Thank you for pointing out that the increase in the regulatory regime and government spending are HUGE dampers on the economy and has a bigger effect on GPD than many people know. GDP has to increase to help ease inflation and democrats are totally opposed to giving up power & control of the economy.
A 400 lb man sits on your face. He gets up. A 390 lb man takes his place. The pressure eases up. Progress!
My guess is that Biden realized (like Trump finally did) and as Byron York points out that there will be a lot of people voting before November. Things will in all probability get worse. Note he's planning on sealing the border if there are more than 4000 @ day. Yeah, sure that will help him in the polls.
They were hoping that the NY trials would derail Trump. Probably not no matter what the verdict.
Their best bet is that, as has been noted, Trump is his own worst enemy at times. Did himself in on the 2020 debates and they are counting on him doing it again.
The government bought our prosperity with low interest rates for 16 years and now they are buying it with money printing and government spending. It’s been a long road they’ve been able to kick this can down. What we really need is some good old deflation. Make it quick so when it’s over we can all get on with our lives.
Laffer’s math on this the other day was particularly beautiful, under KISS principles. Thank you for sharing it.
Barry seeking cuts now highlights, for me at least, that The Street can now be easily divided into who absolutely, positively requires overnight financing to keep the doors open and who doesn’t.
All the arguing about “The Fed needs a new benchmark for inflation!” is really just today’s Fred Fed Advice from The Street for fresh cuts.
“Higher, For Longer” is aimed right at this area of “Credit Creation”, from hence come the squeals.
I used to like reading Barry, found him insightful on some things. Seems like he started going off the rails between 2016-2019, wondering what influenced that? [wink]
About the debates. There will NOT be a debate that involve Joe Biden (unless they go as far as allowing editing out of brain freeze moments, mumbling and anything else that makes Joe look old and stupid). Trump accepting all the idiotic conditions is smart, since there won't be a debate anyway.
Trump calling for a drug test is smart. It is all about marketing and branding and Trump, as always, is a genius in this area. He is planting the idea in the heads of voters about Joe's dementia, age and ability. Creating more doubt.
If Joe is still the nominee when the debate dates roll around, there will be some national/international crisis that will make it so that he isn't able to attend or they will come up with something else. That is precisely why they put in so many ridiculous, one sided "conditions", on the hope that Trump would refuse or ask for a better deal. He out smarted them, as he nearly always does.
On a somewhat separate note, did you happen to listen to, or watch Jared Bernstein's comments on money printing and how money works? I thought the bloke, who happens to be chief economic adviser to FJB, had a PhD in economics or some sort of highfalutin credential. I guess he never read Milton Friedman.
Thanks for sending Jeffrey. I had missed that. Didn't realize Bernstein was a social worker. Kind of makes sense, then, that he doesn't understand the whole economics thing.
I can't comment because I'll be reading those Cochrane pieces and his links for the next 24 hours, lol. Great stuff, Jeff! Just one add, imo the immense strength of the Yen and Mark vs USD, CAD and GBP during the 60's-70's was catalyst to much dollar denominated inflation. But, then the industrial capacity created by Germany and Japan via those cheaper dollars ultimately acted as a brake on prices, beginning in the early 80's. If the Dollar ever tumbles to only 5 Yuan, Katie bar the door, we'll be at 10% inflation.
Remember when some were calling for six rate cuts to take place this year, just a few months ago? It seemed like every week I was posting on social media the insanity of even suggesting three or four, much less six. Too many people in this country have allowed social media and mainstream media sound bites mentality to affect their economic assessment, when I grew up in an era that you examined an economy based an annual, and sometimes quarterly, results. The monthly releases are a lovely way to short-term trade and get an idea of changes, but to try to make long-term decisions based on short-term data is a dangerous game to play. There's an old saying that suicide is a permanent solution to temporary problems and If the Fed cuts rates any time between now and the election, then they will have lost all credibility and be self-destructive.
Thank you for pointing out that the increase in the regulatory regime and government spending are HUGE dampers on the economy and has a bigger effect on GPD than many people know. GDP has to increase to help ease inflation and democrats are totally opposed to giving up power & control of the economy.
People way underestimate it
Your insight into the Left's economic illiteracy is always a welcome read! Stand firm! Keep up the good fight!
