10.17.2022 – supply bottlenecks

supply bottlenecks
volatile market rampant
corporate profits

Adapted from these paragraphs in the article, Latest US inflation data raises questions about Fed’s interest rate hikes.

The news is further stirring fears of unnecessary economic pain should the Fed push America into recession.

“Raising interest rates isn’t working, and the Fed’s overly aggressive actions are shoving our economy to the brink of a devastating recession,” said Rakeen Mabud, chief economist at the progressive Groundwork Collaborative think tank. “Supply chain bottlenecks, a volatile global energy market and rampant corporate profiteering can’t be solved by additional rate hikes.”

The Fed and some economists maintain that demand generated by a hot labor market and higher wages are driving inflation, and higher unemployment and interest rates are panaceas.

To that end, the Fed has hiked rates five times in 2022 and indicated more increases are to come, moves the Federal Reserve board chair, Jerome Powell, has acknowledged will “bring some pain” to households and businesses.

More increases are to come.

Moves the Federal Reserve board chair, Jerome Powell, has acknowledged will “bring some pain.”

Back in the day when I went to college and actually attended classes in person with a real person delivering a lecture on the History of the United States, a question was presented that stated, “With the economic distress caused by the depression, why did the Communist Party NOT make any real gains in America as a political power?

The answer, I was taught, was in the depression era, American’s held themselves responsible for there plight.

And as they were responsible, they looked to themselves to find a way out.

Today, I feel I AM looking to the Government to find a way out.

Why?

Because, today, I feel the Government IS responsible.

Boy Howdy but do I wish there a way to bring some pain to those folks.

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