Early this morning, the Bureau of Labor Statistics (BLS) released the latest inflation data, which showed that the consumer price index (CPI) rose 0.3 percent last month.
I can't wait to get a copy of your new book. I'm so glad you are writing about this ongoing nonsense. As an active Stock market investor, I turn on CNBC daily while around the house to track market activity. I know exactly what you are talking about and have the same reaction as you; sometimes, I turn the sound off so I don't have to listen to these clowns as they pretend the Fed is driving the "Inflation car" and repeat "neutral rate" nonsense all day.
I hope I'm not getting too far off the subject, but these people (so-called market analysts) have no idea where US dollars come from. It reminds me of the scene in your film "Finding the Money," where you show people turning over rocks looking for money. They bring on CEOs (and others) like Larry Fink of BlackRock that is the largest global asset management firm in the world (11.5 trillion US dollars), to complain about the size of the "Federal government debt" and the need to address it. What is Larry's solution? You guessed it, Larry: The Federal Government has a "spending problem," not a "revenue problem!" Where does he think that 11.5 trillion dollars came from? It's probably 12.5 by now! Does he think the "nongovernment sector" can support that much debt accumulation being sucked out of the economy? At the end of the day, all money is someone's debt! The US is a net importer, so the external sector is not supporting it.
There's a savage scene in the Mel Gibson movie "The Patriot." I'm not a fan of his politics, but I concede that he has been an action movie superstar. Set at the beginning of the Revolutionary War in South Carolina, one of Gibson's sons has just been killed by British soldiers and another is being led away to be hanged. Gibson (apparently prolific) enlists two of his other young sons (probably no older than 12 and 10) to help him intercept the British troops leading his oldest son to the gallows. As they wait in ambush, Gibson says: "What did I tell you boys about shooting?" They both respond: "Aim small, miss small." Isn't this what the Fed is trying to do with the inflation rate?
“…we didn’t get the kind of deterioration in the labor market that so many people (including Chairman Powell) expected the rate hikes to deliver…”
Unrelated - I overheard Nick Hanauer talking about how a perfectly efficient economy is a myth, and that the argument around raising minimum wages decreases hiring rates is a not supported by evidence. This was on one of the older YouTube vids I came across of his. His insight seems understandable, but I’m battling this idea of an imperfect economy.
Unrelated - I’m a big fan of Fabozzi and Jones’s book on financial institutions, in which they discuss efficient market hypothesis (weak, semi-strong, strong). My understanding is that the strength of the economy is very much a spectrum ranging from Strong (Blue chips) to weak (Real-Estate). My mind often ponders on the implications of this hypothesis, specifically as it might apply to other markets, such as the labor market.
Unrelated - After reading the quote above, I’m starting to wonder if maybe we have the wrong idea about inflation, as it relates to the economy between job makers and job takers. Your book on national debt was my very first insight into the topic, and planted this small seed of thought. One thing is for sure, at least in my perspective, inflation is not as scary as we all think it is, it can actually be quite helpful.
My question to you, if the rate hikes didn’t deliver the type of labor deterioration many people expected, what factor(s) do you think have contributed to the strength (or weakness, emh) of the labor market thus far?
Never underestimate Prof Kelton in busting myths about the economy that many of us have been brainwashed into believing. The brainwashing still continues to be propagated by those in econ and govt who should know better. Yet it seems they intentionally (or believe it themselves) keep spouting off about the "unsustainable deficit and debt" and how the govt is doomed to BANKRUPTCY unless drastic spending cuts in the budget are enacted.....Hello, Elon. He is convinced his austerity program, that is sure to cause "momentary pain", will save the govt from going under and protect our children and grandchildren with sky rocketing debt.
Or is this all smoke and mirrors to line his own pockets with his deregulatory schemes for his own businesses and fulfill his fevered dream of becoming the first $trillionaire the world has ever seen?
I hope Prof Kelton can also bust some myths about the blockchain crypto/bitcoin world of scams and get rich schemes Elon and the tRump regime are so fond of. Down with Doge.
2% is a number that former NZ finance minister Roger Douglas literally pulled out of his arse. The then NZ Labour government wanted to appear "tough" on inflation, and the RBNZ, desperate for a new train to exist after the failures of monetarism, gladly latched onto it. Global Central Banks then all followed suit, helped by the fact that inflation was around 2% at the time anyway. It was entirely a political choice, and had nothing to do with "economics". The whole sorry history can be found on the RBNZ website.
CPI has been reported by Bloomberg starting in 1914 - Avg 3.30% YOY
PCE has been reported by Bloomberg starting in 1960 - Avg 3.30% YOY
GDP is currently 2.70% YOY
Numbers look fine to be. Maybe it's the 2% target that needs rethinking.
