Bizarre on many levels.
Do Trump supporters now support near 0% interest rates at full employment? Is the economy so week that it cant handle 1-2% fed rates?
2 Likes
Strong economies aren’t supposed to need help. And he called for a full point decrease. He’s such an uninformed, stupid idiot.
2 Likes
That’s just too funny.
It’s not fair that Obama had so many years of quantitative easing to boost his economy scores. Donald Trump deserves the same kind of government action in order to achieve similar scores on his economy. It’s tough to have an economy that is operating at full employment. How is Donald Trump supposed to improve efficiency when employers can’t replace employees with impunity? If the Fed won’t enact more quantitative easing then Donald Trump might just have to explode the deficit even more than it already is. This will be the fault of the Democrats.
2 Likes
I oppose this call of Trump’s.
However.
As an aside.
Lets dispose of this neo-Keynesian euphemism “quantitative easing”.
Lets call it what it is, monetary inflation. Calling it something else does not change what it is.
Just like calling impotence “erectile dysfunction” or calling a used car a “pre-owned car” doesn’t change the fact of either matter.
It’s MONETARY INFLATION. Let’s call it what it is an **** the neo-Keynesian euphemistic bull ****.
3 Likes
If Pelosi and company join forces with Trump and approve 2 trillion for infrastructure…that’s enough easing for everybody. Now…how will it be paid? If the check was cut over night, our debt will be knocking on the door of 25 trillion. The percentage of our tax dollars necessary to service this debt leaves us broke to pay for everything else…epecially if the new “freebees” being touted actually get passed? These are scary times IMO.
Trump just wants to look good.
Roaring 20’s.
Evidence in my mind, @WuWei (not using this as a callout, but to call your attention to a debate we were having in another thread), that we are not experiencing real prosperity, and haven’t been for some time.
Enough easing for the foreign companies that play in this space to get even more rich at taxpayer expense?
I would hope not but I won’t claim to be informed on the issue.
It’s going to be worse when the next recession hits especially if we drop back down to 0% at full employment and have already cut taxes.
1 Like
Grover Norquist’s Plan come to fruition.
Watch- somehow the Dems get Trump out in 2020 and keep at least the House.
Then the recession hits.
GOP will blame the Dems like crazy, and the Dems will have no tools to deal with the recession.
Rinse. Repeat.
2 Likes
The party of responsibility
Hmm not many trump supporters commenting
The entire economy runs on inflation. People take out debt to buy goods, go to school and receive medical care. This drives up the prices of those goods. The provider of those goods take out more debt to expand. etc etc…
The problem the government elite have run into is that, with our increases in technology and global trade, we are in a period of deflation. The only way to create inflation is to print money and devalue it. Why would you borrow money today if it will buy more tomorrow?
Plus, QE was great for the stock market, if I remember correctly.
1 Like
It kept the Bond market from imploding.
That’s what it was! I couldn’t remember which market. For some reason I thought stocks…
The bond market: Too big to fail…
The Fundamentals of the Economy are Strong.
.
Trump knows what is predicted to come. It won’t look good for him.
The whole rotten system was set up in 1913 with the Federal Reserve Act, which created coordinated fractional reserve regime that we are stuck under today.
And the monster requires debt, lots and lots of debt, to exist. Government debt, business debt, consumer debt. And by keeping interest rates artificially low, it encourages the reckless acquisition of debt, which is the point.
The system was set up so that the government would not be constrained in its spending. Prior to 1913, the government could tax and borrow, but it could borrow only up to a point, beyond which it had to make the choice of either increase taxes or decrease spending.
After 1913, it was tax, borrow, inflate, spend, repeat.
That is why I am scornful of both parties and their “situation of the day” rhetoric. Both parties know they MUST feed the beast or the whole system will catastrophically collapse. The government MUST continue to incur debt and businesses and consumers must be egged into incurring debt.
The beast LOVES student debt in particular, which cannot be discharged in bankruptcy. Perfect food for the centralized fractional reserve leviathan.
Inflation is always occurring, at some rate or the other and by inflation, I am referring to monetary inflation. Even a slow rate of inflation creates malinvestment, which eventually must be corrected via a recession.
Recession is not the sickness. Recession is the inevitable response to inflation induced malinvestment. The government should not deal with recession. Recession is the cure and should be allowed to proceed unmolested, not dealt with via stupid counter-cyclical policy, which has always failed.
Prior to the Federal Reserve, recessions were the inevitable result of excessive monetary issues, whether continentals, greenbacks, etc. The Federal Reserve has just changed the engine via which inflation occurs.
1 Like
