Tomorrow we go to our polling stations and cast our votes for the ‘future’ of this nation.
We are told by the MSM that the most important issue of this election is the economy more specifically rising inflation…..watching the events and the sounds around this election I do not agree that it will be the deciding factor.
If that is true why has seemingly no one explained how it came to this.
One side blames Biden for the disaster of the economy and the other side blames…well whatever is the most convenient…..but just what or who brought us to this moment in our election process?
One of the culprits for this crisis is being dropped at the feet of the Fed.
The Federal Reserve has made two major policy blunders in the last 25 years.
The first was being unaware that the foundation of the U.S. banking system had been eroded away by complex mortgage securities that carried high credit ratings but turned out to be toxic during a broad housing downturn. The resulting meltdown in valuations caused the global financial crisis in 2008 that hobbled the U.S. economy for years.
More recently, a misreading of the strength of the labor market and the persistence of price shocks sparked by the pandemic led to the highest inflation rate in 40 years and the final chapter of this saga is still to be written. The policy error paved the way to make 2022 the worst year in financial markets arguably since the 1930s. Both stocks and bonds have plummeted and Federal Reserve Chairman Jerome “Jay” Powell is at the center of the financial turmoil, landing him on the MarketWatch 50 list of the most influential people in markets.
Critics have pounced on the Fed. Powell’s insistence that rising inflation was “transitory” and would quickly dissipate once the economy reopened more fully has been called “probably the worst inflation call in Fed history” by Mohamed El-Erian, chief economic adviser for Allianz. The economist Stephen Roach has compared Powell to former Fed chair Arthur Burns, whose indecisiveness under intense political pressure led to the crushing inflation of the 1970s. As recently as March 2022, when the Labor Department was reporting a 7.9% annual rise in consumer prices, Powell and the Fed were just wrapping up their injections of liquidity into financial markets.
How Powell, who is not a trained economist, is ultimately remembered will depend on whether he’s able to tame inflation without driving the U.S. into a deep recession. It could still all end relatively well, but the debate about what signs the U.S. central bank ignored and why will be studied and debated for years to come.
I tried last week to help fill in the gaps in our knowledge of inflation and even included some ‘solutions’ given by some in the GOP….
If you want to help this country then please consider all angles….do not just vote for pasty faced old white guy….for their solutions are antiquated and not going to actually help in the 21st century.
Please take the time to vote.
I Read, I Write, You Know
“lego ergo scribo”