Hypothetical Q: If the Fed reluctantly becomes the Lender Spender of Last Resort, who steps in to correct their mistakes?
still parroting false narratives about the Fed. this provides more evidence that you still don't get it, confused, unable to differentiate fiscal policies/actions vs. monetary policies/actions. The Fed is primaritly responsible for Monetary policies, the management of interest rates and the total supply of money in circulation ). Congress is responsible for Fiscal policies which are related to the taxing and spending actions of governments just so you understand, the age of easy money is when the Fed was implementing QE cutting the rate towards zero, buying marketable securities from banks, in the process, expanding the money supply in circulation. increased money supply in circulation and the ineffective trade war, which created global supply chain bottenecks, make for increasing inflationary pressure. the War in Ukraine has also driven the gasoline price much higher since Sep of 2021, for the most part, the Fed has been implementing QT, the opposite of QE, to lessen the money supply in circulation in order to contained inflation. since then, we've been in the age of "the opposite of easy money" you had cut n pasted convenient criticism of Fed's QT, with the meaningless rhetorics that it is wrecking its balance sheet.
here are eg of the spender of last resort; the fiscal policies/actions of the Congress FDR's new deal programs to lift the us economy out of the Great Depression the Emergency Economic Stabilization Act of 2008 the Troubled Asset Relief Program,TARP , was created to implement programs to stabilize the financial system during the financial crisis of 2008. etc. other than expanding the money supply in circulation, the Fed,was not involved in any of these spending actions.of last resort
I showed up because the thread said Age of E… and I was thinking it was Age of Empires so imagine my disappointment when..
the complexity is by design, to obfuscate the pillaging it's all just slight of hand for perpetual money printing and debasement of wealth for any pleb dumb enough to save in dollars
That's a good chuckle from a good jokester. I would assume that after 3 replies, you would have watched the 2 hour documentary? It doth behoove thee, good sir, to heed the counsel of thy best companion Oxford on what "good faith" means. Thanks for giving me a reason to bump for anyone else interested. Your efforts in carrying water here is noted and appreciated.
Wow, that's a pretty long documentary. But looking over the various sections, it's what I thought it would be in that it's mostly about the monetary side. The real economy involves both monetary and fiscal policies. A large reason why the post pandemic looks different than the post GFC is the fiscal side juicing demand short term and long term. People seem to prefer to think of the world as a room full of cigar smoking fat cats but I think it's vastly more complicated than that. The Fed is certainly powerful, but they don't have all the levers to pull. Congress has many of the other levers to pull.
I view it as multiple rooms full of fat cats all competing against each other, hedging on the average oblivious person who is sucking off labor and capital from 3rd world nations.
When there's a crisis, Treasury and Fed almost always work in conjunction with each other. If only to secure funding from Treasury for large purchases/outflows. Even with the "unlimited printer", the Treasury has to know what's going on beforehand to secure that amount of dollars for the Fed to work its magic during that crisis period. It's also for a good reason the Fed shouldn't and can't control fiscal policy or print actual money. The Fed started to blur that line even further in 2020 when they had a temp program to buy corporate bonds. Some would call that a Bailout even if taxpayer funds weren't ultimately spent. Definitely government intervention/moral hazard, and definitely tipping the needle on the side of the investor/oligarch class. But overall, I think Frontline did its best to describe Congress's inaction as one reason for the Fed's over-action. It also left open to the idea that the Fed might have played its hand too much since the GFC (or even the Clinton-Greenspan era)
ur confused, still unable to differentiate monetary from fiscal policies. The Treasury manages all of the money coming into the government and paid out by it. has no role insofar the the supply of money in circulation. The Federal Reserve's primary responsibility is to keep the economy stable by managing the supply of money in circulation. has no role insofar as spending . again, monetary policies are outside the scope of Congress, who deals w spending / taxes.
I could be right or wrong, but are you going to latch onto my every word like a neutered pup humping an outstretched leg while ignoring the original topic of this thread? If anything, it helps my case on how toxic a poster you are.
That's somewhat how I view it, except it's many rooms with many fat cats cooperating and competing. They go between cooperating and competing rather quickly.
