>Fed money printer the last two years: BRRRRRRrrrrrr
>Guys why is there inflation
Covid, lockdowns, and shortages are all a cover for the banking failures that started again in sept 2019. The fed is funding vanguard and bailing out the banks (Chase biggest recipient of bailout funds), hence why all the property is soaring.
Really? Abundance of capital is impossible? Scarcity is impossible to solve?
Honestly, this is really weird. Especially the zombie company myth. Peace does not make a profit, building weapons is highly profitable. Meanwhile taking care of the elderly or renewable energies have relatively low yields. If you insist that returns must always be positive then expect your society to turn to corruption and war because those are the bastions of eternal profit.
From my perspective, it's the market that is forcing the Fed, not the other way around. In fact, the Fed is so toothless, I don't know why anyone cares about it. The only thing people are justified to be angry about is that land has its own liquidity preference but hey, that problem is how homeowners and real estate investors got rich at the expense of the future generation so it won't be solved.
> "Inflation is always and everywhere a monetary phenomenon." - Milton Friedman
This is true in the trivial sense that any time there is inflation, there is an infinite array of alternate monetary policy approaches that could have been pursued under which there would have been (all of) more, less, no, or negative inflation.
But other than that, it is not usefully true, because change in monetary policy is very often not the proximate cause of (increases or other change in) inflation. For instance, in the recent bout of domestic inflation, the proximate cause of inflation (somewhat reductively, as there were more contributors) was the rebound in employment, spending opportunities, and consumer confidence from the general relaxation of COVID control policies.
oversocialized|4 years ago
>Guys why is there inflation
Covid, lockdowns, and shortages are all a cover for the banking failures that started again in sept 2019. The fed is funding vanguard and bailing out the banks (Chase biggest recipient of bailout funds), hence why all the property is soaring.
imtringued|4 years ago
Honestly, this is really weird. Especially the zombie company myth. Peace does not make a profit, building weapons is highly profitable. Meanwhile taking care of the elderly or renewable energies have relatively low yields. If you insist that returns must always be positive then expect your society to turn to corruption and war because those are the bastions of eternal profit.
From my perspective, it's the market that is forcing the Fed, not the other way around. In fact, the Fed is so toothless, I don't know why anyone cares about it. The only thing people are justified to be angry about is that land has its own liquidity preference but hey, that problem is how homeowners and real estate investors got rich at the expense of the future generation so it won't be solved.
dragonwriter|4 years ago
This is true in the trivial sense that any time there is inflation, there is an infinite array of alternate monetary policy approaches that could have been pursued under which there would have been (all of) more, less, no, or negative inflation.
But other than that, it is not usefully true, because change in monetary policy is very often not the proximate cause of (increases or other change in) inflation. For instance, in the recent bout of domestic inflation, the proximate cause of inflation (somewhat reductively, as there were more contributors) was the rebound in employment, spending opportunities, and consumer confidence from the general relaxation of COVID control policies.