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by machina_ex_deus
1182 days ago
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The government is a financial bully. It starts by printing money for itself, and using the value of the money in the present. Then it causes inflation which robs financial value out of everyone who lended to it. The actions of the Fed are extremely unpredictable. If you're not a part of some inner clique you can't tell when will the Fed pivot. It took the Fed a goddamn one year too long to raise rates. Everyone who has no knowledge of the Fed actions beforehand is losing huge financial value. hundreds of billions of dollars rest on these decisions, and any common person who trades and does any financial decision in the wrong side of the Fed is being robbed of financial value by the Fed. Instead of playing capitalism we've been playing Simon says. |
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Yes in the same way the EPA is an 'environmental bully' - so actually no.
> It starts by printing money for itself, and using the value of the money in the present.
I'm really not sure what this means - I suspect you're conflating fiscal and monetary policy.
> Then it causes inflation which robs financial value out of everyone who lended to it.
Inflation has many causes, changes in supply aren't necessarily inflationary - what matters is what that new supply is used for and where demand is coming from. For instance there's a ton of demand for dollars from abroad. If new money is created and it goes into say dollarized nations then no, it doesn't. This is but one example. That's why supply increase isn't inflation - it's supply increase.
> The actions of the Fed are extremely unpredictable.
Actually they telegraph them far in advance.
> If you're not a part of some inner clique you can't tell when will the Fed pivot.
They will absolutely tell you in advance, like they told us they'd start tightening well in advance. That doesn't mean people won't try and front-run it.
> Instead of playing capitalism we've been playing Simon says.
I suggest you think this through some more.