INFLATION--FED's cutting rates again...

[Chop]

Here's a Milton Friedman basic primer on Inflation:

(he looks comically out of place walking through that Old West ghost town... )

Simply put: the quantity of money is growing faster than the quantity of good and services

Interesting historical note: The Confederacy was suffering big inflation. The Union overran the place where the Confederacy printed money. Confederate money stopped being printed. Inflation ground to a halt. It took the Confederacy a few weeks to start up a new money printing press somewhere else. Once the new Confederate money printing presses got online, inflation returned.

 

[Monahorns]

Milton was good on about 80% of things. Still, if we took even half of his advice the US would be in much better place to live.

 

[guy4321]

Milton was good on about 80% of things. Still, if we took even half of his advice the US would be in much better place to live.

Other than me, can you name someone who is good/correct on 100% of things?

 

[Chop]

The Fed raised the rates another 75 pts today. Following the announcement, Powell made some comments that, while neutral on their face, were interpreted by some (including talking heads on Bloomberg) to be mildly dovish.

 

[nashhorn]

And Manchin caves, albeit on less than Dems wanted.

 

[Horn2RunAgain]

Watched Powell yesterday, I have to give cnbc guys credit. Two of their folks kicked Powell in the nuts during the questioning session , pinning him to his and the administration's labeling the inflationary climate last winter as transitory. It was as if they went in trying to either get an honest answer, or , failing that, embarrass the hell out of him.

I prefer cnbc over fox business. They put finance and business over politics. Watching now and they're still roasting Powell and the administration. They acted way too slow here on raising interest rates

 

[mchammer]

Watched Powell yesterday, I have to give cnbc guys credit. Two of their folks kicked Powell in the nuts during the questioning session , pinning him to his and the administration's labeling the inflationary climate last winter as transitory. It was as if they went in trying to either get an honest answer, or , failing that, embarrass the hell out of him.

I prefer cnbc over fox business. They put finance and business over politics. Watching now and they're still roasting Powell and the administration. They acted way too slow here on raising interest rates

No, that was the plan. They lowered rates to go past full employment (for social justice purposes) assuming it wouldn’t hurt inflation. They were wrong. Being slow wasn’t the issue.

 

[theiioftx]

The scary part is the democrats have learned that they can straight up lie to the American public and get cover from MSM. There are no consequences to it for them, but it kills the economy and safety of Americans.

 

[Monahorns]

Other than me, can you name someone who is good/correct on 100% of things?

Of course not. But Ludwig Von Mises, Fredrich Hayek, and Murray Rothbard were all much closer on economics. They are all dead but Robert Murphy is really good today.

 

[Mr. Deez]

And Manchin caves, albeit on less than Dems wanted.

Like I've said before, Manchin isn't a right winger. He just isn't a nut, which makes him look right wing. And this bill is crap, except the part allowing Medicare to negotiate prescription drug prices. It's a crock of **** that they can't now.

 

[theiioftx]

I wonder what Manchin got? That’s the question.

 

[Sangre Naranjada]

He temporarily stopped getting called a traitor.

 

[mb227]

I wonder what Manchin got? That’s the question.

Heard a snippet earlier that he apparently gets a pipeline in his home State...have not confirmed.

Conversely, am ALSO hearing there may be a coal tax buried in the Bill that he was not aware of which could flip the apple cart...

 

[nashhorn]

Reviving the $7500 EV credit too. I don’t care as much about the corp tax as I do the elimination of the depreciation credit. If it’s what I think it is I used it often when I was still working and on the ‘ranch’.

 

[mchammer]

Heard a snippet earlier that he apparently gets a pipeline in his home State...have not confirmed.

Conversely, am ALSO hearing there may be a coal tax buried in the Bill that he was not aware of which could flip the apple cart...

He would be toast in next election if that stays.

 

[Chop]

 

[Chop]

 

[Vol Horn 4 Life]

There already is practically zero emissions coal plant technology. I already mentioned here before my dad worked 40+ years for TVA. His six stack coal plant, which Obama shut down and imploded, had it's stacks replaced with one mega stack with smoke scrubbers in them and the emission was steam. Libs don't want to know that coal can be clean because they are so invested in the absolutely terrible technology of wind and solar energy. On my way home from vacation I saw small mountains of scrapped turbine blades just laying on the ground. It has to just be a giant money grab because reality doesn't make sense.

 

[Chop]

That's nothing. Germany is switching back to "green" coal, after classifying natural gas as "green energy"--which it sort of actually is...

 

[Chop]

I'm a proponent of natural gas. We've got enormous reserves. It's relatively clean. And it's good for Texas.

 

[Mr. Deez]

That's nothing. Germany is switching back to "green" coal, after classifying natural gas as "green energy"--which it sort of actually is...

What's incredible to me is the obvious lack of curiosity by the European media. If "green energy" works as advertised, then why does it matter so much that Russia might cutoff oil and gas? Why are they even importing it for electricity? Wind turbines and solar panels are supposed to be making the electricity.

 

[Chop]

Since we're on a "green" energy tangent, here's a photographic tribute to our Greatest Environmental President of the past 100 years (not kidding...):

(he wasn't so hot on controlling inflation though, nor were his next two successors...)

 

[Chop]

 

[Chop]

The Fed's Preferred Inflation Metric Just Surged in Warning Sign for Biden's Economy

"The PCE index was up 6.8 percent for the year ending in June, an increase from 6.3 percent in both April and May, the BEA announced.

PCE is the Fed’s preferred measure of inflation because it is “just better at capturing the inflation that people actually face in their lives,” Fed chair Jerome Powell said Wednesday. The central bank endeavors to keep it at 2 percent."

 

[theiioftx]

We will be seeing double digit interest rates in the near future.

 

[Chop]

Mexico's central bank hikes its prime lending rate to 7.75%.

Mexico took their rates up to 7.75%. Maybe look for even more increases...

The head of Mexico's Central Bank, Victoria Rodriguez Ceja--
The Western Hemisphere's new anti-inflation Hawk(ette).
She's also quite a bit easier on the eyes than Chairman Powell, I must say...




And the Mexicans wildly cheer Ms. Rodriguez's latest interest rate increase:

 

[nashhorn]

Nice

 

[Chop]

Photo of an actual bank in Mexico below (Banco Bienestar):

Before you laugh, don't be surprised if some Cartel has hundreds of millions of Pesos on deposit...

 

[mb227]

We will be seeing double digit interest rates in the near future.

On the bright side, this would be good for savers...there will be opportunities for those who have been able to position themselves for the down times...

 

[theiioftx]

Too bad inflation will also be double digits.