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Trump blames Fed once again for hurting economic growth
Fox Business ^ | 5/25/19 | Megan Henney

Posted on 05/28/2019 7:35:18 AM PDT by Moonman62

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President Trump is right again.

The Federal Reserve operates on the false claim that economic growth causes inflation.

1 posted on 05/28/2019 7:35:18 AM PDT by Moonman62
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To: Moonman62
... Trump wrote in a series of tweets at the end of April.

Is Faux News in some kind of time warp? It's May and June starts this week.

2 posted on 05/28/2019 7:41:27 AM PDT by upchuck (No muzzy is fit to hold public office - their cult (religion) is incompatible with the Constitution.)
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To: upchuck

Trump is repeating himself, as he must do in order to fight the economy destroying policies of the Federal Reserve.

He made similar comments in Japan a couple of days ago, so there is a new article.


3 posted on 05/28/2019 7:45:21 AM PDT by Moonman62 (Facts are racist.)
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To: Moonman62

The Federal Reserve operates on the false claim that economic growth causes inflation.
______________________________________

When rising costs show up in every class of goods, it is easy to call it inflation. Wages are up. Taxes are up. Energy is up. Services are up. Medicine and health care are up. Food varies by season, but wages, taxes and energy costs push it up.

Technology has created new classes of ‘necessary utilities’.
People pay as much for data and communication as they used to pay for a car payment.

Cars cost more than houses did 30 years ago. Houses and land are beyond the reach of most people. There is a shortage of available homes. This means there is pent-up demand.

Lower rates and that demand would break through to the market.

We’ve been here before. There is some reason to be cautious of a white-hot economy and market. Nothing goes up in a straight line forever. Eventually, there is a crash. Then pain. Then a hangover. Then, it begins all over again.


4 posted on 05/28/2019 8:05:19 AM PDT by reformedliberal
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To: reformedliberal

Scarcity of goods and services causes inflation. The Fed reduces money by increasing interest rates. Less money they think balances the chase of money after goods and services. They are wrong. China can send us all the KIA’s and cellphones we would ever want to buy, tariffs or no tariffs.


5 posted on 05/28/2019 8:09:19 AM PDT by anton
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To: Moonman62

Fed interest rates seem to be lower than REAL inflation rates. CPI would be be more than double if the formula from 15 years back was still in use.

Housing inflation is the worst culprit. My condo in Seattle area has inflated from $159k in 2011 to $325k currently!
And with rise in property values, property taxes follow.

Another item with much higher inflation is medical & health services, which many seniors can not avoid. Medical bills is #1 cause of personal bankruptcies.


6 posted on 05/28/2019 8:10:09 AM PDT by entropy12 (Learn all you can from the mistakes of others. You won't have time to make them all yourself.)
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To: entropy12

Fed interest rates seem to be lower than REAL inflation rates.

...

The yield curve, which most consider to be a reliable market indicator, is signalling that the Fed funds rate is too high. In addition, some economic indicators are indicating trouble.

I suppose your position depends on whether you like the elites at the Fed to manipulate the market.


7 posted on 05/28/2019 8:18:13 AM PDT by Moonman62 (Facts are racist.)
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To: reformedliberal

Eventually, there is a crash.

...

There is a crash when the Federal Reserve causes it.

Economic growth doesn’t cause inflation.


8 posted on 05/28/2019 8:20:59 AM PDT by Moonman62 (Facts are racist.)
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To: Moonman62

What I would personally prefer is to eliminate FED altogether. Interest rates should be decided by the free market, not by a few elites.


9 posted on 05/28/2019 8:21:50 AM PDT by entropy12 (Learn all you can from the mistakes of others. You won't have time to make them all yourself.)
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To: anton

Scarcity of goods and services causes inflation.

...

Excellent.

That would explain the inflation in Venezuela, Zimbabwe, Iran and many other places.


10 posted on 05/28/2019 8:25:18 AM PDT by Moonman62 (Facts are racist.)
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To: Moonman62

Eliminate the Federal Reserve.


