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> What is so evil about a central bank? Don't know about India's central bank but US Fed plays with interest rates, bails out risk taking companies or their cl
by sumedh 5y ago
> What is so evil about a central bank?
Don't know about India's central bank but US Fed plays with interest rates, bails out risk taking companies or their close friends creating moral hazard, prints money recklessly destroying your savings.
- yashg 5y ago//US Fed plays with interest rates// That's what central banks are for. That's how they control inflation or make the wheels of economy moving by printing more money. That's literally the reason for their existence, controlling money supply in an economy.
- sumedh 5y agoand by playing recklessly with interest rates, they inflate assets like stocks and real estate while destroy savings. While making these decisions they decide winners and losers and then privately trade stocks to get rich using insider information.
- johnsolo1701 5y agoBut aren't most Americans' biggest asset their house, aka real estate? And their savings is their 401(k), aka the stock market?
- sumedh 5y agoDoes the US Fed have a some kind of official charter saying that they will keep on inflating assets by keeping interest very very low?