Loading ...First of all, 8.5% inflation my @ss. Just saw a food item I buy at the store go from $5.89 to $7.89 in a week, there is no way inflation is that low.
Second of all, Crypto has marginal value but like Tulips, saw a bubble. Can’t blame anyone but the purchasers for wanting to get rich quick and facing the consequences.
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Tight labor market”??? In April 2020, the Labor Force Participation Rate hit a 50-year low. It has crawled up a few points since then to 62.3%, but that is still way below the February 2020 pre-lockdown rate of 63.4%. And 63.4% was still way below the all-time-high participation rate of 67.3% from all the way back in…drum roll please…April 2000, right before the dotcom crash. We have yet to recover from the dot-com crash recession over two decades ago!!
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If the labor market is so “tight”, why isn’t anybody working in it???
https://fred.stlouisfed.org/series/CIVPART. https://www.zerohedge.com/economics/ramp-capital-everything-broken
The 1930s? Try the 1330s!!!
Or maybe there’s something you don’t understand about “owning nothing“… just like a Medieval serf??
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Yes. This isn’t just another bear market. This one is leveraged on an astronomical amount of debt and built on a fiat currency standard. There is no coming back. Over the cliff we go.
This just goes to show how far behind the curve the Federal Reserve is with regards to taming inflation with their policies and “available tools”. In fact, as pointed out by Simon Ree, once inflation goes above 5%, it has never come back down without the Fed Funds Rate exceeding the CPI.
The problem is the current inflation rate is 8.58% and the effective Federal Funds rate is only 1.58%. A 7% delta leaves a lot of room for the Fed to continue hiking until it starts seeing inflation roll over. Their goal would then be to slow down the magnitude or frequency of hikes (and to get further off of zero in preparation for the next easing cycle) while inflation rolls over so as to encourage the so-called soft-landing.