Don't Think Fed Will Let Inflation Get Out of Control: Krugman
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- čas přidán 28. 06. 2024
- Mar.19 -- Nobel Laureate and author of "Arguing with Zombies" says that inflation expectations take a long time to come unanchored. He thinks that the Fed has the tools to control inflation when fiscal policy overshoots with support. He joins David Westin on "Bloomberg Wall Street Week.
I love listening to Paul Krugman. Historically speaking, almost everything he predicts turns out to be wrong.
Didn't he say that the internet would have less economic impact than the fax machine?
@@gabrielpalacio6710 He also predicted many times around a decade ago that the ECB was going to fail.
@@gabrielpalacio6710 Yes, and at the same time (late 90´s) Milton Friedman predicted Bitcoin and Crytos.
Also, in 2005 he said than a housing bubble will be beneficial for the US economy.
@Yosef Wolf Paul Krugman is wrong more than the weatherman yet the left-wing media has him on all the time. MMM wonder why?
Haha look at your statement now 😂
If he's using CPI to measure real inflation, he's in Disneyland.
So true. CPI is rigged. The government has an incentive to hide inflation because inflation benefits debtors and the biggest debtor is the government. LOL
He’s a shill for the Fed
@@revo1974 Paul K is a shill for the left.
"If I would have listened to Economists I would be in the street"
-Rakesh Jhunjhunwala, Indian Billionaire known as the Big Bull
He should be in jail because of all his inside tradings
Today I saw a can of Pringle’s for $2.79 if that’s only 2% inflation then I’m retarded
Only morons shop at 7/11.
I've never bought a can of pringles
maybe if they calculated inflation correctly, we could really have a conversation
Imo you are starting with the wrong assumption .
A student do not have the same inflation rates as a middle class 45 years old worker with a family or a retiree.
So they go broadly for stats measurement.
Krugman's whole demeanour is one of controlled desperation. As if trying not to run out of the bullshit that used to hold things together, and now isn't.
Just got my house assessment update. Up 10% compared to the average of 3.8%
Probably because interest rates have been either the lowest or near the lowest they've been in US history. It would be deeply strange if home prices didn't grow much faster than average as a result. Not gonna last forever
@@Anonymous-ld7je WE HAVE been saying that for the last 10-12 years here in Toronto..and prices have tripled in the last 15 years,...
Butt, butt there is no inflation.
I've been trying to find an apartment for a year now in Sweden. All listings go above the asked price, at least 10% above. Sometimes 50%. It's ridiculous
@@ErkaaJ Split, a small croatian town has the 3rd biggest price per m in europe. I mean in this shothole... It has to burst if not globally the tourism centred economies are dead
2x4 by 10' lumber was $2.59 a year ago, was $9.29 today at Home Depot, 300% increase in one year.
awesome
I don’t think you heard, but we went through a pandemic. It was enormous. Many essential businesses and supply chains were disrupted.
@@ClintSevilla Some 70% moar funny munny was printed too, for good measure I guess.
So?
One man's debt is another man's asset - brilliant.
Financial investment now should be in every wise individuals list
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Yea I made profit of $13,500 trading with him last week
He has really made a good name for himself
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@@linarinks4160 Whatapp 👇👇
With debts levels beyond its servicing, inflation, interest at an all time low, more investment grade bonds fast becoming junk status and with no way out, how can the FEDS get out of this!? It’s imploding.
Be smart. I paid for my house. 15 years later I sell it 3x the price . And they tell you we didn't have inflation in those years. We might not have inflation the way they calculate it. But seriously can you afford to buy house after you pay your grocery bills?
“It took a long time for things to get out of hand.”...But we live in a different world now.
should give up his Nobel Prizes for these statements
It's a monetary conundrum.They won't be able to control long term yields. If they want yield control they will need to print more money to buy bonds which will debase the US dollar. Which increases inflation even more.
No inflation? What about "asset price bubble" inflation in 2000 - 2008 - and right now?! The Fed has always stubbornly just watched the CPI inflation and let the asset/debt bubbles to balloon in a serial manner. Ref: Dylan Grice: "The Bubble is Just Beginning": themarket.ch/meinung/the-bubble-is-just-beginning-ld.3812
Asset price bubble is not inflation by FED definition, not trying to disagree with you, just saying.
@@hansdoreen , true that. And that's the exact problem. Dylan Grice describes the history of the serial bubble blowing by the Fed in a very revealing way. Or actually in a very shocking way.
