Wednesday, September 21, 2022

FED WATCH - inflation must be put down, even if it kills the economy.

Following last week's INFLATION WATCH, today was FED WATCH. And they laid the hamer down this afternoon.

And after an hour of volatility, the traders on Wall Street came to a conclusion on what the Fed's actions and statements meant.

This is dumb. US gas prices are down 26% in the last 3 months, and home prices are falling for the first time in a decade. Food prices are still an issue, but people generally don't borrow money to pay for food, and there is evidence American consumers have downshifted their spending to limit their expenses as grocery prices have risen in 2022.

(Literally as I write this, US Sen. Elizabeth Warren is saying a similar thing on Chris Hayes' show. Sen. Warren points out that the Fed can't do a thing about disrupted supply chains or that the lack of competition in several sectors leads to price gouging. All the Fed deals with is the money supply, so while they hurt part of the economy, they may not do do much to curb many of the reasons any inflation exists today).

A lot of this "inflation concern" by the Masters of the Universe does seem to come down to what was mentioned in this online exchange I had with a Wisconsin candidate for Congress, which came after last week's release of the Consumer Price Index.

Apparently in Wall Street World, corporations have to continue to have a better chance at maintaining their record profits instead of having everyday Americans continue to benefit from a strong labor market.

Even if prices are rising more than we've been used to, I bet most of us would rather pay a little more than make a little less - with millions more Americans not making anything at all, because they're OUT OF WORK. And Central Bankers will never have to deal with the financial stresses of unemployment and a lower standard of living like millions of unemployed Americans would.

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