First time jobless benefits are rising. Looks like the Fed’s interest rate hikes are working as intended and throwing people out of work—what economists call “demand destruction.”
The latest data are likely to further fan fears of a recession that were already on the rise with the Federal Reserve lifting interest rates at the most rapid pace in decades to blunt inflation running at the highest levels since the 1980s. A Reuters poll released on Thursday showed economists assign a median probability of recession in the next 12 months at 40%, up from 25% in the previous month's survey.
What the latest data show is that recession and job loss are exactly what the Fed wants and intends to get. This is their plan for halting inflation—throwing workers out of work.
The Fed is responsible for the ginourmous expansion of the money supply. I'm still trying to figure out if they're to blame for the collapse in money velocity, which offset much of that expansion.
They are not responsible for the lockdowns and supply chain disruptions that are the catalysts for much of the current inflation.
Part of the great danger in current Fed thinking is they are using monetary policy and monetary solutions to address a set of problems that are not exactly monetary in nature.
Wrong medicine is often more toxic than no medicine.
There's a bit more detail in my two part article "Modern Monetary Insanity" that fleshes out some of the data involved.
Didn’t the Fed create inflation in the first place?
Yes and no.
The Fed is responsible for the ginourmous expansion of the money supply. I'm still trying to figure out if they're to blame for the collapse in money velocity, which offset much of that expansion.
They are not responsible for the lockdowns and supply chain disruptions that are the catalysts for much of the current inflation.
Part of the great danger in current Fed thinking is they are using monetary policy and monetary solutions to address a set of problems that are not exactly monetary in nature.
Wrong medicine is often more toxic than no medicine.
There's a bit more detail in my two part article "Modern Monetary Insanity" that fleshes out some of the data involved.
https://newsletter.allfactsmatter.us/p/modern-monetary-insanity-part-1
https://newsletter.allfactsmatter.us/p/modern-monetary-insanity-part-2
End the Fed
Works for me. The sooner the better.
How do we get started on that?😂
It's pretty simple, really.
Replace Congress. Pretty much ALL of them need to be discarded and a fresh legislature elected.
🎯🎯