[fjskskfjfnss]

And who sets the Fed’s function? The construction of the market — these very constraints are ideological economic constructions not physics. The government can implement price controls, or tax excess money out of the system. They can introduce a modicum of supply side planning similar to oil reserves to isolate from global market shocks. The fundamentals are that the Fed sets interest rates based on human political considerations — there is no natural law at work here but it’s useful from a politically ideological rhetorical perspective to convince people that there is one-true-way. But the key point here is that the Fed chooses what interest rate that it pays. It can also mint a coin to pay off any outstanding balance. It’s an accounting exercise. The fundamental driving force behind the current accounting mechanism is to place artificial limits on the size of the US government’s involvement in solving US domestic problems

[riku_iki]

> And who sets the Fed’s function?

law, specifically Federal Reserve Act.

[fjskskfjfnss]

Right, so the point still stands. The Fed is granted the power to literally set the interest rate the US government pays on its debt. Laws that are created through human political means, not natural physical laws. The challenge is that there’s been such a dumbing down of political economic understanding that people have premised their understanding on ‘markets’ being some kind of divine natural law of the universe which blinds debate, arguably intentionally, away from what is possible to what satisfies vested interests

[riku_iki]

market is yes fundamental natural law of universe, and no matter how you try to trick it through political laws it will bite back in the end.

[fjskskfjfnss]

You’ve highlighted my point about the dumbing down of political economic debate. There’s very literal difference between “market is fundamental natural law of the universe” and any other belief that’s grounded purely in ideology. They have a role to play in resource allocation, yes, but the idea that resources are allocated optimally through blind belief is a poor substitute for critical thought about how they are and can be harnessed, and what effect that has on the real world. One that exists outside of a bunch of bits in a database. It also allows the folks who do have influence over the laws that govern markets the ability to lean on the scales to their own favour