246 Comments

If only you were Pres., Robert, things would be so much better. I mean that sincerely. What a mess the Fed is making of something that's already awful. :(

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Why did Biden allow a conservative Republican to head the Federal Reserve??

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AGHHHH! I've been carrying on about this ever since Biden took office! I feel crazed over the people Biden has left in government. He can't change the board that keeps Louis DeJoy in power, Charles Rettig, head of the IRS (geez, look at his background!), Christopher Wray at the FBI, what about the head of Homeland Security? All Republicans, get them OUT. Hey Biden, when we voted for you we want DEMOCRATS running the government. This is why people abandon Democrats, no one wants Republican Lite. We want, and not just young people, I'm NOT young, CHANGE!!!!!!!!

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I don't begrudge the president for initial attempts to unify via bipartisanship every way he could do it. HOWEVER, he should have dumped that approach after the SECOND time manchin screwed him over. (People really DO show you who they are early on..) And I'm afraid he's also hanging in there too long with those people identified in the Professor's post. I DO understand that Biden has been slammed endlessly with serious issues to wrestle with and this may have distracted his administration, but maybe give Kamala something to do (if she's already got "something" I don't know about it...that's another topic... pence got more attn.. ) and have her work on replacing the gop who are not operating in kind w/ Biden's view. . that dejoy is still there is deplorable; I know hands are somewhat tied but if the initial strategies did not work, start over! I don't wanna wake up some morning to see my mail carrier show up in a bright shiny new GASOLINE-powered truck!

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'Bipartisanship (sic)' as practiced by the Biden class of Gerontocrats consists of surrendering the till and most of the shop and claiming a moral victory. Cutting an even deal with counter-parties who are openly cheating you amounts to handing them your wallet and your kids. Yep: Joe Biden's career MO. We got exactly what was bought (for us) in his package.

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The short-term insanity of buying gasoline mail trucks is one of those things that makes me SCREAM!!! Ths things hang around FOREVER so it''s simple to see that electric will SAVE money long term in both gas and maintenance.

But, Dejoy is an idiot who failed to understand that if he sent trucks out not fully loaded that they'd have to make more trips to get the mail they left behind out and then bragged he go the trucks out on time - but THE MAIL DIDN'T ARRIVE ON TIME!!!

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The nine-seat USPS Board of Governors has the sole authority to remove the Postmaster General, who was appointed by the previous administration.

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Do not be so fast to stereotype. Not ALL Republicans are bad, only the Trumpers are.

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Well the Trumpers are rotten from the head, whereas the Reaganites (the rest) are only severely compromised and complicit by inaction in the actions of the Trumpers. I think if one tried, it would be possible to collect enough honest Republicans to play a game of bridge; but not a game of poker.

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Lol. :)

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Trumpers remind me of people in Killer Dill. They're all in a tizzy about who's public enemy #21. Like its okay to be neurotic, but stay home where its safe. Sell underwear, not the underworld. Republicans always like to be the card dealers - because they're not so good at counting cards in their heads.

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Respectfully disagree. The vast majority of the republiklan party has remained silent while the trumpers are dismantling democracy. Haven't heard a word from bush2 who worked behind the scenes to get kavanaugh on the court. And the so called moderates in the senate -marching lock-step with the trumpers.

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That isn't right, because if Republicans don't align with Trump then they lose their primaries and worse they lose funding. Republican incumbents don't have any choice, except to align themselves with Trump or resign. Isn't that just as bad as 'being' bad? Graham and Cruz for example.

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I tend to agree, Deena.

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Because he is Bidens scape goat! Smart! His overreaction to Covid is the main cause of this inflation!

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Actually, this inflation is a GLOBAL thing. If it were only the US experiencing inflammation then I would agree but....it isn't. Current inflation is due to a variety of global things (Russian war, COVID lockdowns, supply chain issues, etc) complicated by corporate greed. Have you noticed that prices increased during COVID due to a decreased demand (which implies that prices should go back down when demand increases) yet prices increased instead?

