FED Just Screwed Trump & USA

[cawacko]

I do not know anything about QEs or any other acronym economists used. Most of the people who profess to be economic experts and use all the related jargon did not see the Great Republican Recession coming, nor how bad it would be.

I base my opinion on life experience, and based on reading experts I trust.

The worst economic recessions in my adult life all happened with a Republican in the white house. Reagan's 1982-83 recession, and the George Dumbya recession were the worst economic meltdown's since the great depression. In addition, I believe every recession we have had in my adult life has occurred during the term of a Republican president. Finally, many experts have crunched the numbers and have shown that, on average, the economy does better under Democratic administration over the long term. Recessions are by nature, almost a Republican-thing.

I might be wrong about this, but a lot of people seem to think Trump is setting us up for a downturn, a significant recession, and Mr. Trillion Dollar Deficits is putting us in a position where we will not have the flexibility to deal with a downturn like we did last time.

You're free to view economics however you like but you choose to do so from a partisan perspective. I get it, you don't like Republicans. Fair enough, that is your right. But in understanding why certain events happen it takes more than just blaming people we don't like.

I'm not an expert on economics. I read a sh*t ton on the Fed and monetary policy and yet I still barely understand it. QE is just economic jargon, it was monetary policy put in place. You're not alone in not knowing what it is or understanding it. Most people don't. But we've been discussing it for years because it is the impetus for the upcoming recession.

 

[Into the Night]

Capitalism is what pays for all the social programs in this country. Tell that fact to a progressive, watch their head explode.

Heh. We've been watching their head explode already!

 

[Into the Night]

Actually Bernanke and Yellen are responsible for the years of zero rate policies and three rounds of QE. Because they have been removed doesn't they aren't still responsible for what they did and the repercussions we still face.

True. The cause of the coming downturn is because of this. The damage was done at this time.

 

[jimmymccready]

Typical lib attacking the messenger again.

Nope, he attacked the websites you used.

 

[Into the Night]

You're free to view economics however you like but you choose to do so from a partisan perspective. I get it, you don't like Republicans. Fair enough, that is your right. But in understanding why certain events happen it takes more than just blaming people we don't like.

I'm not an expert on economics. I read a sh*t ton on the Fed and monetary policy and yet I still barely understand it. QE is just economic jargon, it was monetary policy put in place. You're not alone in not knowing what it is or understanding it. Most people don't. But we've been discussing it for years because it is the impetus for the upcoming recession.

A good theory on economics is the Austrian Theory of economics. The Keynesian Theory doesn't work. It is based on price controls on money itself. Price controls never work. They always cause shortages.

Before the Fed, the price of money (interest rates) followed the free market. When people tended to spend, interest rates would go up and companies knew it was time to concentrate on producing and selling. When people tended to save instead, interest rates would go down (the banks have more money available). Companies could use this signal to realize that spending was reducing, and it was time to borrow at cheap rates and become more efficient or develop new products. If too many borrow, interest rates would climb back up again, and that would again signal sales, not expansion. Companies wouldn't run out of cash to complete their projects like they do today. High interest rates would encourage saving. Low interest rates would encourage borrowing and spending. The market was self correcting. It needed no central bank to control it.

The Fed imposes prices controls on money. They keep the interest rate low when it should be high. It keeps the interest rates high when they should be dropping. They are almost always late and try to close the doors after the horse is gone. The result is confused signals for business (there are no valid signals anymore). Thus, business borrows when it shouldn't, and the resulting inflation prices them out of completing their expansion projects. That is a waste of wealth, CAUSED by the Fed. Those project must be abandoned at tremendous cost.

Under a free market money supply, what you get is a mild deflation. This is good. It is caused by companies producing more for less money. It is innovation taking place. Things are cheaper because companies are making more of them for less money. New products more easily enter the market. A car, for example, costs less because companies now make more of them using better and more efficient techniques.

 

[Lightbringer]

A good theory on economics is the Austrian Theory of economics. The Keynesian Theory doesn't work. It is based on price controls on money itself. Price controls never work. They always cause shortages.

