Saturday, April 6, 2019

When you don't know how things work but are sure that you do

When the Federal Reserve undertook quantitative easing (QE) a number of years ago conservatives totally freaked out, "the gov't is just printing money, bread will cost a billion dollars!!!!!". The Fed was in fact printing money and buying up existing debt so the money was in theory backed by something 'real', not the same as just printing money. This is really what the Federal Reserve does all the time when it loans money to banks, it's just not so obvious. 

The Fed felt compelled to take this unprecedented action because the GOP controlled Congress made it clear that they would burn the entire country to the ground rather than let Obama have a win. Now the Fed has been unwinding this program by reselling these debt instruments on the open market effectively taking cash back out of circulation. No wheelbarrow needed when going to the bread store. 

The Orange Nightmare has latched on to this as the reason his economic policies aren't generating the 6% growth rate he promised. Really some of his sycophants must be telling him this rather than telling him tax cuts for the rich and his disorganized trade war are crippling the economy. It's not like he's read about the Fed's policies, he orders McDonald's because reading anyone else's menu it too much work. 

So Trump wants the Fed to resume QE, not just stop unwinding the old program although he probably doesn't know the difference. It likely wouldn't have any effect if they did undertake a new QE program, of course if Trump was calling the shots maybe he could trigger runaway inflation.

The Orange Baboon is building a situation where the economy is going to abruptly stall and he will certainly follow this with blunders that will crash the world economy. Bread will be cheap, you just won't have any money to buy it. 

Friday, April 5, 2019

Make Pizza Great Again

The Orange Blunderer has resurrected Herman Cain by nominating him to serve on the Federal Reserve Board. You might remember the one time pizza chain figurehead for his signature tax plan that he promoted during the 2012 GOP primary. It was catchy if simply nonsense. He promoted the idea of a 9-9-9 tax system. Nine percent  for each of personal income tax, Federal sales tax and corporate income tax.

This system allowed for no deductions or loopholes. The bottom 40% of taxpayers who pay no income tax would pay 9% plus a new sales tax of 9%. The rich and their corporations would pay new lower rates. He couldn't say where this idea came from or how it could possibly work but it must have impressed Donald Trump.

Trump's last Fed Board nominee is an incompetent economist but at least he probably knows what the Fed does. Herman Cain probably hasn't heard of them much like the current Dept of Energy Sec Rick Perry that didn't know what that Dept did until he arrived at work.

Thursday, April 4, 2019

Spinning the tax cut

The right is crowing about the number of new claims for unemployment has reached a 49 year low. They don't mention that this has been a steady trend over the last 8 years and instead tie it to the $1.5 trillion tax giveaway to the richest of the rich even as they acknowledge that the effects of this "stimulus" is fading.

In reality there was no stimulative effect from this giveaway but they are pretending the economic downturn we're experiencing is normal "fading" and hoping you'll forget that they promised us endless prosperity. 

The tale of the Boeing 737 Max 8 aircraft took another strange turn, it seems the pilots of the Ethiopian plane knew what the corrective action that Boeing recommended was, did that and then crashed anyway. More stories of incompetence at Boeing keep coming out. Boeing will have a hard time getting their reputation back. 

Wednesday, April 3, 2019

Who is the new Trump whisper?

Trump did a sudden about face on all his new "policy" positions on ObamaCare, the border shutdown etc and is instead intent on mocking poor old uncle Joe about his touching the women. He seems to forget we have the Orange Groper on tape. 

It's been reported that Trump's acting Chief of Staff is the one who originally told him to take these politically awkward positions, so who's telling him to reverse them? Turtle Man in the Senate seems to be taking credit but Trump has never listened to him before. I guess we'll have to wait for the next WH leak to find out.

Trump's obsession over reversing all things Obama ran into a major snag in the person of a Federal Judge in Alaska that has blocked Trump's executive order reversing Obama's expansion of National Monuments and Wildlife Preserves. It seems that the law allowing Presidents to preserve nature has a provision forbidding future Presidents from undoing it. Only Congress can undo the preservation order. Too bad they didn't notice this provision in the law while the Republicans controlled Congress but reading the law is not a Trump thing.