, when I asked them as a group who could tell me what the Federal Reserve is and what it does, no one provided a coherent answer. Some people have an idea, but apparently no one knows any details. All inflation and so on are attributed to the president and his cronies.

This retirement group includes the previous:

Anadarko Petroleum's vice president of human resources BJ Services West point's vice president of operations. After retirement, he served as a full-time postman, concrete contractor, civil engineer, mechanical engineer, business owner-fast food restaurant insurance salesperson (2) RE broker (still working PT) IT professional personnel

Most of these guys are over 60 years old. Crazy, isn't it?

I believe Biden knows nothing about the Federal Reserve and how it works... His trillions are the problem... but he doesn't make those things... The current is where the power is... almost always.

How could "Biden's trillion" be the problem? They are not even legislation, and it will take years to be used. What effect does this have on inflation?

Inflation takes time to build up. The stimulus measures of the previous administration and the actions of the Federal Reserve were the main reasons, and Biden’s contribution earlier this year was the most important. His BBB or other spending plans may drive future inflation.

Excellent observation, but I am not surprised. Most people don’t know what the Fed is doing or how terrible this institution is.

The main concern of these so-called retired friends is to ensure that no one is sitting in the cafe. They are completely out of touch with the real world. In this cesspool where I have to work every day, they can't survive for a day.

No, they don't. Go to the land of middle-class white college students (reddit) and mention the Federal Reserve Reserve. You are underestimated (basically censored), people argue about how stupid you are, it's all trump card's fault/Biden's fault, etc. Never mind that Powell is an ace boy. He gave Trump a chance to win by injecting free funds into the economy when the economy was about to come. The crater of the pandemic.

When you mention the Federal Reserve, people’s eyes are sluggish, or they think you are some conspiracy theorist. This applies to all age groups in the United States. Good luck changing it. This is a contest between a donkey and an elephant. Go team up!

Either way, it is absolutely impossible to see any hawkish sentiment in the Fed. It will slow down Stokes and assets before the election. I don’t really believe that the Democratic Party can maintain any form of political majority, but raising currency interest rates and more drastic cuts will make them leave the island. will not occur.

To be honest, I don’t think the Fed will become hawkish before the Great Recession. Even so, what can stop them from injecting free funds into the system again? Capitalism is essentially a cycle of prosperity and depression, just like any kind of biology. It swells to the point where it cannot support itself and shrinks. Then it swelled again. They want to eat their cake and eat it too. I suspect this is useful for small people. But they are always rich, so it doesn't matter to them.

"Don't mind that Powell is an ace boy. He gave Trump a chance to win by injecting free money into the economy."

Have you forgotten the 8 years of free currency creation from 2009 to 2016?

2017-2019 interest rate hike and QE reversal?

Capitalism does not have a central planner like the Federal Reserve—this is crony capitalism and corporateism.

We are talking about going forward. In the end it will be Powell or Brainard. Neither seems likely to raise interest rates or survive the downturn. When all goes well or the old quantitative easing policy of the global financial crisis, how does interest rate hike work here?

Things got worse, fed/.gov tried to prevent normal market adjustments. Things are going well, maybe they will raise interest rates slightly. We are facing huge inflation, and because of the political consequences, everyone is too timid to really try to stop it.

This is a political issue that is not limited to any party. What do you want to say? Or do you just want to portray all of this as bad for Democrats or bad for Republicans? Both of them are scumbags.

FOMC members are not robots that exist in a vacuum. They are not immune to political pressure and negative news, especially their social groups of the same age.

They are not all powerful either. Look at the stock markets in Japan and the Eurozone. Even after Abenomics implemented more frenzied quantitative easing, compared with 1989, the nominal value of the Nikkei Dow in Japan still fell by about 25%.

Compared with 2007 or even 1999, the Eurozone stock markets are mostly flat or slightly higher. The size of the European Central Bank's QE is at least as large as the FRB.

My view is that quantitative easing automatically creates this false wealth effect and is not a mechanical result.

When the collective mentality opposes the FRB monetary policy at the time, no matter what they do, it will fail or be considered a failure.

This will make them change no matter what they are doing.

Well, you forgot the reason why you can still weather the storm is because we are the world's reserve currency.

In any case, the American mentality does not have an aversion to the central bank. This is mainly attributed to the president. Maybe Congress will also be stimulated.

No one will stop and say, "God's life is so difficult. The minimum wage for working at Home Depot does no good and reduces part-time hours. It must be a business!"

No, they said it was the damn president and their party or something. This is partly because the American political system only serves oligarchy, but the Democratic and Republican parties are one. This is a circus. They are all about making money and bidding for big companies. The Federal Reserve is just one of the main gears that runs the machine.

Scots who gave Americans $1,200 for free and gave large companies trillions of dollars, they looked in the other direction when they were defeated by inflation. Everyone is the culprit of the system.

My advice? Reject consumerism as reasonably as possible, get the most benefit from work, be useless and harmless to neighbors, and hide as much money as possible where it cannot be taken. If the game is manipulated, it is best not to play.

I will live as well as living in a trailer and driving a 40-year-old car, just like I am on a $100,000 pickup and own a three-story brick house. It would be better to have this difference in IRA and 401k etc.

Yes, it is strange why quantitative easing can raise asset prices so effectively in the US market, but not in Europe and Japan.

At least in the US real estate market, one factor that causes asset inflation is the elimination of risks.

No other country offers a 30-year fixed interest loan at a 3% interest rate, and the down payment is only 3%. The free market will rate risks at floating interest rates or higher fixed interest rates.

Income from rental properties can also be written off through many deductions.

Does the European Central Bank or Japan buy MBS?

When downside risks are small and capital requirements are not too high, prices will rise.

Yes. The Pepsi team or the Coca-Cola team, either way, it is still responsible for the old corporate Coke salesperson.

Although the largest corporate bidders (for example, in the City of London) cannot publicly obtain seats in Parliament, civic unions and available dark gold channels can almost get the job done.

We hippies did our best to reject blind consumerism, but we didn't really think about it... to say the least.

But the large number of baby boomers sold out still surprised me.

"I once asked my students if they knew the Federal Reserve. It just rolled their eyes."

"Some people have an idea, but obviously no one knows any details."

"When you talk about the Federal Reserve, people's eyes are sluggish, or they think you are a conspiracy theorist."

In the compulsory high school economics course, watch these videos on DVD (and YouTube) upon request:

Currency as Debt I-Revised Currency as Debt II

In fact, I think it’s too late even if it’s finished, but it’s still worth a try.

Congressional Records, Volume 81, Part 3, March 19, 1937: Henry Ford essentially said: “The people don’t know or understand our banking and monetary system. This may be enough, because if They know that I believe there will be a revolution before tomorrow morning."

"I think those in power have a vested interest against critical thinking. You see, if we don’t improve our understanding of critical thinking and develop it into a second nature, we are just preparing to be taken away by the next idle liar. The fool... There are many ways to gain power and money to deceive people who are not good at critical thinking."-The famous cosmologist Carl Sagan was interviewed on the radio in May 1996

We can blame voting idiots for making us here, suppose someone ignores the 2014 Princeton University study, which shows that voting is meaningless at anything other than the local level, because there are only those who actually control it (large amounts of money) The policies you want can win at the state and national levels. If there is an unexpected and unexpected fluke, like Trump, the huge, unelected administrative state and its puppet media will do everything possible to destroy and obstruct them... and succeed.

Basic mathematics shows that interest rates will not rise sharply in the next few years. Take on a debt of $30T at an interest rate of 2% (only interest $600B). Now calculate the same $30T at a price of 6% (only interest $1.8T).

Who among us thinks that debt will remain at the current 29T USD. That is the ultimate joke. Before we completely collapse, interest rates will never normalize.

When is the billion dollar question (I know it used to be 64,000 questions).

Explain to them what trillions are... Explain to them how the 30 people behind them now explain how their future wealth is being driven by the evil actions of the cabal that manages the Federal Reserve. And ask everyone’s question... "When is every generation not obligated to pay the bills? I said it was about 2001...

One trillion is a stack of brand new 100-dollar bills about 600 miles high.

You tube has a lot of videos, trillions of which are used for visualization purposes. Basically the dollar and your standard of living are F* unless you are already homeless!

I would say 1980, look at deficit spending and other annoying figures, such as imprisonment. But bookkeeping is only part of the problem (which is easier to solve for future humans).

