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Milton Friedman’s Revenge

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Hoodat:
Milton Friedman’s Revenge

Matthew Continetti   •   May 7, 2021 5:00 am

Treasury Secretary Janet Yellen got into trouble Tuesday for telling the truth. That morning, at a conference sponsored by the Atlantic, she raised the possibility that one day the Federal Reserve may raise interest rates "to make sure our economy doesn't overheat."

Anyone with a basic understanding of economics knew what she was talking about. The combination of President Joe Biden's gargantuan spending and the accelerating economic recovery may well lead to a rise in consumer prices and hikes in interest rates. But an end to the Federal Reserve's program of easy money would hurt asset prices and possibly employment as well.

Which is not what most investors want to hear. When Yellen's words reached Wall Street, the market tanked. By the afternoon she was in retreat, telling the Wall Street Journal CEO summit that she had been misunderstood. "So let me be clear," she said. "That’s not something I'm predicting or recommending."  .  .  .

https://freebeacon.com/columns/milton-friedmans-revenge/

Hoodat:

--- Quote ---A specter is haunting the Biden administration—the specter of inflation. Past inflations have not only harmed consumers, savers, and people on fixed incomes. They have also brought down politicians.
--- End quote ---

I'm not thinking that this regime gives a damn about what hurts consumers, savers, and people on fixed incomes.  Nor are they worried about losing future elections.  In the past, the one thing that has blocked the left is that their ideas have never been embraced by a majority of Americans.  But with this last election, they no longer need the approval of a majority of Americans to achieve power.

catfish1957:
Read a recent report that Pedo Joe on an incremential basis is turning on the Fedzilla Tap faster than even FDR did in the early 30's.

One thing is for certain.....   Every single investment vehicle is OVERSOLD beyond reason. I don't want to create any panic, but this may line up as the bubble of all bubbles. 

Reason?  Back in the 30's we at least had an industrial base to work out of the economic toilet.  Now?  Sadly no.

Cyber Liberty:

--- Quote from: catfish1957 on May 08, 2021, 12:16:38 PM ---Read a recent report that Pedo Joe on an incremential basis is turning on the Fedzilla Tap faster than even FDR did in the early 30's.

One thing is for certain.....   Every single investment vehicle is OVERSOLD beyond reason. I don't want to create any panic, but this may line up as the bubble of all bubbles. 

Reason?  Back in the 30's we at least had an industrial base to work out of the economic toilet.  Now?  Sadly no.

--- End quote ---

Even ol' rubberlegs knew back in 1933 that make-work jobs are better than just sending out checks.

skeeter:

--- Quote from: catfish1957 on May 08, 2021, 12:16:38 PM ---Read a recent report that Pedo Joe on an incremential basis is turning on the Fedzilla Tap faster than even FDR did in the early 30's.

One thing is for certain.....   Every single investment vehicle is OVERSOLD beyond reason. I don't want to create any panic, but this may line up as the bubble of all bubbles. 

Reason?  Back in the 30's we at least had an industrial base to work out of the economic toilet.  Now?  Sadly no.

--- End quote ---
I’ve read the tea leaves and have just sold my house for a third more than I bought it exactly a year ago. My problem now is timing - how to pick up a new place on the downside of the housing market & not sitting on the dough too long, ‘cause inflation is surely coming if it’s not here already.

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