Monday, April 27, 2015

Where the Fed Manipulated Boom Is

Nine of the 10 large metropolitan areas with the highest rates of gross domestic product growth since 2008 are in the West or Southwest, led by Portland, Oregon, at 22.8 percent, according to the U.S. Bureau of Economic Analysis.

The Fed manipulated boom is across the country, but watch wage growth and housing prices to get a strong idea of where newly printed Fed money is flowing with intensity. -RW

(via Bloomberg)


  1. The GDP is measured in inflated fed dollars. The inflation is much worse in the west because the most of the newly printed fed money goes to eastern establishment cronies first.

    All those great looking figures for the west are actually a testament to the distress the western colonies are suffering.

    Higher prices are not a measure of economic success.

    1. So there is no boom-bust cycle? It's just a bust cycle?

      Also, Wenzel is just comparing growth in different regions so it is legitimate to use inflated dollars for comparison across regions.

  2. Why is it that whenever there is any positive economic news, RW presents it here on EPJ as a result of "Fed manipulation" or of "Fed money printing".

    How do we know that it is not actual economic growth that is providing the improved GDP and employment numbers?

    Are improved economic numbers now by definition always due to Fed intervention?

    And QE ended awhile ago - so how is the Fed engaging in "manipulation" or "money printing" without QE?

    1. Because the exceptionally low fed funds rate results in money printing, and money printing results in booms that would otherwise not materialize. It also results in expanded business activity that would otherwise not occur. Why do you think the fed won't raise rates? It's because they know the boom will end if they do.