Before the Fed, the price of money (interest rates) followed the free market. When people tended to spend, interest rates would go up and companies knew it was time to concentrate on producing and selling. When people tended to save instead, interest rates would go down (the banks have more money available). Companies could use this signal to realize that spending was reducing, and it was time to borrow at cheap rates and become more efficient or develop new products. If too many borrow, interest rates would climb back up again, and that would again signal sales, not expansion. Companies wouldn't run out of cash to complete their projects like they do today. High interest rates would encourage saving. Low interest rates would encourage borrowing and spending. The market was self correcting. It needed no central bank to control it.

The Fed imposes prices controls on money. They keep the interest rate low when it should be high. It keeps the interest rates high when they should be dropping. They are almost always late and try to close the doors after the horse is gone. The result is confused signals for business (there are no valid signals anymore). Thus, business borrows when it shouldn't, and the resulting inflation prices them out of completing their expansion projects. That is a waste of wealth, CAUSED by the Fed. Those project must be abandoned at tremendous cost.

Under a free market money supply, what you get is a mild deflation. This is good. It is caused by companies producing more for less money. It is innovation taking place. Things are cheaper because companies are making more of them for less money. New products more easily enter the market. A car, for example, costs less because companies now make more of them using better and more efficient techniques.

Why do you think Hayek and Keynes are mutually exclusive? And by the way, Keynes did NOT support price controls.

I know you posted more but this is enough to start with.

 

[Althea]

So now you want to start a semantic argument over the meaning of 'bubble'???

I did. This one is setting up the same way with the modifications I already mentioned.

Incorrect. There is no real estate bubble

 

[Althea]

Get your head out of the ground.

You first. You haven't a clue.

Argument of the stone fallacy. The data has been presented to you.

You've presented no data. Just a flawed opinion based on something you heard from judge Jeanine.

No, good for everybody.

Doesn't matter how many times you attempt to gaslight here...you will still be wrong.

Wages are determined by price discovery, unless someone tries to implement price controls. Price controls never work. They always cause shortages. I guess you feel that 2% is not greater than zero.

Silly, silly child. I feel that 2% is less than 100% or more

https://www.forbes.com/sites/shelli...tion-is-out-of-control-what-now/#10842c5b431f

“CEO pay continues to be very, very high and has grown far faster in recent decades than typical worker pay,” the EPI authors wrote. “CEO compensation has risen by 807 or 937 percent (depending on how it is measured—using stock options granted or stock options realized, respectively) from 1978 to 2016. At 937 percent, that rise is more than 70 percent faster than the rise in the stock market.” A typical worker’s annual compensation over the same period rose at the rate of 11.2%.

I've already asked you to do elementary school math. I guess you don't have neighbors with children who could have helped you with that.

Assuming you are one of the lucky ones who earns $15.00/hr.. Gross full time pay is $600/week. Give that person a 2% wage hike...ignoring the rising costs on everything in the process...and they now earn $612.00/week. Pre tax.

Any 2nd grader can tell you that an extra $624/year is nothing to get excited about, given the fact that the corporate profits are not being allocated evenly. trump promised them jobs, and much better pay. I seem to remember something about 'much better health insurance coverage at a fraction of the cost...it will be so easy'.

 

[Althea]

You're correct. I was wrong about the real estate bubble

Good for you. My work here is done.

I did. This one is setting up the same way with the modifications I already mentioned.

Given that you now realize there is no bubble, I guess this post is moot.

 

[Getin the ring]

Any 2nd grader can tell you that an extra $624/year is nothing to get excited about, given the fact that the corporate profits are not being allocated evenly. trump promised them jobs, and much better pay. I seem to remember something about 'much better health insurance coverage at a fraction of the cost...it will be so easy'.

that you do not understand the concept of minimum wage as pay for either our kids working summer and or night time jobs, or for people who just have decided that's all they want out of life, is pre- second grade thinking on your part.

better and more importantly, fiscally sustainable health care is on the way, democrats are obstructing anything positive, lets not forget that.
so Trump is forced to, as with the wall make baby steps, one thorn in your side at a time

 

[Althea]

Power companies are funded by private investors. So are the power lines they install in most cases. Water supply systems are often private companies. They may even compete for business street for street. Even roads are built by private funding. Everything from parking lots to six lane highways.

Power companies are built using govt. loans. Every single time. Renewable energy is often privately funded, but linked to existing infrastructure that was funded by govt. loans.

