The Fed has it wrong according to Dem-Media ...

KnightWhoSaysNit

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Jul 19, 2010
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This article suggests that interest rate increases are not the solution. Instead, it concludes that since we have automation today, that the better solution is to increase immigration and job training.

Well that's an admirable goal. I wonder how many of the same geniuses are advocating that we take only those "immigrants" with the aptitude and/or skills to become programmers of the robots.

Only in Dem-Media's world would a long-term issue be the solution to an immediate problem. Meanwhile, let's raise the cost of everything through a porous border, easy money, more regulation, and more labor unions.
 

NJPSU

Well-Known Member
May 29, 2001
42,446
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This article suggests that interest rate increases are not the solution. Instead, it concludes that since we have automation today, that the better solution is to increase immigration and job training.

Well that's an admirable goal. I wonder how many of the same geniuses are advocating that we take only those "immigrants" with the aptitude and/or skills to become programmers of the robots.

Only in Dem-Media's world would a long-term issue be the solution to an immediate problem. Meanwhile, let's raise the cost of everything through a porous border, easy money, more regulation, and more labor unions.
Well Trump was begging the Fed for negative interest rates.
 

rumble_lion

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Aug 7, 2011
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This article suggests that interest rate increases are not the solution. Instead, it concludes that since we have automation today, that the better solution is to increase immigration and job training.

Well that's an admirable goal. I wonder how many of the same geniuses are advocating that we take only those "immigrants" with the aptitude and/or skills to become programmers of the robots.

Only in Dem-Media's world would a long-term issue be the solution to an immediate problem. Meanwhile, let's raise the cost of everything through a porous border, easy money, more regulation, and more labor unions.

None of the above - higher interest rates, increased immigration or job training is going to fix the supply chain problems.
 

PaoliLion

Well-Known Member
Nov 2, 2003
11,037
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This article suggests that interest rate increases are not the solution. Instead, it concludes that since we have automation today, that the better solution is to increase immigration and job training.

Well that's an admirable goal. I wonder how many of the same geniuses are advocating that we take only those "immigrants" with the aptitude and/or skills to become programmers of the robots.

Only in Dem-Media's world would a long-term issue be the solution to an immediate problem. Meanwhile, let's raise the cost of everything through a porous border, easy money, more regulation, and more labor unions.

The Fed has a very crude set of tools to work with. The root cause of inflation is worldwide supply chain issues. The only want to lower inflation is to either increase supply or sharply lower demand of products. It would take a massive knee cap of the economy to lower demand. I tend to agree that the solution is not raise interest rates, but I do believe some increase was warranted.
 

junior1

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May 29, 2001
5,235
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This article suggests that interest rate increases are not the solution. Instead, it concludes that since we have automation today, that the better solution is to increase immigration and job training.

Well that's an admirable goal. I wonder how many of the same geniuses are advocating that we take only those "immigrants" with the aptitude and/or skills to become programmers of the robots.

Only in Dem-Media's world would a long-term issue be the solution to an immediate problem. Meanwhile, let's raise the cost of everything through a porous border, easy money, more regulation, and more labor unions.
Used to be that mmt was the solution ...unless inflation hit....well, back to the drawing board
 

KnightWhoSaysNit

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Jul 19, 2010
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Used to be that mmt was the solution ...unless inflation hit....well, back to the drawing board

The purpose of MMT is to keep the money supply in line with production to control inflation, i.e., maintain "price stability." The government started to corrupt this when it changed "price stability" to mean "standard of living stability," i.e., the change in the CPI calculation at the peak of the last inflationary super cycle.

This time around they ignored inflation to facilitate politics. The political aspect was about using the government's money creation capability to counter the government's destruction of the private sector. Initially there would be no pain, until people started spending the money. Then the government needed to rescind the hand out or there would be uncontrolled inflation. As always, it is having trouble doing that without the loss of political capital. Propped asset prices would collapse.

It's similar to 2008 when, beforehand, the government created an environment for bad loans. Government wanted people in housing that could not afford housing. It was made worse by securities rules that allowed the risk associated with these bad loans to be hidden from investors. Add leveraging and it was a bubble ready to burst. The fix after the collapse was more money-printing. It wasn't bad for inflation because the central banks understood their role.

Not this time. The money-printing was aligned with political upheaval. The government figured it had a solution for recessions and it was going to prevent one from happening even when that is exactly what should have happened as businesses and supply chains were shut down. What they've done is make it all worse down the road.

Government always makes matters worse in the long run when it steps outside the bounds of its original purpose -- national security and protection of interstate commerce.
 
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Dzapper

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May 5, 2019
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None of the above - higher interest rates, increased immigration or job training is going to fix the supply chain problems.
And, of course, this impending stagnation/high inflation situation can easily be fixed by applying the anti-inflation features of MMT. Could you remind us again how that's going to work and why we shouldn't be worried at all?
 

royboy

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Nov 9, 2001
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Lewisville, NC
Speaking of Dem-Media...

Press pumps up Joe Biden​


... a cottage industry of so-called journalists is already twisting truth to make the failing president a victim, if not a hero. It’s as if somebody in an old newsroom called out, “Sweetheart, get me rewrite,” and a thousand scribes raised their hands to volunteer to make Biden look like something other than the second coming of Jimmy Carter...

This is civil war level fiery and drew the ire of GOP colleagues, who accused him of slandering the justices and of trying to intimidate the court.

Guilty as charged, but so what? There are no consequences because at this stage of the Dems’ devolution into a snarling mob, there isn’t much difference between the supposed moderate wing and the wingnuts. For all practical purposes, they are one and the same.
 
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