Loved the movie - thanks
Greg Cater
I can't wait to get a copy of your new book. I'm so glad you are writing about this ongoing nonsense. As an active Stock market investor, I turn on CNBC daily while around the house to track market activity. I know exactly what you are talking about and have the same reaction as you; sometimes, I turn the sound off so I don't have to listen to these clowns as they pretend the Fed is driving the "Inflation car" and repeat "neutral rate" nonsense all day.
I hope I'm not getting too far off the subject, but these people (so-called market analysts) have no idea where US dollars come from. It reminds me of the scene in your film "Finding the Money," where you show people turning over rocks looking for money. They bring on CEOs (and others) like Larry Fink of BlackRock that is the largest global asset management firm in the world (11.5 trillion US dollars), to complain about the size of the "Federal government debt" and the need to address it. What is Larry's solution? You guessed it, Larry: The Federal Government has a "spending problem," not a "revenue problem!" Where does he think that 11.5 trillion dollars came from? It's probably 12.5 by now! Does he think the "nongovernment sector" can support that much debt accumulation being sucked out of the economy? At the end of the day, all money is someone's debt! The US is a net importer, so the external sector is not supporting it.
There's a savage scene in the Mel Gibson movie "The Patriot." I'm not a fan of his politics, but I concede that he has been an action movie superstar. Set at the beginning of the Revolutionary War in South Carolina, one of Gibson's sons has just been killed by British soldiers and another is being led away to be hanged. Gibson (apparently prolific) enlists two of his other young sons (probably no older than 12 and 10) to help him intercept the British troops leading his oldest son to the gallows. As they wait in ambush, Gibson says: "What did I tell you boys about shooting?" They both respond: "Aim small, miss small." Isn't this what the Fed is trying to do with the inflation rate?
“…we didn’t get the kind of deterioration in the labor market that so many people (including Chairman Powell) expected the rate hikes to deliver…”
Unrelated - I overheard Nick Hanauer talking about how a perfectly efficient economy is a myth, and that the argument around raising minimum wages decreases hiring rates is a not supported by evidence. This was on one of the older YouTube vids I came across of his. His insight seems understandable, but I’m battling this idea of an imperfect economy.
Unrelated - I’m a big fan of Fabozzi and Jones’s book on financial institutions, in which they discuss efficient market hypothesis (weak, semi-strong, strong). My understanding is that the strength of the economy is very much a spectrum ranging from Strong (Blue chips) to weak (Real-Estate). My mind often ponders on the implications of this hypothesis, specifically as it might apply to other markets, such as the labor market.
Unrelated - After reading the quote above, I’m starting to wonder if maybe we have the wrong idea about inflation, as it relates to the economy between job makers and job takers. Your book on national debt was my very first insight into the topic, and planted this small seed of thought. One thing is for sure, at least in my perspective, inflation is not as scary as we all think it is, it can actually be quite helpful.
My question to you, if the rate hikes didn’t deliver the type of labor deterioration many people expected, what factor(s) do you think have contributed to the strength (or weakness, emh) of the labor market thus far?
Thanks!
Never underestimate Prof Kelton in busting myths about the economy that many of us have been brainwashed into believing. The brainwashing still continues to be propagated by those in econ and govt who should know better. Yet it seems they intentionally (or believe it themselves) keep spouting off about the "unsustainable deficit and debt" and how the govt is doomed to BANKRUPTCY unless drastic spending cuts in the budget are enacted.....Hello, Elon. He is convinced his austerity program, that is sure to cause "momentary pain", will save the govt from going under and protect our children and grandchildren with sky rocketing debt.
Or is this all smoke and mirrors to line his own pockets with his deregulatory schemes for his own businesses and fulfill his fevered dream of becoming the first $trillionaire the world has ever seen?
I hope Prof Kelton can also bust some myths about the blockchain crypto/bitcoin world of scams and get rich schemes Elon and the tRump regime are so fond of. Down with Doge.
2% is a number that former NZ finance minister Roger Douglas literally pulled out of his arse. The then NZ Labour government wanted to appear "tough" on inflation, and the RBNZ, desperate for a new train to exist after the failures of monetarism, gladly latched onto it. Global Central Banks then all followed suit, helped by the fact that inflation was around 2% at the time anyway. It was entirely a political choice, and had nothing to do with "economics". The whole sorry history can be found on the RBNZ website.
*reason* to exist! (autocorrect)
Let me know when you and Bernie get your heads out of your ass
you have 8 comments because ur not ripping hearts out