Like I said the whole fed circus act is the control inflation by selling bonds at a high interest rate to shrink the money supply and to reduce inflation. The shrinking money supply slows the economy IT HAS TOO. That is how it works. That is fact. You cannot argue with that. Stop it you sound imbecilic..
“Like I said the whole fed circus act is the control inflation by selling bonds at a high interest rate to shrink the money supply and to reduce inflation.”
Where is it that you think you are seeing a “high interest rate”?
The money supply is shrinking because the Fed is allowing their past QE purchases to mature. They don’t have to sell anything for this to happen.
“The shrinking money supply slows the economy IT HAS TOO. That is how it works”
The basic Equation of Exchange illustrates the error of that claim, along with the real world example of the Jimmy Carter years.
The equation of exchange is MxV=PxY; Money Supply x Velocity = Price Level x Real GDP.
If a direct link between money supply growth and GDP growth existed then Jimmy Carter would have had a booming economy instead of a stagflationary disaster.
An increase in the money supply can go to GDP growth or it can go to inflation. Conversely GDP growth can result from an increase in velocity of money or a drop in the price level, it’s not dependent upon an increase in the quantity of money.
The money supply grew during the Carter years. But it went straight to inflation. The GDP was stagnant.