Monetary expert and economic researcher Jeff Snider says we are facing recession and might be in recession now. It’s a global recession. The Feds are powerless to stop it, and the recession could be particularly nasty.
You might not agree with Snider’s views, but his take is gripping.
It’s not money printing that’s a problem; it’s arcane accounting that is the problem, he says.
ENLIGHTENING
The Federal Reserve’s most potent weapon is the media, not the tools. The Fed’s monetary policy makes people believe the Fed is a powerful money manipulator, but they aren’t. According to Snider, all they have is the manipulation of psychology. The Fed is the “great and powerful Oz.”
QE is not potent. According to Snider, it does nothing.
The Fed is not an “Ideal Technocrat,” and its power is a myth. When we ran into the financial crash of 2008, the Feds couldn’t do anything because they don’t have power. They don’t do money, so they manipulate people as if they do.
ENLIGHTENING PEOPLE ON THE FEDS OR MONEY
“The Fed is NOT a Central Bank!” he said.
People don’t understand what money is, either, he believes. It’s not what’s in your pocket. He explains the Eurodollar only means offshore, and the dollar isn’t real either. It’s all virtual and ledger money – essentially IOUs that trade worldwide. It’s all really a eurodollar system that is unbelievably complex, and we don’t even know how big it is. They tried to keep track of it until 1988. It was enormous then. The Eurodollar is a huge influencer in the market.
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Snider says that feeding money into the economy only had a temporary effect. Then came the supply shock. The supply side is inefficient, especially on energy. Snider says the only thing that changed in 2020 and 2021 was the supply shock. The more the government does, the worse it gets. Over the long run, everything the government does is a drag on economic growth.
This inflationary-deflationary mess traditionally ends in a recession where everything balances out.
He said the services economy hasn’t returned to where it was pre-pandemic, which is enlightening for some readers. We’ve robbed the economy of its vitality. For example, paying more for gasoline is the most inefficient thing that could be done.
We are now seeing the snapback.
Lockdowns, chip shortages, sanctions, and other hand grenades kept getting thrown in, making matters worse.
BOTTOM LINE
We are in demand destruction, and Snider says the recession is almost baked in the cake at this point. The eurodollar is particularly ugly, and the recession looks like it will be nasty. He says the Feds need to cut rates, not raise them, but how bad does the economy have to get before the Feds change course?
Did you find this enlightening? The clip is much better than any summary.
If I had a nickel for every sophist that gives a spin on events.
This seems to be a lot of spin to exonerate the fed while blaming accounting and natural events. The establishment is innocent due to accidents and God. How typical. Those are the same excuses used for the plandemic and spying on Trump.
The fed allowed major accounting problems to continue and never did a thing? Aren’t those accounting tricks used to increase our debt, enriching the fed and big banks with huge interest payments? Doesn’t it increase the power of the elitist rich leftist institutions? Didn’t the plandemic come from the same groups? We see it did.
Increasing the money supply increases inflation, reduces demand and later supply. Whatever this guy said does not change that. The US would not be spending into unrecoverable debt without the fed providing it. The fed was created to handle the stability of the banking system and to encourage employment, not enrich financial elites.
This guy ignores the corrupt interactions and the proper role of the fed, to spin. I wonder if the reference to this guy comes from that writer here arguing inflation is lower than we think. That writer is knee jerk establishment.
I pretty much disagree with most of this article; except “The more the government does, the worse it gets. Over the long run, everything the government does is a drag on economic growth.” The FED has tremendous power to break things as does the US Government. When to FED keeps interest too low everyone borrows excessively. Then when Government adds regulations or taxes they slow the economy, business and individuals can’t service the excessive debt. When Government prints money to keep the dirt poor from rebelling, they strip value from the People who are prudent and save cash. The Goal of the FED should be to strengthen the Dollar and mantain its value, not inflate it. Established businesses with Paid For plant and equipment end up in the cat bird’s seat when the economy falters. The excess money supply creates inflation, but the FED can’t move fast enough to stop the inflation when Government money printing is out of control. The result is businesses begin to fail and people go bankrupt. The system of Fiat Money only works when Interest Rates, the Money Supply, and Productivity are in Balance. Every time the Government deficit spends, the FED should be raising Interest Rates, not lowering them.
The US economy was rebounding from the attempt by Globalist to cripple the World economy. Covid and the “manufactured” lockdowns that crippled America’s small business wasn’t enough to take down the US Economy. The Deregulation by President Trump crated a huge increase in productivity. Manufacturing was beginning to move from China and Europe to America, primarily because of cheap energy. Energy is the key to all modern economies.
When Traitor Joe stopped fossil fuel production, that stripped the Nation’s economy of the Energy to sustain commerce, causing Supply shortages and disrupted the business plans of every business in America. The Globalist can’t have a prosperous America. America has for over 100 years been a Manufacturing Super Power. If America once again was fully using its resources and people efficiently, the Chinese and European Economies would be devastated. Communism and Socialism don’t work. Traitor Joe’s Energy Policy was designed to cripple America.
The World Economic Forum Globalist couldn’t cripple America enough with just Covid. The US Economy is not centrally managed. So there need to be a devaluing of the Dollar with massive Government spending. Even that wasn’t working. So when Russia came after the Globalist in Ukraine, the only thing left was to disrupt energy which was very risky. This has now backfired and is sending the World into Depression. We may end up with the Ruble as the World Reserve Currency if we don’t remove the Globalist Cultist from the US Government Immediately!
We have had over a 25% loss in buying power since Traitor Joe took Office. This is Depression. People with some savings are trying to protect it but we are entering a period where there is only a small window of opportunity. If you have money, you have to spend it now on long term needs; basically hording before the Supply system really collapses. You also must keep enough money available to quickly take advantage of a recovery early in order to recoup lost wealth. The only way out is increase productivity, greatly decreased Government, and a lot of luck! The FED and the Government can only make things worse!
Excellent truth!