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To: ProudDeplorable

This is the key line:
“Fed steals pieces of wealth from savers and workers as it devalues the dollar for the Fed’s own benefit”
The question is how long can it continue? Seniors in particular are bearing the brunt of it.

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Actually it devalues the dollar so that the government can spend whatever it deems necessary to spend. Fed chairmen never say “no” to the Federal government anymore. At least Volker (in his day) sent a signal that he would not rubber stamp Washington’s spending habits (at least in the short term) and that the money supply would be tightened up.

Nowadays it’s just buy up all the excess debt that the Treasury dept. wants to issue.


13 posted on 01/17/2023 11:25:38 AM PST by Bishop_Malachi (Liberal Socialism - A philosophy which advocates spreading a low standard of living equally.)
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To: Bishop_Malachi; ProudDeplorable

The Fed gains no benefit from devaluing the dollar.

The Federal government arguably does because like all debtors they get to pay off what they owe in cheaper dollars.

The main culprit damaging the dollar is probably Congress with their never ending increases in the debt ceiling.

The broadest measure of the US money supply includes Treasury debt. Increases in Treasury debt end up getting monetized which increases the number of dollars in circulation.


15 posted on 01/17/2023 11:43:36 AM PST by Pelham (#NeverKevin)
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