Re:US Federal Reserve says its goal is ‘to get wages down’
by arcticbull on Saturday May 28, 2022 @05:37PM
(#31544096)
You're missing my point. It wasn't ever a case of 'medicine now or then' - we took the medicine before. It worked.
Then some other stuff nobody could have foreseen (for real who had land war in Europe on their 2022 bingo card) caused a separate and in many ways unrelated crisis. The mistake is blending them together into one just because they happened back to back.
Further, dealing with a massive deflationary spiral and everyone being out of work is fundamentally significantly harder than tackling supply-driven inflation. Inflation rates are already coming down significantly. The last monthly CPI print came in at 3.6% annualized, and month-over-month PPI came in at 0% for services and 1.3% for goods (driven by commodities of course).
You are treating the $4T as a 'liability' without considering what it purchased. You're reading half a balance sheet. Spending can be inflationary or deflationary depending on what it's used for - and so many other factors.
Japan has printed huge quantities of new money since 1990 and their CPI has been ~0% for the last 30 years. [1]
Then some other stuff nobody could have foreseen (for real who had land war in Europe on their 2022 bingo card) caused a separate and in many ways unrelated crisis. The mistake is blending them together into one just because they happened back to back.
Further, dealing with a massive deflationary spiral and everyone being out of work is fundamentally significantly harder than tackling supply-driven inflation. Inflation rates are already coming down significantly. The last monthly CPI print came in at 3.6% annualized, and month-over-month PPI came in at 0% for services and 1.3% for goods (driven by commodities of course).
You are treating the $4T as a 'liability' without considering what it purchased. You're reading half a balance sheet. Spending can be inflationary or deflationary depending on what it's used for - and so many other factors.
Japan has printed huge quantities of new money since 1990 and their CPI has been ~0% for the last 30 years. [1]
[1] https://fred.stlouisfed.org/series/JPNCPIALLMINMEI