I cant belive my man thinks rasing intrest rates will do anything to combat wages going up due..... too...

  1. 1 million dead Americans due to rona( and counting)
  2. Rising class conscious due to how rona was handled
  3. 54 million boomer Americans are gonna be dead in less then a decade due to age
  4. Stagnate casino econmy predicated on cheap labor + imperialism × decaying gentocracy

Whats the plan Man? How you gonna fix this shit once it crashes, how many times is he gonna quatativly ease him self when inflation is rampant and not gonna respond to increassd intrest rates. Go Volcker suck on these these nuts

Go crazy tell me where you think the ecomy is going

  • supdog [e/em/eir,ey/em]
    ·
    2 years ago

    I don't understand why so many communists on this site think it's more leftist to keep giving banks free money than raise rates so they start paying for money :ritzy-marx:

    Probably the thing to do is to raise interest rates by more than what the market expects. The fed only looks backwards. While they're looking at last month's interest rates, firms are already writing the future's contracts. When businesses believe the fed is going to hesitate (because of their pattern of behavior) to act on already post-dated information, they raise prices to account for the distance the fed lags, which gets larger and larger.

    That pattern of behavior was when the fed diverged from a credible 2% inflation target policy to a policy of flying by the seat of their pants at which they did not have any credibility.

      • supdog [e/em/eir,ey/em]
        ·
        2 years ago

        People here are going to disagree with me but at least we have unemployment insurance. We experience inflation uninsulated, workers and nonworkers alike. You get stuck in your car note. When you get laid off you're not legally obligated to stay unemployed.

        all because of a handful of nerds at the fed board.

    • DengXixian [he/him]
      ·
      2 years ago

      maybe because higher interest rates and a shitfucked economy disproportionately hurts working class people since a shitfuck economy involves layoffs?

      to say nothing of how higher interest rates result in the debt of the working class accelerating and compounding even faster

      • supdog [e/em/eir,ey/em]
        ·
        2 years ago

        and inflation doesn't?

        I don't really want to argue about which hurts the people more (it's 8% inflation btw) but if raising rates causes job loss (which I think we know it's a pretty tenuous correlation anyway) that doesn't mean it's not still a net benefit to people. Inflation also effects living indoors and feeding yourself. There's a point where raising rates crosses from net good to net harm and I'm pretty sure that point is not a 0.75% hike after a decade of 0%

        • DengXixian [he/him]
          ·
          2 years ago

          neither is particularly great. inflation without wage increases is horrible, but it will also continue to ramp up to varying extents as america declines regardless of what the interest rates are.

          lower interest rates = lower speed of compounding debt, which tends to affect all of us. increasing interest rates almost always leads to higher unemployment and in america, that means more death and social murder as people fall into economic collapse.

          • supdog [e/em/eir,ey/em]
            ·
            2 years ago

            ok well the hike is a month old so I guess we'll see. It certainly isn't a 1:1 correlation. I'm saying there's at least enough slack that you can start to nudge up after a decade near zero wouldn't you agree?

            Not to sound dismissive but a recession phase of higher unemployment isn't the end of the world or else the world has ended 30 times now. Meanwhile we haven't experienced an inflationary period since like Carter or whatever. Did you hear JP said like "we're finally understanding how little we understand about inflation"? JP could be a hexbear for all the underestimating he does on inflation 😘

            • DengXixian [he/him]
              ·
              2 years ago

              Not to sound dismissive but a recession phase of higher unemployment isn’t the end of the world or else the world has ended 30 times now

              that is pretty callous for the many people who become unemployed and can’t pay their bills. one of the things I dislike about economics nerds is the removal of the human factor

              ultimately we’ll see either way. I hope the minimum amount of people are harmed regardless :shrug-outta-hecks:

              • supdog [e/em/eir,ey/em]
                ·
                2 years ago

                well it's like 'don't ever raise interest rates because it might cause a recession'. When has there ever NOT been another recession? That's what this ride does.