- 12 Oct 2021 14:09
#15194118
This is a mistake the Fed made in the late 70s. Gas prices were going up because OPEC wanted more money.
That means the cause of the crisis was outside the country, the Fed couldn't touch it.
But the Fed decided to raise interest rates, kicking the economy in the nuts. But gas prices...outside the country? OPEC didn't care..
Anyway, oil inflation is exogenous, caused by external factors.
We have a 'just in time' business delivery theory, and we just discovered it has a fatal flaw. What I am hinting at is that this is terra nova, meaning a new land. As far as I can tell, this is a new combination of a pandemic revealing weaknesses in the way we do business, and the way Americans do things.
It's like a roller coaster ride, but no one knows if it will end smoothly where it started, or if track is missing and we're about to try flying without wings.
But I will say I don't think it's overheating. But I do think that if Republicans default on the debt, we won't wind up in a recession, it will be a major depression. And since the government has been playing stimulus for 40 years, there aren't a lot of cards left in the deck to fight it.
Facts have a well known liberal bias