The waste of the earth will either end or become annoying for our species and many other more complex plants and animals.

As far as complex animals are concerned, my bet is still the evolutionary route of insects, although single-cell and virus (yes, I know, there is controversy about what is "living") groups have always been absolute winners, both in terms of numbers and organisms. The amount, since they started the game.

The Democratic Party hopes to bring all SALT deductions (up to 80K) back into the tax law. For the wealthiest taxpayers, this will be a huge windfall, especially in the blue states, and it will not help the middle class or workers in flyover countries. It will also cause housing prices to soar again, making housing prices more unbearable. Did Wolf mention this in his post, or did I miss something? Few people know this.

Very important point. Must cheer for the campaign donation round before the 2022 donation season officially begins!

I disagree with you, but I want to know what happened in 2001 that caused this problem. I guess it's 9/11?

The swamp... is more complicated than that. As part of the trade-off of lowering the income tax rate, Trump withdrew SALT (and, as you know, many people think this is to stick it to the high-tax blue states). Now interest rates will rise-inflation will push up everyone's income levels and quietly raise the interest rate actually paid-it makes sense to return some SALT deductions.

I agree with you that it may further promote housing inflation. I disagree with the flyover state part—California and New York state heavily subsidize most of these states. I am not saying that subsidies should be eliminated (although that would be interesting), I am just saying that it is much more complicated than treating SALT as a single dimension of the welfare of the rich. By the way, it is really easy to reach the upper limit of SALT in CA without getting close to the rich. It's really easy. Earn $100,000 and pay taxes on $800,000 dumping and pranks, and you're done. rich?

Red State is really tired of relying on Blue State subsidies

The 2017 tax bill distorted the housing market and caused a housing shortage. I put it in a post about a year ago and will not repeat it. Let me say that it is not a good idea to keep changing the tax law. It prevents you from correctly planning your long-term investment strategy. I think they should not consider the tax law in 2017 (keep the SALT deduction) and simplify it by removing all unnecessary complexity. They did not do that. I have been paying taxes for myself and my business for many years, and I know more than most cunning accountants. I don't like politicians trying to bully me.

I now see many articles about the Federal Reserve's monetary policy and printing on cnn, msnbc and other mainstream news media. I agree with you that most people don't know what happened, but from my point of view, the trend is changing, and it's changing quickly.

So far, they have mostly mentioned the tasks of the Federal Reserve. Inflation will soon disappear. Work wages coexist with inflation. We are monitoring inflation. There is nothing to worry about and move on.

I remember very clearly the first house I bought in 1980 with a VA 30-year fixed-rate mortgage. I thought I got a great deal... 13% paid. Then, we have two generations of how bad inflation will get...and soon. For everyone's sake, I sincerely hope that we have a super hawkish Federal Reserve to help stop this situation...now! It is quickly getting out of control. The empirical evidence I see every day is shocking... Prices are rising like a rocket. Many Marxist communists in the White House and Congress did not know how to mitigate it. America better wake up!

you bet. I just sent this article to my son. Fortunately, he was locked in what I think is 2.4%...but he will soon understand why Dad is a missionary with no debts.

The worry is not whether B is a single term, but who will be added next? This is terrible.

My sister still thinks the economy is good, and so does the current government. She lives in Western Australia. No clue...no.

Thank you Wolf for such a rich and insightful view of things.

This is what I mean...just read it on Axios, but stopped in the trailer to keep my keyboard clean.

Although the actual economic performance is exceptionally good, economic pessimism is rising.

Importance: From now to next year’s election, a big question for the White House is whether it can use the real-world economic health of the United States to increase President Biden’s economic support.

Those who say "the actual economy is running well" are not living the lives of most workers.

For most people, inflation is eating up all wage growth, so people have to give up.

When the standard of living declines, this is only a stimulus for people with rich incomes, but it is a fatal threat to most people.

At the same time, the government is not doing anything understandable (except to make rich people rich). But it does know how to disrupt people's lives.

Idiots are citizens who endure all this without seeing what it actually is...

Inflation has been realized and continues to this day. What you are referring to (increasing interest rates and rising prices) is only the natural result of currency inflation. If more people understand the basics of our monetary system, we will not be in such a catastrophic situation. This is just the beginning... Ordinary people on the street will soon see it very close.

Inflation = Inflate the supply of "money".

Rising interest rates and prices = the consequence of the inflation of the supply of "money"; more "money" competes for the same amount of goods and services. In our current situation, there are fewer goods and services.

In my humble opinion, inflation is coming to an end. We are now just waiting for the aftermath of completed inflation. These consequences have just begun to slowly penetrate and will soon become a tsunami.

"It's time to nominate some hawks to the Federal Reserve Board of Governors."

Why is it not time to consider closing the Fed?

Harris rejected Sheldon's nomination.

The voting result was 48-48, Mike Pence could have broken support for her. Harris then hurriedly returned to the Senate between the campaigns to vote against Shelton, 48-49.

So Pence’s actions cost us a good date?

My impression is that the Fed is burdened with collective thinking, and no one outside of like-minded clubs will be allowed to enter. I think the problem is that the debt system is a house of cards built on confidence, which can be lost at any time. More debt...more instability and danger of collapse.

In the Old West era before any government existed, everything worked well.

Talking nonsense, just a little bit of reading about the real her and history will tell you that this is not true.

Now that you have seen history, was the financial bubble long or short before the establishment of the Federal Reserve? The system is self-correcting, and risks and rewards are balanced.

The Fed created the biggest bubble and burst in history with its loose monetary policy, credit expansion, and risk elimination.

Yes, all you have to do to start pasture or farming is to kill all the local Indians... Actually, the government has given you a lot of help in this area, so it exists. Stupid post.

Nacho, your "question" is meaningless;

Soon after the first great awakening, the evangelists completely rejected Ricardo and other classic economists because they preferred the narrative of human nature and greed, and then intervened in the form of atonement and suffering. It came to be known as the "business cycle". Big companies absolutely love this mentality, and it still does today.

Calvinism is deeply ingrained in American psychology...sadly.

As Seneca said, 50 AD;

"Religion is obvious to the ignorant masses, stupid to smart people, and very useful to rulers.

Keep dreaming of wolves. According to the Governor of the Bank of Canada, the Federal Reserve has stated that raising interest rates will not solve supply chain problems, and short-term measures will not be “short-lived”. Because of these geniuses, we found ourselves in chaos, and I hope this farce will continue. Next, enter a store near you for price control. You can't shrink the Ponzi scheme, this fool is on the rise.

Supporting the Fed’s hawks is like supporting stifling the economy and demanding the resignation of the current president.

Because this is exactly what Jimmy Carter did.

Housing cost? My mortgage has not changed a bit.

inflation? How much of this is due to price fraud caused by supply problems.

Capitalist economies respond to supply shortages by creating supply, thereby making more profits. That will happen.

Perhaps inflation hysteria is the result of constant inflation hysteria spreading?

The Fed did not refuel, but we have a depressed unemployment rate and shrinking companies. Would you blame them for this?

The Fed uses the tools they need to deal with problems that arise.

If the results are not sufficient, we should study new tools.

Inflation is "hysterical" because we all pay more for all the necessities of life. SMH

You are really confused. good luck.

1) CPI-W may continue to rise, but at a higher and lower level. 2) The government embraces radicals, so oil can rise. 3) JP continues to print to ensure the NDX bull market. 4) NDX is either a new backbone, or it is possible-after setting and triggering-to take a deep dive at the September high for a catapult Christmas rally. 5) Target: 17,000 – 18,400. 6) Deep freezing afterwards. Tumble #1 in 2022, Tumble #2 in 2023. 7) What impact will the plunger have on CPI-W and the U.S. dollar in 2024?

The problem is that everyone is looking forward to a year-end rebound, and then some kind of correction in the first quarter of 2022.

Usually, the market's behavior is contrary to people's expectations.

Agree, the amendment may be imminent.

At least we have not broken one record of the technology bubble, that is, the dividend yield of SP500 reached 1.11%. We are currently 1.27%. We might as well break all records. This is a once-in-a-lifetime opportunity.

As preference shifts from dividends to stock repurchases, it's a bit like apples versus oranges. The total return on capital to shareholders is still much higher than in 2000.

The situation is different, but SP500's dividend yield is based on the reduced number of shares.

Hell will be frozen before Biden nominates the hawks to the council.

1) Before the November 2 election and the October CPI report, Biden and his inner circle did not even consider inflation as a serious problem. His chief of staff Ron Klain retweeted that inflation was "a high-level issue", sparking anger.

