Posted on 03/17/2022 6:15:53 PM PDT by ChicagoConservative27
On Thursday’s broadcast of MSNBC’s “Morning Joe,” MSNBC Economic Analyst Steve Rattner, who served as counselor to the Treasury Secretary in the Obama administration, warned that there is “a substantial risk” of stagflation because it’s “very hard to reduce inflation without reducing economic growth.”
Co-host Joe Scarborough asked, “We are obviously all following what is going on, whether the Fed is threading the needle correctly and some concerns from somebody that you’ve agreed with in the past, Larry Summers, he’s talking about stagflation in the coming months. What are your thoughts about that?”
(Excerpt) Read more at breitbart.com ...
Quick change the subject to Ukraine so no one notice the disaster of an economy.
Stagflation is already here.
Growth is easy. Kill the Democrat run government.
Don’t worry, we won’t go broke They can always just print more money
The Rule of 72
Divide the inflation rate into 72 and you learn how soon your money will be worth 1/2 of its current value. With 7% inflation you borrow now, in 10 years pay back in dollars worth half as much.
Rattner is correct. He could be the only adult in the Biden administration willing to face hard truths so no one will listen to him anyway.
The ‘Carter Stagflation’ was cured by Paul Volcker choking off all growth of the money supply and by Reagan slashing regulations that were preventing the private economy from growing. It will likely take a replay to cure the Biden Stagflation.
The Federal Reserve will do what they can, but they’re limited by a House of Representatives that has zero self control on spending.
Also, until we get Trump or a Trump/Reagan type in the White House we won’t get the most from our plethora of natural resources or the cutting of red tape on business.
We’re between a rock & a hard place, with plenty of economic pain in the future.
Ronald Reagan ended stagflation by pursuing growth-inducing tax cuts and deregulation while the Fed was raising interest rates to stop inflation.
“The Federal Reserve will do what they can, but they’re limited by a House of Representatives that has zero self control on spending.”
The House constantly increasing the debt limit ends up devaluing the dollar as that debt gets monetized.
This is the big factor that rarely if ever gets any notice. It’s probably the major flaw in our monetary system- there’s no way to reign in the House.
IMO Nixon suspending Bretton Woods and the last link of the dollar to gold made it worse. But I’m not sure that re-establishing that link would have any effect on the problem.
One of the flaws in Bretton Woods was making the dollar the reserve currency- it created the Triffin Dilemma where we can’t really control our monetary policy, it’s up the whim of foreign central banks and how many dollars they want to hold as reserves. By the Kennedy years they were holding more than we could back up with our gold stock. The inflation that would become obvious in the 1970s was already simmering.
Keynes, who wasn’t a socialist despite what people who’ve never read him imagine, warned that this would put the dollar in a bind and suggested using a basket of currencies as the reserve. He called his basket currency a “bancor”
https://theweek.com/articles/626620/how-john-maynard-keynes-most-radical-idea-could-save-world
Thanks Pelham.
I always appreciate your posts & enjoy the links & literature you provide.
👍
It's on fire alright; a dumpster fire.
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