Did JPowell Edge too Hard?

It’s a question that everyone has been asking: But let’s take a step back and look at what has happened to our economy over the last 3 years. I like to think of the US economy through the metaphor of jerking off a penis. Think of inflation as erectile dysfunction and recessions as ejaculations. And JPowell is the edgemaster - his goal is to stroke the economy the perfect amount so that we can reach that gooning sensation - if he strokes too aggressively with too many rate hikes, he could cause the economy to explode everywhere leaving a massive gooey mess, but if he doesn’t stroke it well enough with too many rate cuts, he could end up pushing the economy into a flaccid state where there is no excitement at all.

What happened post-Covid was that the economy was pumped full of penis pills that you buy on porn sites that give you long lasting boners and make you last longer (Covid and post-covid stimulus). That combined with the low amount of sensation JPowell was giving in a very low rate environment led to a quick flaccidity of the economy (inflation). JPowell realized this and decided he needed to start giving the economy a nice jerk and started stroking it harder to get it erect again. However, as he gradually increased his force in his strokes with rate hikes, the economy was too fucked up from all of the penis pills that it was having a hard time getting erect. JPowell decided to continue to jerk off the economy with more power in every stroke he made. There was confusion because this had never been a problem for JPowell - he could always get the economy erect pretty quickly, so what seemed to be the problem? Well, what was not known until later was that the economy needed time to flush the toxins of the penis pills (stimulus) from its system before it could return to its natural erection cycles.

In 2023, JPowell was warned not to overstimulate the economic penis as sensitivity was beginning to come back to the nerve-endings and his edging streak could be at risk if he faps too hard. He told everyone he won’t overdo it, and kept his motion consistent. However, in 2024, we find out that the penis pills have finally been flushed from the economy and as we have seen in the past year, pre cum (cracks in economic data) is starting to leak out of the cock. But the real question has become, is what we are seeing an edging streak coming to a gooey end for JPowell or simply our edgemaster trying to show off how close he can edge investors and then pull back right before the economy explodes…

We shall know soon enough.

28 Comments
 
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Analogs should be flipped. Jerking should be rate cuts (it is very literally referred to as "stimulating the economy" in macroeconomic lingo, and it's the term that academics or WSJ will use to refer to ZIRP / cutting rates / "printing money"). ED, then, should be rate hikes - tempering irrational exuberance, cooling down spending/jobs, and reducing inflation. 

Great post overall though and I think econ departments should teach things this way to help students understand boom/bust cycles and how the Fed's monetary policy steers these cycles. Ray Dalio spends half of a book (Principles) trying to teach this idea

 

Wonder if this post is due to poor deal flow…brilliant either way. I think I’ll use this on my next interview

 

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