The Fed Must Repeal Its Disastrous Rate Increases

"Capitalism is about about to be reformed."

"The World war that Trump is fomenting."

 

Feds raised rates to slow the trump economy because it was performing as expected.

 

You run the risk of causing the recession you are supposedly trying to prepare for with this agressive strategy.

 

It's my opinion Trump inherited an economy that in many ways resembles the economy Reagan inherited and Trump has got the economy up and running again just as Reagan did.

 

Trump's economy is nothing like what Reagan inherited. Reagan came in at the end of a period of VERY high interest rates. In fact, it was Carter who appointed Volcker, with the full knowledge that such high interest rates would be necessary to counter inflation. He did that probably knowing that it would kill his chances to be re-elected. Reagan just benefited from Carter's decision, operating in a environment of dropping interest rates, which spurred private borrowing and started the private debt glut we are suffering from today.

If you look at those previous interest rate numbers, Trump has NO reason to complain about the current 2.5% rate. .

 

The Fed can do anything it wants to to the people of the USA, and often has, even with the curtain pulled back and the wizard visible. It's a monster.

 

It is easy to criticize the Fed, which in any case sets interest rates that can only deviate from free market rates for short periods of time. The one criticism I would have of the Fed in recent times was Greenspan, raising interest rates too late and too slowly in 2005. of course, it is easier to criticize in retrospect, like an armchair quarterback.

The question is; What would you currently do if you were Fed chairman and why?

 

Both inherited an economy in malaise

 

Completely unimproved economy, 100% dependent on cheep credit and QE.
Adding more credit and QE to the credit problem allowed the bankers to cash out rich while the rest of us will have to suck up the turds

 

Nothing has resolved. Just a more unstable base of leverage and debt

 

Reagan got the economy running by tripling the debt - so I guess that Trump will just continue his spending spree and create a false economy just the same as Reagan.

 

And I see you did not answer my question - do you think Trump inherited a worse economy than Obama?

 

Actually the democrat congress did most of that but Reagan did spend heavily on fighting and winning the cold war which ushered in forty years of peace and prosperity. Money well spent.

 

So if Dems do it, it's creating a false economy, but if Reagan did it, it's "money well spent."

 

This is exactly what Republicans always do. They come in on top of a good economy, like Bush did with Clinton and create a kleptocracy to loot it. This takes a while to have its baleful effects but when they do, like in 2008, Democrats are voted back to fix it. This takes some time again and the Dems are now blamed for the economics they were called in to fix. Republicans get back in office just in time to start ****ing things up again. This is the only way Republicans, whose basic cry is "vote for me. I'll take all you have and give it to my friends" ever get elected to the Presidency.

The Fed exists largely to do what they are doing now. Most stocks are running very high P/E ratios and this indicates an overheated economy presaging a "bubble" type panic. Most of us, even me, have never seen a bubble in our lifetimes. and from what I read we should hope to never see one.

 

Considering the affirmative action monetary policy that preceded the transition, it's obvious that the Fed is trying to keep the economy from getting legs.

There was 1 interest rate hike before the transition and brought the Fed rate to 0.25% in December 2015. The Fed wasted no time hiking interest rates after Trump was elected and hasn't stopped.

 

Well then, maybe Trump should have been more careful in appointing his Fed chair. It seems, though, that he just makes decisions based on his gut instead of actually vetting people, so this is no surprise. He owns this, and he and his voters have no place to finger point, except at Trump himself.

BTW: The reason of the zero interest rate policy during much of Obama's term was to fight deflation, thanks to the fallout from the great recession brought on by Obama's predecessor.

 

Blah, blah, blah - me do it, it's good - they do it, it's bad ... blah, blah, blah. Every post you make is the same broken record.

 

The Feds job is to keep the economy from growing legs and running away. They didn't raise rates under Obama because they didn't have to, growth was trending higher but never really high, and this was largely because the pubs went on and on about how bad things were at every opportunity, even though they weren't. Come 2016 and now the Liar in Chief is telling us this is a new era and his fawning lickspittles are only too happy to agree. Stocks rise but these higher prices are due to the Raging Bull rather than a reflection of increased earnings, so the Fed steps in. Clockwork, no?

Affirmative Action Monetary Policy?? Are you referring to the fact that Barney Frank actually dared to insist that smaller income people should actually share in the largesse that the bankers were rolling in after Glass Steagall was repealed? I ask you; how much effect do 8 or 9 foreclosures of $100,000 or less have compared to one refinance chain that has jacked the price of a $500,000 home to 2 million. You do the math

 

Fighting and winning the cold war was money well spent and dems were more into capitulation than winning that conflict.

 

It wasn't fighting the cold war that won it. It was the unworkability of communism as an economic and governmental system. It was fighting communism that kept it around so long

It was Dems who started and pursued Vietnam, and Vietnam was really the centerpiece of the later cold war much as Korea was the centerpiece of the first half.

If we had just left the "communist menace" alone it is very probable they would have died on their own by 1960. We really DID have the better system, as history has shown, but their and our elites played each other so well they both started to believe their own propaganda

 

World economy has slowed, we are the last country to see the slowdown as recent manufacturing has severely tapered off and we are beginning to see some lay offs of workers,Ford,GM,Verizon sand AT&T to name a few.

 

I'm gonna hafta give you the John Belushi eyebrow raise on that one.

 

Belushi is dead. Poor fellow.

What I said there is a known thing to most diplomats nowadays when the last vestiges of the "godless commie" blinders are finally being lifted from all but those John Birchers who had them surgically implanted back in McCarthy times. We are ALL doing now what the Russians were being threatened nuclear fire for doing in the 1950's. all of us, even Germany

 

Comrade Trump has been giving Russia back the power it lost in many places.