The Fed continues to claim that the torrent of cash it creates each month ($120 billion) is necessary because the economy is still … dunno… weak?? Seriously?
I mean, look at the current all time record in job openings. They just hit 9.3 million (versus 8.8 million officially unemployed) because people are, basically, dis-incentivized from going to work. Current unemployment benefits easily cover, or even exceed, take home pay in many sectors such as restaurants, hotels, entertainment, etc. Guess what else is going on: people are also working off the books AND receiving unemployment, ie double dipping at 5he Fed/Treasury punch bowl.
Doesn’t Anyone Want To Work Anymore?
So, I’m going to completely ignore what Mr. Powell (a lawyer by education) is saying and listen to Mr. Buffett, instead: “The US economy is red hot” Obviously, he knows better.
Why is Mr. Powell still printing? Because he is simply not an independent Fed Chairman, having cast his lot with the DC populist politicians, regardless of party. Right now, Republicans and Democrats both are buying votes by printing dollars. The cost will come later, but I’m betting not so much later as they think..
was thinking about what you said and came up against this question; how can the politicians bribe Powell?
ReplyDeleteI can't quite imagine him running for President; I don't really feel it is a road to wall-street... are we talking direct money payments to his bank-account? that feels very un-american; I am sure you have more elegant ways of handling it...
Power corrupts all by itself. And there are few more powerful posts in the world than Fed Chairman. So, no, not money… simply that he stays on as Chairman.
ReplyDeleteahhhh..... that makes sense now.... thanks!
ReplyDelete