Fed Reserve: Inflation transitory???

I haven't seen any statement from the Fed that stupid since like ever. Seriously, so inflation is finally showing up at consumer level. WTF, I though Fed staff looked at all sectors. I've seen it with my client's in the industrial sector since last summer. My conclusion: The Fed is politicized.

https://www.cnn.com/2021/05/20/inves...rve/index.html
Turn the idiot videos off

OK yeah cnn, but a decent article.

The first paragraph:
Federal Reserve chairman Jerome Powell loves to use the word "transitory" to describe the threat of inflation. But with each passing day, it looks more and more like inflation pressures are mounting in a much more significant manner than the Fed would like....

Should probably just pass a trillion dollar bill and print more money.

Problem solved. :sunglasses:

The Financial Times had a piece today that speculated the dollar could lose its status as the world's predominant reserve currency, like the British pound did in the 1940's, because of Biden's profligacy and the Fed's loose policies. Here's an excerpt,

...there is general agreement that the biggest single peacetime threat to reserve currency status is economic and financial mismanagement. And with the Federal Reserve having abandoned its longstanding commitment to tightening policy in anticipation of inflation and President Joe Biden “going big” with fiscal policy, the fear that inflation could undermine the currency is mounting — at least in some circles.

Those concerns have been most forcefully expressed by former Treasury secretary and fellow Democrat Larry Summers, who has said the Biden administration is pursuing “the least responsible fiscal macroeconomic policy we’ve have had for the last 40 years”. In an interview with the FT last month he declared that “when it’s explained that the Fed has an entirely new paradigm . . . it’s a bit hard to understand why expectations should remain anchored.” He added: “We’re seeing an episode that I think differs both quantitatively and qualitatively from anything since Paul Volcker’s days at the Fed, and it stands to reason that would lead to significant changes in expectations.”

In other words the anti-inflationary credibility won at such high cost by the Fed over the past 40 years may now be in question, causing foreign investors to worry that the US will inflate away the value of their Treasury holdings.


https://www.ft.com/content/408d4065-...5-c6a8743b0d01

Translation, fire up the printing presses and let the good times roll. And let the future be damned.

I suppose we're headed for a dictatorship. It will masquerade as right wing as the country is going to be repelled by what the progressives have wrought. It won't be Trump (unless we're lucky) because who ever gets the nom will make Trump look squishy.

Warm up the printers , this IS the new gobbled-gook economy

I think it is too soon to say. Some measurements compare to a year ago, and naturally inflation is way up by comparison. Dislocations in chip supplies, trucking and other areas may be exascerbating inflation for now.

We should have a clear answer by September. My belief is it is NOT transitory, and if/when the Markets decide that, look out below!

I think it is too soon to say. Some measurements compare to a year ago, and naturally inflation is way up by comparison. Dislocations in chip supplies, trucking and other areas may be exascerbating inflation for now.

We should have a clear answer by September. My belief is it is NOT transitory, and if/when the Markets decide that, look out below! Originally Posted by Chung Tran

I agree it's not "transitory" nor is it mild inflation, it's runaway inflation and we don't need to wait til September to figure that out. Have you priced anything lately? Prices are through the roof.

Here's the rub though, the fed has boxed themselves into a corner by "promising" the markets that they won't even consider raising rates not until 2022, but until 2023. With the Biden administration spending TRILLIONS and the Fed printing TRILLIONS we are in for a very hard landing if we don't get a complete reset of the banking system.

My advice is to make as much of this easy money as you can while the getting is good, we are all going to need a HUGE pile of cash to weather the storm when the music stops.

My prognostication is this and there's no time frame on it:

One day the Fed is going to use these "huge levers" the business pundits constantly talk about that at their disposal and they aren't going to work.

These same pundits are starting to admit that Crypto is an adversary to major govts.

As I've said before, when you print money, inflation naturally increases. This country is broke and handing out stimulus checks. Where do you think those trillions come from? Also, when you rapidly increase the money supply like that, it takes a while for the supply and demand to normalize so yeah, we're going to get rapid inflation.

I bought some steaks to cook for some friends to watch the NBA playoffs last weekend. I was just like shit, cows have definitely increased in price. Are these special cows or did I buy organic meat? I don't do that organic shit with steaks but they sure the fuck were priced as if they were. Oh well, the steaks were good and worth the price because my friends enjoyed them so I didn't really care.

As I've said before, when you print money, inflation naturally increases. This country is broke and handing out stimulus checks. Where do you think those trillions come from? Also, when you rapidly increase the money supply like that, it takes a while for the supply and demand to normalize so yeah, we're going to get rapid inflation.

I bought some steaks to cook for some friends to watch the NBA playoffs last weekend. I was just like shit, cows have definitely increased in price. Are these special cows or did I buy organic meat? I don't do that organic shit with steaks but they sure the fuck were priced as if they were. Oh well, the steaks were good and worth the price because my friends enjoyed them so I didn't really care. Originally Posted by Lucas McCain

I was in H-Mart a couple of days ago and "Galbi" Korean Short Ribs were TWENTY FIVE fucking dollars a pound in the freaking grocery store.

Good thing oil prices have doubled because I am going to need every fucking dollar I can get when the music finally stops and this party crashes.

Like you, I can easily afford $25 for a pound of ribs, but it's a very bad sign about things to come.

I was in H-Mart a couple of days ago and "Galbi" Korean Short Ribs were TWENTY FIVE fucking dollars a pound in the freaking grocery store.
Originally Posted by GaGambler

I was around the corner from H Mart the other
day, feasting on Galbi and more. Part of a large group that dropped a Grand or so, in total for all food and drink.

The 10 year bond is yielding 1.56% today. Outrageous. Who in God's name would accept such a low yield? The Fed would, and does, buying with Fiat money. European rates are Negative.

Much of the stimulus money went into Robinhood accounts, where speculation is rampant. Account holders treat it like casino money, thinking they will retire buying crypto, Gamestop and AMC. 90% of them lost money in the past year, despite an all-time historic stock market performance. The money was ''free'', so these Fools gambled much of it away.

NYT - 40% of small businesses going under , just saying ccp want everything to come from them