American Economics Thread

horse

horse

Major
Registered Member
Franklin said:
I believe what the FED is doing right now is to ease/pivot in a thousand cuts. They are announcing a series of smaller initiatives that can’t be considered a pivot from their stated goal of fighting inflation but that are nonetheless supportive of the market.

It's not going to be enough and the crisis will persist and they will have to in the end go back to 0% interest rate and QE or else the entire financial system and economy will collapse.

But if they do do so then what is going to collapse is the value of their currencies and inflation will soar and destroy the economy that way.
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I agree with what you are saying. Some comments.

1. Things may not collapse. The part about inflation, what pisses people off the most is food inflation. The US government is giving out banking subsidies left right and center. Someone will think up a subsidy to the American farmer to produce more food products to lower the grocery bill.

2. What goes on in Wall Street and the banking system, people do not care or understand. So the inflation that was confined to asset inflation will continue, making everyone happy. Those without assets, can still buy cheap food, from point #1. Burger King always advertises cheap food. America is a land of cheap food.

3. Oppression works! Refer to point#1 and subsequently point#2.

4. Tax cuts will help the average family lower their financial burden and they can afford more stuff. More tax cuts are an immediate task to implement. Give the American family a break. MAGA!

5. Okay, seriously, this is a rally of everything. Stocks, bonds, gold and commodities, real estate, and even BTC. The new money from Jerome print press has to go somewhere.

6. This game could go on for a long time, it could go on indefinitely, then have a crash, then continue again indefinitely. Why not? History of capitalism is like that.

7. Big question is, and it always is that question, what about the dollar? If Jerome prints money, and that money buys up dollar assets, that means a strong US dollar, which means the United States gets to buy things around the world for cheap. That is the privilege of dollar hegemony.

Seems like the game is rigged.

Because it is rigged!

8. We should watch the price of gold. It's close to $2000 USD. Let's see if it gets over that, and could it keep on going? If that happens, will Western central banks start dumping gold again to suppress the price, and keep this game of musical chairs going.

Rally of everything!
 
horse

horse

Major
Registered Member
horse said:
If Jerome prints money, and that money buys up dollar assets, that means a strong US dollar, which means the United States gets to buy things around the world for cheap. That is the privilege of dollar hegemony.

Seems like the game is rigged.

Because it is rigged!
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What if they do this? What if they cause a dollar rally, that takes the dollar from 100 to 200.

Then have a crash of the US dollar, back to 120. Using these figures for argument's sake.

The dollar would have gained, and the suckers would have got it in the ass, because they did not realize that this game was rigged, and they did not fully understand what they read in the financial press.

If we are going down, it will not go down the way we expect!

Oppression works. That's what I believe.

:p
 
siegecrossbow

siegecrossbow

General
Staff member
Super Moderator
ansy1968 said:
Or misconstrue the moniker of CCP which is Capital Control Program...lol
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Most of the capitalists and so called economists in China are affiliated with the U.S. in some way or form (yes, even Ren Zhengfei of Huawei). Before the whole "f*ck China" thing started they were more than happy to sip the soup while America ate the meat. Way to go shitting in your own meal neocons/libs.
 
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