The Biden Recession Thread

[newfie]

This would be a very scary time if you was drawing from your portfolio for retirement

I've gone to cash. i believe there is more bad news on the horizon.

 

[Thebrownblob]

I've gone to cash. i believe there is more bad news on the horizon.

The worst news is when they get rid of cash

 

[newfie]

Powell and the other Fed Presidents tried raising interest rates in 2018 as they saw the money supply swell from tax breaks. These increases were greeted with displeasure from the White House as the thought would be a slowing of the economy and affect on the stock market. The Fed reversed course some 6 months later because the economy couldn't yet handle increase in rates and reduction of it's bond buying. Hind sight being closer to 20/20, the Fed's decision to turn tail and run has made this current situation much worse. Add in all the money added in 2020-2021 and here we are inflicting maximum pain.

i agreed that the rate went up too quickly in 2018. I thought a more modest increase was all that was needed.

it seems like we have too many wild swings in the interest rate where i think a more modest bump periodically might be better for the long term.

 

[newfie]

The Biden caused price of fuel is killing business activity as well. People cut back to adjust.

biden does not know or understand economics or running an actual government.
he appointed staffers for political reasons rather than for their abilities
those are the folks advising him. Blind leading the blind

what could possibly go wrong.

 

[vantexan]

i agreed that the rate went up too quickly in 2018. I thought a more modest increase was all that was needed.

it seems like we have too many wild swings in the interest rate where i think a more modest bump periodically might be better for the long term.

The only way to truly combat inflation with rate hikes is to have the interest rate higher than the rate of inflation. Until we do that it's ineffective. And now they're wanting to pass a trillion dollar spending bill.

 

[newfie]

The worst news is when they get rid of cash

they're trying.

its getting tougher and tougher to pay with cash.
meanwhile the IRS wants everything 600 or more reported.

soon the IRS will be pulling an itemized list of your electronic transactions and asking why you didnt pay more in taxes.

 

[newfie]

The only way to truly combat inflation with rate hikes is to have the interest rate higher than the rate of inflation. Until we do that it's ineffective. And now they're wanting to pass a trillion dollar spending bill.

they have to know the trillion will add to inflation.
they have to believe they need the trillion to buy votes in future elections.

 

[Thebrownblob]

they're trying.

its getting tougher and tougher to pay with cash.
meanwhile the IRS wants everything 600 or more reported.

soon the IRS will be pulling an itemized list of your electronic transactions and asking why you didnt pay more in taxes.

Coming soon worldwide

CBDC

Israel's War On Cash Is About To Get More Drastic | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[vantexan]

they have to know the trillion will add to inflation.
they have to believe they need the trillion to buy votes in future elections.

You would think they would know but it seems like these people truly believe they can spend us into prosperity. But buying votes does sound likely.

 

[Wally]

they're trying.

its getting tougher and tougher to pay with cash.
meanwhile the IRS wants everything 600 or more reported.

soon the IRS will be pulling an itemized list of your electronic transactions and asking why you didnt pay more in taxes.

Shops by me are discounting if you pay by cash. Gas stations have been for some time now, about 10 cents a gallon. The credit card vendors take a nice vig.

 

[Thebrownblob]

Shops by me are discounting if you pay by cash. Gas stations have been for some time now, about 10 cents a gallon. The credit card vendors take a nice vig.

The allure of CBDC for businesses will be the government will tell them the middleman is now cut out.

 

[Thebrownblob]

Of course on the other end they won’t tell you they can monitor every purchase you make as well as Levy fines and taxes instantly if they so choose. And that’s not even getting into the idea of the social credit score where they can limit where you can buy and what you can buy

 

[Wally]

The allure of CBDC for businesses will be the government will tell them the middleman is now cut out.

How strong is the credit card lobby? They might not like it. Lol

 

[Thebrownblob]

How strong is the credit card lobby? They might not like it. Lol

Not as strong as the government

 

[IVE GOTTA PACKAGE 4U]

I've gone to cash. i believe there is more bad news on the horizon.

I'm 50/50.
I'm not trying to time the market but I'm in that retirement end zone.

And then a couple of years I will probably take a small distribution from my 401K plan so I can party on a little bit

 

[Thebrownblob]

https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf

 

[Wally]

Not as strong as the government

Say what? We have elections that need money.

 

[vantexan]

I'm 50/50.
I'm not trying to time the market but I'm in that retirement end zone.

And then a couple of years I will probably take a small distribution from my 401K plan so I can party on a little bit

Party on Garth!

 

[IVE GOTTA PACKAGE 4U]

Party on Garth!

I'm getting ready to buy me a deluxe van to sleep in.

 

[vantexan]

I'm getting ready to buy me a deluxe van to sleep in.

Once you go van
All else is bland.