Just an observation

Increases in interest rates are inevitable as a result. Wall Street expects the Fed to start pushing borrowing costs up in March, with four quarter-point jumps this year and a further four in 2023, taking them to just over 2%. This is a long way short of the shock treatment administered by Volcker – official borrowing costs peaked at 20% in 1981 – but it will still be enough to slow the US economy and make life harder for the Democrats in November’s midterm elections.

The Guardian really needs to pay some attention to the difference between nominal and real interest rates.

Inflation in 1981 was 10% – ish. So real interest rates were 10%. If the Fed raises to 2% then real interest rates will be minus 5%.

Not saying that either is right or wrong but they sure are different.

6 thoughts on “Just an observation”

  1. Since you’re not allowing comments on the story about the Sale player (and yes, it’s very obvious who he is), I wonder why it is that he can’t be identified?

    He hasn’t been charged and even if he had I don’t think a reporting restriction would be imposed.

    There’s no libel issue – you’re simply reporting that X has been arrested and bailed, statement of fact.

    Odd.

    Whatever vit is, I give it about an hour from when I press POST COMMENT to it appearing in the papers after some application to a J somewhere (because only a court ruling, I’d have thought, would have stopped publication thus far).

  2. At a wild guess, it’s something do with the teenager? Or quite why the brass was mentioned in the quote?

  3. but it will still be enough to slow the US economy and make life harder for the Democrats in November’s midterm elections.

    How come? Will it stop them from kicking observers out of the count and finding suitcases full of magic votes at 4am?

  4. @ Ducky McDuckface
    January 13, 2022 at 10:06 am

    At a wild guess, it’s something do with the teenager? Or quite why the brass was mentioned in the quote?

    I can’t think what the relationship between him and the teenager might have been – they sometimes give the bloke anonymity if he’s diddling his own kids but this isn’t that. Weird.

    Ir Edward Lud were still about these parts he’d doubtless be able to have a stab but he seems to have shuffled off this digital coil, and perhaps the mortal one too.

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