We are in a weak economy with inflation being driven by scarcity and government maniufactured destructive economic distortions in labor, energy and raw materials.
The politicized psychopaths at the Fed are using the old tools to fight the wrong war on inflation. They are trying to cool down what they perceive as a hot economy, but in reality they are puling the rug out from under a fragile and brittle economy with businesses reeling from trying to recover from the government manufactured covid crisis, the government manufactured labor crisis, the government manufactured energy crisis, the government manufactured supply chain crisis and the rest of government manufactured rolling disasters such as the 1920 and 1930s Soviet style radical forced adoption of a unfeasible Green Economy
“government manufactured destructive economic distortions in labor, energy and raw materials.”
One more: Printing tons of money.
It’s not just the US Federal Reserve that is completely clueless and crazy, it’s Central Banks all over Western World.
In the UK and EU, the plan that is emerging to deal with skyrocketing utility bills is to cap what individuals and businesses have to pay, the caps will still be significantly above what people were paying in the past.
For example, if a private citizen’s bills are capped at $250 GBP, but the cost to the utility company to produce the electricity is $500 GBP, the $250 GBP difference will be paid by the government, same goes for businesses.
The cost of doing that is going to be in the 100s of billions if not trillions, it will completely wreck their currencies, I can’t see how this type of plan could continue for more than a couple months.
Spot on ..... hammer meets nail.
...with businesses reeling from trying to recover from the government manufactured covid crisis, the government manufactured labor crisis, the government manufactured energy crisis, the government manufactured supply chain crisis and the rest of government manufactured rolling disasters such as the 1920 and 1930s Soviet style radical forced adoption of a unfeasible Green Economy
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All of that. So true.
And each Federal Reserve “fix” for the prior government caused problem leads to ever wilder swings in the economy.
Political forces prevent the Fed from allowing the natural economic forces to fully play out, which would correct the problem in a free market. Instead, there is the political panic to “do something”, the something being to inevitably paper over the problem with a “fix” which will blow up down the road.
You are correct!
Couple that with the China failing supply chain and eminent world war, the Fed is doing the wrong things as the economy is not hot.
Rates increases should stop and allow businesses to adjust to bringing key economic factors back home at reasonable costs. Instead they are raising rates and taxes! The business sector doesn’t need a hostile environment right now, but that’s what we are getting.
They are doing nothing right.
So how do you bring down inflation, the cruelest tax of all?
This is simply wrong. The FED/Government driven monetary inflation is there for all to see.
Yes to all that. It’s all gub’mint planned crises.