WaPo lies are always good for a laugh

 But with Fed Chair Jerome H. Powell moving aggressively . . .

Here.

Stonks just laugh at Powell 0.75 point rate hike to fight inflation

 

LOL, after one month the Fed has reduced its balance sheet by a whopping 0.37%, only $8.899 trillion to go!

 

 

 

At this rate it will take only 22 more years and Jerome Powell will be 91.

The Fed has raised the Fed Funds interest rate to 1.58% and the celebrity investors are squealing like stuck pigs, too

 

 

 

 

 

 

 

 

 

 

 

 

 

Paul Volcker was Fed Chair from 1979 to 1987.

His peak average Fed Funds Rate was north of 16% in 1981.

 

If the Fed can break the economy, it's not a capitalist economy

 It's a casino, and the table is rigged.

• A day after Powell’s assurances about the economy, markets are worried that ‘Fed breaks something’ 
  

Stonks laugh again after Powell's miserable 75 basis point hike to fight inflation

 The rate is now 1.52% vs. CPI up 8.5% year over year and the all commodities Producer Price Index up 21.5% year over year.

This isn't being tough.

It's a joke perpetrated on an ignorant public like all the other jokes of our time, like George Floyd, Caitlin Jenner, and Jan 6.

 

All Items Consumer Price Index under Jerome Powell isn't capturing inflation like it did under Arthur F. Burns even though they both increased money supply at about the same rate

Currency in Circulation (CURRCIR) under Arthur F. Burns rose at a compound annual growth rate (CAGR) of 8.64% from Feb 1970 to March 1978. The Consumer Price Index (CPIAUCSL) rose at a compound annual growth rate of 6.49%.

After four years of Jerome Powell, Feb 2018 to Feb 2022, Currency in Circulation rose at a similar 8.41% CAGR but the CPI only at 3.31% CAGR, almost 50% less than under Burns.

Milton Friedman famously said, “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”

Something is rotten in CPI Denmark.

The stock market didn't give a flying fig about the Fed's quarter-point interest rate increase today: Powell was way too timid, should have just gone with one full point

 The insanity of easy money is liked most by the stock market, which is why Powell is going slow on his way to two percent after he completes the six more increases he's promising over the next year.

If he thinks the rate ought to be 2% to curb inflation, well then get on with it, boy, and show us what you've got! Nip it in the bud if it's that big a FD.

Truth is they've got nothing, and intend to do nothing about inflation.

Inflation this high needs a bigger gun than 2% one year down the road. That's not how it was done in the 1980s, and 2% even if done right now won't do a damn thing.

This is just inflation theatre, just like the TSA war on terror security theatre, the this government theatre, the that government theatre, and lately the vaccine theatre.

Meanwhile the first in line to all this easy money keep getting richer, and richer, and richer.

Gotta keep that going while appearing to DO SOMETHING!

What a crock.

 

After Biden's disgraceful withdrawal from Afghanistan, General Milley's disgraceful check on President Trump, now we learn of the appearance of Federal Reserve corruption

The reputation of major US institutions is headed to hell in a handbasket.

Fed Chief Powell, other officials owned securities central bank bought during Covid pandemic

Dennis Kelleher, CEO of the nonprofit Better Markets, said if some of these Fed actions are not against the rules, the rules need to change.

“To think that such trading is acceptable because it is supposedly allowed by Fed’s current policies only highlights that the Fed’s policies are woefully deficient,” Kelleher told CNBC.

 

Has anyone on the right discussed how Trump and his Fed chair are destroying free market capitalism?

Of course not. When the right does it, it's OK, see. When the left does it, it's socialism or some damn thing. These suck ups say nothing except, "China, baaaaaaaad! America, goooooooood!"

The Fed is now buying EVERYTHING in sight in order to backstop EVERYONE. Today we learned it would buy in the municipal bond market, the commercial mortgage backed securities market, the might as well be junk bond market, and CLOs. That's not free market capitalism.

The Fed balance sheet is already past $6 trillion this week. Remember when it wasn't even a trillion back in 2007? Of course you don't. Remember when Bernanke promised to "normalize" it when the last crisis was over? Of course you don't. Guess who is promising the same thing again? Same Fed chair, different name. Jerry Powell. 

Fed Is Seizing Control of the Entire U.S. Bond Market

It's bad enough the Fed has been long buying agency mortgage backed securities and Treasury securities.

Eventually it will buy stocks, too, now that it is buying anything and everything in the bond markets.

This is all bullshit. If you believe in capitalism, then you believe in bankruptcy. Nobody believes in that anymore, least of all Donald Trump. Otherwise he'd do something about it.

So America declares itself officially dead today, as it literally dies from a virus it willingly invited in.

How fitting. 

Liberalism's mental disorder gets its death wish.

God I miss the '50s

Just 3,000 full-time jobs created in Aug 2019 as Trump bump runs out of steam

Full-time increased to 132.156 million in Aug 2019 from 132.153 million in July, an increase of just 3,000.  

Average full-time in 2019 at 50.3% of population is still well below the average two-decade experience of Americans between 1987 and 2008 when full-time averaged 51.8% of population. We can't even yet match the average cyclical high of 51.1% prior to 2008.

In August 2019 51.8% working full-time instead of the actual 50.9% would mean 2.23 million MORE people working full-time right now than actually do.

The spread between the 2019 average of 50.3% and the 1987-2008 average of 51.8% is even higher: 3.9 million MORE who could be working full-time on average this year but are not, simply because whatever broke after 2008 still isn't fixed, not by Trump, not by Obama, not by Republicans, not by Democrats, not by Bernanke, Yellen, Powell or by anybody else.

It's busted, I tell ya, but they still let legal immigrants in by the millions, not to mention illegals.

It's insanity.

One can go from being Trump's bestie to his enemy in like five minutes, right Ann Coulter?

There is no jobs boom but you'd never know it from the headlines

Are all these stories written by twenty-somethings? They are an offense to anyone with a knowledge of history:

"US adds robust 224,000 jobs in June" -- ABC

"Strong hiring in June: 224,000 new jobs, 3.7% unemployment" -- CBS

"Big month for jobs, big headache for Fed Chair Powell" -- NBC

"U.S. adds 224,000 jobs as hiring rebounds in June, calming worries about the economy" -- MarketWatch

"US labour market booms in June" -- BBC

"The US labor market rebounds in June, adding far more jobs than expected" -- Business Insider

"Jobs report smashes expectations" -- AOL 

"Labor market comes roaring back as jobs see 'nice pop', economists say" -- MarketWatch

Meanwhile, the facts.

Trump has yet to put numbers on the board which distinguish payrolls as robust, strong, big, calming, booming, rebounding, smashing or roaring.

For roaring you have to look back to Reagan and Clinton. Trump is not in their league. So far he's not even as good as Obama for putting up big months (granted, over eight years), and is merely one term president Bush 41-league, the best comparison for comparable time in office. It ain't over 'til it's over, but 30 months in Trump has just two big months to his name, that's it, and the clock is ticking on the longest, but nowhere near best, economic expansion in history.

On a net population-adjusted basis there are as of 2018 5.2 million more Americans 16 to 64 years of age not in the labor force who used to be in it since low levels reached for respective age groups in 1989, 1995 and 1997, including one million fewer not in labor force age 25-54 since 1989. There are 2.8 million more 16-24 not in labor force in 2018 than in 1995 on a population adjusted basis, and 3.4 million more age 55-64 since 1997.

5.2 million people actually sitting on the sidelines added to payrolls in a real jobs boom would boost current monthly levels by 108,333 on an average basis over 4 years, in other words, well above 300,000 monthly.