2) The rising progressives in the party will never allow it. They formed an evil alliance with Wall Street to support the endless ZIRP and QE because they needed the central bank to monetize their luxury spending.

3) Democrats redoubled their emphasis on supply chain disruption as the root cause of inflation, not their overstimulation of the economy. Changing the course here will admit that they messed up.

One of the problems with your theory is that those folks are now seeing in front of them that they might not get reelected if this inflation thingy doesn't get addressed promptly.

But the government can continue to borrow, but the interest rate must be higher. This is not a problem for the US government.

Agree, maybe you missed Wolfe, Biden just announced that his infrastructure plan will solve the inflation problem...

Yes, he has been saying that since the 6.2 reading. If next year’s reading is 7.5% and rents increase by 15%, then good luck persuading Americans to send federal funds to ports will solve this problem, just in time for the medium term.

This is another infrastructure problem that the neoliberal impetus will solve. Private companies cannot meet the demand. Perhaps this is a decade of erroneous investment. This is really the morning in America. Close the door to the deficit and send the hawkish Federal Reserve to fight inflation. We do not need a large-scale military buildup, because we are fully militarized. It's like the end of the 70s, not the beginning. 39 and 45 have more in common than you think :)

"This is not a problem for the US government."

I will not bet the farm on the last sentence.

Unless the Fed exhausts most of its balance sheet, about $7 trillion in government debt has been monetized. No one knows how much is too much, but if you do too much, confidence in the currency will be lost and the economy will collapse.

The government can confiscate most of the wealth of society because of their ultimate power, but if the economy collapses, there is nothing to do, and you will end up like Venezuela.

I think many young people have this impression, because Trump and W are not worried about the deficit problem, and they don't have to worry about it.

The 2010 O post had to consider the budget because the rupee opposed any and all expenditures.

Another thing about the progressive party of the Democratic Party is their support for modern monetary theory. As far as I know, taxes, not interest rates, are the best tool to control inflation. This is also in line with their desire not to reduce or slow down expenditures, but to increase expenditures.

Even if the theory is valid, it has political problems. Vote for spending is much easier than taxation.

Let inflation do the dirty work and make it easier for people to complain about rising prices. In addition, companies must do more dirty work of charging customers. Politicians can become Santa Claus, not a miser.

Only lunatics believe in modern monetary theory. The final round of printing proved it to be nonsense.

Keith-too many words for a good sound byte or bumper sticker. Maybe continue to deal with your mixed buzzword political messages?

However, I did get the voting agenda.

The United States is a huge Ponzi scheme, (and many other countries) in which the Federal Reserve has to print. It can’t stop. It either prints or crashes. It will eventually crash anyway, although anyone is guessing when the gold standard will be. Not perfect, but abolished, everyone on the planet becomes part of the Ponzi scheme, which means you! , The creation of currency is no longer subject to any restrictions, at least as long as we accept small squares of legal paper or electronic numbers as currency, (maybe the shell will be better), the effect you see about the bottom 50% is only the Cantillion effect, the Federal Reserve and other CBs Just like children exploring, they are getting bolder and farther away from any restrictions (the gold standard), the farther they have been since 1971.

The Federal Reserve is made up of people, just like you and me. They have all the shortcomings of people, just like you and me. Ask yourself, if you have the ability to create money out of thin air, when will you stop? Do you care about the consequences for others? , People you don’t know and never will, honestly, think about it, now you know why we are all there.

Ah... No... The Federal Reserve is a regional system, a bank that acts as a banker... These people are not "just like you and me"

The United States has a systematic banking system. Decades have begun. [38% of the 8,039 commercial banks in the United States are members]

The Constitution has been continuously interpreted as fully supporting the possession of guns by the whole people. There are no more than two political party systems. The Federal Reserve and Central Bank are composed of commercial and national bank shareholders. The entire political system is largely a "following" money and deep-rooted interests. It hardly matters which party is in power. Everyone still has guns. Bankers still have the currency mechanism.

I don't know what is more bleak, this system or the polluted planet.

On the bright side, people used to be afraid of the ozone hole, and this is moving in the right direction. The same is true of smog in some areas of Kali. If you haven't, please take a look at Bjorn Lomborg, he might cheer you up.

By the way, even my super-liberal half awakening (only half awakening, tax benefits will treat you like this) Google employees are considering buying guns to prepare for civil unrest. Get them while they are still legal.

At the roadside flea market in West Virginia, you can buy guns at any time. No paperwork is required.

Sometimes the screenwriter will come up with a good script. From the Matrix Trilogy;

"Hope is also your greatest weakness and greatest strength"

Or you can use the WS mug version.

Dishonest money disrupted the entire system from top to bottom. I remember when I was a child, my mother repeatedly reminded me of how wrong it is to steal things. The money seemed as hard and clear as the dime I got from time to time.

Now, money has a certain vague value, and the morality of money has become a little vague.

One thing must be true. The money in the small town in the 1960s was precious, but now it seems to be eloquent to everyone.

Little participation trophies are flying everywhere at the speed of Ethernet...

You don't need to play all kinds of money tricks in a healthy economy. History tells us that when the economy does not cut government expenditures, interesting money begins.

However, the entire consumer economy, not only in the United States, but also in the world, is not entirely dependent on low interest rates? So much so that raising interest rates will crush the economy (not just the stock market)? Am I missing something here?

What you are missing is that the consumer economy is better and healthier at higher interest rates. Higher interest rates mean higher incomes for bondholders ($50 trillion) and savers ($11 trillion), they will pay taxes for them, and part of these incomes will be recycled in the economy. Higher interest rates can bring many benefits.

I think over the years I have read some comments about "savers" being punished on your website...I will be one of them. We are still guessing when it will end.

Gosh, if they want to pay 3% or even 4% of my savings (hey, this is my fantasy!). I am very happy to perform my patriotic duties and put it back into the economy.

The nominal rate of return for savers in the last five-year safe investment was as high as about 3%. This time we are lucky to get a 2% nominal interest rate at the top of the cycle

I think there is too much economic debt to bear higher debt.

Higher normal interest rates can bring many benefits to a healthy economy. If this economy fails, the federal debt repayment will reach or has reached 30% of the budget. The next Fed governor will have to promise Joe that they will not raise interest rates in the next three years.

"What you are missing is that the consumer economy is better and healthier at higher interest rates."

Heroin addicts are healthier before they become addicted. The good news for him is that cold turkey can only be eaten for a week. For this economy, this will be 2 years. It is over-expanded.

Since Greenspan, the economy has become increasingly obsessed with lower and lower interest rates. They are not always plummeting, but "Fed put options" have become part of people's psychology. On CNN last night, an economist said: "Apart from a deep recession, there is no cure for embedded inflation."

There is no doubt that people with fixed income will welcome this, but others will not. Approximately half of investment-grade bonds in the United States are rated one level higher than junk-grade bonds. These companies may be zombies, but they employ a lot of people.

Regarding raising the Fed's policy rate from the current 0.25% to 4% within one year. Does this mean that other interest rates (such as 10 years and all loans) will also rise? If so, please see below. I'm not an expert, but I don't think the increase in interest on savings accounts will do much to alleviate the shock. Retirees will not spend. Savers save.

The Fed’s job is to serve the people they are responsible for protecting—the rich and powerful who buy and own politicians and legislators.

There is nothing new or party-related. This is how our system works. This is called capitalism.

Unfortunately, the Fed’s hawks have become extinct. The last species is Paul Adolph Volker 1927-2019).

What do you think of all this? Before the next opportunity (spring 2022), the overall reading of the 1-year CPI may be close to or exceed 7% due to the base effect readings starting to decline.

Scenario 1: Federal funds futures pricing will raise interest rates several times in 2022. If Powell & Co. is obligated, they will have to announce an accelerated reduction ($15 to $20/month?) at a meeting in December or January, and then begin preparations for the market to demand interest rate hikes soon.

Scenario 2: Powell & Co basically sticks to the end, insists on 15B USD per month, and the purchase time is until July 2022, no matter how high the inflation rate is.

Scenario 3: In order to please Wall Street, Powell does his best to please Arthur Burns, keep asset prices rising and protect his wealth of more than US$50 million, including changing targets (for example, PCE target from 2% to 3%?) and completely refusing to increase Interest rate, because “increasing interest rates will not solve the bottleneck of the supply chain.”

