Two very common misconceptions about today's inflation, let's say three misconceptions:
1) Indeed, while rising interest rates have contributed to home unaffordability for prospective new buyers, its not necessarily the absolute reason for today's high costs of housing. Rather, the price inflation instigated as a result of below market mortgage rates for so long stimulated demand- thus forcing prices ever upwards ( Asset Inflation)
2) Today's inflation is much different that what was experienced in the 1970's, the last time we had an incompetent in the White House ( Democrat President Jimmy Carter). Seventies inflation was largely demand driven due to an expanding, young population or Demographic: The Baby Boomers. Now, the Baby Boomers are retiring or retired and consume and spend less. More importantly, they become net sellers of assets to finance their retirement ( Stocks, Bonds, Houses, etc.). This should be deflationary, at least in theory.
3) FED Chairman Jerome Powell is limited as to what he can and can not officially or publicly state. Jerome Powell is not at liberty to openly criticize President Biden's fiscal profligacy. For example, today's inflation is almost entirely due to massive Federal government annual deficits ( $ TRILLION a year thus far), as well as our $35 Trillion National Debt and interest expenses associated with new debt ( rolling over old maturing T-Bills). Its a huge Ponzi scheme that has reached its own "Outer Limits" ( remember the old T.V. series by the same name?)
Fiscal-Driven inflation, as we largely have today, is also amplified by spending associated with conducting Wars, as historically wars are always inflationary, as they were in the 1960's during the Vietnam War years and for a whole decade after our involvement in Vietnam peaked in 1971.
So, today's inflation is prone to over simplification and omission of facts both historical and contemporary. Bottom line, the general public may understand the obvious inflation experienced at the grocery store or gas station but that by no means suggests the actual source of inflation ( President Biden) is widely recognized, due to "politics" and a prevalence of "low information" voters today. Remember too why Economics is sometimes referred to as a "Black Art" of sorts. No racial inferences intended here.
Jerome Powell didn't "flub inflation". He didn't make the inflation and he made no promises about it. He expressed his wishes and kept his hand on the tiller. Grow Up.
Thomas's politics sounds like he is a Democrat and votes for Joe Biden. You must Hate America as much as you "hate" President Trump or his appointed FED Chair, Jerome Powell. Just saying.
Craig: How could you possibly read all that into Thomas' comments. I can't say I fully agree with either of you, but please be nice. Otherwise, thanks for reading!
AL LEWIS's 'FLATIONS
Two very common misconceptions about today's inflation, let's say three misconceptions:
1) Indeed, while rising interest rates have contributed to home unaffordability for prospective new buyers, its not necessarily the absolute reason for today's high costs of housing. Rather, the price inflation instigated as a result of below market mortgage rates for so long stimulated demand- thus forcing prices ever upwards ( Asset Inflation)
2) Today's inflation is much different that what was experienced in the 1970's, the last time we had an incompetent in the White House ( Democrat President Jimmy Carter). Seventies inflation was largely demand driven due to an expanding, young population or Demographic: The Baby Boomers. Now, the Baby Boomers are retiring or retired and consume and spend less. More importantly, they become net sellers of assets to finance their retirement ( Stocks, Bonds, Houses, etc.). This should be deflationary, at least in theory.
3) FED Chairman Jerome Powell is limited as to what he can and can not officially or publicly state. Jerome Powell is not at liberty to openly criticize President Biden's fiscal profligacy. For example, today's inflation is almost entirely due to massive Federal government annual deficits ( $ TRILLION a year thus far), as well as our $35 Trillion National Debt and interest expenses associated with new debt ( rolling over old maturing T-Bills). Its a huge Ponzi scheme that has reached its own "Outer Limits" ( remember the old T.V. series by the same name?)
Fiscal-Driven inflation, as we largely have today, is also amplified by spending associated with conducting Wars, as historically wars are always inflationary, as they were in the 1960's during the Vietnam War years and for a whole decade after our involvement in Vietnam peaked in 1971.
So, today's inflation is prone to over simplification and omission of facts both historical and contemporary. Bottom line, the general public may understand the obvious inflation experienced at the grocery store or gas station but that by no means suggests the actual source of inflation ( President Biden) is widely recognized, due to "politics" and a prevalence of "low information" voters today. Remember too why Economics is sometimes referred to as a "Black Art" of sorts. No racial inferences intended here.
Jerome Powell didn't "flub inflation". He didn't make the inflation and he made no promises about it. He expressed his wishes and kept his hand on the tiller. Grow Up.
AMERICA HATERS
Thomas's politics sounds like he is a Democrat and votes for Joe Biden. You must Hate America as much as you "hate" President Trump or his appointed FED Chair, Jerome Powell. Just saying.
Craig: How could you possibly read all that into Thomas' comments. I can't say I fully agree with either of you, but please be nice. Otherwise, thanks for reading!