Surging inflation takes hold in Mountain States, with rates near 9%

The Fed "may" raise rates. Nothing definite in this announcement. In any case, don't expect it to be more than 25 points.

The Fed has also been talking about tapering its QE, but that hasn't happened yet. The Fed balance sheet is approaching $9 trillion.

The Fed knows that, with a debt approaching $30 trillion, any rise in interest rates will come at a huge cost for servicing the debt.

The only out I see is govenment finding some way to rein in deficit spending so interest rates can rise. 2 ways to do that: cutting spending or raising taxes.

 

Trump gave the corps a huge tax cut and they still screwing us during the pandemic

 

Why are you blaming Trump, he simply gave the DNC what they asked for

I believe the House is owned/controlled by the DNC

 

And it had no effect on inflation. It reduced prices by stifling demand.

 

Which lowered the inflation rate.

 

If I had to logically guess, our leaders aren't going to do anything but allow inflation "Much higher" to basically dissolve all that free money that was dumped in to the economy.. Thats where slow Joe comes in, he is so old and feeble the DNC already has him standing naked on the curb and slated for the job of inspecting the undercarriage of the DNC bus

The rest of use, well we have been under the bus for a very long time now.. Best thing to do at this point is get out of debt move your money in to smaller hometown banks and rathole twenty thousand on hand! And pray it's even gonna be worth anything by the time this puppet President is ousted!!!

If there is any consolation to all this, it's the young people that drank the Kolade will suffer the most from all this, and hopefully, learn what the DNC pipedreams and empty promises are really all about!

 

The four pillars of Reagan's economic policy were to reduce the growth of government spending, reduce the federal income tax and capital gains tax, reduce government regulation, and tighten the money supply in order to reduce inflation.[4]

According to a 1996 study[97] by the Cato Institute, a libertarian think tank, on 8 of the 10 key economic variables examined, the American economy performed better during the Reagan years than during the pre- and post-Reagan years. The study asserted that real median family income grew by $4,000 during the eight Reagan years and experienced a loss of almost $1,500 in the post-Reagan years. Interest rates, inflation, and unemployment fell faster under Reagan than they did immediately before or after his presidency.

https://en.m.wikipedia.org/wiki/Rea...lars of Reagan's,in order to reduce inflation.

 

You've been wrong for decades apparently.

See my latest post.

 

Reagan didn't boost interest rates, it is not in the power of the president to do so. Fed chair Paul Volcker boosted interest rates, who was a Carter appointee.

Trump, on the other hand, always lobbied for lower interest rates, despite a strong economy. Wonder why?

 

See above.

 

You Broke It You Fix It
Typical liberal screw the economy up then demands others to come up with a solution to fix their screw up

 

That's how they do.

 

I laughed. How do you reduce prices without affecting inflation? Are you telling me that prices were still going up while prices were going down?

 

LOL! The last two recessions, including the great recession, happened under GOP presidents, and were left to a Dem president to deal with the economic outfall. But, leave it Trumpers to have short memories about that and rewrite history, it is nothing new.

 

No need to laugh. Most people don't understand what inflation is. Inflation and prices have little to do with each other. Inflation doesn't cause higher prices. It causes a devaluation of the currency. It dilutes the dollar. Prices go up and down based on supply and demand despite the amount of inflation in the money supply. Inflation, does not go up and down. It is permanent. The reason is that the only way to reverse inflation is to deflate the money supply, something government will never do. Price increases or decreases will fix themselves. Only deflation can correct inflation. Hope that helps you understand the terminology better.

 

Unfortunately government can't fix a bad economy. We have been over this before and you agreed with it. It can only hurt the economy. The great recession was motivated by government. Government (during the Clinton administration) wanted more home ownership and pushed mortgage lenders to reduce requirements for mortgage borrowers. This led to very serious defaults. That and the methods the financial industry used to protect themselves from the defaults led to the great recession. The Bush administration gets a middle finger for not correcting it. As usual when government goes beyond regulating businesses for consumer protection, the results are negative. But leave it to lefties to ignore the reasons and rewrite history. It is nothing new.

 

Yes, I agree we had a good economy in those years. But his "pillars" weren't implemented or implemented properly. No tightening of the money supply occurred. That means deflation and the Reagan administration created some inflation just like its predecessors. Government spending didn't decline. It increased. A tax cut is a very good thing if it is accompanied by a reduction in spending. That doesn't happen and didn't happen then. Federal government doesn't help the economy. It is part of the economy and its economic actions are almost always self serving and detrimental. We had a good economy during the Reagan years, not because of the Reagan administration but because of a healthy private sector. Your "pillars" were just talk. While good "pillars" they haven't really happened since the Coolidge administration which actually reduced the the national debt and couldn't inflate the currency because we were on a gold standard. The article that provided you with the information doesn't understand what inflation is. It is not rising prices. Sorry.

 

No, the only thing that reduces the inflation rate is less government spending of money it doesn't have. It reduced high prices, not inflation.

 

No. The FED reduced average consumer prices by boosting interest rates. The government created plenty of inflation during the Reagan administration. In 1988 inflation was well over 4%, a figure that wouldn't look good until you compared it to what we have now.

 

They are all expert at spending not only other peoples' money but non-existent money as well.

 

I didn't say that. The how is simple. You just write a check to pay the debt with non existent money. If you want to add Trump's over spending to Biden's over spending, that is fine by me.

I think Biden is bad, even dangerous. I don't see fractional reserve banking as the same thing as government spending money into existence. When a bank lends more than available deposits, it is gambling that at least some of that debt will be repaid. That is a good bet and that this why fractional reserve banking exists. Also it creates a paper asset in the form of a receivable debt. At some point either the borrower or the bank will settle that debt.

Banks can't create money. Only government can do that. When government spends money into existence there is no future settlement. No IOU. No increase in revenue. The result is a devaluation of the fiat currency.

 

This was his response to the recession of the early 80s. And it was effective.

 

Sorry, government can't fix a bad economy. It can only cause one or contribute to one. The economy fixed itself in the '80's.

 

Biden lied, the economy died.