President Joe Biden - Kamala Harris Administration

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#52,111
BigOrangeMojo said:
Trump absolutely left Biden an inflationary fire since CPI is a multi-month lagging indicator...

Instead of putting out the fire, Biden tossed gas on it...
Click to expand...

Why hasnt the money supply kept up with Bidens debt spending which is as great as Trumps?
 
#52,112
#52,112
Orangeburst said:
Why hasnt the money supply kept up with Bidens debt spending which is as great as Trumps?
Click to expand...

Fed funds rate went from 0 to 5.5%. That's the only reason inflation isn't much worse than it already is...

To claim a tiny reduction in money supply with the interest rate shock is disingenuous, at best by the Ds..
 
#52,113
#52,113
BigOrangeMojo said:
Fed funds rate went from 0 to 5.5%. That's the only reason inflation isn't much worse than it already is...

To claim a tiny reduction in money supply with the interest rate shock is disingenuous, at best by the Ds..
Click to expand...
We just ran a $2T deficit, not even $1.7T as reported. Why has inflation moderated? Do we expect it to take off again, and if so, why did it pause?

I have a good amount of money in 90 day t bills right now, and the payout aint shabby. The cumulative amount of payout is astounding and the deficit will skyrocket. Although short term are coming down, I think long term t bills are at 4-5%.

If inflation is tamed while defict spending is steady, it decouples the theory that inflation is caused by deficit spending. Not sure how going from 25T debt and 3% inflation can go to 30T and 7% inflation and then 35T to 3% inflation. I would say inflation was primarily a result of covid material supply and worker issues.
 
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#52,114
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If the gov has to have higher rates to entice buyers, this increases gov debt, which theorectically increases inflationary pressure.

Btw..i am not well versed in monetary policy but trying to make sense of it all.
 
#52,115
#52,115
Orangeburst said:
We just ran a $2T deficit, not even $1.7T as reported. Why has inflation moderated? Do we expect it to take off again, and if so, why did it pause?

I have a good amount of money in 90 day t bills right now, and the payout aint shabby. The cumulative amount of payout is astounding and the deficit will skyrocket. Although short term are coming down, I think long term t bills are at 4-5%.

If inflation is tamed while defict spending is steady, it decouples the theory that inflation is caused by deficit spending. Not sure how going from 25T debt and 3% inflation can go to 30T and 7% inflation and then 35T to 3% inflation. I would say inflation was primarily a result of covid material supply and worker issues.
Click to expand...

As interest rates goes up, the money supply usually decreases. For Biden to claim a neglible decrease in money supply from his peak is taking benefit for something he didn't do...Money supply is still higher now than Jan 2021 and Fed Rate went from 0 to 5.5% in that timeframe. That Dem talking point is stupid and makes no sense...

So, what caused inflation that we saw in 2021-22.


1. Deficit spending - You had 10 years of excessive defecit spending from Trump and Obama that was masked by a strong economy. In late 2019, there was some signs of inflation pressures. Some of that was hidden by fave foreign exchange/trade. Inflation was going to hit once economy slowed or defecit spending became too much. With COVID, both things happened.

2. Wage pressures - You can't pay people $700 a week not to work and expect wages not to increase.

3. Supply chain/China lockdown issues.

4. More deficit spending in 2020 and 2021-2022.

5. Biden threw a geopolitical uncertainty into the energy market at the worst time. You had wage, food, and supply chain pressure - the last thing the market needed was anything to hurt energy. You can't on D1 of Presidency attack energy industry without a plan in place.

6. Powell was way too slow in raising rates. Data supported late 2020 time frame but he didn't have the backbone to do it before the election..

Both parties get blame for inflation....
 
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#52,117
#52,117
BigOrangeMojo said:
As interest rates goes up, the money supply usually decreases. For Biden to claim a neglible decrease in money supply from his peak is taking benefit for something he didn't do...Money supply is still higher now than Jan 2021 and Fed Rate went from 0 to 5.5% in that timeframe. That Dem talking point is stupid and makes no sense...

So, what caused inflation that we saw in 2021-22.


1. Deficit spending - You had 10 years of excessive defecit spending from Trump and Obama that was masked by a strong economy. In late 2019, there was some signs of inflation pressures. Some of that was hidden by fave foreign exchange/trade. Inflation was going to hit once economy slowed or defecit spending became too much. With COVID, both things happened.

2. Wage pressures - You can't pay people $700 a week not to work and expect wages not to increase.

3. Supply chain/China lockdown issues.

4. More deficit spending in 2020 and 2021-2022.

5. Biden threw a geopolitical uncertainty into the energy market at the worst time. You had wage, food, and supply chain pressure - the last thing the market needed was anything to hurt energy. You can't on D1 of Presidency attack energy industry without a plan in place.

6. Powell was way too slow in raising rates. Data supported late 2020 time frame but he didn't have the backbone to do it before the election..

Both parties get blame for inflation....
Click to expand...
Inflation will be hard to keep tamped down since we look to spend 6 trillion a year and take in a little over 4 trillion in tax revenue.
 
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