"He's a great 'choose' to lead the NY Fed." ??? apparently I sent this post without reading it first. "choose" => choice ; "minutia" => minutiae ; wavelengh => "wavelength".
NY FED´s Williams: ""We aren't really talking about rate cuts right now. "
- Thread starter Nighthawk
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I'm pretty sure the "e" at the end of minutiae is now regarded as superfluous and the word is acceptable in either form.
Thanks I appreciate that. I just looked it up and you are right! (The -ae is the Latin plural I believe and the -a ending should be the feminine singular (it's been a few years since my junior high Latin class, so please forgive me if I haven't it quite right.) I changed the ending because I assumed minutiae was one of those words that should be thought of as plural. However I owe it to modernity to get up to date on modern usage. So I thank you again.
My guess...they come under too much pressure from debt interest servicing and start to ease "way too early". This will lead to massive bubbling in prices and hot money flows. Inflation will spike higher than it was before interest rate hikes. It all happened in the 1970s. The fed is not proactive, they dont learn and they only put out fires (long after the damage). They have never learned. But if you front run them..you get rich. If you get inside guidance (se Goldman), you get enormously rich.
Inflation will come down, China is collapsing and was peaking years ago and their demand for resources will come down.
There is no debt servicing problems in the era of money printing. We literally print to pay for debt. Those rate hike hiccups are always temporary in nature BUT temporarily they can rise very high to show the world that anything is possible. And then out of nowhere rates come down again. It's the confidence in the western system (especially when emerging markets show lots of instability/corruption, war etc) that allows us to get away with this. For now.
Inflation ALWAYS exists if you put ALL the assets together not just the CPI components. If your food and energy have 0 inflation then probably you have stock/real estate price increases of 10%+ a year. That IS inflation too. It's all about where you put your money.
You are right. The problem is inflation is an equation. The speed of circulating liquidity (volacity) gets addressed but the amount of liquidity can only be temporarely addressed if at all before banks would need a bailout. That is where QE comes from. The game is checkmate since long ago. But what is new is the internet. Everyone has all the data, all the time and the possibility to sync and coordinate. This is what Brics makes way more dangerous for the Western fiat currencies then the UDSSR would have ever been. Also new is: If today your country runs well it gets flooded by so many immigrants it is impossible to stay ahead.