The Joe Biden Diary

@UNIMAN

 If you say he was responsible for inflation then my contention of running the FED is spot on accurate. I do not recall in modern times the ramp of inflation we experienced in a two year period, never. We have gone through some crappy stuff such as the 2008 housing crash/market crash, 9-11 and Iraq invasion, several Asian financial implosions and yet never since the late 1970s has inflation raged like this in such a short time.

Do you realize the complexity of our economy, the sophistication of inventory processes, the interconnection of transit and JIT production models? You want the answer to inflation go and read the book The Game and find the answer. I had to read that book during my undergrad in business and the entire reason we experienced inflation is spelled out in that book. A JIT model is like a finely tuned vehicle that requires precise, orchestrated unison between all functions of the cycle, a JIT process means a company has little to no inventory costs, all production parts are provided in real time and in small batches for the production cycle in question. It is what the software program SAP is centered around that all aspects of production are calibrated and timed to flow perfectly. The only flaw in the JIT methodology is a breakdown of each of the parts in the production cycle...every single cog has to work for the system to function but each piece is separate, defined and independent so you do not have as much potential of issues in the process. Each individual part is broken down and maximized and understood so there are no questions or doubts about every single little part of the process.

The JIT process fails when components of the process are not available. You can look up JIT manufacturing process and you will find that most corps follow it and most have been for 30 plus years so when inputs are unavailable the chain stops working, AND the biggest flaw of JIT for pricing is that a corp holds little inventory and that means a price spike in raw goods has an IMMEDIATE and enormous impact on COGS versus say if a corp held a six month supply of raw goods and can blend in total costs to not impact COGS as much. The worst scenario for a JIT model happened during Covid...there was a supply chain shock, still is even now and prices for raw goods went through the roof and have not recovered. THERE is your inflation, a combination of a lack of raw goods AND a massive cost increase of raw goods that could be had. Go watch Clarkson Farms last season, their raw goods costs were up 100-200-300-500 percent year over year and shortages were severe to the point they had to switch crop decisions. In this case corps got burnt using their JIT process and the consumer is in the end who pays more via inflation. It was a supply curve SHIFT, not a slide.

The other stuff you said about Ukraine and Hamas and especially the middle east that is not Biden, that is supporting the larger collective with regards to our allies and NATO. I dont agree with it but Biden always backed the larger objectives even when it was not what we as citizens feels is the best. We have backed Israel in every single stinking decision they have made since the UN gave them the land, it would be a shocking day if we ever did otherwise and Trump would never stop backing Israel, the power our Jewish citizens have over politicians and the media and financially give them control over ALL parties, you are smart enough to know that.

maybe it's time to do just like Volcker did and lock the brakes up on the economy and raise interest to 20%

suffer now or bleed out later

No, I never said Biden was "responsible" for inflation. Biden needlessly contributed to it and made it much worse. 

Good day.

Why do our Jewish citizens have so much power and control over politicians and the media ?

@soup-can

 Different era, different dynamics. Our economy is like a Ferrari where back in Volckers time it was like a Yugo. Also back when Volcker was chair, banks actually followed traditional monetary pathways, they borrowed from the FED and from private investors and they took those funds and created loans to home buyers to businesses and individuals, then the money multiplier actually functioned properly. Now banks are leveraged gamblers who are generating a return on investment through the stock market and currency markets, lending is not their core business and the FED money multiplier no longer functions. Volcker knew if he kinked the multiplier it would stop inflation and he really kinked it and even then it took a few years to stop inflation.

@spockgato

 Do they?  It is relative. Compared to who else or what other groups?  Or is it another example of simply hearing about the ones that do? Is it really disproportionate? Etc., etc.

I’d just like a little explanation or a breakdown of that thought . That’s why I asked . Something simple if possible . Because if we get too intricate we’d get into that never ending realm of digging into our history as humans . Be brief whoever answers , and not like the underwear , because bringing clarity to that kind of question can lead to an embarrassing brown spot if you will ….

oh yeah . Free Stu …..

@soup-can

Absolutely, the Fed and Powell messed this up -- at the beginning and throughout this.  No doubt, he(they) will continue to mess it up until the end.

When they pivoted early on to a policy view of the 'shortfalls' on unemployment instead of the 'deviations' on unemployment from full employment levels, he was basically redefining their definition to a much broader definition. To do this during a pandemic was incorrect.

They have nearly always, 'reacted' too late and not enough.  They will continue to do this.

In his(their) defense (especially this time) they sort of had to wait to raise the rates this time around because of the pandemic shutdowns.  The job market was sailing along -- until it was not.  But the stance was that the job market would recover very quickly after and they wanted the job market to stabilize before they raised the rates.  But the other things that came along with the shutdowns and government 'intervention' boobytrapped them. So, they did not want to interfere with the job market getting back to where it could get to very quickly.

But after that all played out, they had no excuse.  But when you start basing your decisions more on the job market effects on how different groups of people were affected during the pandemic (which were from, largely, government interference and not monetary policy) you begin to stray away from strict monetary policy and veer into more social and political decisions.

That is why the definitions of 'transitory' and 'recession' were, more or less, redefined and now 'soft-landing' will, likely, have to be refined.

The FED has messed this up from start to finish.  Even if you make allowance for them for being in a very unique situation this time -- it is very hard to get away from the fact that this is their usual way of operating.

@spockgato

 Simply pick any other group -- broad or narrow and examine their 'influence'.

NRA, teacher's union, old white guys in general, LGB groups, oil, Latin groups, pharmaceuticals, etc. etc.

Old white guys got their shit on lock . Good point . They got their claws in deep on a lot of shit in this country and have refused to let go . You’re right about that . Makes my blood boil .

@spockgato

 Should have said old white guys that are non-Jewish 

The Jewish people do hold positions that have a big impact on others/society...Hollywood is a good example of this...the jewelry industry could be another...

fun fact...during the middle ages, Jewish people were forbidden to buy land or even take part in agriculture, as a result they gravitated towards professions like trade, diamonds and banking....then they took over Hollywood and have never looked back....just about every major movie studio was founded by a group of first generation secular person who immigrated to the US...it's not so much this way any longer, but they had major influence in creating and popularizing the movie studios as we know today...without what they did, who knows where the movie industry would be today...thank you Jewish people for your major contribution to society

Not Harvey Weinstein or his brother Bob but agree

I love when Raidahhhs (John Gruden voice) talks Federal Reserve and economics.... people should make note 

Heartwarming images of President Biden's grandkids at the Democratic National Convention are a painful reminder for Lunden Roberts. She's the mother of Hunter Biden's love child, Navy. "It hurts; my heart breaks for her because someday she will see that and she will wonder why she's the only first grandchild that wasn't there," Roberts says. Hunter Biden has regular Zoom calls with his daughter, but he has never met Navy in person. Roberts says Navy has inherited some of the Biden family traits.

Poor kid!