How in the hell does this make any sense?

[SilentStalkr]

Powell set to deliver 'profoundly consequential' speech — CNBC

Powell, who will speak Thursday during a virtual version of the Fed's annual Jackson Hole, Wyoming, conference, will outline what could be the central bank's most active efforts ever to spur inflation back to a healthy level.

apple.news

And a direct quote:

Powell, the central bank chief since 2018, is likely to detail a set of measures aimed at pushing inflation higher amid a coronavirus pandemic that has dragged the U.S. economy into one of its darkest hours.

Seems ass backwards to me...

 

[E. Bryant]

Can't have deflation, or else all the dumbfuck "debt is goooood!" tools get screwed So instead we're going to get runaway inflation. This should be awesome.

 

[SilentStalkr]

Can't have deflation, or else all the dumbfuck "debt is goooood!" tools get screwed So instead we're going to get runaway inflation. This should be awesome.

Yeah no kidding. Hell milk is 2x what it was 10 years ago, locally. I’d say inflation is alive and well. Damn trucks that were $20k 20 years ago are like $55k-$80k locally. Yeah this makes perfect sense, all in time for the election. Payback for trump going after the fed?

 

[E. Bryant]

Trump sure as fuck ain't on any sort of anti-inflation kick himself, so this isn't any sort of "payback".

 

[SilentStalkr]

All I know is, I’m sick of being squeezed.

 

[diverdon]

A banker I know assures me that today inflation is very low or completely nonexistent. He does have some concern of a stick/slip phenomena similar to an earth quake, where all the tectonic energy is released in an instant.

 

[Vodoun daVinci]

All I know is, I’m sick of being squeezed.

Pretty sure the squeezing is just starting to roll....

VooDoo

 

[Mike_Honcho]

Liquidity Trap.

At a certain point the FED has pumped enough cash in and the market won't move unless there is more juice from the FED. At that point deflation is the real risk. We're there.

Book value is one thing, take away the stimulus and street value is a whole 'nuther thing.

One could argue that the FED has been pushing MMT for at least the last 5 yrs.

 

[The D]

“Healthy levels of inflation” LOL

 

[E. Bryant]

One could argue that the FED has been pushing MMT for at least the last 5 yrs.

I'd buy into that argument. S&P profits have been flat for the last five years. The market has gone up 70% over the same time period.

Or, viewed from a different perspective, we'd be in year 12 of a depression if the federal government didn't add an average of $1 trillion/year of borrowed (read: printed) money.

 

[Vodoun daVinci]

It's all a mirage.....they have figured out how to manipulate it. The Stock Market reflects the mood of investors and is not an indicator of The Economy or how we are doing financially. It's mostly all smoke and mirrors...yer average American is broke beyond understanding but as long as we keep them spending money they don't have it all works out on paper. Dun't matter to me - I made 20.9% on my money last year and that's enough to live on for next year whcih I'll need because my millionaire bosses got millions in PPP to lay me off and it dun't look like I'm going back. We are trashing Social Security so I'll have to live on what I have in investments. Currently selling everything in the safe that hasn't been shot in 5 years and looking to move to a cheaper venue *but* since I own my home from 1986 dollars it's cheaper to stay here until Mom passes.

VooDoo

 

[Mike_Honcho]

This is worth reading

Persistent low inflation..... remember in 2017 when they were bumping rates b/c they were worried about inflation? Remember all that discussion about 'near peak employment' - all bullshit. The chart porn is deluxe - using Y2000 numbers 16.4 million workers vanished. Every few years the FED comes out and trims expectations in order to fit the model. Inflation has never occurred b/c there aren't market forces to drive it - no matter what the FED says to the public.


From the comments section of the ensuing ZH article predicated on the above (spot on):

"They can make promises whatever they like, policymakers never deliver the smallest bit on any of them."

Could that be because it was NEVER their intention to deliver on their promises? How many times does someone have to screw you over for you to realize it was their intention all along to.....screw you over?

You can dig down into the details of our monetary policy all you want, and you can develop cute formulas and theories, and you can draw pretty charts until the cows come home, but.......

The overall controlling factor is that MONEY IS DEBT and DEBT IS MONEY......THAT IS.....the foundational problem. So running room to room to talk about the problems in each room.....employment, inflation levels, money velocity, interest rates, etc........is meaningless when the foundation or the monetary policy building is rotten and defective.

Build a house on a bad foundation and it is just a matter of time until problem start popping up and there is no end of them or fix for them......as long as the foundation continues to deteriorate.

Giving the monetary policy to a private group of men, and letting them charge interest on what they produce is a recipe for disaster. A disaster that took a hundred + years to unfold, but it is unfolding right before us. The house is about to crumble to the ground under it's own weight. They have expanded the debt (printed) and expanded the debt and expanded the debt, and they are looking for creative ways to keep expanding the debt. The debt is like a giant parasite sucking the life out of its host.......and they (the owners of the Fed) benefit......and they (owners of the Fed) then reward those in position to keep their ponzi scheme going.

You and I are not in a position to help the vampire bank, so we, by default, are then blood donors to the vampire's appetite and that of the vampire's Igor.

I mean, my God, how many ways can I describe this in simple terms that anyone could understand if they would only take the time and have an interest in knowing. There is no need to complicate it further than that. We are being screwed......intentionally. Expecting the vampire to take measures or create policy to "stop the bleeding" is as stupid as it gets.