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1. LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Thursday, 23-Jun-2022 04:40:59 UTC LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

   • Economics of the US Economy
   https://nu.federati.net/url/286791 [www marketwatch com]
   
   > Former U.S. Treasury Secretary Larry Summers says there needs to be a surge in unemployment to curb inflation > According to Bloomberg News, Summers said in a speech on Monday from London that there needs to be a lasting period of higher unemployment to contain inflation — a one-year spike to 10%, two years of 7.5% unemployment or five years of 6% unemployment. With idiots like this, I'm surprised that we're not in the midst of a very bloody Marxo-communist revolution.
   
   Say it with me: The current price inflation surge is not because too many common people are making too much money. It is because of corporate mismanagement (relying on imports and just-in-time inventories & production) causing shortages. And because the Fed and Treasury pumped trillions of dollars into the economy while these shortages continued.
   
   Focusing on the wrong cause just means that the Treasury and the Federal Reserve together will cause a very deep recession or even a depression because they will miss the turning point.
   
   With all the data that our economic leadership has, why are they missing things that a basic high school econ course would have taught them?
   
   !econusa
   • LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864} (lnxw48a1@nu.federati.net)'s status on Thursday, 23-Jun-2022 04:50:20 UTC LinuxWalt (@lnxw48a1) {3EB165E0-5BB1-45D2-9E7D-93B31821F864}

     in reply to
     > Jerome Powell, the Fed chair, also said such a stark trade-off wasn’t needed. “Take for example in the labor market, so you have two job vacancies essentially for every person actively seeking a job, and that has led to a real imbalance in wage negotiating. You could get to a place where that ratio was at a more normal level and you would expect to see those wage pressures move back down to level where people are still getting healthy wage increases, real wage increases, but at a level that’s consistent with 2% inflation,” Powell said at the last post-Fed-meeting press conference.
     
     You mean because people might eventually regain the buying power they had in 1975 if the so-called negotiation strength imbalance persists for a few years?