The Fed is your friend?

[Up In Smoke]

The FED rate hike does more than stifle home, vehicle and other big ticket purchases and of course any borrowing money... It has an unadvertised aspect of forcing job cuts, which in turn forces a contraction of consumer spending (since unemployment puts people on a strict budget.) This in turn tightens the money supply, to cause inflation to go down. Sadly, it is the disposable workers that are financially ruined in the process. It had devastating effects during the Carter administration, and again in the early 80s.

This is why I've been tracking the job listings between these two rate hikes. They are the canary in the coal mine - the first to get cut. Job listings don't count (unless someone is hired,) and companies can cancel the listings without any bad publicity or anyone even noticing.

Job listings are important. There are probably 200,000 new workers entering the workforce every year. No job listings, and 200,000 have been disposed of, without ever even being on the books. Eventually, if things get worse, one by one they come for YOU!

Can't say it is actually happening yet, but it is important to keep an eye on it.

IMO, raising short term interest rates gives the investor a safe place to park cash. When borrowing rates go up, so do savings rates. For far to long the only way to invest was in the market. I see nothing wrong with 4-5% interest rates.

 

[Thebrownblob]

IMO, raising short term interest rates gives the investor a safe place to park cash. When borrowing rates go up, so do savings rates. For far to long the only way to invest was in the market. I see nothing wrong with 4-5% interest rates.

I suppose it’s better than losing money. But it’s not even keeping up with inflation.

 

[IVE GOTTA PACKAGE 4U]

I suppose it’s better than losing money. But it’s not even keeping up with inflation.

The 30-year treasury is barely paying 3%

 

[Thebrownblob]

The 30-year treasury is barely paying 3%

So essentially you are losing money because of inflation

 

[IVE GOTTA PACKAGE 4U]

So essentially you are losing money because of inflation

By looking at the yield curve the market is betting the inflation is going to be on a higher side for the next couple of years but not for the long term.
The sixth month t bill is paying more than the 10-year Treasury note

 

[Thebrownblob]

By looking at the yield curve the market is betting the inflation is going to be on a higher side for the next couple of years but not for the long term.
The sixth month t bill is paying more than the 10-year Treasury note

Manchin, in Reversal, Agrees to Quick Action on Climate and Tax Plan (Published 2022)

The West Virginia Democrat, a holdout on his party’s domestic agenda, said the package would reduce inflation, a concern he had cited in rejecting it just weeks ago.

www.nytimes.com

And I’m betting that out of control government spending is going to sink all of us. Democrats just can’t help their selves

 

[IVE GOTTA PACKAGE 4U]

Manchin, in Reversal, Agrees to Quick Action on Climate and Tax Plan (Published 2022)

The West Virginia Democrat, a holdout on his party’s domestic agenda, said the package would reduce inflation, a concern he had cited in rejecting it just weeks ago.

www.nytimes.com

And I’m betting that out of control government spending is going to sink all of us. Democrats just can’t help their selves

If they want to give away some money do it the right way.
Give people over there and send them to go back to work and reward them with some tax credits. That might help solve some of the labor shortage problem

 

[Thebrownblob]

If they want to give away some money do it the right way.
Give people over there and send them to go back to work and reward them with some tax credits. That might help solve some of the labor shortage problem

I do not believe they want the labor shortage solved. They are looking to create dependency.

 

[Up In Smoke]

So the earth swallowed a bunch of people up?
I guess the “data” you’re being fed or creating can’t be flawed….

You’re going with the earth swallowed them up???? OK…

Where are the people to fill the 11 million job openings? The last handful of employees we've hired were lured away from another employer

 

[...]

It may have to be gradual. Too quick would be dystopian?

The Fed's existence is dystopian.

 

[bottomups]

Where are the people to fill the 11 million job openings? The last handful of employees we've hired were lured away from another employer

Some retired. We're not going back to work.

 

[Next Day Error]

What will cause the system to crash is the decoupling of oil from the US$. The petrodollar is the only reason we can print so much money and go into so much debt. Russia, China, and India going in together on a new regional reserve currency is another threat, and probably why the media is starting to get the sheep warmed up to the idea of war with China.

Once the US goes full fiat (not linked to oil) our debt will likely sink us. And politicians will not be able to stop promising free stuff. It's the only tool they have.

The Chinese Communist Party is completely blameless. Xi is blameless for the New Cold War. China is blameless for choosing not to talk to us. It's all the fault of the "media". Sure.
We're not going to war with China anytime soon. Christ, at least I hope so...

 

[Next Day Error]

The Fed's existence is dystopian.

Every major country or union has a central bank. What should we replace it with to compete?

 

[Over70irregs]

I do not believe they want the labor shortage solved. They are looking to create dependency.

The gov. Yes. That has been the long term plan for awhile. Notice it’s constant regardless of results.

 

[Over70irregs]

So essentially you are losing money because of inflation

Debasement

 

[Over70irregs]

The Fed's existence is dystopian.

Technology that is not debased is the only answer. Humans lie.

 

[Over70irregs]

Where are the people to fill the 11 million job openings? The last handful of employees we've hired were lured away from another employer

Lol. Technology is prepping for those openings. It is obvious.

 

[Lineandinitial]

Where are the people to fill the 11 million job openings? The last handful of employees we've hired were lured away from another employer

How about in the ranks of the unemployed?
To me, it makes more sense that they are still here on earth as they were in 2020.
The BS unemployment numbers are faked to see who will believe that Bumbling Biden is actually doing something…

OR

You can go with your earth swallowed them up theory.
LOL. Cracking me up!!!

 

[zubenelgenubi]

The Chinese Communist Party is completely blameless. Xi is blameless for the New Cold War. China is blameless for choosing not to talk to us. It's all the fault of the "media". Sure.

In what way do you think my post was assigning or not assigning blame about anything to anyone? I find these tangential rant responses to my posts fascinating.

We're not going to war with China anytime soon. Christ, at least I hope so...

We've been right on the edge of WW3 ever since Russia invaded Ukraine. If you've been paying attention to how the media has been covering the Taiwan situation, it's pretty clear they are trying to garner support for war with China. I never said it was the media's fault, they are doing their job as the propaganda arm of the corrupt political establishment of our government.

 

[Thebrownblob]

In what way do you think my post was assigning or not assigning blame about anything to anyone? I find these tangential rant responses to my posts fascinating.



We've been right on the edge of WW3 ever since Russia invaded Ukraine. If you've been paying attention to how the media has been covering the Taiwan situation, it's pretty clear they are trying to garner support for war with China. I never said it was the media's fault, they are doing their job as the propaganda arm of the corrupt political establishment of our government.

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Every provocation is just another step towards disaster