I didn't smell anything.
Did FED just cut?
- Thread starter Bowgett
- Start date
The FED is not there to save the economy. It is there to regulate monetary policies and is ruled by a select few banks. It's many strange decisions now and in the past are better understood when viewed as done on behalve of those banks.
The FED doesn't care about economic disaster, it cares about the spoils that remain after the event, ready for the picking by them banks.
Educate yourself some more about this issue and you'll be amazed!
True the FED is actually a private bank setup by porivate banks for their needs. Just happens to have Gov backing.
The issue we have is that we no longer have dollars backed by gold. So no reason for FED to stop running the printing presses 24x7 now.
The issue we have is that we no longer have dollars backed by gold. So no reason for FED to stop running the printing presses 24x7 now.
1970's oil crisis ignited "price inflation" that then led to "wage inflation"....big difference now is that unionized workforce is much smaller percentage of work force.
I do not believe workers today have the clout to drive up "wage inflation" especially if we have a recession leading to higher unemployment etc.
Finally official inflation figures are cooked book by substitution, technology discounting etc etc.
I do not believe workers today have the clout to drive up "wage inflation" especially if we have a recession leading to higher unemployment etc.
Finally official inflation figures are cooked book by substitution, technology discounting etc etc.
In normal times a moderate inflation is best for ecomomic growth and thus for the controlling banks. In those periods it makes good sense to use i-rates to control the growth. It is also easily explained to the public and gives the FED a sort of dont-worry-your-gov-knows-what-its doing image. Most people dont know that the FED is not the government.
When, by accident or intentionally, ridiculous new administration enters the WhiteHouse and starts to grossly mismanage the country and enters an (illegal) war that can never ever be payed for, the FED, on behalve of the controlling banks, grabs the reigns and does whatever it sees best for the purposes of them banks.
In this case, globalization forces them to spread their wings and they may decide that a total ecomic crisis, like 1907 and 1929, is in the best interest of the banks. It will hurt, but they will own more after the smoke has cleared. And that is the ONLY motive.