A recession that does not allow complete self-correction...

If I have a say, I will vote to increase the target inflation rate to 3%, mainly to "stick to the end" in the quantitative easing policy before June, and to use creative means to reduce liquidity.

Let the mortgage/long-term interest rate rise back to 4%, but don't immediately exceed 5%.

It would still be shocking to reach 4%-

It is impossible for me to move the target to 3%. You are just subsidizing people who already have fixed-rate mortgages and companies that have fixed-rate debt. Don't give gifts to people who are in debt.

If I have a say, I will vote to increase the target inflation rate to 3%, mainly to "stick to the end" in the quantitative easing policy before June, and to use creative means to reduce liquidity.

Let the mortgage/long-term interest rate rise back to 4%, but don't immediately exceed 5%.

The price does behave strangely. The 250-foot Romex HD price is now $144, higher than last year's $42. But I locked 3 newer mobile phones through ATT at a price of 40 dollars lower per month. The same plan as before, including telephone charges. I know that inflation is insidious. But I think the turbulence of the product will at least weaken a little. Remember the year 2009 when commodities began to prosper? Some of them are happening again. So maybe Romex will drop to $75. I hope so, otherwise the wiring will have to wait.

I don't think the iPhone model will be cheap.

What we are seeing now is that one commodity (such as wood) has fallen, while the other one or two have risen. Hit the mole. Now rents are rising, housing prices are rising...all of these can be stabilized as interest rates rise, but if the Fed continues to print money and curb interest rates, they will not.

Oh, I forgot the corporate sector. I remember an article in the Financial Times a few months ago in which the consequences of rising yields in the junk bond market were called "catastrophic".

To whom is it "catastrophic"? Junk bond investors and stockholders of these companies bought during the junk bond bubble.

These issues need to be resolved in bankruptcy court. This is its purpose. This is called debt restructuring. Some investors will lose their shirts, well. They are paid for taking these risks. The company came out of bankruptcy, had much less debt, and could operate and expand with more energy.

They didn't seem to mind the "catastrophic" impact of Powell's 150 basis points reduction in interest rates on depositors, pension funds, and others, even though current bondholders at the time undoubtedly received capital gains from it.

And there is no explanation why these actions need to be taken.

1) Household holdings of wealth, the top 1%: Decrease by one point in 2020, and back and forth to the low point in 2018. that's all. 2007/2009: 7 points, a greater decline. 2) Trump and JP saved NDX and RE. Otherwise, RE & NDX may hit the 2007 high. 3) There will be no plummet in 2020 because of the flood of stimmie and ppp loans in the middle and low class. 4) Very few millennials between 23 and 38 are in the top 1%. Thanks to JP, many ethnic minorities, men and women, have excellent skills to surf on NDX and Crypto. 5) They are not shooting bad guys online, but shooting the target bar.

Can someone explain that the Fed’s asset purchase and interest rate setting are two different issues?

I think that adding/removing U.S. Treasury bonds or MBS will change the amount of cash in the banking system, thereby affecting the interbank lending rate ("Federal Funds Effective Rate"). However, many articles and comments in this thread have managed cuts and interest rates in some way separately—following the idea that the Fed will cut interest rates and eventually raise interest rates.

You need to read about the Federal Reserve System to understand that these are two separate tools in the suite. Don't be lazy, now. Go read and learn. Be prepared for what is to come.

The Fed sets short-term policy interest rates, which affect short-term market interest rates, but may not have much impact on long-term interest rates. The Fed buys these bonds to manipulate long-term interest rates, thereby creating demand for these bonds and pushing up prices (which means lower yields). A large part of this manipulation is through what the Fed calls "forward guidance."

thanks. I also don't want to "go to school". Nice and concise. I might even have learned it here before, but forgot. It will definitely enter the WS folder.

As a 74-year-old man, completely eliminated in a 500 square foot low-income apartment complex, I don't need to prepare for Jack S. When the quality of life dropped to an unacceptable level (like before the nursing home) or the length of hospital stay), I was gone.

Do you really think that Biden will elect Hawke to the Fed?

Quarles was an eagle, and he was gone.

Lael Brainard (Lael Brainard) is the main candidate for the chairman of the Federal Reserve, and she will draw money like no one else. She is one of those crazy, stupid girls (like AOC and her group) who think the government is our sugar daddies. In recent years, Brainard has been courting progressives in the party, who have genuine illusions about government spending.

Quarles is not a hawk. Since taking office in 2018, he has voted for every interest rate cut and every quantitative easing decision.

Agreed, Quars is not a hawk, but compared with Brainard, if Brainard is appointed just like let Earl Dracula manage your blood bank, he is not that bad. Name a conservative that our dear leader has appointed in his government so far. I got the answer. Zeeeeeeeeeeeeeeeeeeeero.

It's more like letting Count Chokula take charge.

you will never know. Sometimes history will do strange things. Biden may put Brainard in trouble, and circumstances force her to fight inflation. She may have no choice but to try to kill the inflation monster.

Wolf, I think I will call it a funeral sanctuary when it ends, and it will disappear because trust will disappear. The Federal Reserve is the trust of the big banks and their friends. They don't care about us and others.

I want to know if there is a very simple answer that explains why the Fed does indeed draw out "money" to inflate stocks:

What would they look like if the value of stocks hadn't been rising over the years as they are now?

For these same funds, what will a moderate increase in interest rates lead to?

When the Fed stops supporting the market, retirement funds will be hit, but they will be able to buy stocks with less money. Imagine that if the Fed continues to support the market for another 10 to 20 years, this kind of blow may become more severe.

Banks and credit unions have US$10 trillion in savings and US$50 trillion in bonds. Savers (many retirees) will immediately benefit from higher interest rates, and bondholders will benefit when buying new bonds.

The bottom 50% hold almost no stock, while the top 10% own most of the stock. But you don’t have to worry about the top 10% of the economy. Their expenditure is almost unaffected by 401ks.

Higher interest rates have many winners-those who are suppressed have to die economically because of interest rate suppression.

They used the increase of some middle-class 401k from US$44,000 to US$68,000 as a reason, when in fact this increased US$50 million to US$78 million. Most of the benefits go to the rich.

Apples and oranges. Both received the same 55% return. At the beginning, there is a larger initial balance.

Steve, obviously. This is not my opinion

Yes, I am one of the victims of the low interest rate policy. Get ready to flip the CD with my local credit union. The yield will now be 37 basis points. Most importantly, I will report this income to the IRS, so I will net 20 basis points. With the inflation rate reaching 15% to 20%, I am dying. This is one of the reasons why I should still be working when I retire.

Cash is very precious. The last data I saw is that a portfolio of 90% stocks / 10% Treasury bills provides better long-term returns than 100% stocks. Cash gives you a chance to find bargains in panic.

correct. The rate of return for new bondholders will increase. Existing bondholders (those 50B dollars) will be killed because their holdings will fall in value every time the interest rate is raised.

Retirement accounts that hold large amounts of stocks and bonds will not be as good as accounts that hold large amounts of cash.

The timing of this correction will be a bitch.

It's great, and it's dead. This is terrible in many ways...

This is not good for society. In the United States of America, it is not good for savers to be punished...

But let's look at Senator Sherrod Brown (D OH), because he is a perfect example of what went wrong with the system. He is the head of the Senate Banking Committee, which is said to be the supervisory link between Congress and the Federal Reserve. In this huge spending bill that has just passed the House of Representatives, there is a provision to transfer large sums of money to Ohio...communities. As chairman of the key committee on infrastructure legislation, Brown has invested heavily in Ohio. …Brown Bridge Investment Act, which will provide $12.5 billion in funding to repair and replace important national and regional bridges, such as the Brent Spencer Bridge in Ohio—this is the Infrastructure Investment and Employment Act Part of a historic investment. The package also provides Ohio with US$9.8 billion in formula funds to repair, replace, and upgrade roads and bridges across the state. "His committee is responsible for overseeing the Federal Reserve, which is the source of almost free funding to the federal government. Need I say more?

Historicus: "It is terrible for savers to be punished in the United States of America..."

So Bitcoin? I noticed that in my local grocery store, the old machine that turns your coins into dollars has been replaced by a machine that turns your coins into bitcoins. seriously. Crazy sauce!

I noticed this myself. I usually use Coinstar machines to immediately spend my money on food in the store.

At this time of the year, I save my coins in the red jar.

I noticed at the local grocery store that a 50-year-old cashier used her mobile phone to trade cryptocurrency between customers.

