Key inflation indicator surges 18% in 2024. Fed admits it is powerless to help?

Photo above - no, you CAN'T use the public space in front of city hall. Tent squatters have called dibs.

It was AMAZING that the Fed decided inflation was licked 2 months ago. Just before the election. They began cutting rates. The stock market soared.

That was yesterday. This month, 30 days after Kamala lost, the Fed has again turned bearish. Not so many rate cuts coming ahead. Inflation probably not licked. The markets crashed on cue.

Housing is still unaffordable. Homelessness up 18%. See link below.

People who took “economics 101”, or simply skimmed the pamphlet “economics for dummies” may already be already aware home building doesn't take off when interest rates get jacked up by government agencies. All rate hikes do is convince people who already HAVE an affordable mortgage is to hang onto their home, and not move. Who in their right mind would jump out of a 3% mortgage into a 7.5% mortgage?

Okay, so homelessness is up. Home construction is down. This was President Bidens big opportunity, as he prepares to leave office under a cloud called Bidenomics. The president COULD have issued an executive order to help housing construction. To sweep away red tape, pointless zoning restrictions, and layers of fees and permits. But clearly the lame duck president has higher priorities. Forgiving more student loans. Because those folks actually vote. The homeless? Not so much into voting. Spare change is top of mind. I’m just pointing out the obvious here.

Last week’s loan forgiveness was cleverly targeted to fall into the laps of 55,000 federal employees. Because, you know . . . the government takes care of its own first. The December giveaway was $4 billion. Someone who doesn't even have $4,000, let alone $4 billion, will now start singing and dancing and clapping. “$4 billion is a drop in the bucket of federal spending. You can’t end homelessness with that."

No, you can't. But it could have purchased 40,000 mobile homes. Or constructed 20,000 apartments. That wouldn’t have fixed everything, certainly. But it would have made more sense that sending government checks to people already sleeping indoors, with heat and electricity.

I’m just sayin’ . . .

[i]US homelessness up 18% as affordable housing remains out of reach for many people

Biden-Harris Administration Approves Additional $4.28 Billion in Student Debt Relief for Nearly 55,000 Public Service Workers | U.S. Department of Education
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LeopoldBloom · M

If the problem is high interest rates, you're not going to solve that by "sweeping away red tape, pointless zoning restrictions, and layers of fees and permits," many of which are local, not federal. Those restrictions and permits exist for a reason, by the way. No, it's not evil anti-capitalists seeking to hinder development in the name of the spotted owl or the snail darter. It's to keep Blackrock from building an apartment complex next door to you or a rendering plant next to your elementary school.

Also, it's not the Democrats complaining about free housing for the homeless.

SusanInFlorida · 31-35, F

@LeopoldBloom nobody says free housing is the answer. homeless is best tackled by reining in narcotics, treating mental health issues, and building affordable housing for low and middle income citizens.

LeopoldBloom · M

@SusanInFlorida How do we "rein in narcotics?" The War on Drugs has been going on for decades, with no apparent effect other than filling up our prisons.

Treating mental health issues would require a massive increase in taxpayer-funded facilities. Everybody says "treat the mentally ill" until they have to pay for it. Right now, the biggest provider of mental health services is the penal system. Try running for office on the platform of letting people out of prison and putting them in mental institutions and see what happens.

Affordable housing is a great idea. Who pays for this? Where do we put it? You can't just build high-density apartments in cheap exurban areas, because people have to be able to get to work. So this would entail a better public transportation system in most places. And if you bring up "15 minute cities," people start screaming about the government stopping you from leaving your neighborhood.

SusanInFlorida · 31-35, F

@LeopoldBloom @LeopoldBloom clearly jailing street dealers is ineffective. I'd try several other approaches.

1. agressively investigate and prosecute police who are being bribed to allowe/facilitate drug dealing in their jurisdictions

2. enhanced border security with mexico to confiscate narcotics

3. same with container ships from asia and the middle east

4. sink cartel cocaine submarines on sight

5. end economic aid to nations which export drugs to the USA - Mexico, Ecuador, Peru, Colombia