Loading ...They are starting to get smart. I heard on CNBC this morning, It may have been Kudlow not sure, said that the Fed has been using an “out dated” way to figure inflation. Wow is all I can say. They are thinking about figuring in asset prices to figure the inflation calculation or number.
We here all know for how many decades the Bozos under stated the real inflation rate. I calculated 7.5% for many years when the Fed or Gov’t was saying 2%. So now the Fed has to stop a deflationary phycology, (wait until it goes on sale honey) and replace it with an inflationary phycology. (we better buy before the price gets higher honey)
Remember the climbing prices of the 1970s? Paul Volker said we had to stop the inflationary psychology. Get the inflation numbers lower. He slowed spending and caused saving, with rates to 21% prime in 1980 from like 6% in 1970. They also started importing mathematically cheaper consumer goods, to get inflation numbers lower.
He sucked a lot of money OUT of circulation from ’70 to ’80 with money going into 18% five year CDs and or 16% on 30 year Bonds with no call back provision. Now??? The stupid rates are soo low and money is AGAIN flowing out of circulation into Bonds. What a contorted mess all these decades were.
There simply has been too much artificial money in the wrong hands, too much of their unspent bulk savings, (they already have everything they need or want) and dwindling “room” or place to store it. In some places there is a negative rate storage fee.
These Bozos need to wake up. And restructure the whole system, so money flows to the young people that will piss it away, spend it with reckless abandon, like we all did when we were kids buying SS Camaros, 442 Oldsmobile’s, GTOs and Chevelle SS 396. Some kids bought new economy cars too.
Make the high school graduate great again, don’t let them waste 4 years in collage. That’s four years they won’t be paying taxes and spending money, if TPTB want growth in consumption of Imports and help sales and service jobs.