You'd think this means "all the more reason not to start it"
Despite constantly calling for lower interest rates, President Donald Trump has nominated as the next Federal Reserve chair Kevin Warsh, who announced a little over two months ago that “money on Wall Street is too easy, and credit on Main Street is too tight”. Amen. [...] He says he wants to trim the Fed’s massive balance sheet, which could raise longer-term interest rates. Of course, Warsh is also a savvy political operator who seems ready to do Trump’s bidding.
We shall see how much of a flunky (#1427640), Mr. Warsh, if he even gets confirmed, shall be. Oh, and some Ms Foroohar hyperbole for good measure (#1429256)
The central bank has been used by many politicians to end-run debt and deficit issues. The question now is whether it will be used by Trump to end-run democracy.
America has become dangerously reliant on the “Fed put”. By counting on the Fed to intervene whenever things get rough, Washington policymakers have punted on tough fiscal policy decisions and relied on easy money and low rates to bolster markets and GDP growth for decades now.
Been true for 25-40 years, but thanks for pointing it out nonetheless.
Fiscal Dominance, Main-Street edition
and here's this:
no matter who is in charge at the Fed, you would have to have smart fiscal policy that really addresses the challenges on Main Street. Simply making credit to small business more accessible won’t retrain a workforce, fix the housing market or reduce healthcare costs. To do that would require serious “guns and butter” conversations about budgetary trade-offs, as well as a Congress and a White House willing and able to have them.
Maybe if you really believe that a major productivity boom is just over the horizon, you could imagine running an economy this hot without creating inflationary pressures.
...there is an equal chance that the combination of tariffs, re-industrialisation, immigration cuts (which constrain the labour force) and some new supply chain disruption (which could easily happen for reasons ranging from geopolitics to natural disasters) will push up costs before Trump’s term is over.
Maybe this was true 50 years ago. But we haven't seen a balanced budget in 25 years. People don't even argue about balancing the budget anymore. It's just arguing about what we're going to take on more debt to do. And if we are just going to take on more debt, are there actually any trade offs worth discussing?
I don't believe that adding $1.5 trillion to US debt is materially different from adding $3 trillion. Neither is sustainable if the fed isn't gonna cover the hole, and if it is going to cover the hole, what's the difference between a pile of magically printed money and a bigger pile of magical printed money?
same as between one pile of sand and another!
There is nothing called easy money. All these applications to complete surveys to earn some satoshis are for beginners. Money that is like 10 $ per month or similar tricks could not serve even for coffee money. Either do P2P and do trading in forex or stacking or mining and let them as second time income source.