RE:RE:RE:RE:Brilliant economy lesson Continued.
what i'm trying to say is the gov't is lying about fighting inflation. In fact, inflation is the go to solution for big gov't and big corps, as their ever increasing debt get wither away by inflation. Gov't would never stop spending or opt for bankruptcy to fight inflation. They could raise taxes but only up to a point. Inflation is the preferred tool of all big empire to fight inflation. That target we keep hearing about of annual inflation of 2% is unattainable narrative. Remember pre-1994, FOMC inflation target was 0%, then after around mid 2000, it's 1.5%. After more printing in 2008, the inflation target was 2%. Prior to covid it was +2%. Given the new spending, i say 4% is a better sounding target although in reality we are experiencing more like 6-10%+ inflation. In term of CPI, we have already exceeded 1970's inflation.
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Old Quote
Mrbb
no doubt cathie is trained in economic and finance but she ain't train in science or engineering which deal with mass and energy.
i respect her call on tsla (the longer the suppression, the bigger the spike of share price) on national media but she lost me when she start bashing oil and ICE. Used ICE cars were in high demand during the covid lockdown caused by chip shortage. Now going forward, many who got their overpaid shiney new or used truck/cars at high interest rate are walking away from their payment (auto subprime). There will be lots of re-possessed ICE automobilies to be dump into the market soon. I think the transition to EV would take a longer time period than what the disruptive analysts and S-curve specialist believe. Like is said, they aren't engineers.
On the economy, i have said it before, 'They need to wreck it in order to reset it (build back better)", Nothing happen by accident. Jerome powell rate hike mania is no accident or a mistake. IMO, the rate hike is to protect the king dollar as BRICS is trying to topple it and to keep commodity prices down. Rate hikes also to counter the massive inflationary action by the US government. If we are in a inflation, expect more of it because biden approved $380B Inflation Reduction Act, and then a $1.7 T spending bill. This is a $2T in spending to inflate the economy.
i'll stop here