The the fed will reverse the interest rates once everyone has list their jobs.
https://markets.businessinsider.com/news/stocks/fed-rate-hikes-hawkish-powell-recession-risk-layoff-labor-unemployment-2022-11
https://www.cnbc.com/2022/11/08/auto-loan-delinquencies-rise-as-loan-accommodation-programs-end-.html
Is the fed really just increasing the interest rate due to wage increases. Or due to a economic warfare with china. Last person standing wins.
Geffrey Gundlach said on Schwab impack Event- 11/02 CNBC "Fed is miles behind the bond market" economy weakening. Dec 50% fed hike maybe not 75%.
That's an interesting concept…that the Feds want people unemployed or working low wage jobs to make up for rising inflation. Makes sense considering alot of jobs, employees are ripped off big time for their labor.
No they dont we want ourselves in debt because we are ignorant.
Powell is in an impossible position. The world economy is terminally ill, but this fact cannot be spoken of. Powell's goal, like Yellen and Bernanke before him, is to not have the house of cards come down on his watch. His goal now is to attempt to reduce life support as much as possible, without killing the patient, so that he has the tools to bring the patient back from near death. Rinse, repeat. Everybody knows that the patient (aka us) can't survive without some level of life support, but politicians cannot ever say this out loud, if they want to have jobs.
Fed is hyperfocused on markets but wants them down now. If they get S&P 500 down below 3000, they will get very nervous.
Ultimately based on this video and comments, nobody knows for sure what is going on. This must be what collapse feels like.
wtf how does this get 105k subs
Fantastic update, greatly appreciated. On the other hand there are many ways of manipulating the market. I am glad as a small investor that I am putting my hard earned savings into the most that being said the only transparent market there is day trading. I've made over 11BTC using Andrew Martins method, his trading skills is exceptional.
They can't slow down wage growth because of the fall off in labor availability. Migration from Mexico became negative a number of years ago while labour participation from the boomers is dramatically falling off as most are retiring. Gen Z is among the smallest in history. Just like you can't just conjure up energy out of thin air, neither can you just snap your fingers and force labour to magically appear out of nowhere. You've got to pay up if both are hard to come by
I feel like there is an issue with the rising wages causing inflation story here. If you look at yoy comparisons of non financial corporate profits its almost doubled from about 1 trillion to 1.7 trillon. So, if increased wages were a main factor driving inflation then we would see corporate profit fall, but its skyrocketed instead. Actually, if you do a rough calculation, you see inflation costs a person about $7500 a year. The corporate profit increase divided by working people costs them $4666 a year. That's about 60% of the inflation. So, the idea of price gouging does appear to be on the table for cuases of inflation at least that is what it looks like. And yes, the fed said it wants a softer labor market which means it wants you out of a job. I feel for anyone who decided to take the leap and buy a house, because now your home payments are going through the roof. Rich people will only buy up more once prices fall and in the end you will own nothing and be happy.
You mentioned “average” several times in this video in reference to inflation targets and made a comparison of this “average” inflation versus actual inflation. You have left out a very key piece of information. Time! An average is simply the sum of things divided by a number. For example we could consider an annual average of quarterly measures. IE the sum of each of 4 prior quarters divided by 4… etc
My point is, I suspect you might be within the wheelhouse of being correct with your assertion but my guess is that the math that goes into fed decisions is far more complex. Likely a multi-factor combination of trend analysis and forecasting models. Employment and inflation rates can still be targeted, but is your going to suggest they are aiming for an average then you must suggest the time frame, 1 month, 1 year, 1 decade, one millennium etc.
Hi Simon. I started listening to "The Creature from Jekyll Island." Thanks for the recommendation. I'm over 1/4 of the way through it, and I can already tell it's hitting the nail on the head. No wonder why MSM denounced it as "conspiracy theory"!
Looks like all the tech comanies (meta etc) are all taking hits and laying off thousands…. so maybe this is the start of the unemployment you mentioned
It is not the feds who wants us broke and in debt…its unregulated capitalism.Broke and in debt are the wheels of capitalistic economy. Thats keep you working and working and working, and capitalism keeps on turning and turning and turning.
Fed needs to raise 250 bps to contain inflation . way too weak. pathetic central banks
Your not on the verge of overthinking this time. Most of the time your not overthinking. You think!
Democracy ..was the big lie..The Fed..dollar and debt…was the reality…with..war and weapons..BRICKS…will smash the dollar by..2024…
Lifting up wages is probably the biggest cause of inflation. Amazon drivers for example start at $25 per hour in my area. It took me untill I was 30 years old working in machine shops for 10 years to make that.
6 the hard way ?
I listen to you because I find the things you say interesting. But you just talked out of both sides of your mouth. You admit that the true definition of inflation is the increase in the supply of money and credit. Yet, you just touted a Keynesian philosophy that wages cause price inflation! This is complete Keynesian nonsense, and if you believe this and you also subscribe to the Austrian school then you are a hypocrite and you really have no anchor. And I still believe you are a Federal Reserve shill.
If everyone quit their jobs on the same day the entire ruling elite would immediately have to concede to the demands of the people. But everyones to worried about being cooler than their neighbor, treating their kids and spouses how their bosses treat them, and buying pointless material things to ever even come within 1% of fixing or reversing whats coming. This is all part of the plan and it end with horror and theres nothing anyone can do to stop it, just sit back and enjoy hell.