A 400 lb man sits on your face. He gets up. A 390 lb man takes his place. The pressure eases up. Progress!
My guess is that Biden realized (like Trump finally did) and as Byron York points out that there will be a lot of people voting before November. Things will in all probability get worse. Note he's planning on sealing the border if there are more than 4000 @ day. Yeah, sure that will help him in the polls.
They were hoping that the NY trials would derail Trump. Probably not no matter what the verdict.
Their best bet is that, as has been noted, Trump is his own worst enemy at times. Did himself in on the 2020 debates and they are counting on him doing it again.
Hope not.
No visuals please
The government bought our prosperity with low interest rates for 16 years and now they are buying it with money printing and government spending. It’s been a long road they’ve been able to kick this can down. What we really need is some good old deflation. Make it quick so when it’s over we can all get on with our lives.
Laffer’s math on this the other day was particularly beautiful, under KISS principles. Thank you for sharing it.
Barry seeking cuts now highlights, for me at least, that The Street can now be easily divided into who absolutely, positively requires overnight financing to keep the doors open and who doesn’t.
All the arguing about “The Fed needs a new benchmark for inflation!” is really just today’s Fred Fed Advice from The Street for fresh cuts.
“Higher, For Longer” is aimed right at this area of “Credit Creation”, from hence come the squeals.
Barry looks at the world through a paper towel tube
I used to like reading Barry, found him insightful on some things. Seems like he started going off the rails between 2016-2019, wondering what influenced that? [wink]
“FREE Fed Adivice”
Thanks, autocucumber.
About the debates. There will NOT be a debate that involve Joe Biden (unless they go as far as allowing editing out of brain freeze moments, mumbling and anything else that makes Joe look old and stupid). Trump accepting all the idiotic conditions is smart, since there won't be a debate anyway.
Trump calling for a drug test is smart. It is all about marketing and branding and Trump, as always, is a genius in this area. He is planting the idea in the heads of voters about Joe's dementia, age and ability. Creating more doubt.
If Joe is still the nominee when the debate dates roll around, there will be some national/international crisis that will make it so that he isn't able to attend or they will come up with something else. That is precisely why they put in so many ridiculous, one sided "conditions", on the hope that Trump would refuse or ask for a better deal. He out smarted them, as he nearly always does.
If he doesn't debate, then Biden loses
On a somewhat separate note, did you happen to listen to, or watch Jared Bernstein's comments on money printing and how money works? I thought the bloke, who happens to be chief economic adviser to FJB, had a PhD in economics or some sort of highfalutin credential. I guess he never read Milton Friedman.
YES! https://jeffreycarter.substack.com/p/the-sham
Thanks for sending Jeffrey. I had missed that. Didn't realize Bernstein was a social worker. Kind of makes sense, then, that he doesn't understand the whole economics thing.
duly noted. First I wrote 300 lb woman but then thought the better of it. Substitute Elephant and Hippo instead.
I can't comment because I'll be reading those Cochrane pieces and his links for the next 24 hours, lol. Great stuff, Jeff! Just one add, imo the immense strength of the Yen and Mark vs USD, CAD and GBP during the 60's-70's was catalyst to much dollar denominated inflation. But, then the industrial capacity created by Germany and Japan via those cheaper dollars ultimately acted as a brake on prices, beginning in the early 80's. If the Dollar ever tumbles to only 5 Yuan, Katie bar the door, we'll be at 10% inflation.
That's a fair point. I wonder how much the break down of Bretton Woods and the gold standard was a cause as markets floated really for the first time.
Remember when some were calling for six rate cuts to take place this year, just a few months ago? It seemed like every week I was posting on social media the insanity of even suggesting three or four, much less six. Too many people in this country have allowed social media and mainstream media sound bites mentality to affect their economic assessment, when I grew up in an era that you examined an economy based an annual, and sometimes quarterly, results. The monthly releases are a lovely way to short-term trade and get an idea of changes, but to try to make long-term decisions based on short-term data is a dangerous game to play. There's an old saying that suicide is a permanent solution to temporary problems and If the Fed cuts rates any time between now and the election, then they will have lost all credibility and be self-destructive.