I don't think anyone is a scapegoat for Biden.

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The stimulus was global so on top of Roberts rant worldwide stimulus also created global inflation. Based on my degree in economics, experience in living through four recessions as an investor, and being part of building nine companies one currently, over stimulation of an economy is pure stupidity. I don't think Biden wanted to choose a FED chair and accept that the FED's past stupidity is now his stupidity.

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Yes, I own a mansion and a yacht plus a fleet of dinghies that ferry the help to and fro.

The economy was not overstimulated. Americans during the pandemic spent $800 billion less than normal. If the March 2021 stimulus checks are the SOLE reason for inflation then so are pay raises which once given are forever till you stop working there. Tell your boss you want less money. Stop giving out bonuses and stop paying execs more. A pay raise, bonuses, promotions are all stimulus.

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This makes sense to me, Claire, although I must confess I'm not familiar with who some of the others you mentioned are. But, yes, Biden could definitely bring in professionals who are more uh, professional, I guess. :)

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Good question. He was already in place when Trump left, no? I am not happy with him. Robert Reich should give him a call, straighten him out. :)

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Because he's still wedded to that "reach-across-the-aisle" bull crap. What was called for in the face of the Republican Death Cult was a strong, no-compromise progressive. Give the Republicans your hand and they'll take your arm. There's no making concessions or trying to work with them. We need someone who can communicate the truth, or some semblance of it, to counter their lies and expose their true nature.

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John - You make good points, but if only it were as easy as you suggest. I just finished reading an excellent book by two NYT political reporters who had and have access to many of the significant players and the worker-bees who surround them. It's called "This Will Not Pass: Trump, Biden and the Battle for America's Future." There are many more subtleties to what takes place in the White House and Congress than I would have imagined. It is a little-known dance...and an ongoing battle to get things done. I believe Biden is giving it a good shot. I really recommend the book. Be well...

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Thank you! I will look into that source. I still believe that the greatest weakness of Biden and the Democrats is their inability - or worse, unwillingness - to develop and promote a coherent and consistent action plan that can be communicated to the American people, especially those in the rust belt and in agriculture, that can show why their policies will restore America in fact. One that will clearly present the fallacies of the right-wing Republican neo-fascist agenda, and remove Reagan and his revolution from the status of American sainthood. Part of the problem is that Dem politicians are as much in the pockets of corporations and foreign interests as are Republicans. Having a big, multi-trillion dollar "Build Back Better" plan with a lot of sweeping claims painted in broad strokes isn't enough. People don't trust big government spending (thanks Reagan and Neo-libs). The MESSAGE is everything. To get to that, which is the key to winning elections, Biden, Schumer and Pelosi need to step aside and let the younger, far more progressive cadre take over the messaging and the leadership. Under the tutelage of Bernie Sanders and Elizabeth Warren and a few others, of course. Some of the younger folks also need to tone down their "woke-ism" a couple of notches to reach a broader swath of the population. By that I don't mean diluting the values, just the expression of them.

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Hi John - I really tend to agree with you on most of what you said. The president and his spokespeople truly need to explain to the American people why these big spending plans are good for us. I believe a lot of them are. In terms of who is in the pocket of big corp., my understanding is that Joe Manchin takes the most donations from the oil and gas industries than any other elected official. Not good. I also support letting the younger generation of Democrats be given a stronger and more public role in crafting and supporting a strong pro-worker, pro-farmer, climate-focused, etc. agenda. What's funny, John, is that the generation that's younger than Joe and Bernie and Elizabeth is about oh, what, in their 50s at least! :)

