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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: nicewatch who wrote (13637)	8/1/2025 3:24:58 AM
From: elmatador	Read Replies (2) \| Respond to of 13771

Good morning from here Nicewatch. I am now looking on the after effects of the actions taken by the Trump administration. We cannot take a $120 trillion dollar economy and give it a swing. We saw that during COVID. The after effects were out of control of any country or group of countries. The Trump tariffs are so encompassing it affects the whole world economy. Le me make an analogy. It is like you take it the punching bag and give it a big swing. You can't make stationary again by hitting it. It has a momentum of its own. COVID showed that. Remember the inflation swing, the Fed looked at it and said it was transitory but it wasn't. It was like countries thought it is just a matter of pushing a button and the whole supply chains would kick into action. It didn't. Because the economy effects take time for the monetary authorities to see, by the time it is visible, the monetary are always behind. By the time they act on inflation, the same is already on its way down. Trump's team want the Fed to play ball with them but Powell hasn't budged. Powell suggested it could take months for the central bank to determine whether the president's new import duties would cause just a one-time rise in prices, or a more persistent increase in inflation. The CPI reflects out-of-pocket expenditures of all urban households, while the PCE price index also includes goods and services purchased on behalf of households. According to the Bureau of Economic Analysis (BEA), a U.S. government agency, PCE accounts for about two-thirds of domestic spending and is a significant driver of GDP The inflation brand is CPI. Is visible. It is popular. People can taste in the supermarket counter. But it is not what the Fed uses for monetary policy, it uses the PCE. This early indication means no cut in 2025