The Fed Is Finally Seeing The Magnitude Of The Mess It Created.

piezoe said:
I have not been enthusiastic about Powell's leadership, although he is only one voice among the Governors and crucial FOMC, he is the Chair. But you are here refering to precisely what I was referring to when I called a full fledged fed response to Covid in March 2020 an un-needed double whammy. Virtually simultanoeusly with the fed action in March 2020 the Congress passed the first major Covid relief bill, H.R. 6201. The fed should have moderated their response, as the fiscal response is was more effective. Nevertheless we did not experience wide-spread inflation in early 2020. The real genesis of the present inflation was the supply chain interruptions, major rise in shipping costs, and in Feb 2022 the war in Ukraine. See my opening #1 and subsequent posts #3,8,16,21,37!,42!,48 in the Economics Forum in the Thread entitled "Genesis of Today's Inflation" if you have any interest in what would be my full response. Also in that same thread, post #12 is important. I am not alone in my view that the major contributor was not fed action but a combination of U.S. fiscal action and other consequences of a worldwide pandemic plus a war in a country that is both a major source of commodities and energy.
More...
What is to us is unavoidable, outside of our control is the pandemic and madman Putin's games which have created supply chain issues.
What is avoidable and in our control is the Fed who tinker around and use global humans as guinnea pigs while they experiment with interest rate shenanagans.
Allowing 'accountants' to run the business is a huge error. The fed are a bunch of puffy faced nerds with no life experience, they rarely see the sun, most couldn't even ride a bicycle.
 
Last edited:
themickey said:
What is to us is unavoidable, outside of our control is the pandemic and madman Putin's games which have created supply chain issues.
What is avoidable and in our control is the Fed who tinker around and use global humans as guinnea pigs while they experiment with interest rate shenanagans.
Allowing 'accountants' to run the business is a huge error. The fed are a bunch of puffy faced nerds with no life experience, they rarely see the sun, most couldn't even ride a bicycle.
More...
+ 1

The Fed is the worlds# 1 employer of PHD Economists all of whom likely never stepped inside a grocery store, bought a second-hand car, rode in coach or collected an unemployment check.

IOW completely out of touch with the common man.
 
I think the FED would need to have a seat on the board of those big companies and banks (they'd act like a fly on the wall type of role).
economy is a complex machine that has time-dependent variables (demands, supplies, consumptions, employment, capex, productivity, imports/exports, farming activities, retails, home constructions, ...). I think they'd need to have to process a lot of data to have a feel for the true reality of the environment (economy in this case) in order to come up with a sensible decision for inflation and interest rate ... or else they'd be in the position of reacting to problems rather than anticipating them.
 
Concinnity said:
I don't understand why people act like there's always a correct or even good path to take. You do realize no economical system is or will ever be perfect and that they follow the cycle of life just like everything else, it's born or created and it will eventually die or at least have a reset. Even if we had a perfect system, humans aren't perfect so there goes that.

Objectively US has remained at or near the top for a very long time, with unprecedented wealth and opportunity, some of you sit here and criticize in hindsight decisions made as if there's some all righteous path to go down, where the system survives forever. It's unrealistic.

Of course I am not saying go to other extreme and don't try to make the best decisions or that any decision made is above reproach. But the way people approach this as if they are all knowing that the decision tree they wanted to go down would of magically made everything ok, it's not really realistic.
More...
But they act as if they can control everything. The cycle of life will always take the life in the end. Do you ever see a doctor claiming that they will have a 100% success rate in keeping the patient alive? The way to good health is to eat right and exercise.

The way the Fed approaches the economy is to micro manage every stage of it. Its like hooking a healthy patient up to every machine, feeding them nothing but prepared mush via a tube, doing the breathing via a ventilator, using an air mattress to prevent pressure sores, and the list goes on. All the Fed needs to do is be hands off, let the person run around get exercise, eat good food, and provide some medical care in case they break a leg.

The correct way is to acknowledge that you don't know everything, that you can't control everything, that you understand the limits of scare resources, and that you allow people to make their own choices. But the Fed does the exact opposite. The way it just pumps more money into the system, borrowed money, printed money, all the while ignoring the more harm this does, is that actual harm. Its not a cycle of life. Its no different than a patient with no brain activity being kept alive on a ventilator, with no hope of recovery, and yet billing $10k per day for the ICU bed for the privilege of a relative being able to visit that essentially dead person.
 
Do you seriously believe that? Then you suffer from derangement syndrome. Did it ever occur to you that economic corrections must ALWAYS happen after the fact by definition? Or do you perhaps like to rent out your crystal ball to the Fed?

SunTrader said:
+ 1

The Fed is the worlds# 1 employer of PHD Economists all of whom likely never stepped inside a grocery store, bought a second-hand car, rode in coach or collected an unemployment check.

IOW completely out of touch with the common man.
More...
 
SunTrader said:
The Fed is the worlds# 1 employer of PHD Economists all of whom likely never stepped inside a grocery store, bought a second-hand car, rode in coach or collected an unemployment check.
More...
And don't forget puffy faced and falling off their bicycles. :D
 
SunTrader said:
The Fed is an enabler of the excesses (left and right) of the federal government.
More...
Since they are a part of the government, I guess that would have to be true, just like the Forrest Service is "an enabler off the excesses of the government". This is just a guess on my part, but when they are not busy enabling excesses they are probably on coffee break, right?
 
You must log in or register to reply here.
Back
Top