"The Internet’s impact on the economy has been no greater than the fax machine’s….ten years from now, the phrase “information economy” will sound silly." Nobel Economist Paul Krugmen (1997) NY Times.
Paul Krugmanhas been wrong for decades. But he is pushing the leftist progressive line. So people turn a blind eye when his forecasts turn out wrong.
US Air Force spent $ 1.7 trillion on useless the F-35 stealth fighter ... no outrage ... 1.9 trillion to help people during a global pandemic that has killed 500,000+ in our country so far ... OH NO!!! To hell with the needy . . .
US citizens seem to me known to not listening ......
It’s been already said 70 (!) years ago by an American president and still these problems are more prevalent than ever ...
Eisenhower:
« In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. »
@@sivi9741 but but but Iran! but but but Afghanistan! but but but North Korea! but but but China...be afraid...be VERY afraid!!! someone wants to take yer gunz!!
@Anon m Most of modern technology is used for military first. They may not be derived from military research.
Thank you for your comment...I can't understand the republican talking points,,,other than,they just hate America and hate americans...
@Anon m It doesnt have to be technology developed for military purposes, that's the point. Yes, we have microwave ovens and cell phones, but is that worth the trillions we've pissed down the rat hole? Millions of Americans dont think so and are sick of it, witness the F-35 as the latest trillion dollar waste.
Boomers tryna cash out 🤣
Pump & dump on borrowed (time) money
It is amazing this guy can still draw an audience his accuracy is no better than darts thrown at a board.
Don't ask questions, let that printer RUN BOY
Great interview! Calm and balanced in arguments.
Yes, this aged so well, 😂
His last comment about conservatives was incoherent @ 7:00 . Can we get better economists? Nobel peace prize gave obooboo one and he was heavily subsidized by the fed and other central bank balance sheets. We aren't happy that interest rates have been kept at 0% intergenerational theft.
History. History. Every country that prints money like the USA is doing has ended badly.
My general investment strategy is see what Krugman says. Then do the opposite. Seems to work.
Krugman is worse than a broken clock- at least a broken clock is correct twice a day.
"No one in the fed wants to take us back to the 70''s". No they want to skip right over the 70's to the 30's which was a picnic compared to whats next.
Inflation *CANNOT* be based on items in the *CPI* when they are subsidized! I'm going to bum rush the border the opposite way wearing a shirt that says "BIDEN LET ME OUT!"
"these are smart tough people at the fed" is basically his reasoning behind why we won't experience stagflation......
In reality neither he nor anybody else at the Fed is smart to understand simple economics. They do understand the complicated game of holding on to their jobs by doing the bidding of the Wall Street.
@@uncommonsense9973 I believe they (FED and Politicians) understand simple economics but prefer holding on to their jobs.
There is more than just the money distribution and American people’s perspective that effects the dollars future.
They’re(Fed) never “responsible” that’s the problem.. they’re not elected and “accountability”, there is none!! 🤣🤣
1. Paul looks terrible trying to make an argument he doesn't really believe. He looks like he's in pain. 2. The effects are direct and quick on inflation. The Stimulus adds 10% to GDP in the next year (1400 x 300 mil x 5 velocity M1) =2.1 trillion. the child tax credit, unemployment bump and ppp loans add about 5% to GDP over a year or so. The effect is offset by the recovery gap in the economy but should still net out above 7 to 10% not the 6 they predict. 3. Bonds, corporate debt, national debt financing, pensions, housing, the market - they are all overinflated bubbles kept alive by low interest. If one bursts it will create a chain effect. 4. inflation is like being on a merry go round that pushes you toward the edge as it rises - you get heavier faster than you can anticipate until you're hanging on by one arm trying to puke and scream at the same time. Powell has his hands tied - he has no room to maneuver down. The economy is going to overheat and he's out of water. We are starting 20 years of disruption that will require a metamorphosis of not only the economy but in the labor/productivity relationship. We look horribly unready.
There is not much indication that subprime mortgage issues will spread into broader mortgage market - Ben Bernanke, 2007
If he would have said the opposite, the market would have paniced right away. You cannot predict a doom when you are chairman of the fed and also he said it very carefully. He doesn't make a prediction. He only says that there is not much indication.
@@timpellemeier587 When it becomes serious you have to lie - Jean-Claude Juncker
Intelligent investors have the wisdom to dismiss the CPI data. The formula was "revised" a long time ago from a more accurate representation of inflation to an instrument crafted of smoke and mirrors that has no authentic merit/value of prevailing economic conditions.
