How about that stock market!

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BABMusic said:
@The-Kid, I think the thing to ask is, why does the Fed want 2% increase in cost every year? It doesn't help anyone but the rich to have everyone lose purchasing power every year. The 2% target came from some other country and the US used it as an excuse so that inflation could keep happening. We didn't have this 2% target in the 1990s.
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I don't know there is something about it and it's been the historical target and same goes for unemployment at 5%. Sort of like an 80/20 % thing......


It's hard to explain but markets are organic and like nature and those seem to be sweet spots historically when it comes to the margins in either regard.
 
I've always been fascinated with the markets growing up especially since 2008 and the Banking Crash........ and yeah modern economics seem like a mystery to many.....


But once you realize we are being All Watched Over By Machines of Loving Grace...... it's easier to understand and you see a better view of the picture and forest IMO.


 
Once you see the world how it really is...... it's hard to unsee it the way it actually is and for what it really is.....


And yeah the world and everyone now more than ever is living in a world All Watched Over by Machines of Loving Grace ^_^


 
Also in regards to 2% inflation I figure there is a connection between that and 2% GDP growth. I forgot exactly but there is a connection and that seems to be the Feds target because anything below means stagnation and a slow economy and anything above means high inflation and a bubble/hot market.


It's just the equilibrium target for a healthy economy @BABMusic simply put 2% is the Goldilocks zone so to speak and economically speaking and the Fed doesn't decide it so much as the free market and free individuals actions within that market naturally and organically.
 
The~Kid said:
It's just the equilibrium target for a healthy economy @BABMusic simply put. 2% is the Goldilocks zone so to speak and economically speaking
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I think that's how they sold it, but there's really no scientific argument for why we're better off with 2% less purchasing power every year. Deflation is the best for consumers because it allows you to buy more. 2009-12 was rough for some people, but great for those who saved.
 
BABMusic said:
I think that's how they sold it, but there's really no scientific argument for why we're better off with 2% less purchasing power every year. Deflation is the best for consumers because it allows you to buy more. 2009-12 was rough for some people, but great for those who saved.
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Deflation is nice if you have bags of money laying around but when it comes to making new money, circulating it and overall new and real growth it's not as good as you may think although in many cases it is better than inflation for example one can say.



It's not that "they" or anyone sold it as such. What it is if you look at the economy historically over the last 100+ years markets show for example with unemployment there are "sweet spots" such as 5% unemployment where the pendulum will always swing up or down but be in between that 5% sweet spot range more than not when it's healthy and the economy pushes to be at that 5% for a healthy equilibrium.


Same goes for inflation and GDP growth at 2% being the sweet spot.


If you didn't have some sort of inflation you wouldn't have growth essentially and have stagnation and well not just a recession but a depression if left unchecked.


So it's not really "they" or the Fed saying so it's really nature and the organic market showing us and telling us so. Some of this stuff one can argue about philosophically or on a theoretical basis but some if it essentially is just as concrete and real as 2+2 and the inherent knowledge and logic that 2+2=4 for example.


It's hard to explain but markets forces aren't really as abstract as many think they are and they really are as concrete as 2+2=4 sometimes as in the case with 2% inflation, growth in general or unemployment at 5% for example amongst other things as well.
 
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The Blazing Saddle said:
By skimming through this thread, you can easily see that The~Kid is much smarter than Bonerlover. :ROFLMAO:
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I'm not smart to be honest. My Econ, Business and Calc Professors and teachers in College and in HS or JH they were smart.......


A lot of smarter people than me in any room including this one to be honest and I just like to sit back and watch the wind blow the windmill however the wind blows it *_*
 
Unemployment numbers are down.....

Employment/jobs numbers are up.....

Gold is down.....

Inflation is down.....

Interest rates are going down.....


There is no recession and the fundamentals of the economy are stronger than ever before or they have ever been before...... Despite what the "experts" at the NY Times and CNN/MSNBC or even Fox News say........


The sky is not falling...... and America has never shown a stronger, more robust, resilient and vigorous economy with strong fundamentals and a strong foundation at its core.






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And I hate to use fake news as a term......


But yeah the "experts" at Fox News/CNN/MSNBC and the New York Times are completely off base and we can see the economy is fundamentally strong at its core and this is just a correction and not a recession and that is what the market is telling us with gold, inflation, unemployment and jobs numbers nvm interest rates going down......


Investors around the world are simply shifting their assets and adjusting to the new rules America and the man with the only gun in the room is laying down.




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Hey not good or bad..... and yeah much better than most expected today despite all the sky is falling BS the economy is not in a recession and the fundamentals and foundation of the economy could never be stronger.


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Right or wrong, good or bad, ugly or not Trump is not afraid to use the gun and as said everyone else will just have to fall in line and the President is setting things right for the average American...... by force or whatever means necessary......

Because men with no guns aren't worth the weight in their own piss and and financially speaking lets be real the other countries/men just don't have a gun to begin with.....

And that is how you win the West and win the World in 2025..... with a gun same as always all day/every day and the President is the only man with a real gun in this room and the worlds Economies/Markets.
 

 
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Bad Brain said:
They have not.
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Your right that was speculation I read somewhere but given inflation going down maybe not 5 .25 point drops but maybe 2 or 3 depending on inflation.

In either case inflation is going down and that is probably going to mean another quarter percent drop or two in either case and just the speculation helped the markets today along with all the countries calling the President.


It's a speculation amongst traders and I read it wrong, the rate cuts are coming but how many and how soon is really anyones guess.
 
Bad Brain said:
The GDP growth is just inflation? 🤣
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Not really but the thing is you need growth to keep up with inflation. They don't necessarily go hand in hand really but yeah you need GDP to grow to keep up with inflation.

Real GDP gives you a better idea how growth is in relation to inflation while nominal GDP while still showing you some of the picture may not show the entire picture as Real GDP can as it accounts for inflation relative to past years and decades and the year before.

For example GDP may say 5% growth but when accounting for inflation Real GDP may say it's 2.5% or 3% or less @Bad Brain. Hope that makes sense.
 
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