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Yes. I was thinking more of the prominent young Democrats like the Squad and Beto O'Rourke, Stacy Abrams, and so forth. Lots of progressive organizations do support them, but the audience of those groups is largely limited to people that already share those views. These young democrats should be given the opportunity by the DNC to create the message, and the Democrat party should get behind them 100% and publish that message to the American people. Instead, they seem dead set on maintaining the old-school status quo, and they are very ineffective at giving any kind of consistent and clear message. And it's not enough to be attacking Trump. Odious as he may be, he himself is not the problem. The problem goes back at least 40 years to the "Reagan Revolution," and all the subsequent shenanigans of such as Newt Gingrich with his "Contract with America," Jerry Falwell's Christian Coalition, etc., that very carefully and methodically developed the Neo-Lib agenda and message that led us to where we are today. They were able to sell it a large enough section of the population that Trump could occupy the White House. For most of that time, Democratic leadership played along and contributed to it through "free" trade policies and things like NAFTA. For the most part, the Democrat party was complicit. I'm hoping that, now that SCOTUS has made it clear to many people what the right's agenda truly is, many people will change their voting in the up-coming election. and at least give us the opportunity to reverse this backward slide. Maybe that's a little like hoping that Jesus may intervene, but the Dems definitely need a strong message NOW, not one based on political calculation, which they have proven themselves abysmal at, but at clearly and unequivocally declaring the truth, and demonstrating why a progressive agenda is precisely what will bring prosperity back to this nation. I truly appreciate this exchange with you.

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Yes. Like insisting on words like Latinx.

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I forgot to mention Robert Reich, Thom Hartman, Heather Cox Richardson, among others when naming tutors for the emerging new generation. ;)

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I concur. Not just Biden but all the old democrats need to drop this reaching across the aisle crap. That largely died with Reagan and Big Daddy Bush. By the time of Clinton you had the GOP go to scorched Earth policy of give nothing to the Democrats with the Newt and Bob show of trying to make Clinton a one termer. Dems in the 90s were full on swinging away with the reach across the aisle and all it got was watered down bills that in the end barely scratched anything. Rinse and repeat to where we are today. Even the ACA, they dropped the public option because in committee the GOP said they would not vote for it, but it goes to the floor for a count and the GOP just sits on their hands. Then why have bipartisan committees.

The GOP has been throwing them that hint since Biden took office of we are going to be excluded because that is what they would do if reversed.

Mostly importantly they really need to buy better PR to get their message out. Slogans the Left creates just are so easy for the Right to dismantle. It is not just the Democrats but those on the Left. The Right seems to be so much better at being on message, even if not the truth, they are lock, stock, and two smoking barrels in step with each other. I watched Vice on Netflix, the spin done in how to interpret things is amazing.

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Why did Biden allow a conservative Republican to head the IRS?

"Maybe it’s time to replace the IRS head, as I have been reading about the mess that is currently IRS https://www.cnbc.com/2022/05/13/joe-biden-asked-to-replace-irs-chief-charles-rettig-over-tax-document-destruction.html"

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Incredibly disappointing is Biden has left many Republicans in high level government positions to foster bipartisanship in some terribly misguided belief that will help him. He has no idea how wrong he is.

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I appreciate his aspiration for bipartisanship; I share the vision. BUT, we cannot access bipartisanship until we first restore the balance of power, including critical checks and balances undone by all the money that now is allowed to flow through our elections and elected officials campaign funds. It's a costly mistake.

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These new Republicans are not capable of bipartisanship. There are no moderates. No centrists. Just lock-step Trump loyalists. Anyone who departs Trump's views gets primaried. Purse-strings have made Nazis of all who remain. They stole 2 SCOTUS seats. They don't play by norms. That is why they tolerated Trump no matter what. He gives them judges, they hold their noses. Gone for now are the compromises. This new bill breaks the mold, to bring chip tech back to American soil. The rest is all culture wars. Even reasonable republicans are tolerating abortion laws with no exemptions. Baby gonna die, Mom should die too. So no, no more bipartisanship. It only makes us look weak, and we are weak. Oh it won't be the end of our Democracy, it will be the dark ages in the City on a Hill.

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Well said. Totally agree.

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The IRS is doing the best they can with what Congress has given them. Studies have shown that the IRS can recover more owed taxes if the Congress would just let them have more people. The tax dollars recovered would far exceed the cost of additional employees.

