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If The Fed Was Serious About Inflation

Posted on 10/14/22 at 7:59 am
Posted by Hussss
Helena, AL
Member since Oct 2016
7777 posts
Posted on 10/14/22 at 7:59 am
They would reign in the money supply by paying the banks more interest on excess reserves thereby slowing down their lending.

I’m about sick and tired of all the endless excuses by financial media on what ignited the inflation bomb. When trillions in PPP bank loans as well as trillions in stimulus check helicopter drops are deployed, what did they THINK would happen?

These people are not only incompetent but are flat out liars.
Posted by MrJimBeam
Member since Apr 2009
12964 posts
Posted on 10/14/22 at 8:02 am to
They want socialism and reliance on government to gain more and more power. Certain people are wanting this.
Posted by Flowbe209
Member since Dec 2015
144 posts
Posted on 10/14/22 at 8:16 am to
They’ve raised it 300 bps YTD albeit they should have started last year instead of this year. Probably going up another 100-150 before Dec 31. Lending is only half the problem with people using credit cards and HELOCs to maintain their standard of living. Deposits accumulated during the pandemic are being spent down rapidly due to inflation driving higher every day spending at the grocery store and gas pump. Also, the Fed doesn’t give a shite. If they were serious about helping the consumer they should have raised 200 in January and said “We’ve done our part. The rest is up to Congress and the White House to figure out.”
Posted by LSUcam7
FL
Member since Sep 2016
8856 posts
Posted on 10/14/22 at 8:29 am to
Wages and and Rents are brutal. Sticky.

Only way the Fed is going to get these down is to hard land.

Wage price spiral is in full effect.
Posted by GEAUXT
Member since Nov 2007
30417 posts
Posted on 10/14/22 at 8:38 am to
quote:

Lending is only half the problem with people using credit cards and HELOCs to maintain their standard of living. Deposits accumulated during the pandemic are being spent down rapidly due to inflation driving higher every day spending at the grocery store and gas pump.


shite will really hit the fan when this finally gets to a breaking point.

IMO, this is the only reason things haven't imploded yet. Once the last bit of that cash runs out, things will get nuts quickly.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11869 posts
Posted on 10/14/22 at 11:28 am to
quote:

If The Fed Was Serious About Inflation


If they were serious they would lower rates which would bring down the cost of capital for the industries under cost pressures. Then Congress/EPA would deregulate and subsidize O&G production and transportation.

Instead we have a chest beating contest between FOMC and a twitter mob of fools who think they are "printing money." Retardation will ensue and yeah some of us will lose our jobs
Posted by DTRooster
Belle River, La
Member since Dec 2013
8892 posts
Posted on 10/14/22 at 1:21 pm to
quote:

They’ve raised it 300 bps YTD albeit they should have started last year instead of this year.
it should have never dropped below 3-4 to begin with
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
135722 posts
Posted on 10/14/22 at 1:57 pm to
quote:

I’m about sick and tired of all the endless excuses by financial media on what ignited the inflation bomb. When trillions in PPP bank loans as well as trillions in stimulus check helicopter drops are deployed, what did they THINK would happen?
This round of inflation is not caused by a weakened USD. It is caused by reduced supply in the face of unfettered demand. Insofar as PPP kept/keeps workers at home, it is presently contributory.

Regarding the great money print w/ 2° USD devaluation driving inflation, it will happen. That shoe has yet to drop though.

The F4d's tools here are very limited.
This post was edited on 10/14/22 at 1:59 pm
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11869 posts
Posted on 10/14/22 at 2:05 pm to


They wish they could print money that makes the debt situation easy

Cosplaying WWZ combined with extremely low IQ climate policy and this is what you get.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57978 posts
Posted on 10/14/22 at 2:09 pm to
quote:

Then Congress/EPA would deregulate and subsidize O&G production and transportation.


That's not the Fed.

quote:

If they were serious they would lower rates which would bring down the cost of capital for the industries under cost pressures.


Disagree. The over-liquidity of the market (thanks, stimmy checks and PPP finally tipping over what's been brewing with 14 years of QE) is why we're in this hole in the first place. Digging it deeper is the last thing we need to do.

Businesses are going to have to learn how to live without cheap, easy money once again.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57978 posts
Posted on 10/14/22 at 2:24 pm to
quote:



They wish they could print money that makes the debt situation easy








Posted by el Gaucho
He/They
Member since Dec 2010
58525 posts
Posted on 10/14/22 at 2:32 pm to
Today is another swb day in the market


For those of you that aren’t financially literate, “swb” stands for “shower with Brandon”

If you lose money and can’t pay your tribute to Brandon you’re forced to shower with him
Posted by TigerintheNO
New Orleans
Member since Jan 2004
44205 posts
Posted on 10/14/22 at 4:10 pm to
If they were really serious just ban inflation.


Belarus bans inflation
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
136280 posts
Posted on 10/14/22 at 4:15 pm to
quote:

Certain people are wanting this.


The real leader of the free world - George Soros
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11869 posts
Posted on 10/14/22 at 4:52 pm to
Those measures have been meaningless for decades. If that was "money" velocity would have skyrocketed. It's not. It's bank reserves that never leave the Fed's balance sheet. Some of it is unrealized credit hitting money market accounts for large corporations.


Just as a check - If "the money suppply" increased 3.5x higher since 2019, why are we only getting 8% CPI reads? Why didn't GDP expand in a linear fashion with that growth?

Why is there a global dollar shortage if the money supply was debased to that degree? Why aren't treasury bonds yielding 30-40%? Lots of market prices that should disprove that theory.
This post was edited on 10/14/22 at 4:57 pm
Posted by BamaCoaster
God's Gulf
Member since Apr 2016
6650 posts
Posted on 10/17/22 at 10:19 am to
quote:

These people are not only incompetent but are flat out liars.


It must give ppl solace to think the ppl in charge are incompetent, rather than nefarious and corrupt.
Posted by Teddy Ruxpin
Member since Oct 2006
40598 posts
Posted on 10/17/22 at 10:40 am to
I thought I saw someone say on here those charts were misleading because there was a definition change of what accounts were included.

So a big part of that jump was money already out there, not new money or whatever.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11869 posts
Posted on 10/17/22 at 10:59 am to
They have Fed Chairs on record saying they have no clue how to calculate the money supply and all the rehypothecation of Treasuries.
Posted by cadillacattack
the ATL
Member since May 2020
9643 posts
Posted on 10/17/22 at 12:39 pm to
The current level of inflation is embedded in the cost of products, ....because it’s a supply side issue, .... period, full stop.

The so-called Financial “experts” from Wall Street that are being trotted out by the mainstream media are blowing hot air. They claim that it is solely a Spending (fiscal policies) that are causing the inflation (ie. demand side).

I heard this just last week with regard to the COL increase on Social Security ..... that it was going to cause another "jump in Inflation."

As we learned in basic Econ, they’re wrong.

Our current inflation cycle, most notably evident within massive increases in food prices, is a supply side issue created by the increased energy costs.

You don't even need to research it further because you see it everyday in your own household budget .... this is the root cause of the widespread inflation increases. This is an administration policy outcome ... it is a feature of this administration's policies, ... not a flaw.

Don't be fooled .....


https://www.youtube.com/watch?v=UDfAdHBtK_Q
This post was edited on 10/17/22 at 12:44 pm
Posted by TDFreak
Coast to Coast - L.A. to Chicago
Member since Dec 2009
9001 posts
Posted on 10/18/22 at 2:23 pm to
If there is any money velocity, inflation will be a raging forest fire.
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