Archive for January, 2023

The Envelope, Please:  Dramedy Of The Year For 2022:  The Federal Funds Fiasco (January 30, 2023)

Posted in Federal Reserve, Interest Rates on January 30, 2023 by

. . .

K          “In a runaway vote, the ‘Federal Funds Fiasco’ show was voted the best new dramedy of the year for 2022.”

J          “The Katzenjammer Kids merge with the Keystone Cops.  And the nightmare was renewed for another season this year.”

. . .

J          “When Powell was up for reappointment, the public saw some visible signs of infighting spill and spew out.  What is clear is that the members of the Federal Reserve itself are using the positions to further enrich themselves to the detriment of the public.  The corruption is cancerous.” 

. . .

K          “Spoiler alert.  Some plot twists are in the works.  The current rate hikes have produced negative effects, yet the real effects – negative and possibly positive – lag by six to nine to twelve months and have yet to manifest.  The calm before the storm.  And because the current price rises are a supply side problem not a monetary phenomenon, the rate increases will do little to slay or even stay inflation.  Real inflation for real folks is and will really remain over at least eight percent throughout this year.  And no one believes that the Fed can raise the rates higher than six percent without breaking the entire economy into shreds and shards.”

J          “Some reality twists are in the works.  The coming recession may slow inflation, yet folks must drive and eat and shelter and live.  They may drive less, but they will continue to eat and shelter and live.”

. . .

J          “Wall Street subsists on and then front runs inside information.  For decades, the conventional wisdom was ‘Don’t fight the Fed’ and roll with the largesse.  The strategy worked even for little folks.  Today, Wall Street is actively running from and resisting what appears to be the settled policy of the Fed.  Two powerful entities running in opposite directions are primed to collide.”    

. . .

J          “Stay tuned.”

K          “The popcorn, por favor.”

. . .

[See “Rural Americans aren’t included in inflation figures – and for them, the cost of living may be rising faster” by Stephan Weiler and Tessa Conroy in “The Conversation” dated January 27, 2023.]

[See the e-commentary discussing inflation in detail and noting almost two years ago that the inflation was and is not “transitory” at Is Inflation Inflating!?!? (April 26, 2021) and assessing the current economic dilemma at The Great Checkmate And The Great Seesaw: Interesting Rates (April 11, 2022).  See also Interning For Clio:  Collecting, Protecting And Preserving The Record (April 4, 2022) and Covid-19 PanICdemic/Plague:  Basically, Back To Basics:  Finding Food; Printing Rutabagas.  Happy Earth Day! (April 20, 2020).] 

Bumper stickers of the week:

WIN  [Wipe Inflation Not So Soon]

Flight the Fed?

Portentous Developments In 2022? (January 23, 2023)

Posted in Gold, Gold Standard, Petrodollar, Russia, SWIFT on January 23, 2023 by

. . .

J          “The Russian invasion of Ukraine in February. Article 51 of the Charter of the United Nations does not suffice for me.”

K          “The United States weaponization of the Society for Worldwide Interbank Financial Telecommunications (SWIFT) system followed by the U.S. confiscation of Russian reserves in March.  The world knows beyond a reasonable doubt that the U.S. cannot be trusted.  Without elemental trust, there is nothing.  The overriding strategic concern of every nation on Earth at this time is to firewall itself from the U.S. without the U.S. perceiving the action.”

. . .

[Scrutinize, analyze and synthesize “Contrarian Thoughts on the Petro-Yuan and Gold-Backed Currencies” by Charles Hugh Smith in “Of Two Minds” dated January 19, 2023 and “Global South: Gold-backed currencies to replace the US dollar” by Pepe Escobar, the recipient of the Sixth Annual Pushitzer Prize In Commentary For 2021 (June 7, 2021), in “The Cradle” dated January 19, 2023.]

[See the e-commentary at The Cuban Missile Crisis And The Monroe Doctrine Today (February 28, 2022), Sanctions, Supply Chains And World War E (March 7, 2022) and World War E Breeds Bretton Woods III;  BW II And The PetroDollar Will RIP? (March 14, 2022).]

Bumper stickers of the week:

“To be an enemy of America can be dangerous, but to be a friend is fatal.”  Henry Kissinger

When all this social distance stuff is over, I still want people to stay away from me.

MLK Day (January 16, 2023)

Posted in Civil Rights/Civil Liberties, Society on January 16, 2023 by

Probing Pithy Pronouncements (January 9, 2023)

Posted in Writing on January 9, 2023 by

. . .

K          “On a lark, I jotted down the name of every writer I could recollect and then surfed the Interwaves looking up and writing down the most celebrated quotations for each individual and then reflected deeply on each quotation.  What a ride.”

J          “Then shuffle over to search for scientists, inventors, astronauts, diplomats, statespersons, entertainers, sports personalities, artists, nurses, butchers, bakers, candle sticker makers and others and then reflect deeply on each quotation.  What a roller-coaster ride.”

. . .    

[Search the e-commentary site for a quotation from your favorite human being.  If someone should be quoted here, send a suggestion.]

Bumper sticker of the week:

It is too cold outside to change this bumper sticker

2023:  Inexorable and Immanent? (January 2, 2023)

Posted in Economics, Economy, Federal Reserve on January 2, 2023 by

. . .

K          “The Fed is caught between a rock and a hard place.”

J          “The Fed is caught between a hard place and a rock.”

. . .

K          “Uneasy.  Very uneasy.”

J          “Not easy.  Very not easy.”

. . .

K          “The excitement I expected in 2022 looks like it festered and percolated last year.  This year the festering and percolating brew may explode with consequence.”

J          “It could be consequential.”

. . .    

K          “Is this the year?”

J          “They will manage to punt making any big decisions and kick the can down the road and limp the economy along.  They always do.  At least so far.  To date.”

. . .

[See the e-commentary at Twenty Sixteen (January 4, 2016) and The Great Checkmate And The Great Seesaw: Interesting Rates (April 11, 2022).]

Bumper stickers of the week:

Lord, give me coffee to change the things I can change and wine to accept the things I can’t.

Coffee and friends:  A perfect blend.

Wine improves with age.  I improve with wine.