Market went up today on good economy news. With thousands of new spenders, getting a pre charged card, every day, how can inflation come down? I read the govt. fudged numbers to make things look good.
I'm at the end of the supply line in Alaska. Not much for shortages. Store shelves adequately stocked. How can all these new spenders not be effecting everything.?

Tax money being spent by the Government but all they will want is more. Kind of like the “ New jobs” when people went back to work. Smoke and mirrors

I don't believe much of anything coming from the government, they will lie about anything to help their cause.

One can smuggle all the drugs in they want here if they are illegal. Even fentanyl that is killing our kids.

This is easy to figure out........

Fiat currency to China = money to drug cartels in Mexico = money back to the US government that allows it.

The immigration situation here and in Europe is more than that though. The globalists have to do two things at once and they are achieving the two perfectly.

1. They have to destroy western civilization and white people culture and their values through forced vaccines, programs and mass media promoting vasectomies, breakdown of family, and not wanting children, and also nonstop biracial and trans stuff on TV to pervert our youth.

2. Crush the dollar.......eventually. None of them want it crushed just yet though. That's why they are bringing all these people that don't share our culture, beliefs, etc. into western countries. For the time being, it spreads inflation around, while at the same time destroying our livelihood.

They have to crush the will of white conservatives in the US. They need our geography and our resources to make globalism work. They are doing a fine job.

There. That's Chancey's conspiracy theory for 1/25/2024.

John Adams wrote that....

“Our constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.”
Morality and virtue are the foundation of our republic and necessary for a society to be free.

If you take out religion, morality, and virtue from the equation, then you get what we have going on now. People make up their own definitions of what is right and what is wrong. Hence we have everything backwards and opposite now. From men competing in women's sports, to the breakdown of the Justice System, to letting children mutilate themselves, to allowing people into our country that will NEVER assimilate, to transgenders teaching children in schools, to letting dragqueens read and dance to our kids, to corrupt governments covering up murders and pedophilia, to queers making porn in government buildings, etc. etc. etc.

while Q4 GDP rose by $329 billion to $27.939 trillion, a respectable if made up number, what is much more disturbing is that over the same time period, the US budget deficit rose by more than 50%, or $510 billion. And the cherry on top: the increase in public US debt in the same three month period was a stunning $834 billion, or 154% more than the increase in GDP. In other words, it now takes $1.55 in budget deficit to generate $1 of growth... and it takes over $2.50 in new debt to generate $1 of GDP growth!

History has proven that's what happens with fake money. It was designed for and meant to destroy the middle class, but keep the elite filthy rich. They know full and well what they are doing to our currency. They just need our sweat.

It creates a Have and Have-not society. I apologize for taking this thread off topic earlier.

Back in December, the feds gave out well over $36,000,000 in just 1 day to illegal aliens at $3000.00 each for over 12,000 Federal law breakers, who just entered. They also gave most of them a free plane or bus tickets to the US city of their choice. Once in the cities of their choice, most illegal aliens receive many thousands more in aid. This can't be allowed to go on.

We need immigrants, but not parasitic ones, many of whom hate us. We need tests and vetting for immigrants. Any immigrant, that commits any, even minor crime, should be permanently deported. Being allowed in the US is a great privilege for an immigrant. Automatic birth citizenship needs to stop for children of non citizens. No immigrants should be allowed from terrorist or Muslim countries, without vetting of the highest magnitude.

Our Western system of government is superior to all others and Americans need to know and celebrate that. However, being free does not mean allowing kindness and compassion to lead us to our destruction, as kind hearted, overly liberal buffoons are doing. Terrible cultures, like those of all Muslim countries, that degrade and harm women, are using our love of individual freedom to take us over. Compassion needs to be directed with logic.

Keith

If these numbers are correct, then I think it goes back to the topic from the other economy thread regarding the President's influence on the economy.

I am far from an economic expert, but I am currently in college taking a macroeconomics class. We all know the Fed has been fighting inflation for the past few years by raising the interest rate. Now, in the class I'm taking, they're teaching that during times of higher inflation the government should contract spending to help lower the inflation rate. But this administration just keeps spending, and then everyone wonders why inflation isn't responding to the Fed's rate hikes. I think the market's going to be in for a surprise when March comes and goes and the Fed doesn't lower the interest rate. If Biden keeps spending the way he is... are MORE rate hikes coming in the future?

