 |
| Jerome Powell of the "Fed" |
Normally there's a gospel-like adherence to this thing called "objectivity." The rigidness of objectivity does not go way back in American history, not at all. Advocacy was once out and about as sort of the norm. You can argue it was quite defensible because it was out in the open, no pretense. What harm does that do?
Objectivity as a mantra in the media coincided with the advent of the monopoly distribution model of the big metro papers. Oh, it wasn't so much based on principle. It was based on not wanting to offend anyone. Retain your base of support and advertising with a Pablum-like product, wink.
But even with the reigning ethos of this thing called objectivity, certain opinions got a pass, as with "nice weather on the way." Same with the sports report where rooting for the local teams is considered acceptable.
But I noticed something new recently. It shocked me but I doubt many others have noticed. It is now considered benign to root for lowered interest rates. I caught some chatter along a news desk where all of this was intended to blend in with the obligatory "happy talk."
"The weather is nice, the home team wins, and it looks like the Fed will start looking at lower interest rates." So here's a toast, I guess.
Maybe the Fed will be totally justified starting to push interest rates down again. We have drowned over the last 15 or so years with unusually low rates. Often this gets the "quantitative easing" label. And I don't think it was originally intended to last so long, or to be a model for "how things should be."
There is always an upside to lower interest rates. Make no mistake. But it's far from a slam-dunk truism that this is how it should be in perpetuity. Even people without college degrees should realize that interest rates exist for a reason. "Free money" is pie in the sky thinking.
So grandma puts her Social Security income in the bank, the bank makes money by loaning it around the community, and grandma gets paid less then one percent interest. Seems rather out of kilter. At least it does to me. But a voice like mine gets totally drowned out by the Jim Cramers of the world. Do you suppose Cramer secretly has all his own money in the bank? That's a joke.
The "Fed" with its power
I have yet in this post to mention this many-headed hydra called "the Fed." You ought to realize this thing called the Fed has incredible power. And it's not really answerable to our elected leaders. Occasionally there will be "testimony from a Fed person on capitol hill." So there's a suggestion of accountability. Only a suggestion.
The Fed will argue that higher interest rates are needed to try to hold down inflation. "Try to." In truth the Fed could be using other means to neutralize the chimera of inflation. My, what a chimera this was in the 1970s.
Inflation in the present time got off the launching pad with the end of the covid lockdowns. The so-called re-opening, even though covid remains with us to this day. Inflation has gotten more high-profile in the news. However, I have noticed nothing like a full-fledged inflation panic. Might we be on the doorstep of this? Or maybe not? So we handle all the price hikes in perfect stride?
Take a look around
Why do you think recent high school graduates have an increasing tendency to stay at home with parents for an indefinite time? Such a contradiction to when I was young. Man, you'd be expected to "move out" no later than the day after your high school graduation. Or else risk scorn. Well, it's economics, the cost of living.
So we are in fact reeling from inflation as a culture. People make adjustments to keep from being overwhelmed by the forces. As an aside, let me suggest that extended-generation families are nice. Everyone can help each other. The younger people are right on the scene to help with parents as the parents begin to experience age-related limitations. People are living longer now.
But consider how foreboding the outside world can be for an 18-year-old, let's say someone with a 'C' average in school who has no family connections for getting established in anything. You graduate and then stare out at the real world. Just browse at the local furniture store and look at the pricetags on things.
Businesses have reasons for charging what they do. But what of all the young people who'd like to get established in life?
The Federal Reserve could raise interest rates again at the beginning of May. The commentary in the media seems so absolutely stacked against the idea of hiking. But are these sincere opinions about what is best for us all? Rhetorical question. With the answer of "no" or "not necessarily." How naive to think "free money" is always the answer to everything. I don't buy it. But I feel so isolated with such views.
The media feeds us the (purportedly) benign message of "good, looks like the Fed won't raise interest rates again." Maybe this position will be borne out as valid as time goes on. But heavens, this is anything but a slam-dunk. And the media people should know better. I just think there are powerful vested interests behind the positions that the media is always suggesting.
The media tells us Trump is in "legal hot water." What does it mean to be "in hot water?" If I get seen without a seat belt, it's all over in an instant as I get a ticket. But for the likes of Trump and Clarence Thomas? Oh hell, you know the routine. Pricey attorneys wearing suits and ties come at us to say white is black and up is down. Ditto with T. Denny Sanford in South Dakota. If you all haven't woken up to smell the coffee, there is no hope for you.
- Brian Williams - morris mn minnesota - bwilly73@yahoo.com
No comments:
Post a Comment