Posted on 11/12/2023 9:17:07 PM PST by MinorityRepublican
A worrisome sign for the Federal Reserve is starting to emerge.
The Fed keeps a close eye on several risks that could make its job of taming inflation even more difficult, such as red-hot consumer demand keeping some upward pressure on prices and the possible effects of geopolitical tensions in the Middle East on oil prices.
But the US central bank also pays close attention to whether Americans still have faith inflation will eventually return to normal. That faith seems to be eroding.
The University of Michigan’s latest consumer survey released Friday showed that Americans’ long-run inflation expectations rose to 3.2% this month, the highest level since 2011.
And those perceptions could continue to get worse the longer it takes the Fed get inflation back to its 2% target. Fed officials don’t expect inflation to reach 2% until 2026, according to their latest economic projections released in September.
If there’s one thing that would make the Fed quake in its boots, it would be worsening inflation expectations.
“If we find that consumers or businesses are really starting to feel like that long-term level of inflation … is creeping up, if that’s their expectation, we’ve got to act and we’ve got to get that under control,” Atlanta Fed President Raphael Bostic told Bloomberg earlier this month.
(Excerpt) Read more at cnn.com ...
I think they are simply waking up to a situation that they should have responded to...in the midst of the summer of 2022.
I’ll even make a 2024 prediction...that President Biden and crew, try to invent two more occasions of a $1,500 check to go out to American families as some ‘inflation-fighter’, and the Republicans say no...that the checks would end up triggering increased inflation.
Of course We are getting used to it. Its the Great Reset. Its what they want. It means more tax revenue. To pay the bills.
33 trillion, the highest debt in all of human history.
The silly fools have painted themselves into a corner. If they raise interest rates to where they would need to be to stop inflation, the economy would collapse.
If they keep printing money, the economy will also collapse.
There is no path without severe great depression consequences. Also, remember, in 80 and 81 when Volker bumped the rates high, we were the worlds biggest creditor nation. Now we are the world’s biggest debtor for all of human history.
The traditional other “cure” is a huge war.
Bumpy times ahead.... guaranteed.
Carter gets a lot of blame for high inflation rates. But, those rates started increasing under Nixon - 1973.
1973: The rates increased from 3.6 in January to 6.0 by May to 7.8 by December.
1974: The rates increased from 9.4 in January and rose steadily to 10.7 in July.
Nixon tried price freezes.
Ford took over in early August and didn’t have much better luck. The 1974 rates continued increasing from 10.9 in August to 12.1 in December.
Ford did manage to get rates dropping steadily in 1975 from 11.8 in January to 5.2 in January 1977 when Carter took over.
1977 saw rates begin a steady rise from 5.2 in January to 6.8 by January 1978 upward to 9.3 by January 1979 upward to 13.9 in January 1980 and dropping slightly to 11.8 in January 1981 when Reagan too over.
Source: https://www.usinflationcalculator.com/inflation/historical-inflation-rates/
Just dumb.
A Dollars worth in 1913 before the fed: $1.00. Now, 4 cents.😡
Nixon did it but he was backed into a corner by what LBJ had done in 68. LBJ removed the "gold cover". Federal Reserve Banks had been required to hold a gold certificate reserve of not less than 25% against its Federal Reserve note liability. And that was proceeded by a change in 1965 that did away the gold reserve requirement for deposits of member banks held at the Fed.
In 1965 our gold to Federal Reserve note ratio was over 40%.
In 1968 it was down to 25%.
And continued to drop.
Since then inflation has been a major problem.
Yep....
“”I believe that banking institutions are more dangerous to our liberties than standing armies,” Jefferson wrote. “ If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around(these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
Thomas Jefferson
The way to fix this is obviously for Biden to continue slashing domestic energy production as he has been doing since he took office without stopping.
We will have over a trillion dollars in debt servicing costs this year. We had a $1.7 trillion budget deficit last fiscal year. Government spending is driving inflation.
The U.S. Now Has:
1. Record $17.29 trillion in household debt
2. Record $12.14 trillion in mortgages
3. Record $1.60 trillion in auto loans
4. Record $1.08 trillion in credit card debt
Total mortgage debt is now more than double the 2006 peak and mortgage rates are nearly 1.5% higher than the 2008 peak.
Meanwhile, student loan payments just resumed for the first time since the pandemic with an average payment of $500/month.
This is all while new car loan rates are at a record 10% and credit card debt rates hit a record 25%
The world is catching on that lending money to America is a losing proposition. The next step is our ‘Leaders’ will start printing money like crazy to pay for all this spending. Not much longer now.
“the longer it takes the Fed get inflation back to its 2% target.”
The Fed needs to set its target to 0.5%.
Drill, Baby, Drill.
Declare Gorebal Warning over.
And those perceptions could continue to get worse the longer it takes the Fed get inflation back to its 2% target.
So the people being used to the Treasury and banks stealing 2% of the value of the dollar every year is great, but being resigned to the theft of 3.2% is somehow frightening.
I wish I remembered his name, but I read an economist whose theory is that the natural rate of inflation is a slight negative amount matching productivity gains so that one hour of labor saved as money can be recovered years later. Anything above that, even 0% inflation is the government and banks stealing value from the money supply.
Better spend it before it is worthless! My moto since the Arab Oil Embargo or the 70’s.
I’m terrified more because it means people will keep voting Democrat.
Great article, as usual the media declares it’s the people’s fault. “I’m afraid my dear that you are getting used to being beaten, so I am going to have to beat you more often”
Globalism
The Great Reset
Population Reduction
The Four Horsemen of the Apocalypse
We sure do live in interesting times
✝️🙏🛐
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