Trump economic adviser slams Fed chairman

[adVance democracy]

Source: The Hill

BY BRETT SAMUELS - 12/23/18 07:00 AM EST

Stephen Moore, an informal economic adviser to President Trump, blamed Federal Reserve Chairman Jerome Powell for the recent drop in the stock market in an interview that aired Sunday.

In an interview with John Catsimatidis on New York's AM 970, Moore echoed a number of the criticisms that Trump has shared publicly about the bank chief, who announced earlier in the week that the Fed would raise interest rates despite protests from the president.

"We need to be putting more dollar-liquidity into the economy because there’s such a demand for dollars now all over the world," Moore said. "Everybody wants to invest in the United States and at the same time the world wants more dollars. The Fed is sucking them out of the economy. And it has really hurt the stock market."

Moore, who recently co-wrote a book titled "Trumponomics" with Art Laffer, said the two visited the White House recently, where the president asked them whether he should've kept former Federal Reserve Chairwoman Janet Yellen instead of appointing Powell.

"We looked at each other and said, 'Janet Yellen couldn’t have been any worse than the guy he’s got in there now,'" Moore said.

Read more: https://thehill.com/policy/finance/422614-trump-economic-adviser-slams-fed-chairman

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An "informal" economic adviser and Arthur Laffer make me wanna laugh myself.

[duforsure]

1. trump is desperate to blame others

After he repeatedly claimed he would shut the government down, pull out of Syria, and ran off the Secretary of Defense , and wants people to receive the blame for his actions now so he can bully the Fed to keep interest rates low for him to further run up the debt with , and like he's done in his business also which caused some of his bankruptcies. He wants absolute control of everything to use for himself and profit from. His executive time is probably his time he works for the trump organization still.

[Maxheader]

2. Pretty clueless about this statement..

"We need to be putting more dollar-liquidity into the economy because there’s such a demand for dollars now all over the world," Moore said. "Everybody wants to invest in the United States and at the same time the world wants more dollars. The Fed is sucking them out of the economy. And it has really hurt the stock market.

From what I've been reading and understanding at some financial sites, investors are running scared because of yes, the rates increase but also the shut down govt..the wall, and cheetox trade war...

Undoubtedly stumpy coached moore...and with all its past business failures, I don't think its sound advice...??

[underpants]

6. I can clear this up - Stephen Moore is an idiot

He's propped up because he holds true to the supply side line regardless of all the evidence against it. The fact that Trump hired him as an advisor says tons about both of them.
Laffer, likewise, is not considered very highly either. His "Laffer Curve" was the simplistic actual cocktail napkin drawing that fueled much of the rightwing Reagan economic programs that the right is still beholden to today.

[watoos]

12. Yeah, you bet,

that's all we need is for one of those clowns to take over the Fed. Just what we need, more trickle down economics.

Trump's tax scam was a huge transfer of wealth from the bottom up. These 2 jokers will make our income inequality gap even wider. That's what's going to be our downfall, not our debt, our income inequality.

[Power 2 the People]

20. +1

[Botany]

11. Pure gibberish: "We need to be putting more dollar-liquidity into the economy"

From 10 minutes with the google machine dollar liquidity is in part from a wing nut "think tank/scam operation"
called Palisade Research which no doubt has links to conservative billionares and corporations ....
they see an upcoming market crash and need to blame it on something else besides Trump, the GOP,
and supply side bull shit.

"We need to be putting more dollar-liquidity into the economy because there’s such a demand for dollars now all over the world," Moore said. "Everybody wants to invest in the United States and at the same time the world wants more dollars. The Fed is sucking them out of the economy. And it has really hurt the stock market."

[Racerdog1]

3. Moore is a moron.

Listen to this asshole for about 30 seconds and you can see he is nothing but an ass kisser and boot licker for the orange asshole.

[DeminPennswoods]

4. Moore and Laffer

Two stupid dogs.