Agreed. Fed buys assets/prints money -> assets prices rise, oh this didn’t raise CPI because assets aren’t included? Print more! Repeat!
Paul krugman really
Americans don’t save. This stimulus is being spent
Krugman has made a lucrative career out of telling political elites what they want to hear instead of what they need to hear. Like most of his insights, it won't age well but he will never be held accountable.
I love Paul. I trust him
Cant have inflation if we keep changing the metrics we use to mention it!! 🤫
There is no way to study inflation and I'm not sure it even matters. As time passes the mix of expenses Americans have and the designation of each one as a necessity or optional changes. You can't compare one decade to the other in any meaningful way. Also, the reason things get more expensive have nothing to do with government policy or even supply and demand. Goods and services are priced at what the market will bear. If folks are willing to pay more the price will go up no matter what other factors are considered. The stock market is another driver. If a car company is under pressure by inventors to show profit they will stop selling cheaper cars and only sell high margin ones. That is NOT the same thing as the price of cars going up. If an area becomes popular the cost of a home will go up. That's NOT the same thing as the cost to build a house has gone up.
Aged like milk!
We should be careful on money useage,if you are not spending to earn back,then stop spending.
Apparently my view on the solution is to venture into business .
True ! Even some rich men made it through investing there money in something doing and they made it.
I do real estate,stock market ,forest trade and cryptosystem.
He Is forbidden to talk bad about the fed
"By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.” - Paul Krugman, 1998
And he was right. What he is really saying is fax machines is underrated. Enterprise commerce would not have advance this far without the invention of the fax machines. Orders were often placed through faxes and products were then ship. It revolutionize the efficiency of business and speed the growth of giant corporations. Fax machines is to the Internet is what analog is to digital. One gave birth to the other. Fax machines was the first time businesses were sending information and documents electronically to other fax machines. Businesses were not only the ones benefited from fax machines but Governments were also using fax machines to conduct operations between different Departments. So you see, the comparison is correct.
If you feel internet has much greater impact, you're confusing economy with the stock market and you're focusing on individual companies or sectors other than looking at the economy as a whole. Taking amazon as an example of impact of the internet has shaped the economy, it basically just changed how you make orders, that's it.
@@hansdoreen Excellent point there Hans. The internet may have allowed company like Amazon to change the way consumers shop but the overall economy did not improve because Amazon has killed off many of the stores people used to frequent. In fact, the internet has allowed the rich to get richer while the rest gets poorer due to the lost of jobs and stagnate wages.
Valid point. However, you’re limiting the power of the internet here. The internet has gone way beyond the fax machine. Thus, Paul Krugman is wrong.
@@dennouvelle7524 That is like saying Isaac Newton was not that great since a post-graduate College student knows more mathematics than him. You are not greater because you ride on the shoulders of Giants. The internet was build on the same principle set forth by the fax machines. Just because it has reach more audience doesn't mean it is greater as it stood on the shoulder of its predecessor.
Bloomberg, I think you may have mislabeled the chart at 4:25
i wonder what krugman said alan greenspan should do in 2002 to fix the dotcom bubble, maybe something about soaring household spending ????
Not wildly inflationary stimulus? So you are saying that making money out of thin air is a good thing? The Fed needs another Volcker, all we have now is insider traders. Smart people at the Fed? LMFAO, this aged so well Krugman.
So will the fed let the treasury go bust?
Unless we screw things for a decade it won't be bad. So we'll just try to screw things up for a few years and thinks will be ok. 😂
Sell sell sell, sell ya bonds, raise interest rates!!!
Oh, look! Krugman was WRONG AGAIN.
Oh dear, two socialists disagree with each other.
This REALLY didn’t age well for Paul at all.
With so much printing in such a short period of time - hell likely to break out
I heard the same nonsense in 2009. Where's the hyperinflation?
“The growth of the Internet will slow drastically, as the flaw in ‘Metcalfe’s law’ becomes apparent: most people have nothing to say to each other! By 2005, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine,”
- Paul Krugman, slamming the internet in 1998
Irregardless of Federal Reserve's wish, the inflation will at least touch 8% next year. Lets see whether they are successful in curtailing the rise of inflation.
Sorry but I just had to clivk on this video just to leave a comment to say:
*THAT* has GOT to be *the* funniest thing I've ever heard.
