Stagflation... Fed Really Worried It Will Happen Under Trump

[Economy 53,058]

https://www.google.ca/amp/s/amp.cnn.com/cnn/2019/05/31/investing/fed-rate-hikes-inflation/index.html

 

The US Central Bank (Federal Reserve) is extremely concerned that Trumps love to add tarrifs could cause a phenomenon known as stagflation which is unnatural and makes monetary policy hard to set

 

Normally a growing economy with rising demand and wages results in higher inflation. Central Banks raise rates when economy is strong to fight inflation

 

When the economy is weak and demand and wages sluggish, inflation drops and the Central Banks lower rates to lower cost of credit to stimulate economy and demand and raise inflation to the 2% target

 

However STAGFLATION is outside the norm. It is when the economy is performing poorly but inflation rises instead of falling. Interest rates become hard to decide because the poor economy needs lower rates but the high inflation requires higher rates making sound monetary policy impossible to achieve

 

The economic damage from tarrifs but the inflation that comes from it could cause stagflation down the road!

[Born To Slay 10,996]

Hopefully it crashes next year so we can get Trump out 

[Antoni 5,332]

I'm convinced he's purposefully setting America up to ruin the lives of the bottom 60%

[FATCAT 60,909]

19 minutes ago, Born To Slay said:

Hopefully it crashes next year so we can get Trump out 

Let's not wish for this, under any president. So many people depend on the economy staying afloat, and Trump's tarrifs are already hurting families across the US. Even a recession could cause mass harm.

[Economy 53,058]

7 hours ago, Born To Slay said:

Hopefully it crashes next year so we can get Trump out 

 

7 hours ago, FATCAT said:

Let's not wish for this, under any president. So many people depend on the economy staying afloat, and Trump's tarrifs are already hurting families across the US. Even a recession could cause mass harm.

Agreed with @FATCAT cuz what's the point if getting Trump out to make people's lives better if in order to achieve that you gotta make people's lives terrible to begin with?

 

Trump is lucky he inherited an economy that corrected all the imbalances that caused the 2008 crisis, an economy with a surging energy boom creating high paying jobs, and an economy that had good monetary policy guidance from the Central bank

 

The strong economy is therefore able to withstand his rediculous policies. Under normal circumstances these tarrifs and the uncertainty they create in equity markets would have triggered a recession already

[Economy 53,058]

7 hours ago, Timmers said:

I'm convinced he's purposefully setting America up to ruin the lives of the bottom 60%

I feel like nowadays it's more like the bottom 70% that struggle at least here in Canada

 

But then again u guys in America don't have a housing crisis to the degree we do so...

[Delusional Aura 5,129]

7 hours ago, Born To Slay said:

Hopefully it crashes next year so we can get Trump out 

What a sick way to think. It's absolutely disgusting tbh. I hate trump just like the next guy but the fact that you're okay with millions in low income families suffering because of this is questionable. Honestly you should be ashamed. 

[Born To Slay 10,996]

30 minutes ago, Delusional Aura said:

What a sick way to think. It's absolutely disgusting tbh. I hate trump just like the next guy but the fact that you're okay with millions in low income families suffering because of this is questionable. Honestly you should be ashamed. 

The low income will be better off in the long run after the next president brings forward a progressive agenda that actually helps them

[AM98GJ 3,086]

I remember stagflation being a really cool concept to learn about 

[Delusional Aura 5,129]

23 minutes ago, Born To Slay said:

The low income will be better off in the long run after the next president brings forward a progressive agenda that actually helps them

You are clearly are not in a low income family or wasn't an adult during the global financial crisis or just plain ignorant and it makes your look heartless. You're not any better than republicans with their screwed up policies. And may I remind you, that when a president fails, ALL Americans suffer the consequences so maybe stop wishing for horrible things to happen to our economy and grow up. There's one sure way to get him out of office and that's to vote in 2020, that's it. 

[Born To Slay 10,996]

23 minutes ago, Delusional Aura said:

You are clearly are not in a low income family or wasn't an adult during the global financial crisis or just plain ignorant and it makes your look heartless. You're not any better than republicans with their screwed up policies. And may I remind you, that when a president fails, ALL Americans suffer the consequences so maybe stop wishing for horrible things to happen to our economy and grow up. There's one sure way to get him out of office and that's to vote in 2020, that's it. 

You didn’t at all rebut what I said. 

What do u seriously think will be worse for low income Americans, a small recession or another 4 years of Trump cutting every service he can that help them. If Trump wins again, they could very well take the house back. If they do that, Obamacare is done man. As is much of the social safety net. And the Supreme Court for decades, imagine a republican 6-3 majority, or even a 7-2 majority! Hell, the last one can happen even if the Dems keep the house if Trump keeps the White House and senate! 

this would all be detestation for years to come for America’s most vulnerable, a short recession would hurt them for sure but it’s definitely a better scenario then another 4 years of Trump, which could leave harm to these people for quite sometime. I’m not heartless, I have the long view in mind. 

