Jay Weber Show transcript 6-16-22 6:10am
So, the fed did go with a hike of three-quarters of a percentage point yesterday. Yikes.
They arrived at that decision when- just days before-they were expecting to only hike it a half-percent-
But the latest round of bad news that had Biden’s inflation getting-worse-not better...coupled with consumer prices getting-worst- not better...and with consumer confidence sliding to its most pessimistic in 80 years-
Yeah- they wanted to act more boldly.
And I know it’s ‘necessary’, but what really irks me is that the attempt now is to ‘crash’ the economy.
The experts can couch it in as much language as they’d like...but this is what the fed’s effort amounts to: raising interest rates so high that it pushes the u-s into a recession- and hopefully-not inflicting too much more pain and too many layoffs -as they do it.
It infuriates me because-so much of this inflation and pain was brought by Biden, the democrats, and their bad policies. They were handed an economy that was poised to boom.
Folks, if Biden had just gotten the covid shots into people’s arms and urged the blue state governors to fully reopen their states again-and then- done nothing-
If Biden would have done that- and no more- we’d all be marveling at how ‘newly wealthy’ we all were, as the stock markets skyrocketed and the country logged 5, 6, 7 percent gdp growth last year...and into this year.
If Biden had just-bleeping- not tampered!! This country would be in a very different economic situation. Even with Putin’s war.
If Trump had gotten a second term- the economy would be wildly successful right now-because Putin wouldn’t have started his war on Trump’s watch-
But we could have seen virtually the same economic success if Biden had just-not tampered. Not gotten into office and bleeped things up.
Even with! Putin’s’ war- our overall economic fortunes would have been a lot better.
Just consider this difference: whereas Biden launched a war against fossil fuels and doubled gas prices here-while limiting the ability of US producers to ‘take up the slack’ on the global market for lost Russian oil...
Trump would have seen that as an opportunity. He had gas prices at 2.35 a gallon and we were exporting cheap natural gas-
And if Putin would have been dumb enough to launch this war under trump- trump would have had mike Pompeo and Jared Kushner out there-globally- ‘selling’ American oil and natural gas to new countries...
Trump knows the geo-political power of energy. He knows the free-market power of supply and demand- under trump- u-s producers would be making a killing off new foreign exports, and our gas prices domestically would be half of what they are now.
This past sixteen months has all been so ‘unnecessary’. And instead of looking at a booming economy, we’ve got the fed intentionally trying to crash the car, to bring down inflation that Trump and Kudlow and their economic team wouldn’t have been dumb enough to touch off in the first place.
The fed raised the rates by ¾ of a percentage point yesterday for the first time since 1994, my friends, and then talked about doing it several more times, yet this year.
Well, every analyst on Wall Street is saying at least one more hike of that size will be needed in July, just a month from now, and then maybe another ‘percentage point’ spread out over the last four months of the year. At least.
And of course, with every hike, the fed is making the prices of mortgages, auto loans, and all sorts of business investments and expansions a lot more expensive.
The way this is supposed to work is that rising interest rates cool of the economy by dampening consumer spending so that demand for goods and services falls, and the prices on those goods and services then fall.
But when the -reason-for this crazy inflation is Biden’s war on energy and oil, as well as Putin’s war that is harming oil and commodity prices, i don’t see how a rate hike is some ‘magic bullet’ that is going to have gas and grocery prices falling.
Americans need to drive and need to eat. Any ‘fed induced’ lessening of gas and grocery prices is going to be minimal, i’d think.
Instead, what these wild rate hikes are going to do is trigger a wave of layoffs, as the economy contracts.
And then these snooty turds out east talk about ‘a soft landing’. Can Biden and Powell produce a ‘soft landing’?
No. They can’t.
Haven’t they both proven that to you, by now? Biden’s a dangerous moron and Jerome Powell’s going from ‘doing nothing’ to ‘firing the howitzer’. He’s going to take us from a 3.3 percent mortgage rate on a 30-year fixed in January to a 9 percent rate-by new year’s!
Good God. If the fed’s benchmark rate is nearly 4 percent-what are the rates on home and auto loans? Nine or ten percent?
And then the pollsters wonder why consumer confidence is at an 80-year low: because this regime and fed have proven that they have-no clue. That’s why.
There’s a clip circulating on social media from Anderson cooper’s show on CNN-
(Someone put it on social media outlets, or no one would have seen it, CNN’s ratings are so dismal)
But it’s getting attention because it’s CNN’s ‘data analyst’ finally admitting that Biden is doing worse than Jimmy Carter was, on this inflation thing.
Those numbers, again: 71 percent of the American people disapprove of Biden’s handling of inflation. Only 66 percent of Americans disapproved of carter’s debacle-and those reflect carter’s lowest point, ever. Biden’s still got over two years to go, here.
Folks, Ronald Reagan won by a landslide in 1980, making carter a one-term president, based on inflation and similar circumstances domestically. Reagan won 44 states, including almost the entire east coast.
The times and populations have changed that make that nearly impossible for a Biden challenger to do, but Biden is in ‘electoral wipeout’ territory, here.
And he is because he has lost the trust of the American people.
May I take you back to my genius of last August or September? When Biden’s approval ratings started to really slide?
I said, ‘they are not going to bounce back, because this is Americans realizing Biden lied to them to get elected.’
It reflected a loss of confidence in Biden, and a larger sense of ‘betrayal’, based on the dem’s campaign promises.
He ran as a competent moderate, and he immediately started governing as an incompetent extremist.
Interest rates were already rising, yes, but it was Biden and his team deciding to leave Americans behind in Afghanistan and betray the nation’s trust and then...pretend as if they hadn’t done so and that extraction had gone well...
That first had people saying, ‘we are done’. You’ve broken our trust.
They promised ‘small and temporary’ inflation as they passed their ludicrous covid relief bill.Americans now know that was a lie.
Broken trust.
Biden just gave a speech in which he tried to make trump look like the bad guy and blame republicans for the hyper-inflation. We all know that that’s not right.
Broken trust.
You’re just going to nakedly lie to us now, about all the destruction you’ve brought?
Done.
People are done with Biden and his team of ‘experts’. They’ve all turned out to be dangerous morons, too.
And this is significant-because it means the American people are losing trust in our institutions, too. The FBI, congress, public schools, the CDC and NIH, the EPA, etc.
The fed.
The American people are clearly losing trust in the fed, given that a former fed secretary, Janet Yellen, chose to be a shill for the dem party rather than be honest about inflation-
And so did Jerome Powell.
Both said, ‘small and temporary’, when every other economist was certain they knew better.
They, as democrat shills, have destroyed the credibility of the fed.
I normally love saying ‘I told you so’, but in this instance? It means the country is as miserable as predicted-and worse.
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