
Fed Should Resist Market Pressure to Do More - Elof
https://www.bloomberg.com/opinion/articles/2020-05-31/fed-should-resist-market-pressure-to-do-more
======
aurizon
All over the world people on various forms of lockdown are suffering various
levels of income loss. Civil servants still get their entire pay packer. All
the others are in a mixed bag - some are fully laid off and some may have
unemployment benefits, some have cash that has been trickling down from
federal/state coffers as they sit at home. Look into the history of the great
depression - the lack of purchasing power in the great mass of the population
created a self perpetuating depression. It was only the "New Deal" in the USA
that ended it. Google that and see, then WW2 came along = stuff made and paid
for to be blown up to wage the war. Landlords and mortgage holders are
salivating as months of rents/payments accumulate to the point where the
coming depression enables a huge era of foreclosure on
homes/apartments/shops/cars etc - all of which will drop into their hands a a
year or so from now, they will be able to sell rent etc. So the
Feds/states/cities must act to print the cash to give to each of the people at
the very bottom (with income taxes witheld) so they are able to keep their
homes/cars/apartments etc. If not the sustained recession will cause the
treasury to lose even more due to the recession's decline. Look at 1929-1939 -
do we want 10 years of that?

an extract from the web:- Did you know? Unemployment levels in some cities
reached staggering levels during the Great Depression: By 1933, Toledo, Ohio's
had reached 80 percent, and nearly 90 percent of Lowell, Massachusetts, was
unemployed.

The next day, Roosevelt declared a four-day bank holiday to stop people from
withdrawing their money from shaky banks. On March 9, Congress passed
Roosevelt’s Emergency Banking Act, which reorganized the banks and closed the
ones that were insolvent.

In his first “fireside chat” three days later, the president urged Americans
to put their savings back in the banks, and by the end of the month almost
three quarters of them had reopened.

The First Hundred Days

Roosevelt’s quest to end the Great Depression was just beginning, and would
ramp up in what came to be known as “The First 100 Days.” Roosevelt kicked
things off by asking Congress to take the first step toward ending Prohibition
– one of the more divisive issues of the 1920s – by making it legal once again
for Americans to buy beer. (At the end of the year, Congress ratified the 21st
Amendment and ended Prohibition for good.)

In May, he signed the Tennessee Valley Authority Act into law, creating the
TVA and enabling the federal government to build dams along the Tennessee
River that controlled flooding and generated inexpensive hydroelectric power
for the people in the region.

~~~
digitaltrees
Thank you for this thoughtful reply. I agree with you. I would also point out
the history of depressions being a catalyst for tyranny, especially under
right leaning fascist leaders, because the population is scared and hurting
and look for stability through my a powerful controlling leader and are
further persuaded by visions of a return to the good times before the
depression and a future of a “restored” stronger country. We saw that in parts
of the world after 2008 and this climate will likely strengthen the trend.

~~~
aurizon
Thanks for the support. I fear the republicans will choose to enrich business
interests at the expense of the common man = the top 5% will own more of the
USA than before. We sorely need some form of redress - capital taxes? The
democratic candidate is a total loser. Good time for a hird party = but it
will not get enough traction with the electoral college system - that must
have been thought up by the ghost of King George...;)

------
digitaltrees
Why. What’s the risk? An over heated economy? Inflation and wage growth?
Sounds what the world actually needs after years in a liquidity trap.

Actually the fed should ignore political pressure to do less.

