caryking said:
Civilized said:
Oldsouljer said:
Civilized said:
more winning. yay
The totally obvious problem here is that inflation remains high because of tariffs, while tariffs and chaos continue to batter business confidence, so hiring and job growth sucks. And the Fed won't cut rates to spur the economy or housing market because they have inflation worries that again are made far worse by the tariff effects on the economy.
The totally obvious concern is that Trump is completely dug in on his own stupidity and unwilling to course-correct, no matter the inputs or pain being experienced in the economy. He's pot-committed to his idiotic tariffs and his pride won't allow him to do what needs to be done, which is to end the tariff madness and actually act and talk like a stable, functioning human being so that businesses can regain confidence, the economy can heal, and the Fed can take action if necessary.
Inflation has nothing to do with tariffs and vice versa.
Milton Friedman: "Inflation is always and everywhere a monetary phenomenon,"
This is a pedantic objection.
No, tariffs aren't a monetary supply issue.
But it's clear my point is that tariffs increase near-term prices and that upward price pressure impacts Fed behavior as they hedge against inflation risk.
Would you say that that the increased money supply has more of an effect on inflation than tariffs?
They're different points on the same timeline, and it's impossible to say without knowing the relative degree of each.
That's like saying "would you say smoking or cutting yourself has more of an effect on your health?
One is a short term acute problem; the other has less acute but longer lasting, trailing, still potentially catastrophic effects.
Also, did I smoke for a day, a year, 25 years?
Was it a paper cut, a slip of a knife that requires a bunch of stitches and a repaired thumb tendon, or a Monty Python appendage-deleting "flesh wound"?