11 posted on 05/28/2019 8:27:38 AM PDT by WKUHilltopper
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To: Moonman62

Trump repeatedly called for higher rates under Obama. He has some now. Death to savers is the mantra of the ‘economy’ these days. Enough of this hyping up markets with rates.


12 posted on 05/28/2019 8:35:17 AM PDT by Theoria (I should never have surrendered. I should have fought until I was the last man alive)
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To: Theoria

Trump repeatedly called for higher rates under Obama.

...

Rates were too low under Obama. Obama should have cut taxes and regulations like President Trump.

The Fed’s current rates are too high, and economic growth does not cause inflation like the Fed claims.


13 posted on 05/28/2019 8:57:21 AM PDT by Moonman62 (Facts are racist.)
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To: Moonman62

It seems only a handful of Freepers and Donald Trump understand long term marco economics.


14 posted on 05/28/2019 9:02:01 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: reformedliberal
The American worker has bee screwed for so long that wages could rise 10%/year for decades and still not catch up.


15 posted on 05/28/2019 9:04:59 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Moonman62

The Fed has always been afraid of economic growth. (Maybe it’s because they’re afraid others might catch up with their elite buddies.) They call it “overheating.”

The Federal Reserve has been hurting the economy from the day it was established. We need to abolish the Fed.

“We want the Fed dead.”


16 posted on 05/28/2019 9:46:34 AM PDT by TBP (Progressives lack compassion and tolerance. Their self-aggrandizement is all that matters.)
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To: anton
Scarcity of goods and services causes inflation

That is absolutely wrong and that notion leads to a great number of other fundamental mistakes. Predators (in Government and Banking) use those mistakes to justify stealing from other people.

Inflation happens when there is an increase in the money supply without a corresponding increase in available goods and services.

The distinction is important.

A rising economy does not cause inflation if the money supply grows at approximately the same rate as the available goods and services ("GSR"). Interest rates above that GSR are a transfer of wealth and income from producers to financiers.

When the Federal Reserve raises interest rates significantly higher than the GSR, they are bleeding off the economy and stuffing the margin into their own purses.

When Governments "borrow" money in fiat currency, they are essentially just printing new currency. Central bankers are partners in the scam and take their percentage off the top. Everybody else ends up with slightly devalued currency unless the economy is truly growing.

Inflation is a hidden tax on the population. It is caused by deliberate Government action and abetted by whomever is running the Central banking system.

It's all fun and games until the Government starts creating new money supply faster than the true growth of the economy. Which inevitably occurs.

17 posted on 05/28/2019 9:53:24 AM PDT by flamberge (Predictions are hard, especially about the future)
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To: TBP

The Fed has always been afraid of economic growth. (Maybe it’s because they’re afraid others might catch up with their elite buddies.) They call it “overheating.”

...

I agree. They also have a fear of wage earners making more money.

I’ve read that the strategy to win a debate is to define the terms in your favor. The Fed has redefined excellent economic growth as overheating.


18 posted on 05/28/2019 10:28:40 AM PDT by Moonman62 (Facts are racist.)
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To: flamberge

It’s all fun and games until the Government starts creating new money supply faster than the true growth of the economy. Which inevitably occurs.

...

They do it every time they raise interest rates and cause a recession.

Then they set rates too low to get the economy growing again. Under Obama the rates got to zero and they had to do quantitative easing.


19 posted on 05/28/2019 10:36:05 AM PDT by Moonman62 (Facts are racist.)
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To: Moonman62

They’re there to protect the interest of the progressive elites. The progressive elites, most of whom are unqualified to ask if you’d like fries with that, are scared to death of anything that allows the wage-earning “peons” to approach their status.

The first generation accumulates, the second generation consolidates, and the third generation dissipates.


20 posted on 05/28/2019 10:55:37 AM PDT by TBP (Progressives lack compassion and tolerance. Their self-aggrandizement is all that matters.)
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