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Lets not forget that the IRS is so severely underfunded and understaffed as to be powerless to do much of anything (even routine tax filings) at this point. That's something for which former Republican congresses are largely responsible.

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7/22/22: The head of the IRS asked the Treasury Department’s internal watchdog to investigate the tax audits of two leading foes of former President Donald Trump: ex-FBI Director James Comey and ex-FBI Deputy Director Andrew McCabe. Both the CIO and Head of the Criminal Investigations are Biden appointees. So this is interesting and I think its a step in the right direction.

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I suspect the public doesn't understand how the Board of Governors are nominated and appointed and unfortunately, the Republicans take full advantage of their ignorance. The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years. A member who serves a full term may not be reappointed.

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Here's a fun bit a trivia. I spent many years as a corporate speechwriter - and was once hired to write a speech for the President (if that's the right word) of the Federal Reserve Bank of Cleveland. She is no longer there, but it was a fun and enlightening experience. They actually put me up in a hotel for roughly 2 weeks and I went to the Reserve building every day to meet with her and her staff. They know a lot about numbers. :)

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That sounds really interesting.

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Rate rises have everything to do with preserving the value of monetary assets held by and only by the super-rich and less than zero to do with 'price inflation' in the real economy. When one understands this, everything else done follows logically in a point by point manner.

Having thrust an ocean of bonds down the throat of the financial system at negative real rates, the serial incompetent by the name of Jerome Powell is now desperately trying to get bond prices up enough to keep the speculators from bailing on them, since those bonds are in fact the Fed's real instrument to influence the economy. Of course, Powell CAUSED this situation by intervening massively in the financial markets after they blew themselves up (again) with derivative speculation in September, 2019, something completely unknown still to the vast majority of the public, in the USA or anywhere else. The egregious speculative bubble in just about everything from the Spring of 2020 on was very directly stimulated by Powell's incredibly distortive, indescribably undeserved, bailout of the major American speculative banks (i.e. all of them). Some of that spilled over into rampant speculation in other parts of the US economy, though in itself that was a contributory but not primary cause of the current real inflation we now see because speculative gains were largely ploughed back into more speculation, especially on phantasmal 'assets (sic)' such as crypto, rather than in buying real assets. American speculators of recent years primarily bought pump-and-dump stocks, Big Techs, and crypto, which only went up (until they didn't). They didn't buy oil contracts or pork belly futures and boost 'real inflation': those markets actually gyrated wildly and you could get your face ripped off doing that!

I agree with Robert completely that separate from this just mentioned dynamic in the US financial system, real inflation is overwhelmingly a worldwide problem. It is a) _demand_ caused, as he says, by pandemic induced supply disruptions and slingshot demand since economies have reopened, together with world macroeconomic issues unrelated, and b) given a further and nontrivial push by the price gouging of well-positioned capitalist producers and full time commodity speculators at the very heart of their own industries. B) is completely unaddressed by ANY major central bank or government executive body, a real indication of how little care the ruling class can even bother to muster for the actual 99% of the world's population.

So far, Powell is succeeding admirably in his goal which is why he will continue: US rate rises have sent the US dollar soaring relative to other currencies, forcing most anyone in the world who can get access to dollar denominated assets to buy them hand over fist or take huge relative losses. The American real economy---"Main Street"---is of absolutely no concern to Powell and his clique on the Fed's key committees, though a handful of Fed governors have tremulous little qualms about all this. The US economy will be acceptable collateral damage to the mission of the majority, that of keeping the assets of the super-rich in tiptop price shape.

Now, guillotines were deployed to designed effect to truncate a financial class which, time was, embarked on similar missions to keep the rich rich even if the rest, lacking cake, had to eat each other to the bone in consequence. I don't think _that_ outcome is part of Powell's goals, and sadly he's safe enough for now, since the public understands nothing of macrofinance and persists in blaming faces who have little actual say in American financial policy, like Biden and 'the overpaid American worker (sic).' Time was, the working class and the bourgeoisie both understood that the oil companies, the meat packers, Big Ag, and Big Pharma were the real class enemies enriching themselves in distorted situations at the expense of absolutely everyone else. That kind of horse sense seems all but dead in the American public just at this time. Or . . . is it only in a diabetic coma??