[beachbum bob]

5. The Fed has little to do with what has caused the markets to sink...

trumps tariffs, trumps constant misleading statements, a taxcut that benefited corporations to buyback stocks = over valued market, working Americans received minimal if any "wage growth"....ya, a Fed interest rate had an effect but just a small one. Trump admin is very lucky gas prices are not soaring right now, that will be coming

[underpants]

7. Exactly.

The Fed raised interest rates to cool the economy and avoid inflation. With no wage growth, as you pointed out, inflation would be crippling to most of the people in this economy. They are a
Ready feeling it from the tariff policies but it isn't mentioned in the news or even on Foxworld so they don't realize it.

The over value lead to some of this sell off too.

[beachbum bob]

9. the dilemma is, low-cost money creates way more problems then not and the US has held rates

artificially low for years...the next BIG issue will be the cost of "debt service" as interest rates head back to the "normal range". For years, debt and deficits have been allowed to "run away" as the cost of debt service was held artificially low. The pain will be coming as serving the annual Federal Debt service will almost DOUBLE the annual deficit. We could see $2 trillion annual Federal deficits when the interest rates hit 5%. On one hand, that gives republicans the added ammunition to go after Social Security and Medicare and otherhand it gives Democrats even more reason to reset federal tax structure back to the Reagan level and so some ACTUAL tax reforms so people and business pay their fair share. There is a cost to live and profit in AMerica and right now those at the top are avoiding it

[watoos]

14. IMO, income inequality is the bigger problem than our debt.

If we look at debt to GDP. Republicans are making forecasts based on future growth of 4 to 5 %. If we get GDP at 2% or less, combined with that big tax scam the GOP just passed, our deficit is going to explode.
That Trump tax scam gave the markets an artificial high; tax cuts, regulations cut. Even the deal to allow corporations to repatriate their overseas profits was a failure. Corporations were supposed to bring back their offshore money for pennies on the dollar, shit, they didn't even take advantage of that, corporations are leaving their money overseas. The money that Trump gave to corporations was supposed to be used to give workers pay raises, laugh, laugh, they used it to buy back stock and further artificially inflate the markets.

Back to income inequality. We can never default on our debt, we can always print more money, but if it gets so bad we will end up with runaway inflation. We need growth to offset our deficit and to offset inflation. 2/3 of our GDP comes from consumer spending and consumers, workers's wages have remained stagnant for 40 years. Our individual debt is growing also, eventually spending is going to tank and GDP is going to tank. Republicans have funneled all of the money from the bottom up, supply side economics, it has never worked, and never will.

I can't wait until tax time when Trumpers find out that that pay increase they got this year came from their refunds.

[beachbum bob]

22. we have always had income inequality, and now we have even more

[modrepub]

8. Gas Price Drop Contributing To Stock Problems

The energy sector is big business in the US these days. I'm convinced that the real reason the recovery after the Great Recession was so muted was largely due to depressed oil prices. When the oil market finally did rebound, the US GDP went up as well as the stock market. Whether we realize it or not, the US is a large energy producer via the fracking revolution in the new gas fields over the last decade. The US energy companies and our stock market rely so much of fossil fuels that I fear curbing CO2 emissions is going to be extremely difficult if not impossible.

[beachbum bob]

10. one element you must consideris the disposal income that consumers have available

when gas cost $2/gal vs $3/gal. Its BILLIONS extra being spent on the economy. The added $1/gal in the pocket of consumers is way more an economic driving force than the $1/gal extra in the pocket of big oil

[modrepub]

13. Rough Breakdown

OK. So lets try and lay some rough numbers to compare. So if we buy about 391.71 million gallons a day (2017) in the US that means the consumer would have about $400M/day in extra disposable income for a price drop of $1/gal. Not bad.

On the other side of the ledger, ExxonMobil and Chevron are going to loose value because their product is now cheaper and their profit margin is now lower. On Dec 3 ExxonMobil stock was at $81.22 and closed on Friday at $68.12 so that's a market loss of $13.10 per share. That's about $56B wiped out based on the most recent shares outstanding. Chevron stock was at $120.67 on Dec 3 and closed at $104.21 so that's a market loss of $16.46. Thats about $31.5B based on most recent shares outstanding. That cascades into the market because the stock losses also affect mutual fund and banks that hold shares of Chevron and ExxonMobil in their portfolio. For example, Vanguard owns 326M shares of ExxonMobil so they've theoretically lost $4.3B in value, top three share holders lost about $10.5B collectively. And so on. It's the asset holding multiplier that compounds losses.

