Posted on 03/19/2023 8:05:51 AM PDT by ChicagoConservative27
Is a federal reserve needed? It is staffed by a bunch of WOKE incompetents. Their goal is to raise unemployment, people working and getting jobs is a detriment to them. Let the market place determine the economy simply by supply and demand.
No kidding. This buffoon, and she is a buffoon, is part of the problem. She spends and gives out money we dont have and causes inflation, that led to rate hikes, then blames businesses. An clown. She is using the SVB bailout to get at the Fed.
Why is a person who repeatedly lied about her heritage a U.S. Senator? Oh I forgot, integrity and honesty are not needed to be elected in today’s America. This speaks volumes about today’s electorate.
She isn’t too far off but is going in the opposite direction.
The Fed raises interest rates to slow the amount of money circulating through the economy and drive down aggregate demand. With higher interest rates, there will be lower demand for goods and services, and the prices for those goods and services should fall. But it can’t do that if it goes beyond creature comforts and goes for the items people have to live on at a minimum standard like food, housing, and affordable utilities like water and employment considerations.
Our economy moves so fast that the increase in prices and costs will so easily force a economy based upon capitalism that varying either will stagnate the ability of an economy to float at its depth and not the artificial one. Thus each time the economy catches up to inflation, and the feds distort it again, it creates an automatic recession until it goes beyond the ability of the economy to catch up. Happened in 1929 that way and will repeat if the feds try to create the market and not let the market create itself through the availability of its own worth.
wy69
Hate to say it but she is right.
The cure for inflaion is lowering taxes, lowering interest rates, increasing import tariffs and holding govt spending at current levels.
But upon being ordered to do this the politicians the banks own would scream and scream and scream...
No, massively cut government, government programs, spending, reduce regulations and most importantly sending about 1.5 million lazy ass government employees to the unemployment line so they can find real jobs and finally be productive members of society
Milton Friedman, a true economist, says that the cause of inflation is government issuing additional dollars. So the cure for inflation is government issuing fewer dollars.
Raising interest rates hasn’t fixed the problem, and it won’t. What warren says is of no relevance.
Interest rates should be driven by growth prospects, and growth prospects in the U.S. today are historically poor. Our population growth is anemic, and our productivity growth is almost certainly negative. THIS is why more and more of our economy is driven by transactions that have nothing to do with a real buyer and a seller. The biggest "buyers" are now the taxpayers, and "sellers" are the government or fascist corporations selling to people who are forced to buy things even if they don't have any interest in paying for them.
“...the politicians the banks own would scream and scream and scream...”
Interesting enough that’s become a two way street. Capital requirements are often tightened after an economic recession, stock market crash, or another type of financial crisis. And that’s something the politicians do not want to admit as that is caused by their inadequacy and not by someone else’s screwup. Harms their voting base.
Capital requirements are set to ensure that banks and depository institutions’ holdings are not dominated by investments that increase the risk of default. They also ensure that banks and depository institutions have enough capital to sustain operating losses (OL) while still honoring withdrawals. Default risk or default probability, is the probability that a borrower fails to make full and timely payments of principal and interest, according to the terms of the debt security involved. Together with loss severity, default risk is one of the two components of credit risk.
An example of that is the feds creating mortgage forbearance during the covid timeframe. Financial institutions got hammered on that one but the public was told it was a protection for them but failed to tell them it was done at the lending organizations expense. So if the banks could actually foreclose, they had no way to dispose of cash related product attached to the property. Spiders took over the insides. The feds look good, the banks get shot in the foot, and the economy is screwed. And the brunt of that is still to be seen and we have a mortgage crisis on the horizon like in the acts during the Clinton era that leaked all the way through the Bush timeframe he inherited and the lies to continue it till Obama by Barney Frank and Chris Dodd.
wy69
I think audit, you are right.
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