💾 Archived View for stack.tilde.cafe › gemlog › 2023-06-02.inflation.gmi captured on 2024-02-05 at 09:37:31. Gemini links have been rewritten to link to archived content
⬅️ Previous capture (2023-09-08)
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As predicted, Important Men got together and saved the world at the last moment, by signing a piece of paper that authorizes further borrowing. Woo-hoo!
And now, as more debt is to be monetized while the Fed is shitting in their collective pants, we can look forward to higher prices.
Inflation is a monetary phenomenon, regardless of what these jerks tell you. Rising prices are a _consequence_ of cheap money. It is not because of 'evil CEOs' or profiteering landlords. It is entirely due to the vast amounts of counterfeit currency our senile president had forced into the system by handing money out to his croneys. Not that other presidents are much better, but this one kind of jumped the shart with the handouts. And of course it's not really Biden, as I doubt he can put on his underwear without help, so it's whoever is behind it this time.
Well, yes, money is not really printed, and it's really created by banks loaning money ithey don't have into existence. But there are so many other ways... Issuing trillions in bonds that the shill banks furiously trade back and forth all day until someone decides they are legit. The Fed has a bunch of what they call 'tools' to make sure the firehose of money never stops. It can buy up assets of all kinds, for instance, selectively manipulating asset prices. Or opening 'the window', providing banks with infinite money and therefore incentivizing them to loan it out. Or by manipulating interest rates, which they do openly and shamelessly.
The free market normally takes care of interest rates. As people borrow money, there is less of it available, and those who have it charge higher rates for it. Eventually money becomes too expensive to do idiotic things with it, like construct office buildings when the existing ones are half-empty. But when the Central Committee fixes the rates, they always miss the mark. And besides, their goal is to expand or die, so expand it is - loans to everyone who can breathe at the rate set by the Politbureau. Even when the nominal rates are taken up, other spigots open up to 'save the banks' or whatever other appendage is currently breaking.
In the meantime, the people are distracted by our political theater, a wrestling show with much shit-talking and chair-throwing.