Gotcha defeated that...

My daughter, who is more stupid than a box of stones, sent me a text message asking if I think she should be engaged in foreign exchange trading... She thought it seemed interesting and could make some money...

Sadly, I just shook my head, wondering where I went wrong...

As far as I know, the Robinhood app is designed like a game widget with beneficial sounds and visual effects such as video games. Instill young people to gamble on Wall Street. All financialization has destroyed the United States.

The problem with hyperfinancialization is that money (ie debt) is out of touch with potential value. Fiat currency is free, so it is guaranteed to be zeroed. American business quickly became rich through speculation. The best epidemic in history.

Who knew that the Fed did not fight inflation for the first time in history? When history shows that taking brisk and decisive action to curb inflation will lead to a rapid rise in interest rates, who has this guarantee and has the courage to lock in long positions in stocks and real estate?

The similarities between current inflation and the 1970s can be stopped by an observation... In the 1970s, we had a Federal Reserve that opposed inflation. Today, we have a Federal Reserve that promotes inflation. When it works well When it's hot, basically do nothing.

Who hijacked the Fed? Because they do not respond to their tasks, but respond to different drummers. Who could it be? Who is in the "tent" of the Fed?

Historicus, you need to reread your history. Let yourself take a good look-it is best to use some charts-historical inflation, oil prices, food prices and interest rates.

From the late 1960s to around 1977, the Fed was late, late, and late in severely "cracking" inflation.

Lyndon Johnson is actually coercing the Fed chairman to keep policy loose. Nixon abandoned the gold standard amidst the cheers of the Federal Reserve.​​​ Arthur Burns delivered an extremely important speech to Paul Volcker at the totalitarian central bankers conference in Yugoslavia, explaining that preventing inflation is beyond the scope of the Federal Reserve and requires unified political will.

Political willpower does not exist now.

I would love to see Wolf's Sunday Fantasy (4 new hawks FBI) ​​come true, but I just didn't see it happen.

This is not an illusion, nor is it an illusion, but what he should do, if you want, for political survival, policy recommendations.

wisdom. You didn't make it clear what was wrong with me.

First of all, the Fed was fighting inflation in the 1970s...maybe you are not there, I am. The WIN button and preferential interest rates sometimes suddenly increase by 1/2pt...

Second, the Fed has contributed to inflation. Both claims are undeniable. Give lessons to others.

Sorry for the provocation, we 100% agree that the Fed needs to fight inflation as soon as possible.

What let me go is you are repeating a false meme that needs to die. I have always heard people claim that inflation is not that bad. Savings will keep up with inflation because "interest rates will rise" and stocks will keep up with inflation, yada yada. It's all wrong.

I also went through the 1970s, but I was not so economically conscious at the time. More importantly, I did not believe in my memories or mainstream mythological narratives. So I went to check the actual historical data.

For example, you can look at the interest rate of a 3-month Treasury bond and then subtract the inflation rate. The data in this area are all online at fred.stlouisfed.org, dating back to the 1940s. (In FRED's words, I drew TB3MS, CPIAUCSL and the differences between them.)

Statistics show that the inflation rate in 1969 exceeded 5% before the "battle began." Oh, some people are talking about fighting inflation, and there are some half-baked policy responses—including the WIN button and small interest rate hikes and ineffective and stupid wage and price controls—but effective action was not taken until 1980. From 1969 to 1982, the inflation rate was almost every year between 5-15%.

Historically, according to data, all Treasury bond interest rates in the 1960s were 1-3% higher than the inflation rate. Savers are rewarded. But it went downhill in the early 1970s. From 1973 to 1981, U.S. Treasury bond interest rates were lower than the inflation rate. In the 1970s, the Fed's interest rate changes could not keep up with inflation. Because there is no political will to pay the price that must be paid to defeat inflation. We face the same problem today.

I admit that the Fed in 1965-1980 usually raised interest rates at the same time as inflation-which is more than what they did now-but they did not actually stop inflation, especially during the 1973-1975 recession. . The allegedly almighty Fed clearly did not seriously "fight" inflation because it refused to die. From 1969 to 1982, the inflation rate was almost always above 5%.

At the time, Treasury bond investors did not call “fighting” inflation a “failure”. Long-term government bonds are colloquially referred to as "confiscation certificates." (Today again...) Treasury bond investors lost to inflation in the 1970s, and did not "get their money back" until the mid-1980s.

The Fed didn't really take "fighting" inflation seriously until 1980. Once the Fed gets serious, they will push the Treasury bond interest rate back to a level 3-6% higher than inflation. To match today, we need an interest rate of 9%.

For anyone who wants to see it in person, here is the URL of the graph I made: fred.stlouisfed.org/graph/?g=IWcP

They want to reduce inflation, but they are no longer able to. They can't raise interest rates like Volcker, because today's much higher debt/GDP ratio means that higher interest rates will lead to unpaid interest payments and damage the economy.

They can't stop printing, otherwise they won't be able to pay their obligations like SS/Medicare.

This is simple math. They know they are in a position where they cannot win.

I have seen some people say that the market predicts that the federal funds rate can reach 1.35% before the economy recovers. The rest of his life is most likely to be repressed by finance.

If NDX plummets, this is an opportunity to buy infrastructure stocks.

"They didn't blame the Fed because the polls never asked the Fed, and because many people didn't even understand what the Fed did and how it did..."

As usual, Wolfe nailed it. bingo!

Mi/Wolf- is so true because most of the poll questions are usually "push", such as "yes/no", with no nuance or third/fourth/fifth...available answers. Confirmation bias has been eliminated.

More than 20 years ago, I began to seriously worry about ordinary citizens’ understanding of our government system. Discussions with customers complaining about citizenship issues at the retail counter revealed some generalizations:

1) Don't know/understand/accept the separation of powers of equivalent government departments, or what their missions and responsibilities are.

2) According to (1), a shocking number cannot name their congressional (or state/county, for that matter) representatives, treating "offyear" (non-presidential) elections as "unimportant", leading to...

3) an impassioned statement that they'always voted in the presidential elections', further discussion indicating to me that many have come, or always have, interpreted the US presidency as one of a supreme elected king/queenship. ( The recent phenomenon of contrast between the elders of my family, most of their age and life are earlier than our current level of mass communication/entertainment. I often wonder about the recent four generations of preschool children who may have been "safely" ahead of us, Disney or Similar to animation entertainment, the government system usually depicts the royal system, and does not have any impact on the adult worldview...).

Putting the Federal Reserve (and many other features/errors of our current operating system) above the Jeffersonian interpretation of "people in democracy get the government they deserve", it's no wonder that we are now considering a lot of very difficult cheese...

May we all find a better day.

You are basically describing why the universal franchise should be abolished, but perhaps 99% support it. This is modern religion.

A significant minority (if not the majority) cannot or can barely manage their lives, and this is not just because of (hypothetical) lack of money.

They have no right to interfere in the lives of others.

For many years, I have been making this argument in a circle of very close friends and family, but I hide it because it is socially unacceptable. Even most "conservatives" see universal franchise as a religion.

If the Fed makes a policy error, the wind will change. Congress may be forced to rewrite their mandates to prevent them from derailing in decades. They may be made to follow the Taylor rule to prevent them from implementing additional general policies.

Of course, no one would dream of tax cuts leading to deficits and inflation!

Taper: $1T instead of $1.2T is enough in 10 months.

Before someone says "we just can't raise interest rates", how can the cause of large-scale debt creation (low interest rates) also be a solution? Low interest rates subsidize debt creation, and it is crazy to continue such subsidies. Interest rates must be raised. For those who have missed the Fed’s response to inflation in the past 50 years, the Fed’s federal funds funds equal or exceed inflation. ,,, until 2009

Realize that we were sold.

Who benefits from low interest rates and inflation, and why? This is how you know why it was sold to you.

Sales have nothing to do with logic; the real logic that cannot be said is "low interest rate sellers, let inflation be as long as possible, so that we can benefit from it."

All other information is distorted for sale.

For some people who sell, the "benefits" are simply to avoid the pain and politically stressful rebalancing that will occur when the bubble finally bursts and the losses are distributed. When the loss is distributed, it matters who is in the power seat...

This shows that the Fed has completely deviated from the normal track.

https://journal.firsttuesday.us/wp-content/uploads/Inflation-Fed-funds-rate.png

Yes, since 2008!

