The Fed Created the Next Recession | Opinion
Newsweek,
by
Alfie Meek
Original Article
Posted By: Beardo,
6/14/2022 11:10:22 PM
The long-term driver of inflation, and the reason we have so much inflation, is the fact that we printed six and a half trillion dollars in 48 months and grew the money supply by 40%. That is simply what's driving all of this, and all of the other things are just sort of add-ons to the supply chain. Is Russia's invasion of Ukraine driving some of it? Yes. Is that the main driver? No. The longer-term structural issue is the fact that we grew the money supply by six and a half trillion dollars. That's what's driving inflation at the end of the day.
Reply 1 - Posted by:
Trigger2 6/15/2022 5:02:29 AM (No. 1186157)
Is there anybody left to blame? Joey is the worst president ever and he's of the communist bent.
1 person likes this.
Reply 2 - Posted by:
andyboy 6/15/2022 5:34:20 AM (No. 1186168)
This was published in Newsweek! (I did not know they were still in business.)
2 people like this.
Reply 3 - Posted by:
NamVet70 6/15/2022 8:02:37 AM (No. 1186260)
This inflation will not begin to go away until the Democrats are removed from power. They must be awarded the blame for the damage they are doing. They are causing enormous inflation and shortages by dumping so much money on their favorite clients so quickly and for restricting the exploration, production and refining of oil in this country. This began on Biden's first day in office when he shut down construction of the XL pipeline. The news media shares in this blame for aiding the Democrats and hiding the election fraud. Many RINO republicans also have allied themselves with the progressive enemy, and too few of these have yet been primaried.
1 person likes this.
Reply 4 - Posted by:
Clinger 6/15/2022 8:19:18 AM (No. 1186277)
To string two quarters of decline back to back meeting the criteria for a recession while we were in the process of restarting an economy that was deliberately shut down, is a stunning accomplishment.
You can crash an economy and keep it down close to the bottom but as long as you do it rapidly an official "recession" is never achieved. But we can do worse than that, we can actually dig a deeper hole for ourselves. Way to go Joey brilliant job, and thanks for voting for this friends and neighbors hope you are enjoying the hiatus from mean tweets.
2 people like this.
Reply 5 - Posted by:
montwoodcliff 6/15/2022 8:26:15 AM (No. 1186282)
Old Alfie here left oil out of the equation. Remember too that Trump wanted to dump Jerome Powell and install Steve Moore, but Schumer and the Democrats created such a howl that neither happened.
2 people like this.
Reply 6 - Posted by:
Strike3 6/15/2022 9:49:10 AM (No. 1186380)
Not only did they print money endlessly, they used it to entice young people not to work, thus the shortage of workers everywhere and the huge inflation problem. Biden continues to show off his IQ.
0 people like this.
Reply 7 - Posted by:
DVC 6/15/2022 12:32:38 PM (No. 1186598)
The Fed kept interest rates too low for too long. They should have been smarter and started weaning the economy off of the artificial "sugar high" of extremely, historically low interest rates, and taken the gradual slowing of the housing market that it would have caused. Increasing interest rates in 1/4% or 1/8% increments over three or four years would have had some slowing and adjustment in the economy but FAR, FAR less than the 'hard landing' that these ignorant, cowardly morons have engineered for the economy by leaving the interest rates way too low, for way too long.
Watch for housing prices to be dropping. The only things that MIGHT soften that blow is the reduction in value of the money. So, if your home value stays flat for 10 years....and the money is worth 50% less, the Fed has successfully disguised a 50% loss in your home's value.
Remember, any physical item that isn't increasing value at the same rate as inflation is LOSING VALUE.
At 8% per year, in just five years, an item "treading water" in value, should have it's dollar price set 1.47 times what it was five years before....to have the same "equivalent value" accounting for inflation. Ten years of 8% inflation means you home MUST increase in price to 2.15 times it's original price to just keep a constant value with decreasing value dollars.
So, if your $250,000 home "holds it's value" for five years of 8% inflation, and would still sell for $250K, you have actually LOST a lot of value, because "holding it's value" in a time of decreasing value for the money would mean that the price at five years should be $367,500. Anything less is a loss.
Sadly, I'm betting on a lot of loss in home values. Prices will increase but likely not enough to fully offset the loss in purchasing power of these inflated future dollars.
0 people like this.
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