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That sounds like a blanket statement, sort of similar to if you have to ask you can't afford it. Fundamentally I like to take the approach of you're always wrong and the goal is to be less wrong. And for it's worth I don't seem to know a lot about monetary policies or what they're about but still an argument could be made that the system overall is flawed as a whole. For example how money works and is printed and inflation rates and how the inflation rate is controlled, an argument for crypto essentially
Not really, the fact that money can be created out of thing air as opposed to a volatile non-controlled supply allows for far more stability in the economy.That’s why the gold standard was ditched, because due to the limited supply it was in every conceivable way absolutely woeful.
Take the last year. There was a massive liquidity crisis so the FED repos trillions and invests massive amounts to prevent a financial crisis.If your hands are tied about how much money you can print, you’re fucked.Take the EU, if the ECB can’t control how much money is being created, the entire EMU would have crashed in 2012 and we’d still be in a global financial crisis.
I think I can try summing up my whole argument in one line, sometimes very smart people could be made to devise and run not so smart systems. Any book recommendations? I'm currently reading the bitcoin standard.
If it always causes inflation, why has inflation been so low for the last 10 years?
@tartaarsaus the reason it was slow is because we haven’t been printing money since 2009 under Obama which actually hurt the economy recovery since 08 by 2010 we were out of the woods but recovering was still incredibly slow. Until trump got us the best economy ever. Low taxes encourage economic growth
@Stoner710Nope. The USA has had quantitative easing (= printing money) for over 10 years now in extremely large amounts. And no, this monetary policy is actually far better and far more influential than the tax reform, which has barely any macroeconomic impact on growth.
Here is the graph of assets increasing:If the line goes up, more money is created.https://fred.stlouisfed.org/series/WALCLAnd here is the amount of money, it’s continuously going up:https://fred.stlouisfed.org/series/M1
@tartaarsaus you noticed the stagnates between 2016 and 2020 and then it goes up massively joe Biden is going to increase taxes as well basically what he’s doing or destroy the American economy and therefore your economy because the entire world is dependent on the US economy
@Stoner710The economy grew more slowly because it grew quite strongly beforehand. Larger economies grow more slowly.And no, taxation reform of Biden would not even remotely close have such a negative impact on the US economy
@tartaarsaus yea it would the United States economy is fragile at this point and printing money doesn’t help, look at what happened at Venezuela when they printed a bunch of money hyper inflation
@Stoner710So why hasn’t caused all the money printing in the USA type of inflation? Expanding the money supply is actually incredibly, incredibly useful. In fact, a pretty argument can be made that the money supply of the Federal Reserve in the end is the most important determinant of unemployment, as opposed to simple tax reforms like Trump’s
@tartaarsaus you can make that argument it would be wrong, The reason why he would be wrong because taxes actually take income away from here and income into the federal government by raising taxes by raising the amount of money you have to pay people especially in a time where nobody’s out spending because everyone’s afraid of getting Covid and you’re still having to pay rent and you’re still having to pay utilities it’s a bad idea, It’s a simple supply and demand thing if the supply is more than a man then the supply is worthless the what it could have been same thing goes for money
@Stoner710Nope. The reason why the Federal Reserve is more important than this simple tax is because they determine how many loans banks can give, they determine what interests rates there are, they effectively safe of let financial systems collapse and they determine whether lending money is cheap enough for firms to even afford employment. So yeah, this is way more important than simple tax reform. And as for why inflation is so low and not comparable to Venezuela, because the nature of printing money is completely and utterly different. The Venezuelans used the money to finance their government, the FED bloats their balance sheets to keep the financial system afloat
A gold standard is more volatile, which creates crises, and is not versatile in times of crises. It’s objectively a woeful idea to have a gold standard, which is why no nation actually has it
Well, it belongs to the treasury department but febral reserve controls the supply no. Well for a troll the bigger the target and the more reactionary the response the better no
Yes, the Fed sets monetary policy and controls the supply. The Bureau of Engraving and Printing which is part of the Department of the Treasury prints the money. So what's your point? And trolls are worthless pieces of shit so if they are jerking themselves off that they got a big target to reply, it just proves how pathetic their life is. But that's just my opinion.
50 this year 71-21
I'm so angry about the Fed I lost my ability to spell correctly or construct a coherent sentence!