You can generalize this to recent statements made by the CEO's of major retailers. Target in particular took a major beating from having far too much inventory relative to their sales pace, and others are surely in the same boat.
Because of this newfound oversupply, inflation may not last long. I don't think the Fed should be hiking in …
You can generalize this to recent statements made by the CEO's of major retailers. Target in particular took a major beating from having far too much inventory relative to their sales pace, and others are surely in the same boat.
Because of this newfound oversupply, inflation may not last long. I don't think the Fed should be hiking in this environment. Real interest rates may be negative, but they're not negative enough to stimulate economic growth in our moribund economy. I think massive fiscal consolidation and strategic default would be smarter moves. We already effectively strategically defaulted on debts to Russia by confiscating (excuse me, "freezing") their assets, and forced them to in turn default on their USD-denominated bonds to boot.
The Fed is pinned by a dual mandate that applies only to price stability and employment. Low unemployment is going to be easy to maintain with demographics and long COVID. It will be a welcome relief for besieged American workers. Economic growth is not actually a prime directive for the Fed at all. This is up to the Executive and Legislative branches.
Furthermore, with our idiotic SWIFT moves, we have cast a permanent shadow over the USD/IMF SDR's as reserve currencies. When the USD was *the* reserve currency, we had a permanent bid from price-insensitive players. This kept real interest rates low. We will now have to actually offer a competitive return on investment to attract capital, which is going to be a monumental challenge to an economy that has spent 70 years living the easy life. It will take a very, very long time and a lot of suffering to trim the fat and build new muscle.
You can generalize this to recent statements made by the CEO's of major retailers. Target in particular took a major beating from having far too much inventory relative to their sales pace, and others are surely in the same boat.
Because of this newfound oversupply, inflation may not last long. I don't think the Fed should be hiking in this environment. Real interest rates may be negative, but they're not negative enough to stimulate economic growth in our moribund economy. I think massive fiscal consolidation and strategic default would be smarter moves. We already effectively strategically defaulted on debts to Russia by confiscating (excuse me, "freezing") their assets, and forced them to in turn default on their USD-denominated bonds to boot.
The Fed is pinned by a dual mandate that applies only to price stability and employment. Low unemployment is going to be easy to maintain with demographics and long COVID. It will be a welcome relief for besieged American workers. Economic growth is not actually a prime directive for the Fed at all. This is up to the Executive and Legislative branches.
Furthermore, with our idiotic SWIFT moves, we have cast a permanent shadow over the USD/IMF SDR's as reserve currencies. When the USD was *the* reserve currency, we had a permanent bid from price-insensitive players. This kept real interest rates low. We will now have to actually offer a competitive return on investment to attract capital, which is going to be a monumental challenge to an economy that has spent 70 years living the easy life. It will take a very, very long time and a lot of suffering to trim the fat and build new muscle.