It is interesting that people try to claim that this is okay, because when interest rates are lower than inflation, it makes federal debt "more affordable." But the federal debt did nothing but increase its share of GDP. It hasn't become more affordable!

The Democrats should see this instead of trying so hard and doing their best to win the presidential election. During this period of time, the new crown virus has gradually subsided, and its impact has dealt a heavy blow to the ruling party, and it is bound to become restless. If Trump is still in office and Republicans are in power, their party is likely to be thrown into the wilderness and drifting on ice floes. But now, with Joe and his team being blamed for inflation and the collapse of the supply chain, the Democrats are likely to be the ones who joined the Whigs in the dustbin of history.

Seneca-had the same sentiments upon President Obama's election….

It proves once again the decline of a wide range of long-term views, whether public or private.

May we all find a better day

The Fed is a desperate mouse, there is no way out

The public's current view of the government is not very good.

At the same time, I am very confident that they still support the plan in the Infrastructure Act and the plan that mistakenly referred to all pork and welfare expenditures as "investments."

Typo: Can I get a 20% salary increase when I change jobs?

At a party last night, a young man shouted that his house had doubled last year.

My guess is still that hyperinflation has not yet been dealt with.

I am one of the few lucky ones who have not been affected by this kind of uncontrolled inflation. Apart from medical expenses, so far, I have not seen any significant increase in the price of the essential items I have purchased. I am participating in a buyer's strike. I refuse to buy anything unless I absolutely need it. Buy most of my clothes at a thrift store. There are many of them around here. Haven't been to a mall in the past 4 years. Another example is that food inflation has not hit fresh produce and seafood. I resist red meat, frozen food, and junk food. Own two old cars and only use one for personal use. Gasoline can rise to US$6 or US$7 per gallon, which will not affect my standard of living. I will worry less. Most of my car expenses are commercial deductions.

I went to a coin exhibition today. A dealer I know told me that gold and silver bars are being removed from the shelves. The premium is higher than I have seen. This is the top or lid is about to blow.

This is the beginning. AU is expected to at least double in 2022, and AG will break through triple digits. This is almost a foregone conclusion.

The situation has changed in the past month or two because people realize that inflation is heating up, and people in the Federal Reserve and Washington, DC don't seem to care. I mean let me take a break, politicians are trying to spend more when the inflation rate is close to 10%. The Fed is still monetizing. What fishy smell is there.

Great post wolf. I have not even considered the impact of inflation on the appointment of hawks or doves to the Fed... and I certainly didn’t know that Biden would replace most of the Fed’s board of directors next year.

The Federal Reserve (the banker) mainly benefits the super-rich. Everyone else is overwhelmed by inflation and loss of purchasing power. Why the American people allowed criminal bank cartels to manage their monetary policy since 1913 has been a mystery to me. The Fed has failed miserably in the dual mission of one bubble after another, but it has done a very good job of transferring wealth from the lower-middle class to the unwritten mission of 1%. End the Federal Reserve. it's time.

I just do not understand how the complete incompetent fools at the un-elected FED ever thought that their blatant reckless experimentation with peoples lives and their design to re-shape society should ever have been allowed to happen and that they would get away with this without Serious punishment. TBH, I think it’s too late, and Biden will never appoint a hawk (this is the wolf in a dream)

Carter appointed a hawk (Volcker).

"Carter appointed a hawk (Volcker)."

That was one of Carter's best times. I respect him.

Reagan also had his best time. That was when he fired the air traffic controller because he left his job. After that, the number of strikers was zero.

If Ohio accounts for 3.5% of the nation’s population, it should receive 3.5% of the $1T infrastructure funding, or $35B. Therefore, the $23B for road projects does not seem to be proportional.

The above post is the above historyus post. It has been changed to a general post. I don’t know why.

For them, "inflation" is easily appended to the end of Biden, and "presh" has also entered his name, which makes them feel semantically politically rascal. Biden's inflation causes Biden's pressure.

I overheard two terms used in the conversation. One was at the pier, which was definitely a tourist, and the other was at the speech corner of the local park.

Biden inflation is in vogue. It will be equivalent to "Carter's disease."

"His approval rate for handling the economy plummeted to 39%. 55% of people disagreed with his way of handling the economy."

Bet there is a "country" there.

Among the 1,001 Americans who voted.

It's time to command everyone-I mean everyone! -The head of the Federal Reserve enters the stock.. The immovable wood type, equipped with free side-by-side viscera/trash bins.. "Throwing" fun for civilians.

Missionaries don't deserve better. Let them try to exaggerate the retribution of the stinking, rotten, and socially destructive monetary policy.

UMich must have called SocalJim and his friends ;)

Bank of Canada’s Steve McCallum reiterated that he believes there is no inflation, while Adam Vaughan laughed on TV and said that Canadian real estate is an ideal choice for foreign investment, but it’s not good for locals.

Since then, the Bank of Canada is downsizing and buying mortgage bonds.

It's really refreshing to read commentators talking about the impact of Fed policy on asset price inflation and wealth inequality. Many market commentators talked about the need to keep interest rates low to help the unemployed and those at the bottom of the socioeconomic scale. Even the ultra-left Democrats have fallen for it.

This is all a scam. The extremely loose monetary policy has exacerbated wealth inequality. Bernie Sanders and Elizabeth Warren should condemn the Fed’s policies. The problem is that they don't understand what happened.

Tribute to WR: I will comment on the Fed’s idea of ​​raising interest rates by 4% in 12 months tomorrow.

At the same time, two warnings about "virus infection websites" suddenly appeared, and some treatments were recommended. This has never happened to me on WS before.

Clear the history in the browser. What you don’t want is there, it’s not from my website, but triggered by it. That should be it.

Too much p0rn, Windows Defender is not enough.

You might do something there.

The Federal Reserve is engaged in crimes against humanity. They are evil, evil, dirty scvm. The same is true for their promoter politicians. It was just a reckless, shameful, and demonic plan aimed at making a few people rich.

Trump is a huge failure. I voted for him because he called Yellen's monetary policy "a big, fat and ugly bubble." But once he entered, he made a full 180 and started celebrating the stock market bubble as his great achievement, telling the rich that they should thank him, and then pestering Powell to lower interest rates and raise interest rates further. I did not vote for his second term, and I will never vote for him again. I think he is a complete liar.

I partly agree. Even though most of Trump's policies are dead... His attack on Powell, the shift in market evaluation, and most importantly, his saying that he supports negative interest rates makes me very angry.

Trump has been a lever all his life, and the Fed bankrupted him in 1981. He hates the Federal Reserve and interest rates. All presidents want the stock market to rise during their tenure.

Shows that no matter who the president is, their fate depends on central bank officials and Wall Street to maintain debt growth. Our actual interest rate has reached its maximum value, and we have to set the actual interest rate to a negative value to keep everything running normally.

"In order to keep this going."

What do we really want to insist on, the pain index? When did the Fed decide not only to blow bubbles, but to support their noble status at all costs? The Fed needs to take responsibility and face the threat of extinction. The problem is that we have a group of corrupt politicians who have become extremely wealthy with the support of the Federal Reserve. This country is rife with corruption.

If you were to use the capitalization ratio to study market valuations, you would conclude that the bubble began a year ago.

Incorrect. The bubble has existed for nearly a decade.

You must be looking at the wrong data. Have you studied the market value divided by income? Did you see the sales price? Tobin q? How about market value divided by revenue? If you do this, you will realize that the bubble has just begun. What valuation do you look at?

The best measure is the price difference between CFROI and WACC considering asset growth or contraction, which is not available outside the trading floors of large institutions. This also points to a bubble that started recently but was much smaller than the events of 2000.

If you take a closer look at the local renewable energy sales prices, you may conclude that the bubble started immediately after the last crash in some places, but not elsewhere. Similarly, the last crash occurred in many different regions. It starts and ends at different times, and is affected by many factors, not just money costs. In the sacred land of the TPA Bay Area, the crash only started in 2006, bottomed out in about 2009, and immediately began to bubble, slowly at first, and then much faster, so that many properties there doubled in a few years. In the flyover part, the bottom is more like 2011. This is a personal experience from two aspects.

Some people define a bubble as being 3 standard deviations higher than the long-term trend on different indicators. I think we took some measures before the Covid attack.

From what I have seen, we have exceeded all past price-to-income valuation indicators in the past year. We live to see history.

