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.
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.
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.
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.