Name:   MartiniMan - Subject:   January jobs numbers Date:   2/3/2022 8:11:49 AM

The Fed is between a rock (inflation) and a hard place (easy money and interest rates).  Their usual arrow to combat inflation is to raise rates and reduce the flow of money into the economy.  The problem is that when interest rates go up on borrowed money, which is almost always a floating rate (i.e, LIBOR plus x%), the cost of that borrowing increases dramatically.  For government that means significantly more of their revenue goes to servicing their debt which they can only overcome with higher taxes which hurts their economy.  For businesses it likewise signifcantly increases their interest expense which they can only overcome by raising the price of their goods and services (which contributes to inflation) or let the extra cost hit their bottom line which will negatively impact their stock price which will hurt the hundreds of millions of Americans with 401k and IRAs that they need for retirement.

Frankly the only logial outcome of this madness is a recession and a reset to the economy.  A recession combined with inflation and high interest rates (stagflation) is the worst outcome of all and very much on the table with Jimmy Carter, Jr in the WH.  Things are going to get a whole lot worse before it gets really, really bad.  And for no reason other than the election of a senile, old fool that has always been wrong on pretty much everything......even when he had full use of his limited faculties.