I totally agree with you, but I like Trump's China policy and border security immigration policy

Not a fan of Trump, but some of his policies are good

In terms of its value, this is my assumption... Feedback from the WS family is very welcome:

I think the Fed’s main concern is long-term deflation.

And I think they should be-demographic data and technology/automation will basically guarantee deflation in the next 20 years, other things being the same.

The United States does not know how to deal with deflation. 2008-9 is our best case study recently. Consumption dropped so little and caused complete chaos. Individuals panic selling assets... Companies refuse to invest/hiring... Public and private revenues collapse. To be honest, the only way we can stop it is to lie-we have suspended market pricing. Puff, deflation is over.

So I think everything the Fed does should be to prevent deflation. They stepped on the inflation pedal during the pandemic because they expected deflation to be huge (until the arrival of stimmies and PPP). But the strategy has been consistent for decades. They know they are exaggerating assets. They know that they are making speculative investments in non-productive companies. They know that they are making asset owners and old people wealthy, while forcing young people to get huge loans to fund basic lifestyles.

They think all this is a success because it makes everyone wrong... It makes everyone expect that prices will continue to rise, so we should all continue to work now, consume now, buy assets now, and borrow now. They even use quantitative easing to force inflation to continue to rise.

So far, it has worked, and they have convinced everyone that our Ponzi economy is really just stable and lasting inflation.

But as Wolf suggests in this article, I think they messed up the plan and exaggerated too much. I think they are about to slow down inflation and asset prices will fall. And I think (hopefully) there will be a clear lack of knife catchers... In fact, I expect the baby boomers, who own most of their assets, to make some pretty aggressive sell-offs. Then the Fed will immediately return to QE and ZIRP to prevent deflation, confirming that it has no choice.

I have also read this inference. Another example shows how ignorant they are.

Asset deflation is a real danger. They increased this risk through the loosest monetary policy in history.

If it were not for the help of excessive unproductive debt and monetary policy, price deflation would not and would not approach such a big risk.

The idea that people usually postpone most purchases is downright stupid.

It is supported by previous experience of the house and to some extent "big ticket" purchases, where time is more or less optional, such as the car described in the previous article.

It does not support recurring fees or "small ticket" purchases, because almost no one wants to do so.

The corrections are good because... they are correct. Cycles are good because they will wash away excess assets and remove undercapitalized assets like a correction. The central banker has banned both... and therefore allowed over-establishment... the final flush becomes a systemic threat.

This attitude that the market will never allow a fall when it reaches a certain level is dangerous and unrealistic.

You are not far away. When Bernanke ridiculed inflation concerns, he said "we can solve this problem within 15 minutes," and he hinted at his concerns about deflation. He wrote an erroneous paper on the Great Depression and the Fed's premature interest rate hike in 1937. He also said that he did not understand TIP bonds. The Fed now buys them frequently. The source was unable to confirm that Evergrande had indeed paid the bond payments to Citibank. The Fed often works behind the scenes of these issues. A few years ago, the Yellen Federal Reserve established a US charter for the purchase of DBs derivatives books. The transaction caused the bank to fail the stress test immediately thereafter, but the Fed is the largest and best dirty laundry fence. Bank derivatives were subsequently liquidated. We probably shouldn't care about their so-called macro policies. Hussman said that would not work. We should pay more attention to their insider trading, PPT, and financing of shadow government operations. The pandemic collapse of 2020 should be investigated.

American oligarch cartels have skinned cats (generally American public and economic) in different ways in each historical period.

Manhattan Bank executive Paul Volcker was a lifelong promoter of David Rockefeller's interests and a founding member of the Rockefeller Trilateral Committee (referring to Rockefeller's financial network in North America, Europe, and Japan) (1973). The goal of the Trilateral Committee (TC): to control the huge emerging Asian markets in the US dollar currency system after Nixon in 1971. Georgia Governor Jimmy Carter, who was unknown at the time, was also a founding member and was very active in TC.

After Carter was elected POTUS (1976), Rockefeller got Carter to appoint Paul Volcker Chairman of the Fed. Please note that the violent inflation under Carter’s leadership was originally implemented by Rockefeller, Volcker and their wealthy allies. De Berger Petroleum Pricing Plan aroused.

Volcker's aggressive monetary policy (interest rates above 20%) led to the third world debt crisis and the stagnation of the domestic market. Economic recession, rising unemployment and falling profits. Later, the Rockefeller oligarch cartel regarded the United States as "post-industrialized" and was not interested in updating its domestic economic base. However, real interest rates of 6% to 8% have allowed wealthy bondholders to reap huge profits and at the same time ushered in a new decades-long suppression of labor/union.

Volcker's shock drug also destroyed savings (S&L) banks, which were annexed by New York and other currency center banks. The desperate President Carter signed the "Deregulation of Deposit Institutions and Currency Control Act of 1980", giving the Federal Reserve extraordinary powers. Regulation Q of the Glass-Steagall Banking Act was repealed, which resulted in the abolition of the upper limit of all legal interest rates that banks can charge customers.

Volcker's impact of high interest rates has snowballed into serious economic crises in one country after another. The International Monetary Fund was brought in by major banks in New York and the US Treasury Department to manage affairs in debtor or victimized countries (that is, ensuring that oligarchs provide loans to that country), which could lead to the biggest plundering frenzy in the history of the world.

It has been and will continue to be about the control of world wealth. The oligarch MO adapts and changes, but the domestic welfare and economy of the United States are always blinded and cursed.

"Volcker's shock pill also destroyed the Savings (S&L) Bank..."

Ha ha ha ha. They destroyed themselves through years of fraud. Many S&L executives go to jail. The savings and loan crisis became the first large-scale rescue for an industry.

Here is some personal history. Before the outbreak of S&L, I wrote an accounting essay on one of the accounting pranks (I was studying for an MBA at the time). My accounting professor took me aside and said that he had a friend who worked in the FBI department and was investigating such fraud, and asked him what he thought of my paper. The guy told the professor that the FBI had a room of files trying to solve this problem...

Aha... the forgotten Bush, Neil...

Today’s S&L collapse gave these bastards a blueprint, where finance, politics, war, and the stupidity of ordinary Americans meet...

They should apologize publicly to him. All he did was propose to develop on a toxic landfill in order to borrow property. The underlying allegation is that funds (from S&L) were remitted to Iran/Contra. Without the help of the FBI, you would not be able to conduct such a large-scale illegal government operation.

I remember that the law has changed and S&L is no longer required to place their business interests close to home. Then they began to invest across the country...that is, housing development and so on.

"I think the Fed's main concern is long-term deflation."

Dirty secrets Except for the standard old Taylor rule policy, the new Zirp and QE extreme policies cannot help the real economy at all. This is a huge cluster that makes us mess.

Can these actions of the Fed trigger a revolution?

The Fed’s policy divides the country

Workers, earners, and savers are deliberately punished by promoted, out of control, and unresolved inflation. That is group 1

The second group, there are enough stocks and real estate to be refined.

Why does this Fed completely ignore their responsibilities? Historical norms are broken.

It's hard to find the latest chart of federal funds on inflation, but this chart describes how to raise federal funds to deal with and curb inflation... The Fed stays at its job. not now. Why? Who decides? Why doesn't Congress care?

Because they are involved. As Wolfe said, things will change only when they start to worry about their job-livelihood. Same as the Federal Reserve.

"Can these actions of the Federal Reserve trigger a revolution?"

But then they will send out more stimmies, which is over...

But we need to clean up the port and put Chinese garbage into WM and Amazon, so that we can maintain the craze to stimulate consumption, which is a necessary condition to make civilians happy.

Send more stimulus to trigger more inflation? You must be joking. Causality can only be ignored for so long.

I see that Motor Trend’s car of the year is Lucid, an electric car worth $140,000. Very much in line with our current society. This is an impressive car, but does the world really need to dump more money to make cars for the rich?

0 decline, 20 years of financing, a hellish opportunity...

Trade the old for the new next year, earn 20,000 US dollars, and then upgrade your home to a newer van...

As a middle class, I have benefited a lot from the federal government’s stimulus plan. The entire COVID lockdown is good for many people because we can reassess important things.

Since the previous owner who I am repairing it now passed away, it gave me time to buy REO. No debt, light weight, high savings rate, remote work...what's not to like? In any case, when you are not consuming, inflation is not that important. It takes more time to bring about a happier life, not something. In this regard, the prepared princess youtuber is a role model.

