Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "Target Just Warned the US Economy is COLLAPSING" video.
-
1
-
What caused the prices to increase? There's Supply-side inflation = egg supply down due to Bird Flu culls of egg-laying hens vs. Demand-side inflation, where too much money is chasing too few goods, for example, luxury goods, like Louis Vuitton luggage. Nobody goes hungry when it's Demand-side inflation, because it's inflation in Discretionary spending. But when it's Supply-side inflation, Non-discretionary spending has to fall, and people are eating porridge for dinner, instead of meat and 2 veg. And the consumption in the economy right now is being mostly done by the top 10% of the Income Distribution. That's not enough consumption to grow the economy. Why? Rich people don't spend all their income as workers and poor people do. Inflation measures the speed of price increases. But that doesn't matter if your wages and other income is keeping up with price increases. So cutting Interest Rates by the Fed doesn't change that relationship. What the Federal Funds Rate cut is doing is signalling to the Market that more lending is needed, but the Market can ignore that signal. Why? They may perceive that it's too risky to lend more at that time. So, unless your credit rating is stellar, you might not get a loan. And even if you do, it will cost more during such times. Anyone with limited or no assets will have experienced falling living standards since 2008. And now, the Wealth Transfer from those people to the Asset Wealthy is so acute, it's killing the job and growth creating parts of the economy. And the Asset Wealthy don't want to stop sucking up more money. It's crazy, but greed is crazy unless it's controlled. And the Fed can't do anything to control it. What's needed is not more 5ax cuts for the wealthy, but more tax increases on speculation, and more tax credits on productive investments in industry. Without that, the US economy is in trouble.
1
-
1