What is it you think caused inflation?

Perry Dutch said:
What is your plan: to spread as much pain before you die or spread as much joy before you die?

We all die, so it's clearly a choice for those who are sane, intelligent and educated. What is your choice, PmP?

How do you choose to live the rest of your life?
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correcting your errors......it is a life long project
 
cawacko said:
I’ll bite Jarod, how does a President end QE?
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You are correct, technically a president does not, but when the fed suggested it might, Trump threw a tantrum and made threats so they backed off. Once Biden took over he let it happen.
 
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Jarod said:
You are correct, technically a president does not, but when the fed suggested it might, Trump threw a tantrum and made threats so they backed off. I’m nice Biden took over he let it happen.
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Go back and read about LBJ and his threatening of Fed Chair William Martin. It's nothing new (though that doesn't justify it). Biden can scream at Powell if he wants but they both f'd up and played a (big) role in our current inflationary environment.
 
cawacko said:
Go back and read about LBJ and his threatening of Fed Chair William Martin. It's nothing new (though that doesn't justify it). Biden can scream at Powell if he wants but they both f'd up and played a (big) role in our current inflationary environment.
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Biden could have screamed at Powel, but he did not, because he knew ending QE was the right thing to do, and he bit the bullet on inflation for that.
 
Jarod said:
Biden could have screamed at Powel, but he did not, because he knew ending QE was the right thing to do, and he bit the bullet on inflation for that.
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He could have screamed and a couple of things would have happened:

1) it would have been a very bad look, politically stupid (Biden essentially saying I want to keep inflation high) and economically ignorant thing to say; are you suggesting Biden should be praised for that? If yes, that's an extremely low bar you have for the man.

2) Powell would have laughed; The Fed already f'd up calling inflation transitory and not raising rates sooner. Already knowing that he f'd up you think he would have not made up for it because Biden said he wanted QE still in place? No way. Same reason Powell isn't stopping raising rates even though Elizabeth Warren and other doves have called for him too.

I don't know how much you read about the Fed. Based on this thinking the President is responsible for ending QE probably not a lot but offering grace its understandable. Powell does not want to be seen as another Arthur Burns so he's pretty much gone all in on fighting inflation. Biden asking to him to stop increases would not have changed what Powell has done/is doing.
 
SmarterthanYou said:
trump, obviously, and nearly every state chief executive as well
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Agreed on POTUS but the States varied. It was a pandemic and, judging by the one in 1918, US mitigation standards helped reduce the loss, but should have been better. The Moon Hoaxers/Mask Deniers cost the US lives and money.


https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8108277/
COVID-19: a comparison to the 1918 influenza and how we can defeat it
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cawacko said:
He could have screamed and a couple of things would have happened:

1) it would have been a very bad look, politically stupid (Biden essentially saying I want to keep inflation high) and economically ignorant thing to say; are you suggesting Biden should be praised for that? If yes, that's an extremely low bar you have for the man.

2) Powell would have laughed; The Fed already f'd up calling inflation transitory and not raising rates sooner. Already knowing that he f'd up you think he would have not made up for it because Biden said he wanted QE still in place? No way. Same reason Powell isn't stopping raising rates even though Elizabeth Warren and other doves have called for him too.

I don't know how much you read about the Fed. Based on this thinking the President is responsible for ending QE probably not a lot but offering grace its understandable. Powell does not want to be seen as another Arthur Burns so he's pretty much gone all in on fighting inflation. Biden asking to him to stop increases would not have changed what Powell has done/is doing.
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So when Trump screamed it was okay, and the fed correctly backed down.

If Biden had screamed it would have been awful and the fed wouldn't have backed down?

Remember they ended QE before inflation started in any significant way.
 
zymurgy said:
who is talking about elections?

2008 was our last financial calamity that nearly ruined us.
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The Housing and Banking Crises were decades in the making...with Congress to blame.

Starting a war in Iraq didn't help. We can fault Bush, but, again, Congress was to blame.
 
Jarod said:
So when Trump screamed it was okay, and the fed correctly backed down.

If Biden had screamed it would have been awful and the fed wouldn't have backed down?

Remember they ended QE before inflation started in any significant way.
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For starters, I just answered why Powell wouldn't have back down. Maybe you can explain why you think Biden would have wanted to extend QE. Are you saying he's ignorant on monetary policy?

The Fed essentially stopped buying bonds in March 2022. And yes, inflation was already rearing its ugly head at that time.
 
cawacko said:
For starters, I just answered why Powell wouldn't have back down. Maybe you can explain why you think Biden would have wanted to extend QE. Are you saying he's ignorant on monetary policy?

The Fed essentially stopped buying bonds in March 2022. And yes, inflation was already rearing its ugly head at that time.
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Trump wanted to prolong QE, because he had an election coming and did not want to deal with the negative effects ending it was going to cause.

Why did the fed Back down when Trump threatened them?
 
inflation is baked into the cake.

it's a progression made inevitable with the beginning of our currency coming off the gold standard.

When we have to print more money, all existing money is worth less.

It's an occasionally necessary tax that can be implemented without passing a tax bill.
 
Jarod said:
Trump wanted to prolong QE, because he had an election coming and did not want to deal with the negative effects ending it was going to cause.

Why did the fed Back down when Trump threatened them?
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I can go off on Trump all day but that's not what you initially spoke about or I responded too. Can you explain why you think Biden would have, or should have, pushed for the continuation of QE.
 
cawacko said:
I can go off on Trump all day but that's not what you initially spoke about or I responded too. Can you explain why you think Biden would have, or should have, pushed for the continuation of QE.
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I think Biden did the correct thing by not pushing to continue. One of the major reasons we have inflation now, in my opinion, is a result of the 12 years of QE.

You never ever "go off" on Trump.
 
Interesting note on all these views on inflation as Biden’s fault is that they all completely ignore the fact that inflation is worldwide, and currently, most of the world is experiencing worse than what the US is going thru

So now did Biden cause world wide inflation?
 
Jarod said:
I think Biden did the correct thing by not pushing to continue. One of the major reasons we have inflation now, in my opinion, is a result of the 12 years of QE.

You never ever "go off" on Trump.
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As explained, even if he pushed for it (which would have been economically & politically ignorant) Powell wouldn't stopped what they were doing.

Inflation has multiple reasons; two big ones were monetary policy (the Fed reacting too late to what it had created) and excessive fiscal stimulus.
 
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