Krugman is a better economist he factors in multiple aspects of the economy into his analysis.
My, my. So confident. No on knows the future. Just a fact.
Is Krugman a good economist?
In 2005 he said than a housing bubble will be beneficial for the US economy....
One of the best.
those checks were spent
"Anyone who thinks we have a fool proof system is underestimating the fools": Paul Krugmanl
What does that even mean?
Means trust but verify.
The Fed will buy more treasuries & manipulate the short & long treasury yield curve if possible to keeps rates as low as possible. Don't forget the increased interest to service the National Debt crowds out other Federal Government Services in current & future Fed Budgets, they are stuck in a box. Trying to devalue the dollar & limit inflation @ the same time, diversity into silver, gold & Bitcoin.
Krugman's understanding of how cash flows through the economy is hilarious. Some of this will be dumped into assets, but many people hardly even know what a stock is, tbeyre going to buy more goods
Id agree with you last year not so sure anymore
Because of course people buying more goods is a horrible thing.
@@MrSteeDoo well, it is if inflation gets too high. High inflation is going to negatively effect poor people precisely because a higher percentage of their net worth is in fiat currency rather than assets.
So when u get down to it, the money supply far outpacing the projected increase in output could be terrible for poor people (look @ late 70's and early 80's)
@@upstateNYfinest Oil prices tripling and quadrupling AND THEN STAYING HIGH in the 70s is the story of inflation in the 70s.
@@MrSteeDoo "inflation is always and everywhere a monetary phenomenon" -milton friedman
If what you are saying is true, them if we bold the money supply constant the increase in price of oil would mean that the prices of other goods would have dropped.
Imma keep it real w/ u, if u actually think that the energy crisis in 1977 caused high inflation, u need to go learn some stuff about monetary policy (u also just conveniently ignored the fact that inflation was still an issue b4 the energy crisis)
The Fed could stop buying mortgage backed securities and Treasurys bonds.
They should bring Peter Schiff.
Where is the hyperinflation that schiff has been predicting for years and years?
@@MrSteeDoo, how do you feel now?
@@cg5648 Hyperinflation is generally defined as 50 percent A MONTH. What's the matter, karen, have you never faced adversity?
Mr. Krugman was wishing for Alien invasion to stimulate, few years back....Joe and the rest of the crew kind of fits the bill. John Kerry even looks like one.
LOL
You apparently didn't understand his "alien invasion" column. Don't be a tool.
@@MrSteeDoo Nah it's already happen. Why do you think Joe is so sleepy? HE IS FROM ANOTHER WORLD.
And in 2005 he said than a housing bubble will be beneficial for the US economy.
@@gonzalonunez8226 The guy is a complete clown. I don’t understand how anyone can take him seriously😂😂😂
Krugman: Wack Job.
3:08 LOL what? that's the basis of your argument? Come on! why they keep bringing these creeps on stage?
responsible fed policy is an oxymoron
Krugman had been wrong before. Guess work works 50% of time.
So creating more debt is okay? Without having anything to measure it, not even gold is doing great?! What BS are you telling people?
Krugman is a fool...flawed thinking
LMAO
Inflation goes up and the poor get screwed once again. All because the rich got richer in the stock market.
This guy's a con-man... What a disgrace this country's becoming...
Does anyone take this boomer seriously?
Intelligent people do.
@@credman LOL he thinks Internet is a fad.
@redreed77 Your assertions are false and baseless.
Not aging well...
What a Whackadoodle
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For real crypto is profitable
I wanted to trade Crypto but got confused by the fluctuations in price
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What the FED needs to do is Start to buy all of the Gold of the World with the dollars. Then tight the dollars to Gold. Like that the FED can keep control of the World with the dollars.
he has *hit for brains
I detest Larry summers
Please do not bring him back. I don’t even necessarily disagree with him I just never want to hear him speak it’s brutal
Lol Seriously?
@@Dat550go He is highly inaccurate, especially his past segments
@@katee6551 Historically he has been incredibly accurate
@@KeeghanBarclay Like when he said Internet was only hype?
Ha Ha Ha
Why does Paul Krugman come across as so...limp-wristed all the time? He's like a boomer version of a soy boy.
They’ll just change the label “inflation” to something else. For example if you keep wages from rising since Nixon. It’s financial relativity :-)
No man has ever been more wrong more often than Paul Krugman.
This man is a catastrophe.
shameless usa printing money.
Welp this aged poorly