So the consumer saving $400M/day on a drop of $1/gal must offset all of the market losses from the companies that produce petroleum products (and all of the institutional holdings in those companies). It's very complicated but I'd say that institutional losses could swamp any consumer side savings, or at least cancel out a large portion of any savings/spending. It becomes even more scary if you're holding petroleum company debt, since drops in the price of oil impact the petroleum company's ability to pay back their loans. Often it's the value of the undeveloped oil reserve that's used to justify the loan in the first place. Once the asset value falls below the cost to extract the music stops and anyone caught holding debt attached to it is sh$# out of luck.

[watoos]

18. What % of consumers have 401k's?

[Cold War Spook]

23. 32% of Americans have 401Ks.

Can't find a figure on IRAs but even with that, how do you figure how many people have both. Even if it is 1/3 of Americans have one or both, they took a big hit this year. 10 years or more until retirement and they are not going to be hit. It is the ones retiring in next 3 years that will be hurting. When I was working I maxed out both. I had some bad years, but taking any 10 year interval, I did well, about 8% a year. If I was working now, don't know what I would do.

[turbinetree]

15. Well three idiots in the same room wouldn't know what was looking at them in the face

in·fla·tion

noun
1.
the action of inflating something or the condition of being inflated.
"the inflation of a balloon"
2.
ECONOMICS
a general increase in prices and fall in the purchasing value of money.
"policies aimed at controlling inflation"


de·fla·tion

noun
1.
the action or process of deflating or being deflated.
"deflation of the illusion that the 1960s were a perpetual party"
2.
ECONOMICS
reduction of the general level of prices in an economy.


stag·na·tion

noun
the state of not flowing or moving.
"blocked drains resulting in water stagnation"
lack of activity, growth, or development.
"a period of economic stagnation"



Again, three assholes were sitting in the white house talking to an asshole that uses bankruptcy laws to further his means of enrichment.............................go fucking figure........................and to add more bull shit to this team of assholes, if they could put 2+2 = 5 together, which they have dumb fuckers, they would realize that the "tariffs' that zippy the traitor has put together on fucking everything causes "stagnation"..........................go fucking figure........................blame the fed chair, his chairman............................


And then there is the Laffer Curve................the Arther Laffer of Curve..................Quote:

The Laffer Curve is a theory developed by supply-side economist Arthur Laffer to show the relationship between tax rates and the amount of tax revenue collected by governments. The curve is used to illustrate Laffer's main premise that the more an activity — such as production — is taxed, the less of it is generated. Apr 4, 2018.............................so for 40 plus years Laffer your trickle down economics has enriched who----------------------you asshole with your bull shit production of shit economics activity......................your just like Roger Stone and Gerome Corsi.......................FUCK YOU.................I will now have to pay a lot in taxes this year asshole after your bunch gave 1.5 trillion to corporate assholes that don't produce shit except hiding and buying paper to create further dividends, closing plants etc..........................so go fuck yourself......................we are going to repeal that tax rate.......................it was a scam............................productivity my ass.......................

[keithbvadu2]

16. Excuses from the Donald who said only he could fix it.

https://www.google.com/search?source=hp&ei=W7EfXLuKK8ve0gKW-oHwCg&q=trump+only+I+can+fix+it&btnK=Google+Search&oq=trump+only+I+can+fix+it&gs_l=psy-ab.3...3432.12370..13946...4.0..0.168.3964.0j28......0....1..gws-wiz.....0..0j35i39j0i131j0i22i30.Feem_1OrCyE

[elmac]

17. The Fed has no tricks left to save this mess nt

[watoos]

19. Yes, you nailed it.

[SWBTATTReg]

21. And what's funny about rump and moore complaining about the Fed increases is that ...

(according to some sources, fire the Fed Reserve chairman, blame him for everything wrong w/ the markets, not me (rump)).

Firing would be a terrible idea and really spook worldwide markets. Big time. What we see now is a simple slowing down of a economic cycle which has run for 10 years or so.