Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "Profound Implications from Feds Rate Cut Decision" video.

  1. He is not arguing for avoiding a recession. He's describing why it's impossible, despite the Fed pretending it was. He's being Toto in the Wizard of Oz, pulling aside the curtain to reveal how powerless The Great Oz really is.
    6
  2. No; that wouldn't work, because it's way too late. The problem is not the consumer, and interest rate hikes hit them the hardest, whilst rewarding those who got the vast majority of the extra money that was printed - banks and corporations. Let's not be hypocritical here. Bait and switches like that have embedded the political division that created the dysfunctional politics in America. The biggest wealth transfer in history took from those reliant an a wage and gave it to asset owners. That's why Interest Rake hikes are a wrecking ball, not a scalpel or a panacea. Real wage growth as a proportion of Real GDP has been stagnant for years. Only the asset wealthy have benefitted, and they exclude taxation as the means to correct that imbalance. And they don't want to pay better wages either. Until that stupid argument is resolved, the number of resentful, bitter, and angry people grows daily. And the UXB ticking away isn't being defuse.
    1
  3. With all the QE and Covid money showers that allowed too much money to flood into the economy with no mechanism to recover it, not only drove up speculation, but exacerbated the inevitable post-covid supply shocks from geopolitical and climate issues. The illusion of The Return to Normal after the Great Financial Crisis and the Pandemic is finally broken. This is like a very, very long episode of one of those aviation disaster documentaries where the CRM deficits, combined with human factors, just makes things worse. The Swiss Cheese model applies because all the holes in the safety regime were lining up for years. The priorities of those running the airplane created more problems in the long run, which have, despite previous warnings, have resulted in no soft landing being now possible. Unwinding this nearly 2 decades mess is not just going to be nasty. It's going to excruciatingly painful. There's no way to avoid the consequences.
    1