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You certainly make a lot of excellent points, and I basically agree with you, especially about how Powell's decisions to pour more and more money into the economy during the pandemic have led to the situation we now face. And I totally agree that the super rich care nothing about "the little guy." The forces you name - from big banks to big corporations to big pharma are the real bad guys. Sad but true that "the rich get richer and the poor get poorer." It seems it was ever thus.

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July 28, 2022
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Keeping some Republicans in key positions is the proper thing to do. Removing all Republicans in a clean slate move would be a terrible approach. It is something Trump would do. The future of our government requires some semblance of cooperating and working together. As a related matter the quantity of government positions selected by a president is far too large and makes for a more inefficient government.

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You make a good point, Charles. I was recently reading about Civil Service jobs and how they have been reduced over time so the President does get to make many more appointments than is, perhaps, wise.

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Biden appears terrified that "when the Republicans win they'll retaliate." Because Biden's a loser who won't do what it takes for the Democrats to actually be popular and stay in office. Joe's hoping the Republicans will have mercy on him when he gamely loses again, just like he has most of his career. He's that much of a fool. But we don't have to play the fool along with him, and had best not.

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You know, Richard, I understand what you're saying, but I've just finished reading a very good book by two NYT political reporters, called "This Will Not Pass: Trump, Biden and the Battle for America's Future," and it paints a very different/more nuanced picture of Pres. Biden than the one you are suggesting. Definitely worth a read.

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I'm speaking of Biden in sweeping terms in these comments thus far, Cynthia. Anyone is obviously more complex than such terms can convey. I will say that in some ways Biden has been an _upside_ surprise to me thus far. He's shown he can be pushed to the left a little, which was never the case for Clinton or Obama. Some of the legislation proposed in Congress to which he has generally assented in principle if it passes is more progressive than anything Biden's tranche of the party has ever been prepared to tolerate.

That said, there are obvious limits to the man and his purposes. I do historical analysis as a serious avocation, and from that perspective I tend to be allergic to 'analyses' by journalists generally, and ESPECIALLY by political journalists. Now, their work may prove to be valid in detail, but it will seldom incorporate a real context which gives meaning to that detail. It's far too much 'inside baseball' and far to little 'actual political economy.' The argument on that is longer than I have time to pursue here.

Short of it: sure, there is more to Biden than a toss off comment can convey. The _spirit_ of the those remarks sticks to the man like gluey saran wrap, from where I see him.

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Thanks so much for your kind response, Richard. I'm not sure I agree with your closing thought, but that's what makes the world go round. Be well.

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Ah...the old Section F trick.

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If we knew to whom to talk, whom to convince, we would have done it. Alas, we have no influence. And the Fed, and Jerome Powell, will bear no consequences.

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We'd be better off increasing the minimum wage to $15 now and increasing it to $20 over the next 7 years. Increasing interest rates simply harms lower wage earners and keeps them down.

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I think we should go for a $15/ hour minimum wage but implement an annual COLA (Cost of Living Adjustment). That way low wage earners won’t have to wait 13 plus years again before they see another pay raise.

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Makes so much sense, $15 now, COLA each year as well as increasing it by $5/hr every 5 years. Mind you that makes too much sense for politicians to comprehend with corporations buying them.

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July 28, 2022
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Median income $19/hour; Average income $28/hour; Women still earn 11% less than men.

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Solutions, solutions, solutions...why light a candle when you can curse the darkness and - if you're a republican legislator - get your constituents to curse it along with you?! My God, when will the voters wake up (and I don't mean become woke!)

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They will wake up when Economics becomes a major subject in public schools. However, since capitalism depends on a dumbed-down population of consumers, proper education is not likely to happen.

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Same is true for politics and the principles of democracy. Just what is being taught?

