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I don't think resource utilization is bad, per se. But I certainly agree that the low rates is destructive for the health and robustness of the economy. It's pe
by elcritch 4y ago
I don't think resource utilization is bad, per se. But I certainly agree that the low rates is destructive for the health and robustness of the economy. It's perhaps more akin to sugar addiction.
However, why would the Fed want to raise rates? The Fed members are precisely the group who benefit the most from the Cantillion-ization of the economy. The VC folks who fund escooters flops are just later stage effects.
But the banks who makeup the Fed and control 2/3 of the board members benefit a lot from having that printed cash flowing through their coffers. They also get game the markets even further by knowing where and when the fed will change rates. Why would they change?