Now, Trump could lose if the economy stays good but it’s far from a sure bet. In fact, many professionals have him winning with this strong economy! That would spell doom for millions of minorities and low income Americans. Imagine Medicaid slashed, food stamps slashed, Obamacare largely repealed, more tax cuts for the rich that cut dedications the poor use to help pay for them. Imagine the harm the GOP could do with a new trifecta. This republican trifecta would cause more harm than the last one to the poor! Imagine what that aforementioned Supreme Court would do! They would almost surely throw away Roe, they’d deal devastating rulings on issues that effect the working class. 

So sir, I’m not ignorant or heartless but I understand that for the most vulnerable, a small recession (we won’t be getting anything near the 2008 one anytime soon) now is better than another 4 years of Trump. 

[Woolfsmck 2,763]

Trumps use of tariffs is causing a simulated stag/economy. ..

Prices on certain things are fluctuating without the normal supply and demand dynamic.

The unpredictability of his decisions causes stress on business planners.

[Economy 53,058]

1 hour ago, Born To Slay said:

You didn’t at all rebut what I said. 

What do u seriously think will be worse for low income Americans, a small recession or another 4 years of Trump cutting every service he can that help them. If Trump wins again, they could very well take the house back. If they do that, Obamacare is done man. As is much of the social safety net. And the Supreme Court for decades, imagine a republican 6-3 majority, or even a 7-2 majority! Hell, the last one can happen even if the Dems keep the house if Trump keeps the White House and senate! 

this would all be detestation for years to come for America’s most vulnerable, a short recession would hurt them for sure but it’s definitely a better scenario then another 4 years of Trump, which could leave harm to these people for quite sometime. I’m not heartless, I have the long view in mind. 

Now, Trump could lose if the economy stays good but it’s far from a sure bet. In fact, many professionals have him winning with this strong economy! That would spell doom for millions of minorities and low income Americans. Imagine Medicaid slashed, food stamps slashed, Obamacare largely repealed, more tax cuts for the rich that cut dedications the poor use to help pay for them. Imagine the harm the GOP could do with a new trifecta. This republican trifecta would cause more harm than the last one to the poor! Imagine what that aforementioned Supreme Court would do! They would almost surely throw away Roe, they’d deal devastating rulings on issues that effect the working class. 

So sir, I’m not ignorant or heartless but I understand that for the most vulnerable, a small recession (we won’t be getting anything near the 2008 one anytime soon) now is better than another 4 years of Trump. 

Let me tell u something

 

Stagflation is a situation that rarely brings about a "mild recession" because there's no right monetary policy to deal with it

 

The economy needs lower rates because it's weak but the inflation needs higher rates to be controlled and that creates horrible distortions both in the economy and in the markets

 

U don't want a recession to start because of stagflation. It's not pretty

 

 

[Economy 53,058]

1 hour ago, Woolfsmck said:

Trumps use of tariffs is causing a simulated stag/economy. ..

Prices on certain things are fluctuating without the normal supply and demand dynamic.

The unpredictability of his decisions causes stress on business planners.

It also makes the monetary policy influence on prices distorted

 

This is not a stable thing to be doing

[Delusional Aura 5,129]

5 hours ago, Born To Slay said:

You didn’t at all rebut what I said. 

What do u seriously think will be worse for low income Americans, a small recession or another 4 years of Trump cutting every service he can that help them. If Trump wins again, they could very well take the house back. If they do that, Obamacare is done man. As is much of the social safety net. And the Supreme Court for decades, imagine a republican 6-3 majority, or even a 7-2 majority! Hell, the last one can happen even if the Dems keep the house if Trump keeps the White House and senate! 

this would all be detestation for years to come for America’s most vulnerable, a short recession would hurt them for sure but it’s definitely a better scenario then another 4 years of Trump, which could leave harm to these people for quite sometime. I’m not heartless, I have the long view in mind. 

Now, Trump could lose if the economy stays good but it’s far from a sure bet. In fact, many professionals have him winning with this strong economy! That would spell doom for millions of minorities and low income Americans. Imagine Medicaid slashed, food stamps slashed, Obamacare largely repealed, more tax cuts for the rich that cut dedications the poor use to help pay for them. Imagine the harm the GOP could do with a new trifecta. This republican trifecta would cause more harm than the last one to the poor! Imagine what that aforementioned Supreme Court would do! They would almost surely throw away Roe, they’d deal devastating rulings on issues that effect the working class. 

So sir, I’m not ignorant or heartless but I understand that for the most vulnerable, a small recession (we won’t be getting anything near the 2008 one anytime soon) now is better than another 4 years of Trump. 

Mild recession? Did you even read what the OP? This is a stagflation that you're endorsing just so Trump could loose the election. The fact you don't even know the difference is alarming. And at this point, you clearly don't understand economics as a whole and it makes no sense continuing this conversation. With that I stand by what I said. You are heartless and no better than trump and his policies, if you think a stagflation is just a little blimp or will cause a mild recession.