Washington, DC – November 02: US President Donald Trump (R) shake hands with the candidate for the … more
President Trump recently warned Walmart not to raise prices in response to invoice. Economists and experts reacted to Trump’s warning with a mixture of terror and proud contempt. With good reason.
Regardless of invoices, the nonsense of pricing enforcement is magnified when the person behind the application requires that prices do not reflect the original error. Some may even ask if the demand for flat prices is a tacit identification of the error, but this is a divergence.
Return to all the reasonably expressed horror for Trump expressed proudly, why all parallel to the Federal Reserve? Because indeed.
While there is no reasonable way to defend Trump, nor is there a way to defend the Fed. This is remarkable simply because the Fed is treated as the adult in the room in relation to Trump’s very cracked child.
In addition to pretending that the central bank has a role in alleviating Trump’s errors, the central bank comes as equal to Trump in the stupid section. Seriously, what does the Fed think that can do to soften the highest effects of invoices? Note the Tock, Tick Tock…
If the Fed’s answer is that economic growth is forcing prices to rise (the Fed considers higher prices as “inflation”) and that the slower growth born from a higher Fed capital will weigh prices, then economists should react with horror and pride for Fed. A picture that Fed employees near Monolithic embrace the unreliable Phillips curve, which says growth causes prices to rise.
Economic growth is a result of investment and is revealed in improved production techniques that increase the production of market goods at ever lower prices. How interesting, how mature for the ridicule that economists are supplied believe in that economic growth will aggravate the impact of Trump’s invoices prices. Except for most.
Easily, the largest consumer prices are the number of hands and engines around the world at work in the production of market goods. That is why when global cooperation is at stake in taxes such as invoices or perhaps locking (see “Trump”, “Coronavirus” “Panic” “First Term”), market prices are increasing. On the contrary, when the involvement of policies only abandoned production and people, cooperation goes up in consultation with reduced prices.
Despite these truths, we currently have a central bank trying to entrust itself to the launch of higher prices that does not say unjustifiably will be the result of its invoices. Okay but how?
What could the Fed do to keep prices from the increase, assuming the imposition of Trump’s invoices? The question should be asked simply because the Fed believes it has a role here, as it endlessly leaks in a compatible and rather worshiping media of his fears of the prices of trump prices. Nice but what is the Fed’s plan?
The rates of questions asking for popular belief within the Fed that financial deceleration promotes prices. The view is ridiculous, but since economists believe it is true, aren’t Trump invoices the paradoxical answer at higher prices than invoices? It’s a clown question, but that’s the point. As Trump evaluates our contempt for the desire of prices not to reflect the non -existent imposition of invoices, so does the percentage of the Fed equal amounts to think of its own market interventions can be mitigated by those of the President.
It’s just a comment that Trump is not the only clown right now. Unknown is the reason why he gets all the laughs.
