Accidental Libertarian Tweet of the Day

Bob_C

http://twitter.com/mehdirhasan/status/1695093910849110355?s=20

WestlinnDuck

Bob_C said:

http://twitter.com/mehdirhasan/status/1695093910849110355?s=20

Someone has to fund our debt. Someone needs to authorize spending money, not to promote core government obligations, but to buy off special interest groups. I'm no fan of the fed, but the fed didn't pass the "Make Inflation Greater Act". Some minor dem political figure ran on the program that "Milton Friedman wasn't in charge anymore" and had the full support of our hypothetical MBA.

Bob_C

The Fed has backed and cheerled all of the bad spending.

WestlinnDuck

Bob_C said:

The Fed has backed and cheerled all of the bad spending.

Agreed. But the spending money we don't have is set by Congress as supposedly elected by US citizens.

Blueduck

The "Fed" is controlled by the central banks, not vice versa

Fenderbender123

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

UW_Doog_Bot

Fenderbender123 said:

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

Spending and stimulus checks had far more to do with inflation than low rates.

pawz

Fenderbender123 said:

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

Seems like best practice would then be to revert to a gold-backed currency and cut the Fed out all together.

Bob_C

UW_Doog_Bot said:

Fenderbender123 said:

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

Spending and stimulus checks had far more to do with inflation than low rates.

Agreed, the rates were already lower in early 2020 than they naturally should have been. It was the stimulus to prop up demand combined with simultaneously forcibly shutting down the supply side.

RaceBannon

I'm no expert but weren't interest rates low for years to protect the housing market which was saving the economy and generating paper wealth?

Fenderbender123

UW_Doog_Bot said:

Fenderbender123 said:

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

Spending and stimulus checks had far more to do with inflation than low rates.

Absolutely, which is why rates shouldn't have been that low in addition to those causes.

HHusky

pawz said:

Fenderbender123 said:

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

Seems like best practice would then be to revert to a gold-backed currency and cut the Fed out all together.

Some old school idiocy.

WestlinnDuck

HHusky said:

pawz said:

Fenderbender123 said:

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

Seems like best practice would then be to revert to a gold-backed currency and cut the Fed out all together.

Some old school idiocy.

New school idiocy, "Milton Friedman is no longer in charge." Shit you vote for. Sort of surprising for a mythical MBA.

LebamDawg

Since creating the FED in 1913 our debt has stabilized beyond anyone's imagination.

PurpleThrobber

HHusky said:

pawz said:

Fenderbender123 said:

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

Seems like best practice would then be to revert to a gold-backed currency and cut the Fed out all together.

Some old school idiocy.

You mean like BRICS is fixing to do?

And control 80% of the oil in the world while kicking the IMF and World Bank to the curb?

HHusky

LebamDawg said:

Since creating the FED in 1913 our debt has stabilized beyond anyone's imagination.

Lebam wants to get back to the Nineteenth Century, when things were good.

UW_Doog_Bot

HHusky said:

pawz said:

Fenderbender123 said:

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

Seems like best practice would then be to revert to a gold-backed currency and cut the Fed out all together.

Some old school idiocy.

Your track record on this subject is filled with more holes than a commodity backed currency.

Maybe sit this one out...or don't and I can laugh like a hyena when you or Mello pontificates on MMT.

UW_Doog_Bot

pawz said:

Fenderbender123 said:

The big mistake was lowering interest rates to ridiculously low levels during COVID in the first place. Sure, I benefited on a refinance of my mortgage, but it was a major cause of inflation, and now the fed has to correct the balance by jacking up rates to ridiculous levels as a desperate means to get inflation under control.

In doing this, they run the risk of overcorrecting before allowing enough time for the economy to respond, and then they'll have to drastically reduce rates again, which again they might be overcorrecting in that regard, similar to how a driver jerks the steering wheel when they start to drift off the road, and then jerks it back, causing a major wreck.

Seems like best practice would then be to revert to a gold-backed currency and cut the Fed out all together.

Gold is completely incapable of supporting the size of the economy at this point. You literally need that much gold in circulation to support it.

It's a non-starter otherwise people would have already moved into gold or gold securities via a free market.

BRICS...lol I invite you to buy their futures in rubles and yaun.

Crypto still the only realistic threat to fiat at this point.