Why does the federal reserve want to crash the economy and cause a recession just to keep inflation low rather than keep the economy going and inflation high?
Why does the federal reserve want to crash the economy and cause a recession just to keep inflation low rather than...
The great reset
This clown show can't go on forever.
it’s a healthy cool down for markets, people were willing to invest in stuff like pregnant butt because of abundant liquidity, not healthy
Inflation feeds on itself causing even more inflation. Inflation destroys the currency and destroys nations.
Because the *big boys* sold the top and now want to buy the bottom.
To obliterate retarded redditors buying pictures of monkeys and meme stocks.
Pretty based if you ask me.
misallocation of capital was getting too ridiculous to ignore
Because the alternative is waking up one day to prices doing a 10x compared to the day previous and people losing their absolute minds rioting in the streets and killing millions of each other in the calamity - and that is bad for profits. Much better to just fuck everyone over for half a decade or so, get them all good and pissed off and frothing with rage, and then send them off to die in some pointless war. Because that is how you control entire nations of people.
>keep the economy going and inflation high?
it won't keep the economy going. they can't do that.
the redpill is the economy is a runaway horse that the fed can't control anymore
they printed money non-stop since 2008 (should have stopped at the latest 2013). they were able to fudge the statistics by importing thirdworlds to increase demand and mask the massive monetary supply increase but covid threw a wrench in that plan.
the last car I had I sold for more than I bought it for, after driving it 2 years and did basically no haggling. people were saying that the market is hot, lol no. the dollary doos are worthless. same story with housing.
they will continue limpdick pity hikes until their fudged inflation number hits 40% and then panic overcorrect interest rates to +20%. paper assets will implode and chinks will try to replace the petro with their somehow even more manipulated currency. likely scenarios include minting a new currency, btc adoption(lol), and ww3
>Why does the federal reserve want to crash the economy and cause a recession just to keep inflation low rather than keep the economy going and inflation high?
because this is what they've been doing for almost a century.
Because they can't risk losing the dollar as a mechanism of control. The US economy currently boils down to exporting dollars and importing real goods. The dollar can survive if the economy dies, but the economy cannot survive if the dollar loses its status as reserve currency.
Inflation high will also cause a recession.
Prices rise higher that wages. People can only afford to buy less stuff on an inflation adjusted basis even if they spend 100% of their money. Companies starting making less profits. They lay people off. - Recession.
In truth, the recession that is coming i caused more by high inflation than fed tightness. The current rate isn't even higher than the rate 2.5 years ago. They only just started quantitative easing this month. They've hardly done anything so far but companies are already starting to lay off. That's because inflation has been hot for 15 months now already which is long enough for the reduced profitability effect to start.
>the economy cannot survive if the dollar loses its status as reserve currency.
it would be a lot better off in the long run without a debt-base currency, which is essentially a scam that benefits nobody except the bank's shareholders.
They caused all this on purpose by dropping the interest rates in the first place. You need to learn this: every time they drop the rates the economy does well for a while and then there is a recession.
10% of the country being fucked with unemployment is better than 100% of the country being fucked with 20% year on year inflation.
the herpes virus is so successful that eventually it kills itself off somehow. i can't remember the exact mechanism, but the point is its kind of like when marcus Aurelius' said you can only skin a sheep once, but fleece it many times. i always remember that when some rat from israel is lying to my face on tv
This is also how I know volcker-tier rape hikes are coming and shit is going to get worse before it gets better, nobody is letting the dollar die and there are a bunch of foreign interests that don't want to see it die even if they hate us. Gas will be 10$ a gallon, food will be nearly unaffordable, millions will take to the streets homeless before the dollar is allowed to even think of dying.
Would.
Because inflation is tool by central banks and the master predators to redistribute wealth from the middle class to the upper classes (it happens all the time from the middle class to the underclass via socialism on top). Inflation has ever been and is a tool for mental slavery.
in b4
>muh inflation is necessary for constant growth of national gdp
>muh inflation comes in cycles and is natural
Both are just side effects of its main function, i.e. usury.
They only have one goal and that is to destroy western civilization and enslave and kill all white people. If you don't realize this yet, you will soon enough.
>From Rules for Radicals by Saul Alinsky, who was a mentor to Barack Obama.
>In the chapter titled "Of Means and Ends" on page 37 he says this: "They have the guns and therefore we are for peace and for reformation through the ballot. When we have the guns then it will be through the bullet"
people want to blame the fed but its not their fault quite literally
the new trend of blaming price hikes on some global event is
>muh china lockdowns
>muh global lockdowns
>muh blocked ports
>muh supply chain
>muh ukraine
>muh sunflow oil
>muh baby formulas
>muh evergrande
>muh china lockdowns again
If hyperinflation happens there will be a revolution that threatens the current elite.
Crashing the retirement funds of Boomers is nothing in comparison.
oh baby. pregnant butt was one of my best plays, with 0 investment due to the air drop.
I'm pretty sure the formula shortage were just Nestle being assholes desu but the rest tracks.
Inflation doesn't feed on itself. It's simply the result of money printing. Which is allowed because of fractional reserve banking, so a period comes when people take loans, like now, huge money comes around. You either reduce fractional reserve banking or don't need to do anything once people have enough loans for their needs it stops. The interest rate changes create inefficiencies because prices need to be adjusted and wages are sticky and so on so it drags a 1-3 year problem for 6-10 years. A problem that didn't have to exist in the first place but central banks want the economy like that. It's actually awesome how retarded it is and how profitable it is if you know what's happening and how you can easily profit on this trade for like 10 years because of pure and simple retardation or incompetence.
>but it's manipulated
Think aabout all the economists and politicians and regular people that know economics and can't point out these simple facts. Great time to make some money