Everyone should hold at least 10% of physical gold, not paper, not stocks, not coins, etc., under their own physical control, buy it, bury it, tell anyone, not to use it for speculation, in order to prevent it from happening in life Insurance for annoying things. Like all insurance, it will not cover certain specific things, but I still have imperfect insurance, and then none. The added benefit is in any long-term time frame in which it maintains its value.

I was in the swamp last Sunday, doing some work in a bad part of the city. I noticed a sharp increase in the amount of rubbish in streets and parks. No police can be found everywhere. The only noise is from emergency vehicles. The business district is overcrowded, and unemployed working-age men stand around doing nothing. On the way home, I passed some high-priced neighborhoods near the Capitol. The camps for the homeless were noticed everywhere. Large tent cities under major bridges and highways. For some people, the national capital of Washington, DC became the s$ithole of the Third World almost overnight. No one reported this, and no one cared.

You may not see the homeless camps from the window of the White House, so they really don’t exist. Moreover, if important people see them by chance, they will be reported as ordinary people on a camping holiday during the Thanksgiving holiday.

I heard that Powell saw these homeless tents on the way to work at the Federal Reserve on 14th and Constitution Avenue. He wants them to be moved to a place he doesn't need to see.

I heard it too. It affects his heartstrings...makes him want to keep interest rates low to solve the unemployment problem...despite record vacancies. Maybe because of his policies, he should bypass a lot of people who work and save, and then regress at a rate of about 7% per year? Will his guilt twitch?

Only my swamp is completely dry, terribly quiet, without any life forms.

Take a virtual tour in Google Street View

Etting St & Gold St Baltimore MD

A beautiful row house built of antique red bricks from the 19th century sells for $20,000

Pack them all (I mean doors and windows sealed with plywood) and wait for lucky investors.

So this is where all the plywood went last year!

Google is getting lax. On one of the row houses on Google Street View, there is a "Public Hearing Notice" sign dated February 2019. I haven't seen this sign recently. Taekwondo? They usually update their views twice a year. At least in major cities. Scary cat...

The appointment of new Fed governors will not change anything in 2022. Even if Clarida and Powell are hit by the beer truck today-it will take months for new directors to be found, appointed, approved and truly at the helm by Congress. Once at the helm-all they can do is either directly burst the bubble with big talk, or start a policy action that takes months to take effect. Do you really think that MBNA’s senators will appoint people who will “pop the bubble”? I definitely won't. I think we will see that the usual situation is too little, too late, so that we have the best of both worlds: the Democratic Party collapses and the bubble bursts in 2022.

Yes, completing the appointment in time is a problem. Trump will never be able to fill the last vacancy. It will take several months for them to pass the Senate. If the date is "controversial," then they will be eliminated in the long process.

My money is prepared by Brainard for the next chairman of the Federal Reserve. If this succeeds, you can also set fire to your remaining money, because if you are nominated, she will make Powell look very tough, she is a crazy “Let’s help the people by giving them money” socialist/Marxist, Biden may have difficulty overcoming voters’ resistance to higher prices, but when stable checks begin to roll out again, people will quickly forget Inflation, because they have no idea that the final fact that prices will rise faster than checks can make up for their loss of purchasing power, resulting in a vicious circle of rising inflation and greater stimulus. The United States is now completely under Marxist control, and the Federal Reserve is the main instigator and promoter.

Do you think she has 50 Senate votes?

Why does the Fed Cartel, which is composed of private banks, become the "main instigator and promoter" of "complete Marxist" control?

If the power behind the Fed is "awakened" and hopes that the government will implement socialist and super-liberal policies... it may make the Fed a "fountain" of almost free funds, so it can be borrowed cheaply and released to fund these efforts. Trillions of dollars in bills and a pile of buried Green New Deals, climate change, gender adjustment laws, etc... (note that the central bankers have adopted some of these reasons)

At the same time, this false currency cost fuels real estate assets and stocks. Banks like this. Something for everyone. In addition to currency holders, national workers and savers who make the country work. inflation.

Kevin... the fact that she is a woman may have piqued Biden's (I mean his agent) interest. Kashkari aspires to become chairman of the Federal Reserve. We seem to have MMT. Provide the government with an endless supply of debt and money. When the inflation rate is high, they do not raise interest rates. They delay and push to raise taxes... This is the so-called theoretical solution to inflation in the MMT script.

Due to the Fed’s ignorance leading to high inflation, the blue team will be eliminated in the mid-term and then eliminated again in 2024. If the blue team does not have a chance, we can see that the red team dominates in 5-7 years, because people will not quickly forget about high inflation, because it tends to emotionally scare those who are most affected, the lowest 50-70% of people do not own "piles of appreciation assets" as Wolfe puts it...

El-Erian warned the Fed on Twitter almost every day, and CNBC caught his warning again today:

When asked what the Fed’s most appropriate response is, El-Erian said, “Accelerate the pace of reduction in December.”

"Secondly, start doing what the Bank of England is doing... to prepare people for higher interest rates," Erian said, citing similar measures taken by central banks in Australia, New Zealand and Norway.

Board member Schnabel said that if interest rates are raised before the end of quantitative easing, the European Central Bank may directly help wealthy Europeans.

Oops, someone slipped and told the truth about what they wanted to do.

As usual, Biden will provide this country with exactly the opposite of what it needs. In this case, I am referring to the Fed Chairman’s decision he is about to make. We will have a green economist who supports MMT (I use this term in general terms) to lead the Fed, and he will cheer for unlimited money printing and waste.

As they said, at some point, we will have to deal with this mountain of debt. Printing money without restrictions while wasting money on meaningless plans is one way.

This is the easiest and fastest way to destroy the value of wealth and debt.

Just like they want to solve the port problem by putting another stimulus payment in everyone's pocket, they can use the money to order more garbage from China, just like they want to solve a large amount of fentanyl overdose The problem is the same as the southern border. No matter what is the easiest and fastest way to destroy the country, it is always chosen.

Volcker is still a complete myth.

O/N RRP facilities are more than just a brake. The absorption of foreign O/N RRP facilities continues to push up the exchange rate of the US dollar.

"The driving factor for these inflows is the curve reversal. The longer the reversal lasts, the more funds will flow in"-Zoltan Poszar

Spencer "Volcker is still a complete myth." No. He exists and owns the stone to do the right thing at the right time. Not like today. In the 1970s and early 1980s, we had an anti-inflation Fed. Now we have a Fed that promotes inflation, and when it gets hot, it does nothing. This is where the comparison between today and the Volcker era stopped.

For the rich...at the expense of the workers/earners/savers of this country

https://cdn.mises.org/styles/max_1160/s3/savers1.png?itok=WLBt3tg8

This chart points out that $4 trillion in value has been drawn from savers to brag about the wealth of the wealthy. What an honest question for Powell... why? Did you or your parents save money to buy things? Stand firm? Why do you want to establish a mechanism to punish these people?

I totally agree with this point. However, I suggest that the Fed raise interest rates from the lowest point is more urgent than reducing the purchase of Treasury bonds. Mortgage loan purchases do need to be carried out as they did yesterday, but continuing to purchase US Treasury bonds for a period of time may provide the Fed with room for earlier and faster rate hikes. Real short-term interest rates below zero and above 6% are an economic emergency.

Hey wolf, little spelling mistake – Bord of Governors

"A loaf of bread in Berlin was worth about 160 marks at the end of 1922 and was worth 200,000,000,000 marks by the end of 1923. By November 1923, one dollar was worth 4,210,500,000,000 deutsche marks."

"It is no coincidence that Hitler tried to seize power in November 1923, the peak of hyperinflation."

Trump will be back, guys. History does repeat itself, sometimes not in exactly the same way, but sometimes very close.

Um. I believe that the rich care about the poor just as I believe that the walrus is crying around most of the oysters in "Mirror Flower and Water Moon."

When interest rates rise, who do you think will receive most of the interest? As Mosler said, "Paying interest is a welfare for the rich."

Therefore, if I am not too enthusiastic about the "think about the poor" narrative that bankers focus on bonuses every time they ask for a rate hike, please forgive me, this has always been...

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What does the suggested retail price even mean when the truck’s advertised price is higher than the suggested retail price of $10,000? Now cast a shadow on my fancy proprietary index.

"If the high risk appetite of retail investors declines quickly, there may be potentially destabilizing results." But what is going on.

Housing prices in Vancouver, Ottawa and Montreal fell; Toronto and other cities were flat for the first time since 2019.

Money printing is popular. Retailer category chart.

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