The Briefing Room
General Category => Economy/Business => Topic started by: Hoodat on May 08, 2021, 04:08:05 pm
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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/
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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.
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.
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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.
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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.
Even ol' rubberlegs knew back in 1933 that make-work jobs are better than just sending out checks.
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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.
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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“When did Milton Friedman die and become king?”
- Joe Biden, Sept 7, 2019 -
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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.
If you haven't occupied the dwelling for 5 years, you will be taxed on the capital gains. :shrug:
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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.
On the flip side when the dollar is devalued - by printing massive amounts of them - stocks go up in terms of dollars just to maintain their actual value. A rising stock market does not necessarily mean rising wealth or value or even that it is oversold when the value of the currency they are purchased in is rapidly declining.
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If you haven't occupied the dwelling for 5 years, you will be taxed on the capital gains. :shrug:
Yeah we’ll have to get clever with the deductions. Luckily we have a lot to work with lately.
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On the flip side when the dollar is devalued - by printing massive amounts of them - stocks go up in terms of dollars just to maintain their actual value. A rising stock market does not necessarily mean rising wealth or value or even that it is oversold when the value of the currency they are purchased in is rapidly declining.
Oh I agree, but right now that is not being reflected in currency exchange rates. UNLESS>... This is an across the board phenomenon, and the whole world is imploding economically in sync.
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My very first class as a freshman at UT was Economics 302 where I was introduced to Milton Friedman's teachings.
I have practiced his economic philosophy since, and have had no regrets whatsoever.
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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.
That's an excellent observation and take on this, @catfish1957 :beer:
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My very first class as a freshman at UT was Economics 302 where I was introduced to Milton Friedman's teachings.
I have practiced his economic philosophy since, and have had no regrets whatsoever.
One of my Econ professors at Ga Tech was a former student of Friedman's at the U. of Chicago. She was probably the only Econ professor I had there that understood how government poisons anything it touches.
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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.
Already selling off and will be waiting with cash on the sidelines..
Have just ensured I started with woke companies like Coca Cola, and just sold out of Morgan Stanley. MS will not do business with fossil fuel companies, which have lifted billions out of poverty to enjoy a better life. So as a retired O&G guy, I sent them a thank you note to inform them that I will not own stock in companies that choose to sink their profits by such a stupid action.
Now onto some others......
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Already selling off and will be waiting with cash on the sidelines..
Have just ensured I started with woke companies like Coca Cola, and just sold out of Morgan Stanley. MS will not do business with fossil fuel companies, which have lifted billions out of poverty to enjoy a better life. So as a retired O&G guy, I sent them a thank you note to inform them that I will not own stock in companies that choose to sink their profits by such a stupid action.
Now onto some others......
With high inflation cash is not the thing to hold.
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If you haven't occupied the dwelling for 5 years, you will be taxed on the capital gains. :shrug:
@Cyber Liberty @skeeter
You can sell your primary residence and be exempt from capital gains taxes on the first $250,000 if you are single and $500,000 if married filing jointly.
This exemption is only allowable once every two years.
You can add your cost basis and costs of any improvements you made to the home to the $250,000 if single or $500,000 if married.
https://www.investopedia.com/ask/answers/06/capitalgainhomesale.asp
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With high inflation cash is not the thing to hold.
@DB
Since MY smartest "investments" were in drugs,Harley parts,and guns,I PROBABLY ain't the guy to ask for investment advise,but it occurs to me there is no such critter as a "good investment" as long as globalists/communists control the economy. If they declare your waterfront mansion is worth 15 cents,that is what the government will pay you for it when they seize it so our masters have privacy while relaxing.
Under a communist/socialist government,you have all the rights the government is willing to allow you to have.
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With high inflation cash is not the thing to hold.
Holding only cash is not the thing to hold.
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@Cyber Liberty @skeeter
You can sell your primary residence and be exempt from capital gains taxes on the first $250,000 if you are single and $500,000 if married filing jointly.
This exemption is only allowable once every two years.
You can add your cost basis and costs of any improvements you made to the home to the $250,000 if single or $500,000 if married.
https://www.investopedia.com/ask/answers/06/capitalgainhomesale.asp
Yes it’s every two years, but unfortunately we’ve been here only one. We do have some improvements to deduct though. Thanks!