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Saturday, June 11, 2022

US consumer sentiment

 

Wow.  This is a really really really bad number…. Really bad…  And the Democrat strategy to combat this is?   Wait for it….  Monetarism!  😂


GOP with their whole “stagflation!” schtick is absolutely OWNING the Dems…. But don’t worry leftoids here the Dems are going to judo the GOP using their own Milton Friedman against them!






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14 comments:

  1. lastgreekJune 11, 2022 at 12:28 PM

    Thing is Matt, is that the U.S. consumer consumes way too much. Cut back a bit :)

    And regarding gas prices, you guys are doing relatively better than us up here in Canada, let alone Europe.

    ReplyDelete
  2. Tom HickeyJune 11, 2022 at 12:50 PM

    Cut back a bit :)

    There are three ways of dealing with this, 1) demand destruction through inflation by price rationing, 2) recession, which is income reduction to control demand, or else 3) government rationing of supply.

    1 often leads to 2, e.g., through the action of the Fed, and 3 is reserved for emergencies like wartime.

    ReplyDelete
  3. FootsoldierJune 11, 2022 at 1:13 PM

    Watch this


    https://mobile.twitter.com/jaccocharite/status/1534522790396809218


    Another form of demand destruction.


    ReplyDelete
  4. Peter PanJune 11, 2022 at 2:12 PM

    Milton sure was progressive compared with these swamp dwelling Democrats.

    ReplyDelete
  5. Ahmed FaresJune 11, 2022 at 4:14 PM

    Another way of reducing demand is the negative wealth on consumption, i.e., driving markets down, so people feel poorer and spend less.

    Columbia professor Adam Tooze said some are muttering sotto voce in Davos that the Fed may have “turned Frankenstein on the markets”. Having bathed investors and the owners of wealth with abundant liquidity for years, it is now targeting its monetary squeeze on the same economic elites. What QE giveth, QT taketh away.

    Bill Dudley, ex-head of the New York Fed, said the institution is actively attempting to deflate Wall Street equities in order to help break the back of inflation through the mechanism of the wealth effect. It is ‘front-loading’ rate rises across the maturity spectrum with hawkish rhetoric, forcing the markets to price in tough action before it even occurs.

    Davos elites fear ‘Volcker Moment’ as central banks draw their swords

    I had to look up the phrase sotto voce so here's the definition:

    Definition of sotto voce

    1 : under the breath : in an undertone also : in a private manner. 2 : very softly —used as a direction in music.

    It can also be used for emphasis as Wikipedia shows:

    Sotto voce (/ˈsɒtoʊ ˈvoʊtʃi, -tʃeɪ/,[1][2] Italian: [ˈsotto ˈvoːtʃe]; literally 'under the voice') means intentionally lowering the volume of one's voice for emphasis.

    ReplyDelete
  6. Tom HickeyJune 11, 2022 at 4:33 PM

    That is true, Ahmed, but it is very unpopular with the donor class. The Fed's role is supposed to be balancing inflation, employment and growth, but the reality is that the donor class expects the Fed to support markets.

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  7. Peter PanJune 11, 2022 at 4:39 PM

    Soft-spoken Fed chairmen don't have the same level of menace as a Clint Eastwood impersonation.

    ReplyDelete
  8. Matt FrankoJune 11, 2022 at 8:47 PM

    “ but the reality is that the donor class expects the Fed to support markets.”

    Tom, ok, I agree here that is often the expectation… but right now the expectation is that the Fed is supposed to get rid of inflation…

    So they are going to use the QT to get rid of inflation,,,

    So you are in conspiracy theory territory again here…

    ReplyDelete
  9. Tom HickeyJune 11, 2022 at 9:24 PM

    So you are in conspiracy theory territory again here…

    Just saying that the donor class is going to be unhappy with that and probably a lot of other people holding "wealth" in market instruments, like folks with IRAs.

    There is no easy way out. One of the reasons for cb independence is so that politicians can blame the cb, whereas in a fiscal policy universe, the pols get the blame directly.

    ReplyDelete
  10. Matt FrankoJune 12, 2022 at 1:04 AM

    Yeah but what if markets go up? When they want it to go down?

    If you can see what I’m saying…

    iow you guys are saying these people have all their shit together then what I’d the opposite happens?

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  11. Peter PanJune 12, 2022 at 10:15 AM

    If they had their shit together, they'd address supply chain issues.

    ReplyDelete
  12. Matt FrankoJune 12, 2022 at 10:30 AM

    The Dems have other policy priorities (ESG) that appear to conflict with that…

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  13. mike normanJune 12, 2022 at 2:52 PM

    Contrarian indicator.


    Check the peaks. Market tops and economic growth peaks.

    ReplyDelete
  14. Matt FrankoJune 13, 2022 at 7:24 AM

    NDX futures down another 3% this morning..,,

    ReplyDelete