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July 27, 2022
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That would be unbridled Capitalism where even homosapiens are considered "Human Capital" to be used abbused and disposed of. By the way there are those of us who actually remember the era of Mc Carthism and it's unhinged 'Witch hunt" for COMMIES under every bed in the nation. . . "Senator, have you no shame?"

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July 28, 2022
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Wages are an expense. That is not an asset. Companies want to keep wages down.

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Thank you Lenny It nice to know who the elephant in the room is. Have a nice day and oh yes I am a business owner.

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When FOX is off the air and the WSJ is used for nothing but wrapping up the garbage. But, it may be too late since Facebook and other social media seem to have taken the place of fact-based journalism.

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Why were consumer interest rates allowed to be so high when the feds was near 0%? Savings rates aren't increasing. One would think we're a country of oligarchs

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Savings rates ARE raising. Ours go up each and every time with the rate increases. This is on 5 different banks, MM and Savings accounts.

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Thank the ones paying higher interest rates on their loans. You know, those that borrowed at a low interest rate just to get by in an economy run by those with the most.

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Jerome Powell seems questionable. If I’ve heard right Elizabeth Warren doesn’t agree with the raise and she’s very good on finances.

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Agree 1000% less 25% due to inflation!

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Ok, let's do everything that you recommended, oh, we cannot do it. Why, because the Repubs and some Dems are against it.

Good try, professor.

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Exactly my thinking every time a question is raised concerning what should be done about >anything< that involves action by Congress. My answer for everything is a resounding NADA - until we can unseat the required number of wank-publicans in Congress. Sorry Dr Reich - and everyone else - but that's my unvarnished view.

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You’re right. This is the downside of our political system.

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As per usual, the working class will end up paying big time, while the rich continue to become richer. And, this is supposed to be a Democracy ?!

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This is what I think has given Thump his following. Did you see the guy on the J6 HEARINGS when Thump sent out his last tweet...he was looking at his phone and saying, "Thump wants us to go home!" He was on his way home. They are easily lead, they don't trust government (who does here) and they live from paycheck to pc...they probably don't have much college, they don't understand economics, they may not vote and they don't trust government officials! Why the hell would they...we don't either. And they figure if we can't make sences out of it, why should they try.

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True, but beyond that there is a real problem with Democrats disconnect with the bread and butter concerns of rural Americans and displaced urban blue collar workers. They perceive Democrats as focused on idealistic and elitist froo-froo.

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Submit to WSJ, NYT for op-ed

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That's a great idea!

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It is like the Maginot line built after WWI. Defense against a past invasion that didn’t address the forthcoming one

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I'm also partial to: The best of battle plans never survive the first engagement.

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That's a military maxim: Generals always plan for the previous war.

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It seems as though the Fed is operating in 1946, when the only economy that counted was the USA’s. Fast forward to today, and the USA’s economy is no longer the 800-lb gorilla; and what’s happening around the world affects us like never before, so that raising interest rates in the USA no longer has the intended effect: to dissolve inflation.

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Only if you don't deny it's true! LOL! ];-)>

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It’s amazing that none of our so-called leaders have informed us that we’re not the only economy on the planet.

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Preachin' to the choir, bro! Every Democrat in Congress should be harping on that daily and continuously - in my view.

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I occasionally see the head of the Fed on the news and sadly he just doesn’t inspire confidence but instead brings to mind a “that’s the way we’ve always done it” image. In fact what often comes to mind is the old saying of “when your only tool is a hammer every problem is a nail”.

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It's a shame that Biden didn't choose someone other than Powell. It's Republican loonesy.

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July 28, 2022
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We need the boat rocked and overturned.

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Ahh, but something tells me the majority of folks in control (mostly white men might I add) don't really care about most Americans at all; they got theirs and they keep on doing well, so why should they and their families worry? Sigh.

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The flogging will continue until attitudes improve.

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You're reminding me of something commonly said at my office. Actually, it wasn't about attitudes improve. It was "until you love us!" (I called it battered child management.)

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