Originally Posted by
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Yes both the FOMC and Congress have electricity, nevertheless in November a possible power change can and probably will happen in the good old boys' club, Congress. And when it's all said and done, those men (FOMC, federal political appointees, and members of Congress) dine in the very same restaurants, attend the identical dinner parties, play golf in the very same clubs, have exactly the very same connections, donate to the very same fundraisers....that's just political life.
My analogy is right because those who have it (electricity ) never wish to lose itit is taken by a measure of force, sometimes in a civil, lively manner (politically), sometimes not so subtly (warfare ).
Publications and class space eduion will rarely confirm or deny what happens in the hallways of power beyond the sterile relationships that supposedly exist as a result of separation of electricity or checks-and-balances. In different words to think some body that is nominated is really objective and unbiased is innocent. Do you truly feel the US Supreme Court is always an independent performer that they are justices for life?
It's called you scratch my back and I'll scratch yours; it is called you owe me ; it is called payback. It's called politics. I call it bending and the wrist directing the invisible hand in the marketplace. So today in this election year , I turn to one of my weekend golf buddy, whose daughter attends school along with my son, whose wife goes shopping at Tyson's along with my spouse, who sits a couple of not-for-profit, charitable fondations together with me, I state to you and say I want your help, good buddy. And you say
Bernanke don't abandon his mandate but there are exceptions to every rule. FOMC goes beyond Bernanke and I can't tell you that owes what to whom, or who controls whom. But this I know: most if not all the major political players in this town either owe a debt(s) or are seeking repayment, and they'll do whatever is necessary to keep their hold on power. And keep in mind, they all hail from different states, other cities so they are never really isolated from other FOMC members, bankers as well as the power players back home, in which the Republicans are tired of interest rate increases (be ye democrat or even republic is immaterial, a pause helps everone seeking re-election).
We are not talking an or gate here; it is an and gate. Monetary policy affects politics daily yes AND moreso during election season. Consider it. Can the feds state with a straight-face there's no inflation, even though an increase in the so-called headline CPI? They do it by stating core CPI is still Here, that called pressuring FOMC to pause. Frankly, that core CPI was not a number that is true. Think. If you ask most Americans living outside the Beltway, if we're experiencing inflation, they will provide you a common sense answer
And I never knew how the ADP numbers were so out of whack in July!! ADP was way off, but they were probably the true numbers (just out of step with the government's version of fact ). So what happened? The July NFP came out verifying no inflation.
This month, August, ADP got the message and joined the party line because their numbers were consistent with the official August release, verifying no inflation.
Just distinguish mirage in fact. And interest rates will rise again as our new Treasury secretary is on record as favoring a dollar. Only get November out of the way.