Once again the US Federal Reserve is in a quandary. Does it cut its policy interest rate soon in order to relieve pressure on debt servicing costs for consumers and businesses and perhaps avoid a stagflationary economy (ie low or no growth alongside higher inflation); or does it hold its current interest rate for borrowing in order to make sure inflation falls towards its target of 2% a year?
Inflation and interest rates: the US experience
Tag: stagflation
The Long-Term Economic Implications of the Ukraine War
The human suffering in Ukraine is predicated on massive U.S. military aid, and is transforming an ailing country into a bankrupt failed state
The Long-Term Economic Implications of the Ukraine War
Biden’s Foreign Policy Is Sinking the Congressional Dems—and Ukraine
The proxy war between the U.S. and Russia is devastating Ukraine, ironically in the name of saving Ukraine.
Biden’s Foreign Policy Is Sinking the Congressional Dems—and Ukraine
The Expected Financial Crash Is Finally Here
When two experienced economy and finance analysts, who both correctly predicted the derivative crisis of 2008, again warn of an imminent crash one better listens up.
The Expected Financial Crash Is Finally Here
Previously:
Oliver Boyd-Barrett: Approaching War with China
By Prof. Oliver Boyd-Barrett, Substack, 7/29/22
Donbass and Kherson Developments
Drawing on Dima’s reports to the Military Summary Channel, it appears to Mercouris (Mercouris July 29 2022) that the Russian renewed offensive is now in full force, more intensely overwhelming than it has ever been, quite contrary to a recent BBC report.
Oliver Boyd-Barrett: Approaching War with China
The Centre of International Insecurity
The Biden administration is no longer in charge of the White House. Relying on a select network of think-tanks and their corporate proxies, the Big Defense is. What it wants, it seems to get.
The Centre of International Insecurity
Related:
Scott [Horton] is joined by Dan Steinbock to discuss an article he wrote about the network of Democratic organizations running American foreign policy. Steinbock has dug deep into the Center for a New American Security (CNAS) and WestExec Advisors, two organizations that have allowed top foreign policy officials to make money cycling between government, think tank and advisory roles. Steinbock also takes a step back and examines how these organizations are connected to weapons companies, Wall Street and technology firms.
6/27/22 Dan Steinbock: How Hawkish Democrats Make Money Pushing War
Larry Summers warns unemployment must rise to cool inflation
Ex-Treasury Secretary Larry Summers warned that millions of currently employed Americans must lose their jobs in order for the Federal Reserve to succeed in its bid to cool inflation.
Larry Summers warns unemployment must rise to cool inflation
Related:
Larry Summers Says US Needs 5% Jobless Rate for Five Years to Ease Inflation
Maybe he can ship some more jobs overseas [/sarcasm]?! I’d suggest shipping him, overseas, but I wouldn’t even wish that on my enemy!
US Crackdown on Forced Labor in China Risks Further Supply Chaos
Inflation Storm Devastates US Households As Fuel, Power And Food “Become Unaffordable”
The scissors of slump
Last week, US Treasury Secretary Janet Yellen told the US Congress that “We now are entering a period of transition from one of historic recovery to one that can be marked by stable and steady growth. Making this shift is a central piece of the President’s plan to get inflation under control without sacrificing the economic gains we’ve made.”
It’s true that the US economy since the depths of the pandemic slump, (which remember in terms of national output, incomes and investment was the worst since the 1930s – even worse that the Great Recession of 2008-9) has made a recovery. But it could hardly be described as ‘historic’. And as for the claim that the US economy, the best performing of the major economies in the last year, is heading towards ‘stable and steady growth’, that is not supported by reality.
The scissors of slump
Ms. Cat’s Chronicles 
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