Comments by "Charles Brightman" (@charlesbrightman4237) on "Yardeni Says The Fed Is Done Cutting Rates This Year" video.
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AMERICA IS DESTINED TO FAIL
(And here is 1 reason why: The US Fed's 2% annual economic inflation goal):
The US Fed has a goal, I repeat 'goal', of 2% annual economic inflation, and this is on top of all the 2%'s that came before it, which turns out to be an exponential amount of economic inflation over time. Most American citizens do not receive at least a 2% annual pay raise, nor 2% benefit increase, nor a 2% investment increase every year. Hence, most American citizens are getting poorer over time as far as buying power is concerned. This can also apply to businesses as the businesses costs go up as well and their profits do not keep up with the true cost of economic inflation. (Citizens also having less buying power to buy things from businesses).
Some possible reasons:
1. The US Fed has a blind spot and are unaware of this issue.
2. The US Fed is aware of this issue but does not care.
3. The US Fed is aware of this issue, cares, but is intentionally trying to hurt 'We The People'.
* What exactly did the US Fed know and when did they know it?
Some possible solutions:
1. Change the US Fed's economic inflation goal to 0% annually. If the US economy deflates below 0%, the US Fed could increase inflation to get to 0%. If the US economy inflates to over 0%, the US Fed could deflate to get to 0%.
2. Take away the US Fed's dual mandate of price stability and maximum employment to just be price stability, let the markets and the US Government take care of maximum employment. Does anybody believe that the US Fed could even do just 1 job, price stability?
* Otherwise, America is destined to fail, in part due to the US Fed's annual 2% economic inflation goal and American citizen's pay raises, benefit increases and investment increases not keeping up with the true cost of economic inflation. Math is still math.
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