{"id":42330,"date":"2021-06-09T13:18:04","date_gmt":"2021-06-09T17:18:04","guid":{"rendered":"https:\/\/www.rightwinggranny.com\/?p=42330"},"modified":"2021-06-09T13:18:04","modified_gmt":"2021-06-09T17:18:04","slug":"something-we-need-to-pay-attention-to","status":"publish","type":"post","link":"https:\/\/www.rightwinggranny.com\/?p=42330","title":{"rendered":"Something We Need To Pay Attention To"},"content":{"rendered":"

On Monday CNBC<\/a> posted an article about a recent statement put out by Deutsche Bank economists.<\/p>\n

The article reports:<\/p>\n

In a forecast that is well outside the consensus from policymakers and Wall Street, Deutsche issued a dire warning that focusing on stimulus while dismissing inflation fears will prove to be a mistake if not in the near term then in 2023 and beyond.<\/strong><\/p>\n

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The analysis especially points the finger at the Federal Reserve and its new framework in which it will tolerate higher inflation for the sake of a full and inclusive recovery. The firm contends that the Fed\u2019s intention not to tighten policy until inflation shows a sustained rise will have dire impacts.<\/strong><\/p>\n

\u201cThe consequence of delay will be greater disruption of economic and financial activity than would be otherwise be the case when the Fed does finally act,\u201d Deutsche\u2019s chief economist, David Folkerts-Landau, and others wrote. \u201cIn turn, this could create a significant recession and set off a chain of financial distress around the world, particularly in emerging markets.\u201d<\/strong><\/p>\n

As part of its approach to inflation, the Fed won\u2019t raise interest rates<\/a> or curtail its asset purchase program until it sees \u201csubstantial further progress\u201d toward its inclusive goals<\/a>. Multiple central bank officials have said they are not near those objectives<\/a>.<\/strong><\/p>\n

In the meantime, indicators such as the consumer price and personal consumption expenditures<\/a> price indices are well above the Fed\u2019s 2% inflation goal. Policymakers say the current rise in inflation is temporary and will abate once supply disruptions and base effects from the early months of the coronavirus pandemic<\/a> crisis wear off.<\/strong><\/p>\n

The Deutsche team disagrees, saying that aggressive stimulus and fundamental economic changes will present inflation ahead that the Fed will be ill-prepared to address.<\/strong><\/p>\n

\u201cIt may take a year longer until 2023 but inflation will re-emerge. And while it is admirable that this <\/strong>patience is due to the fact that the Fed\u2019s priorities are shifting towards social goals, neglecting inflation leaves global economies sitting on a time bomb,\u201d Folkerts-Landau said. \u201cThe effects could be devastating, particularly for the most vulnerable in society.\u201d<\/strong><\/p>\n

I realize that the Deutsche team’s conclusions may not be the majority opinion, but based on what I am currently seeing, I tend to think they are correct. Endless deficit spending has never led a nation into continued prosperity.<\/p>\n","protected":false},"excerpt":{"rendered":"

On Monday CNBC posted an article about a recent statement put out by Deutsche Bank economists. The article reports: In a forecast that is well outside the consensus from policymakers and Wall Street, Deutsche issued a dire warning that focusing … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[684,8809,8123],"class_list":["post-42330","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-cnbc","tag-deutsche-bank","tag-inflation"],"_links":{"self":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/42330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42330"}],"version-history":[{"count":2,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/42330\/revisions"}],"predecessor-version":[{"id":42332,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/42330\/revisions\/42332"}],"wp:attachment":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}