Under what logic is it okay for the FED to totally manipula…
Under what logic is it okay for the FED to totally manipulate the currency supply?
They can create currency to enrich the wealthy, and take from the man carrying the lunch.
Please, someone explain the ethics of that.
Replies
take off the tinfoil hat. The federal reserve cannot do much.
The currency they create is sitting in accounts that cant be accessed.
Liquidty is actually drying up. It is the commercial banks that create currency and they are doing less of that.
other biggies:
- $JNK bonds prior to announcement of corp bond purchase program
- reserve requirement is now 0%
Your joking right?
The chart from a month ago needs updated....
M1
https://twetch.app/t/31d10ed8144da360acd7cda1d2566955e819e1552c26b12d3c1a073ee2f8e1b9
You should look at M2
and yes its deflation now.
Sure, let's look at M2. It tells the same story.
We have a rapidly expanding currency supply.
it doesnt matter. this new money bails out failing institutions and gets locked up in special accounts. Not accessible
The real problem is the reduced lending by banks. Thats what causes the delation.
Asset bubble fueled by weak dollar and rates tho
federal reserve CANT create money. the mulitiplier is only happening when banks lend out.
lets see what happens when they reopen businesses... will create demand for dollars to pay back deferred loans 🤔
Did you forget about the fed's daily purchases....
Treasuries, Bonds, ETFs.....
1. Explain to me how money that bails out failed institutions gets locked up on special accounts.
2. Are you arguing that the USD money supply has actually gone down?
3. Where did the currency come from for the cares act?
1) federal reserve asset purchases
2) not saying that
3) federal reserve. moatly as loans.
QE by definition means they are afraid of deflation.
Most of dollars are mostly locked away.
Real problem is low demand for loans cuz economy is rekt