Every administration just keeps spending. You can't blame the just president. The Senate and House are equally to blame. And it isn't just one party.

Increase in national debt: Dictator Don 6.7 trillion, BO 8.6, GW Bush 5.85, Clinton 1.4, GHW Bush 1.55 , Reagan 1.86 trillion.
Jimmy carter the last one in billions; "only" 299 Billion. Others in the billions: Ford 223, Nixon 121, Johnson 42, Kennedy 23, Ike 23, Truman 7, FDR 236 in 12 years AND WW2.

Presidents from 1790-1913 added 2.3 billion to the national debt.

Congress holds the purse strings, so in the end they are truly the ones to blame. Of course, often times the president (D or R) is pushing for spending.

You cannot contract entitlements (especially ones with automatic inflation increases) and increasing interest payments. This is what we in the trapping profession, call a trap. BTW Inflation is responding to the FED rate hikes, hence the stopping of increases in rates.

P.S. Federal spending has gone down since 2020 and 2021 covid stimulus years. The years that caused the inflation.

Indeed some Fed members do think it may be necessary to raise rates further.........but they are not in the majority at this point.
I think what we might see is the Fed maintaining the current rate environment but slacking off a bit on QT. Instead of letting 95 billion per month roll of their balance sheet they may cut that to 60 billion.
This will allow the Fed to claim that they are still fighting inflation but at the same time it will be effectively loosening financial conditions. I think their thinking is that this will help with the "soft landing" but still give them political cover if inflation starts back up.

On your question on the other thread about presidents influencing Fed behavior by appointing people who share his outlook:

When someone is appointed to the Fed Board that appointment is for 14 years. The terms are staggered with one person's term expiring every two years. It would be very difficult for a president to "stack" the Fed with people who agree with him for any length of time.
Remember the big flap a couple years ago when trump was threatening to fire Powell.That went nowhere because the legalities of a move like that are unknown at this point and are quite complex.

"Trump heaps pressure on Fed and its chairman Powell to cut rates". August 2019


WASHINGTON (Reuters) - President Donald Trump on Wednesday continued to pressure the Federal Reserve and the central bank's chairman to lower interest rates, saying its policies were hampering U.S. growth and reducing the country's ability to compete economically.
"Doing great with China and other Trade Deals. The only problem we have is Jay Powell and the Fed. He's like a golfer who can't putt, has no touch. Big U.S. growth if he does the right thing, BIG CUT - but don't count on him!" Trump wrote on Twitter."



"October 31, 2019 - WASHINGTON — The Federal Reserve cut interest rates on Wednesday for the third time this year, reversing nearly all of 2018’s rate increases as uncertainty from President Trump’s trade war and slowing global growth continue to pose risks to the United States economy. "

"Data show that when the third interest rate cut was the last cut in a series, stocks got a healthy boost in the following year."

Thanks White.

I noticed while reading about the board of governor's that although they serve a 14 year term, none of them seem to. Other than Powell, none of them have been there for more than 5 years. Why so high of a turnover?

It appears 4 of the 7 were appointed since Biden's been in office.

I suspect that the biggest reason is money. Those guys don't get paid a lot. I think a Fed governor makes a bit over 180K. That's not much compared to what they could be making in private industry . Also I'll bet they are in high demand by large money institutions after a stint at the Fed. Insight on how the Fed does things and an inside view of thinking and protocols.........plus contacts still on the board.

Information, insight, experience are pretty valuable commodities that enhance your resume. It wouldn't surprise me if it is a lot more work for a lot less money as a Board governor

They have a tiger by the tail and are swerving between the two extremes of severe inflation and severe deflation. Given policy lags, they are making a mess of it.
We have left the deflationary years of 1980 to 2020 behind and that in March of 2020 with the US 10-Year bond yielding only 54 basis points, we achieved peak deflation. We now live in an inflationary world until these debt issues are resolved. Or, said another way the only way we get deflation is if the Fed and other monetary authorities allow a deflationary collapse. (not impossible, but unlikely).

That would stop all illegals to stay put amd dont come here.

President Dementia wouldjustmake the Border Guards shoot them likehe has them cut the fences to let them in.