About Me

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Los Angeles, California, United States
The blog 'Breaking Bread' is for a civil general discussion, like you might have at the dinner table with guests. The posts 'Economics Without the B.S.' are intended for a general audience that wouldn't have to know the difference between a Phillips Curve, a Laffer Curve, or a Cole Hamels Curve. Vic Volpe was formally educated at Penn State and the University of Scranton, with major studies in History, Economics and Finance, and Business; and, is self-educated since by way of books and on-line university courses. His practical education came from sixty years of work experience in the blue-collar trades as well as a white-collar professional career -- a white-collar professional career in production and R&D. In his professional career and as a long-haul trucker, he has traveled throughout the lower forty-eight. From his professional career alone he has visited many manufacturing plants in the United States, Europe and China. He has lived in major metropolitan areas and very small towns in various parts of the United States. He served three years with the U.S. Army as an enlisted man, much of that time in Germany.

Monday, October 7, 2024

Is the Age of Easy Money over?

 Is the Age of Easy Money over?

 

Economics Without The B.S.**: 


[**  Double entendre intended.]



Is the Age of Easy Money over? It appears that way. The Real Interest Rate is the Interest Rate minus the Inflation Rate. Notice for the past year the three rates have converged, which is a good thing; but the rates are inverted, short term rates are higher than long term rates. 

Greenspan took over the Fed from Volcker in mid-1987, and it took him till the mid-1990s to get the rates in sync. Then the rates fell apart after 2001, leading up to 2008. Through Obama and Trump the Fed has had an easy money policy -- not good. Let's see what happens now?



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