Facing Down a Wrath of Biblical Proportions

[Goodnight]

Originally Posted by andywire

I didn't say it was Obama's fault. He didn't have much control over quantitative easing, if any at all, which is mainly what I was referring to. Interest rates were kept artificially low for too long. Now they are being raised during a recession, which is downright clownish. Should have done that years ago so we had something to tackle this recession with.

The only option to fight inflation is raising interest rates, same as the 1980’s. I recall Trump criticizing Powell for speculating about raising interest rates in his term. Interest rates need to be raised with caution so as not to impact the economy.

[Goodnight]

Originally Posted by Kibby

Janet Yellen was in charge — Obama put her in charge. She is pure Keynesian & a confirmed Leftist.
Keep in mind — she boldly said that any “inflation” we have is Transitory.

Yellen is a Keynesian economist and has been described as a "Keynesian to her fingertips"; during the Great Recession, she "warned against an over-hasty removal of stimulus"; "insisted that the Fed pay as much attention to unemployment as to inflation"; and "believes the state has a duty to tackle poverty and inequality".

Powell has been the chairman of the fed since 2018, he has been against interest rate increases until recently.

[Oklazona Bound]

Originally Posted by lancers

I did difference now is we are 40 years sicker.

We have massive federal debt now that was not the case 40 years ago. We also have an economy that has been propped up by people borrowing large amounts of money. Home loans, vehicles, credit cards and the only thing that kept that going was artificiality low interest rates.



Back in the 70's and 80's the debt was 40% of GDP. Now its 140%.

[TMSRetired]

Originally Posted by Oklazona Bound

We have massive federal debt now that was not the case 40 years ago. We also have an economy that has been propped up by people borrowing large amounts of money. Home loans, vehicles, credit cards and the only thing that kept that going was artificiality low interest rates.



Back in the 70's and 80's the debt was 40% of GDP. Now its 140%.

Also different....Congress did not go on a spending spree when Volcker hiked up rates to reign in the money supply.