They are? You don't think people can make money building a power plant or a road?? HAHAHAHAHAHA!

No. They can't. That's why private investors stay away.

They don't fund the building of everything.

That's not the argument.

The Erie Canal is not the entire infrastructure.

One of thousands of examples of private investors refusing to build infrastructure.

There are a LOT of roads that are purchased privately.

No there aren't. The few that exist turned out to be bad investments, and are in terrible shape. Just ask Mike Pence.

Very well. A lot of people drive on them.

Thanks for the laugh.

 

[Cypress]

Translation:

Get ready for Republicans to blame the fed, Obama, and Hillary for the coming Trump Great Recession.

The shrewd and prescient financial reporter Matt Taibbi anticipates that President Pussy Grabber is setting us up for an economic meltdown, and ensuring that the Obama recovery is blown to shreds.

Three Colliding Problems Leading to a New Economic Disaster

Last week’s stock sell-off was merely the beginning of what’s to come

Maybe the stock market isn’t about to crash in the next 10 minutes.
The sell-off last week was likely just a mild preview of what will happen once the blunt contradictions of Trump’s major economic moves — crazy even by his standards — set in.

“We’re fucked,” a market analyst friend of mine put it this weekend. “It’s all baked in the cake already.”

https://www.rollingstone.com/politics/politics-news/stock-market-slump-trump-737792/

 

[cawacko]

The shrewd and prescient financial reporter Matt Taibbi anticipates that President Pussy Grabber is setting us up for an economic meltdown, and ensuring that the Obama recovery is blown to shreds.

You notice he's talking about the Fed and their zero interest policy? It's what we've been discussing for years on this board. There was going to have to be an unwinding of the Fed's balance sheet along with raising of rates. The stock market has been a bubble for years and it's going to pop.

 

[Into the Night]

You first. You haven't a clue.
You've presented no data. Just a flawed opinion based on something you heard from judge Jeanine.
Doesn't matter how many times you attempt to gaslight here...you will still be wrong.


Silly, silly child. I feel that 2% is less than 100% or more

https://www.forbes.com/sites/shelli...tion-is-out-of-control-what-now/#10842c5b431f


I've already asked you to do elementary school math. I guess you don't have neighbors with children who could have helped you with that.

Assuming you are one of the lucky ones who earns $15.00/hr.. Gross full time pay is $600/week. Give that person a 2% wage hike...ignoring the rising costs on everything in the process...and they now earn $612.00/week. Pre tax.

Any 2nd grader can tell you that an extra $624/year is nothing to get excited about, given the fact that the corporate profits are not being allocated evenly. trump promised them jobs, and much better pay. I seem to remember something about 'much better health insurance coverage at a fraction of the cost...it will be so easy'.

You want more money? Get off your duff and make yourself more useful to somebody. Don't whine to the government!

 

[Into the Night]

Good for you. My work here is done.

Given that you now realize there is no bubble, I guess this post is moot.

Making stuff up about what I said in a post is not going to work, dumbass.

 

[Into the Night]

Power companies are built using govt. loans.

WRONG. Power companies are PRIVATE companies.

Renewable energy is often privately funded,
but linked to existing infrastructure that was funded by govt. loans.

True. Both oil and natural gas are renewable energy. Wind and solar, however, depend on govenment subsidies and government loans.

No. They can't. That's why private investors stay away.

They don't.

No there aren't. The few that exist turned out to be bad investments, and are in terrible shape.

WRONG. They are in good shape. People use those roads.

Just ask Mike Pence.

Why?

 

[Cypress]

You notice he's talking about the Fed and their zero interest policy? It's what we've been discussing for years on this board. There was going to have to be an unwinding of the Fed's balance sheet along with raising of rates. The stock market has been a bubble for years and it's going to pop.

I hope the economic meltdown isn't too bad. The Obama recovery lasted for almost a decade.

It's weird how these recessions and depressions almost always happen when the GOP is in the white house. Just bad luck?? Or says something about GOP oversight of the economy??

 

[cawacko]

I hope the economic meltdown isn't too bad. The Obama recovery lasted for almost a decade.

It's weird how these recessions and depressions almost always happen when the GOP is in the white house. Just bad luck?? Or says something about GOP oversight of the economy??

This bubble was created during the Obama years. It was going to pop regardless of who was President.