I hate to disagree with Jim Cramer on
anything (outside of Sports), but I believe he is incorrect
about the Fed regarding the jobs data.
The present bout of inflation is not being caused by wage pressure, tight
labor market, or even monetary conditions — and those are the items that
typically cause the kind of inflation the Fed can respond to. This time, a
combination of overseas demand for commodities is what has been driving prices
higher. Add to that a few isolated and unique sectors domestically: Health care
costs have exploded, education is much higher, gasoline has risen.
Except for Real Estate — obviously up in response to ultra-low rates — how
does Sir Alan plan to cool global demand? The really scary part to me is that I
have no idea what the Fed can do to about a robust China, Korea, Singapore,
India, Taiwan and maybe even Japan or Europe. I think the Fed is in a box of
their own making . . .
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.