RE:RE:RE:RE:Soft landing? Monetary Policy is a blunt instrument. I just meant that fiscal policy must be noninflationary as well in order to achieve preferable outcomes.
Raising interest rates while we have a tax and spend gov't is ridiculous and results in rates having to go too far to achieve preferable results. This always ends in recession and central banks always take the blame. With responsible fiscal policy in place rates would already be too high and the likelihood of recession would be a fraction of the present certainty that it is, just like the last 12 times this happened.
Please give us a real government that realizes they bear responsibility for this problem as well.
CravenMoorehead wrote: Gold, I would agree with you to an extent.Governments today don't realize that fiscal policy is still an important tool. They'd rather just let central banks deal with all the problems through monetary policy so they can concentrate on their true day jobs; not responsible governance, but solely trying to get re-elected. That is the politicians true goal. We need leaders, not politicians, but those days are over.
Add on taxes like the carbon tax are definitely inflationary, while income taxes can be argued to be as well under a government like this, that is a leveraged spender. Leaving the money with the people will result in less money spent and more invested, stronger economy and lower inflation.
Oh to have a politician who thinks their primary job is saving money rather that spending it in a bid for re-election!
goldwatch69 wrote: BS? You must be another stupid Liberal. The main reason rates are up elsewhere are to protect currencies from falling in relation to the U.S. dollar. The U.S. is leading the way and even in the face of bankruptcies, defaults and banks failing, the boneheads will continue fueling the fire while pretending nothing is wrong. You can't fix inflation like this. Interest rate hikes add to inflation. It only makes it worse. Fix the supply chain and reduce taxes. The Biden administration wants higher rates for take in money in bonds for there wasteful spending and to help themselves and their buddies profit from fixed income assets and interest on cash accounts. They don't care what they do to the middle class. Watch what happens with all the foreclosures coming. Go have a drink to kill your pain.