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To: RandFan
The Fed always acts to reduce the money supply by contraction via high interest rates or by inflation and devaluing the currency.

In either case, the Fed acts to control the currency by reducing demand, i.e. reducing the effective wages of working Americans, instead of punishing the speculative excesses of Wall Street and the big banks who have been -by far- the principal beneficiaries of its loose money policies.

What it should do is force banks to pay much higher interest rates for savings and checking accounts from small depositors and accept new small accounts. That would remove money from circulation and redirect capital from the rentier class to the working class.

Instead, it will either tolerate high inflation or raise interest rates generally, forcing taxpayers to pay exorbitant rates on the national debt and make credit much more expensive for working people, and the rentier class will make even more money.

This isn't capitalism: it's a crony oligarchy pretending to be 'capitalist' just as it increasingly pretends to be a 'democracy' with stolen elections and medical 'emergency' dictatorship, as we can see in Canada, covered with legal euphemisms.

17 posted on 02/22/2022 7:40:30 AM PST by pierrem15 ("Massacrez-les, car le seigneur connait les siens" )
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To: pierrem15
--- "This isn't capitalism: it's a crony oligarchy pretending to be 'capitalist' just as it increasingly pretends to be a 'democracy' with stolen elections and medical 'emergency' dictatorship, as we can see in Canada, covered with legal euphemisms."

Thank you for the clear persepctive. "Pretending to be capitalism...."

An article from 2004: "Perpetual Debt: From the British Empire to the American Hegemon" https://mises.org/library/perpetual-debt-british-empire-american-hegemon

22 posted on 02/22/2022 8:09:29 AM PST by Worldtraveler once upon a time
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