Submitted by Hardscrabble Farmer
The most important thing we can do now to transition from rapid recovery to stable, steady growth is to bring inflation down. That is why I have made tackling inflation my top economic priority. My plan has three parts — read more about them here: https://t.co/5IUu0qbCaa
— President Biden (@POTUS) May 31, 2022
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It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
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Holy shit! Whatever he’s taking, I want a double and multiple refills!
My first words mirrored yours.
Hardscrabble always posts some of the most incredible jaw droppers. Kudos HSF.
Biden Schmiden.
The Fed has two options:
1) Raise rates through the roof to where they should be, given (actual) inflation- like Volcker did – throwing the economy into a depression, tanking what little tax revenue the government has, while ratcheting up the cost of the social safety net, trebling the deficit and making servicing the debt (at higher rates) completely impossible or …
2) Letting inflation rage almost totally uncontrolled in hopes that the economy will inflate (nominally) as well, shrinking the debt-to-GDP ratio.
The latter will be somewhat tolerable for holders of hard assets while impoverishing the masses. So #2 it is.
The odds-on bet (from guys like Casey and Rickards) is they’ll raise rates to the point where Wall Street shrieks then capitulate and back off. They certainly are a capricious band of dangerous boobs. We’ll see soon enough.
Plus we can estimate the point where Wall Street shrieks will be at 1%, at the latest.
I used the same logic to arrive at the same conclusion. They only toy with #1 to better sell #2
I believe it is number 1 and I will tell you why. (also, there are more than 2 options – they could lower rates more and go to negative percentages or they could raise modestly or…).
It revolves around one question:
Does the Fed support Wall St. or does Wall St. support the Fed?
Clearly, the Fed supports Wall St. and not vice-versa. The Fed is a support block in the pyramid – maybe the main support block. Wall St. is just a nice fountain on the east side of it.
The Fed will raise rates to 10%+ if that is the action that is necessary to continue providing sole access to thee:
Worlds Only Golden Egg Laying Goose. (US DOLLAR WORLD RESERVE)
The other reason to raise rates is that it will economically DESTROY (way more than the U.S.) all other countries ability to accumulate FDI (Foreign Direct Investment) because the vast majority of capital will flow to where it is safest (from war, corruption, etc.) and gets the best yield. Raise rates to even 5 or 6 percent and that IS the U.S..
Between FDI absorbtion and hiked rates, the U.S. would likely destroy many competitors ability to compete.
The Game is Risk. The Board is Earth. There are 4 main players left. One of them will try to run the board at some point.
Ideally, you’d play the “Rate Increase Card” just before the first attempt at a running of the board.
Maybe that’s now.
You forgot to mention that the (ensured) #2 will not remain controllable for very long, and result in a full fledged currency collapse.
2) Letting inflation rage almost totally uncontrolled in hopes that the economy will inflate (nominally) as well, shrinking the debt-to-GDP ratio.”
the dollar is debt. printing more dollars increases the debt.
gdp is a function of productivity. the productive citizens are in decline and the welfare herds are increasing exponentially and are being added to directly by illegal immigration.
the debt/gdp cannot go down.
Comments to the WSJ article are generally negative. Example….
Hey, WSJ, was this meant to be a joke? Just an opportunity for Biden to further take himself down? If so, it worked. And interesting a bit actually since it seems quite obvious that we are reading something composed by others who presumed they were smart.
Hey Joe, my plan has three parts also:
1) Walk away from Ukraine
2) Biden resigns
3) Federal Reserve dissolved
I bet my plan works better than yours.
Anyone else up for another go at Voodoo Economics?
What it probably doesn’t have is a St. Paul Volcker, the slayer, in the Volkswagen.
Besides, a lot of Micro()Bus passengers believe inflation, if not always the best thing since, is still always better than “deflation” ~ strengthening currency/purchasing power.
All that paper tiger wealth repped by res r/e atm’ery, for one, loveslovesloves currency destruction inflation. Loves, too, responding appropriately to behaviorist incentives, which it calls “investing,” etc.
Feelin’ rich was good enough for me & my Bobby McGee…greater love hath no man than this…. Noman is right.
Weus ain’t got no men, women neither, in it. Nomans be nodes in network.
Those circuits may be mad as hell, but they’re not not gonna take it anymore. Takin it is how those fake it until the day of makin it arrives – which it never does.
Seems to me like an exercise for MORE government involvement in economical affairs. I plan to do this, I plan to do that, all by taxing the rich and letting the government swoop in with the solution. We all know that will it will make things worse.
How Dementia understands the issue at hand ….
.
Just my opinion, of course. The value of which, unfortunately due to inflation, has dropped from two cents to absolutely nothing.
That’s not how inflation works. Your opinion is now worth at least a dime. It’s just that the dime is only worth two cents.
Too bad nobody every thought to make dimes out of 90% silver.
Then we wouldn’t be here!!!
There is no answer for the inflation problem. It’s not going away. If you are waiting to get back to the good old days, these are it.
What. You don’t think the crickets will be tasty?
And what could you possibly have against mandatory medical procedures?
They already promised we would be happy.
What more can you ask?
!!!
???
Any time the JB/BJ team set out to fix things, they only make things worse.
Rinse/Repeat
Biden speaks in blatant absurdities.
Energy is the economy-PERIOD.
What did Biden do on the first day in office? Whacked the Keystone pipeline! Then crushed oil and gas leases…
Due to absurd Covid policies (lockdowns) employment is crushed and then, Biden claims explosive employment numbers when half of those he put out of work (only half returned due to businesses closed forever) return to their previous jobs! Awesome sauce….
The hubris and arrogance of his stupidity defies serious conversation….just blame Putin, “that’s the ticket”.
Gotta work on “budget deficits” on one hand while giving $53 Billion to Ukraine and don’t forget $1.3 Trillion so people could sit on their couch and burn doobies for a year.
It’s a fucking black comedy
You know what’s not in his plan?
Talking to his appointee in charge of this problem.
I guess they should have their people call each other before this tweet-
Striking an empty anvil is an apt. graphic for Biden. It produces no work and makes a lot of noise.
He’s testing his hammer, silly.
He has big plans for it!!!
I really like how he cherry picked numbers from late 2021 when the kept telling us inflation was transitory. Momentum was still carrying the economy but it was certainly trending down.
I have told my mid 20’s son he is experiencing the best economy/job market and worst of my lifetime in a few short months. Several analysts have made the argument (the fake) unemployment number will need to be pushed north of 4% to get inflation in control.
Fed bubbles are nothing more than special people being able to buy low & sell high. Soon, they will be buying again.
(((They))) have another solution…
You have stolen my protein. How DARE you!!
My plan is to get some people to come up with a plan.
… on how to create a plan.
Dementia to da people; “I’m going to trust the Fed!”
Dementia, whispering to da Ho; “That way we can blame da Fed when TSHTF!”
IT HAS A PLAN
Nothing says it better than that. So true, the thing is an it.