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by imtringued
1786 days ago
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>The fed is very much aware of the inflation, but is on the awkward position that were they to raise the rates even a tiny bit, it would bankrupt the federal government. Going from 0-1% to 4-5% interest rates, would lead to default as just the interest on the money owed is at $hundreds-billions yearly. Now double or tripe that cost… Sure but this is "boring". An economy that can only support a negative interest rate can obviously not support a 4-5% interest rate. I don't see any surprise or any malice or trickery. The economy wants negative interest rates, the interest rates are at 0% so people hold onto their deposits and prevent the repayment of the debt. An economy that doesn't want to give up its deposits will obviously die if you give it even more reasons to hold onto deposits. There is no gotcha. No criminal to catch. Interest rates want to be low, raising them for no reason will destroy the market because it wants the interest rates to be low. If there was sufficient inflation i.e. the market demanded higher interest rates you could raise interest rates with no ill effect. Before that happens you'll have to let the current inflation be here for a year. If you kill it prematurely you'll actually have to do more unconventional monetary policy. >Why do you think theres a godly group of supremely moral and righteous humans sitting at the FED? Because you don't want something like turkey to happen where the democratically elected president messes with monetary policy and causes double digit inflation. |
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Imagine you had:
1/10 of all dollars.
Next year they printed 20% of money supply, so now you own:
1/12 of all dollars.
Your own wealth got siphoned off indirectly without you being cognizant of it. That’s exactly whats happening here. Every year they’ve been siphoning off 2-5% (maybe more) and now they have to ramp up further just to stay ahead of the game.
This isn’t by accident, it’s by design. So yes, there is a criminal here.
Most of the printed $100 USD bills are abroad in someone’s cabinet or mattress being used as a store of value vs their own trash currency. Most of these people still hold faith that the USD is a sound currency, and the FED takes that faith and abuses it by quietly eroding their savings.