One reason the Fed feels it is justified in its obessive pursuit of demand and labor destruction as a means to corral consumer price inflation is the existence of a consumer “nest egg” of “excess savings”—a presumed pile of cash American consumers acquired during the 2020 pandemic lockdowns
Any savings consumers might have had probably went to paying bills due to the fact they couldn't go to work because where they worked at was locked down or did not have a customer base. Most small businesses had to deal with limited capacities. When restaurants, bars, hotels, etc. have to reduce capacities by 75% then their workforce is reduced as much as well. Powell and the other banksters are idiots, they know all this!!!!! Can't wait to hear their next line of "BS"!!! Linking tomorrow as usual @ https://nothingnewunderthesun2016.com
“Excess saving” is just another straw man that “caused” inflation. The obsession with blaming inflation on anything but the real causes (i.e., fed and government’s own policies) is sickening. It allows the real causes of inflation to continue unabated.
I think this savings myth is just a means of justifying printing into infinity.
Perversely, it justifies the opposite. It makes it seem as if the process of tightening monetary policy is pain free for most consumers.
It's perhaps the most obnoxious lie told by the Fed.
Any savings consumers might have had probably went to paying bills due to the fact they couldn't go to work because where they worked at was locked down or did not have a customer base. Most small businesses had to deal with limited capacities. When restaurants, bars, hotels, etc. have to reduce capacities by 75% then their workforce is reduced as much as well. Powell and the other banksters are idiots, they know all this!!!!! Can't wait to hear their next line of "BS"!!! Linking tomorrow as usual @ https://nothingnewunderthesun2016.com
As always, how much savings one achieved was dependent upon the underlying income level.
The top quartile did accumulate a fair chunk of savings--and it is unsurprising that this quartile still has a lot of that money left.
The bottom quartile started out with very little saved up and is now racking up debt.
“Excess saving” is just another straw man that “caused” inflation. The obsession with blaming inflation on anything but the real causes (i.e., fed and government’s own policies) is sickening. It allows the real causes of inflation to continue unabated.