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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Sdgla who wrote (14805)	11/7/2022 10:32:07 AM
From: Kirk ©	Read Replies (1) \| Respond to of 26398

The Democrats, knowing that most people in the US are not good enough with math to understand basic economics, counter that charge with "inflation is a worse outside the US and it is a global phenomenon, hardly our fault." Unfortunately, most news commentators are just as bad at economics AND they are usually in the tank with that party so they don't say "the US EXPORTS inflation via the strong dollar from raising rates faster than the other central banks." Inflation is high due to bad politics. Most in the country know this intuitively but don't know why. Here is my theory: I believe the Fed PROBABLY would have started raising rates sooner but POLITICALLY it knew they would lose their jobs and be replaced by inflation doves who wanted to enable the Democrats to spend more on social programs paid for by borrowing at low rates before inflation got even more out of control and the long end of the yield curve would soar... after they were out of office. So, the Fed, specifically Powell, had to keep rates low until he got reappointed by Biden and got through the approval process. Then he had to wait for coincident data to say inflation is out of control so he'd not be hauled off to jail for "contempt of Congress" for lying about keeping rates low... thus ignoring the leading inflation indicators that said they should have started raising rates a year sooner.... Anyway, that is my story and I'm sticking to it until others have a better one.