Guest Post by Martin Armstrong
Federal Reserve Bank of Minneapolis President Neel Kashkari has advised against anticipating near-term rate cuts. While speaking to the Financial Times, the Fed president stated that people would simply prefer a recession to continued inflation.
“I have learned that the American people—and maybe people in Europe equally—really hate high inflation. I mean, really viscerally hate high inflation,” he told the Financial Times’ The Economics Show podcast. Kashkari is speaking as if we are not already in a recession. It is not difficult to understand the “visceral” hatred people around the world feel toward rising prices. The effects of inflation are felt with every purchase, causing the average person to adjust their entire lifestyle.
Vague issues such as rising unemployment or declining wages do not impact everyone. “I lose my job, I lean on my sister or my parents or my friends, and they help me through it. But high inflation affects everybody. There’s no one I can lean on for help because everyone in my network is experiencing the same thing I’m experiencing,” Kashkari explained. Mass layoffs, for example, would only impact a fragment of the overall population, and people would feel lucky simply to keep their jobs.
“In the US, GDP has been remarkably strong, very strong,” he noted. “The labor market has been resilient. Wage growth has been mostly resilient. And we’re seeing even the housing market has shown signs of resilience. So if I look at this resilience and economic activity, that does not look like an economy that is under pressure of very high, very tight monetary policy.” Yet, inflation is outpacing wage increases and people are watching their savings dwindle while spending less. The average person cares not of the health of the overall economy as they simply want to be able to continue maintaining or improving their standard of living. Most Americans, for example, do not invest and live paycheck to paycheck.
Real prices have far surpassed anything they calculate in CPI. Everyone understands that prices have risen far more than the arbitrary number the Fed provides us. Taxes are continually increasing for everyone in every tax bracket. The government not only adds to inflationary issues with their spending but then expects their citizens to foot a portion of the bill with taxes, which will simply never be enough.
Then we have Washington telling the masses to blame corporations for price gouging while raising their taxes and making it increasingly difficult to conduct business and maintain a large workforce. It is not that the people would prefer to be in a recession, the real issue is that countless people are entering survival mode. People everywhere want to hold onto whatever they may have out of fear for the future, but they are unable even to hoard as real prices now demand they hand over whatever they have to maintain their lives.
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Think of a recession as a few days of heavy binge drinking In Vegas, you get back to the Motel 6 room with the help of a Spanish speaking lady and proceed to throw up all over the room. You knew it was coming but you just said won’t happen to me.
Then the next day you are flat broke and your credit card Maxed out.
You promise never to do that again…..
Recessions cleans out the hubris, the vastly over indebted and the liars so the fresh ideas can get some table time.
It is a great thing and after all these decades a needed thing.
Indeed. To Hell with price discovery. We’re all about to see some WORTH discovery.
If you haven’t been worth shit all this time? It’s about to be DISCOVERED!
Fed President Says Americans Would Prefer a
RecessionGreat Depression to Inflation While Biden is in office!Ya…cause the Fed jews are concerned about what Americans prefer.
They are just planning their propaganda and want to know which way to shovel their bullshit. Expect “recession” to now replace “inflation” with the White House liars and the mainstream media.
Kashkari is clueless…what people really hate is the FED itself.
Kneel, Cash-Carry. I dub thee, Whore of My kingdom!
.
.
I’d have preferred that we not hand over our economy to a cabal of power hungry, villainous wastrels without a fucking fight…but we did. Long before I was even born.
At some point a thinking individual must ask themselves, “What, if anything, do I owe such a system as this?”.
Someone else made these choices for us without our advice OR consent.
I say it’s time WE started making some choices for these fuckers downstream from us…since we can’t undo what’s already been done to us. We can’t keep letting these same demented assholes make our decisions for us forever.
It’s time for an intervention.
Deep state exhorts us to become armed insurgents.
Thankfully the Fed will give us BOTH so we don’t have to choose. Aren’t they NICE??
Too bad, because you’re getting both.