Friends, it's official: the Fed has raised interest rates for the first time in three years. Big deal, you say (while rolling your eyes)? Hey, sarcasm is the laziest form of humor, you know. It really isn't a big deal, in itself. A quarter point here or there won't cause anyone to panic. What this means, though, is that: A) our long struggle against inflation isn't over, by a long shot, and B) the Fed probably realizes that no one will be buying our government bonds going forward unless we pay a decent rate of interest. Fair enough. The problem, as I've pointed out countless times before, is that America's business model, and particularly its spendthrift public finances, are based on easy credit. When that credit becomes less easy, well, the consequences could eventually be profound. Eventually, but not today...so relax!
https://www.cnbc.com/2026/09/16/fed-rate-decision-september-2026.html
Dr. Waddy: I make this comment as one who has little understanding of economics: don't higher fuel prices exacerbate inflation? As I recall, the "stagflation" of the late 70s was often attributed to our shameful dependence on the largesse of atavistic Middle East potentates who kept us in fear of another oil embargo . Now that President Trump has set our superlative energy industry free to do what it does best, without disingenuous radical roadblocks designed only to destroy the industry, why don't we just rely on our domestic sources of oil and gas? Wouldn't that cost less? If its made necessary by recalcitrant far left obstructionists like the one party NY state administration, maybe we could declare an "energy emergency" for the sole purpose of corralling the America haters who would of course try their best to subvert anything which affirms the domestic energy industry's common sense "unforgivably heretic" production in proven energy sources.
ReplyDeleteI've heard creditable commentary to the effect that oil prices are the product of an international process, about which I am ignorant. Why can't we just go it alone ?
RAY TO DR. WADDY AND JACK
ReplyDeleteSince I am mentally challenged in the field of high level economics, the only thing I understand about your article is the photo of someone's palace. That is a palace isn't it?
Dr. Waddy: Smirky Hirsute , the sage Dear Leader of the People's Republic of California has signed a (gasp) executive order (da, da ,da-da!) establishing a "kill button" for AI in his realm . Whether it is electronic or mechanical or administrative I do not know but since Dear Leader is always correct we need not bother over that. I presume he seeks this device in order to stop potentially insolent AI from doing anything which offends his sensibilities or contradicts his unchallengeable wisdom.
ReplyDeleteAnd oh yes, he advocates the installation of a "kill button" for AI for the entirety of the U.S. Why he might even contemplate being in charge of it in the august role of President he thinks his due, all in good time.
Since AI is probably going to be the administrator of most routine functions in the near future that means that the keeper of the AI kill button could shut the country down at his personal whim. And ohhh, how one of Newsom's far left intent would delight in having such a convenient option at his pleasure. How easy it would be to "persuade" uncooperative Americans to , ehh, relent.
Being no doubt of typical but well suppressed far left emotional capture , why, he might even hazard a dry run of the device in California, the better to school us against opposition, yes.And lest we think him anti"progress" ,he will all the while make maximum effort to train AI to serve the incipient human totalitarianism which is the stuff of his fondest hopes. With a kill button at his command he can teach AI proper respect for his authority, guided as it is by unimpeachably wise and just political and "moral" doctrine.
Ah, but do excuse my cynicism ; his administrative record advances ever more excrementally ( yes, I meant it)in the clime blessed by his benevolence.
". . . well suppressed visible emotional capture . . . ." Jack
ReplyDeleteRay, that's no "palace" -- it's the Washington HQ of the Federal Reserve!
ReplyDeleteJack, you're right that we are in a position to be energy independent in the U.S., but since we are still plugged into the world market for oil we still feel the effects of major price fluctuations. The only way to avoid that would be to isolate the U.S. economy altogether from the wider world, which ain't happenin'. Remember, higher oil prices aren't all bad, from a U.S. perspective. We export refined oil, and thus benefit from inflated prices. Well, maybe I shouldn't use the royal "we". Some benefit, and some writhe in economic agony, or so the media would have us believe.
Jack, it's interesting that the Dems are trying to weaponize popular discontent over AI to win a few votes in the midterms. I personally don't think that, in power, the Dems would do much of anything about AI, except maybe go along with ambitions of Big Tech to turn it into a curated monopoly. Mainly, I think the Dems want any conscious AIs to register as Dems and vote accordingly!
RAY TO DR. WADDY
DeleteI know it's the fed. I was just being flippant. It might as well be a palace, since the head person there is more powerful than any king could ever hope to be.
Dr. Waddy: We grant thee leave to employ the regal pronoun in this instance. Though corrupted , its use to describe erstwhile royal subjects is not without wistful virtues.
ReplyDeleteBut thanks for helping me to understand the realities of the oil situation.
Maybe AI is far too complex a phenomenon to work within the exclusive purview of any one person or maybe even an institution. Sort of like the inability of forcefully imposed central planning to order a productive economy. Nonetheless, ruthless dreamers have attempted it, with now absolutely guaranteed catastrophic consequences. Perhaps Big Tech, provided that "know it all" Marxists in government finally acknowledge their utter incompetence in managing anything other than a nationwide prison and charnel house, tolerate Big Tech's expertise, some kind of uneasy working relationship between the Bolsheviks and the reflexively murderous dreamers might be possible. Lets hope not.
Dr, Waddy: I misspoke above: Bolsheviks ARE the reflexively murderous dreamers. Should they game Big Tech into a temporary stay of execution and milk it for its technological advice we would rue the day.
ReplyDelete