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I would like to know how Powell is doing this. How exactly does the chair of the federal reserve "destroy" capitalism?

by koyanisqatsi 4y ago

deleted 4y ago
[deleted]
melling 4y ago
“destroying faith in capitalism ” I’d say that’s quite a bit different than “destroying capitalism “
- koyanisqatsi 4y ago
  I also want to know how he's doing that as well. I'd like to know how anyone can destroy faith in an ideology like capitalism.
  - ehvatum 4y ago
    By undermining the value of unit of account for capital via inflation, so that capital may no longer be kept or lent or borrowed, and barter and force of arms replace money as means of exchange.
    - koyanisqatsi 4y ago
      How exactly is it being undermined if it's still being used as the main unit of accounting? Is there some new political movement I'm not aware of that is trying to replace the US dollar with something else or is inflation of the US dollar sufficient to destroy people's faith in capitalism?
AnimalMuppet 4y ago
He kept the interest rate low for too long[1]. That left capitalists to their own devices, which has a tendency to cause problems. "Destroying capitalism" is a bit of a stretch even for that, though. [1] But it's not that simple. Powell left rates low until there was evidence that rates should rise. But that always comes too late, after the correct time to raise rates. On the other hand, if you raise rates before the evidence that you need to, you can kill a recovery - a recovery from 2008 that we were waiting for over a decade for it to really catch fire.
- melling 4y ago
  Powell tried to raise rates a few years ago but the markets tanked and everyone criticized him, including the President. People didn’t want the market bubble to end. TINA https://www.investopedia.com/terms/t/tina-there-no-alternative.asp https://www.investopedia.com/terms/t/tina-there-no-alternati...
- deepsquirrelnet 4y ago
  > “Doing great with China and other Trade Deals. The only problem we have is Jay Powell and the Fed. He’s like a golfer who can’t putt, has no touch. Big U.S. growth if he does the right thing, BIG CUT - but don’t count on him!” Trump wrote on Twitter. That would not really have been viable, considering the political climate. The previous administration was busy pumping steroids into the economy. Picture inflating a balloon. Rates were at 1.75 and pressure was to cut them to 1.5%. Different times… [1]https://www.reuters.com/article/us-usa-fed-trump/trump-heaps-pressure-on-fed-and-its-chairman-powell-to-cut-rates-idUSKCN1VB1I2 https://www.reuters.com/article/us-usa-fed-trump/trump-heaps... [2] https://brrr.money/ https://brrr.money/
- mindslight 4y ago
  It's utterly amazing how flagrantly these posh-dole recipients will shamelessly gaslight us. The sine qua non of capitalism is that it's distributed. What has destroyed and continues to destroy capitalism is the Fed keeping interest rates ridiculously low, going on (at least) three decades now. All of those artifically-cheap "loans" are newly created money being given to the financial industry and handwaved away as "value neutral", while it's anything but. The real estate bubble, the stock market bubble, the auto loan bubble, the college bubble. Everywhere individuals are priced out of transacting directly and banks have stepped in to financialize our lives - it's all been fostered by these central-planning puppet masters, giving us a Potemkin village of "growth" while the real distributed economy gets more hollowed out as its wealth is sucked into the cancerous financial industry with much ultimately wasted on make-work jobs. And then to have the gall to say that rates going up ever so slightly is "destroying capitalism" ? If you want to know where the blind populist rage driving support for burn it all down candidates comes from, it's right here. If you want to know why "young people" are rejecting "late stage capitalism", it's right here. Heads they win, tails you lose.

I would like to know how Powell is doing this. How exactly does the chair of the federal reserve "destroy" capitalism?

deleted 4y ago

[deleted]

melling 4y ago

“destroying faith in capitalism ” I’d say that’s quite a bit different than “destroying capitalism “

koyanisqatsi 4y ago
I also want to know how he's doing that as well. I'd like to know how anyone can destroy faith in an ideology like capitalism.
- ehvatum 4y ago
  By undermining the value of unit of account for capital via inflation, so that capital may no longer be kept or lent or borrowed, and barter and force of arms replace money as means of exchange.
  - koyanisqatsi 4y ago
    How exactly is it being undermined if it's still being used as the main unit of accounting? Is there some new political movement I'm not aware of that is trying to replace the US dollar with something else or is inflation of the US dollar sufficient to destroy people's faith in capitalism?

AnimalMuppet 4y ago

He kept the interest rate low for too long[1]. That left capitalists to their own devices, which has a tendency to cause problems. "Destroying capitalism" is a bit of a stretch even for that, though. [1] But it's not that simple. Powell left rates low until there was evidence that rates should rise. But that always comes too late, after the correct time to raise rates. On the other hand, if you raise rates before the evidence that you need to, you can kill a recovery - a recovery from 2008 that we were waiting for over a decade for it to really catch fire.

melling 4y ago
Powell tried to raise rates a few years ago but the markets tanked and everyone criticized him, including the President. People didn’t want the market bubble to end. TINA https://www.investopedia.com/terms/t/tina-there-no-alternative.asp https://www.investopedia.com/terms/t/tina-there-no-alternati...
deepsquirrelnet 4y ago
> “Doing great with China and other Trade Deals. The only problem we have is Jay Powell and the Fed. He’s like a golfer who can’t putt, has no touch. Big U.S. growth if he does the right thing, BIG CUT - but don’t count on him!” Trump wrote on Twitter. That would not really have been viable, considering the political climate. The previous administration was busy pumping steroids into the economy. Picture inflating a balloon. Rates were at 1.75 and pressure was to cut them to 1.5%. Different times… [1]https://www.reuters.com/article/us-usa-fed-trump/trump-heaps-pressure-on-fed-and-its-chairman-powell-to-cut-rates-idUSKCN1VB1I2 https://www.reuters.com/article/us-usa-fed-trump/trump-heaps... [2] https://brrr.money/ https://brrr.money/
mindslight 4y ago
It's utterly amazing how flagrantly these posh-dole recipients will shamelessly gaslight us. The sine qua non of capitalism is that it's distributed. What has destroyed and continues to destroy capitalism is the Fed keeping interest rates ridiculously low, going on (at least) three decades now. All of those artifically-cheap "loans" are newly created money being given to the financial industry and handwaved away as "value neutral", while it's anything but. The real estate bubble, the stock market bubble, the auto loan bubble, the college bubble. Everywhere individuals are priced out of transacting directly and banks have stepped in to financialize our lives - it's all been fostered by these central-planning puppet masters, giving us a Potemkin village of "growth" while the real distributed economy gets more hollowed out as its wealth is sucked into the cancerous financial industry with much ultimately wasted on make-work jobs. And then to have the gall to say that rates going up ever so slightly is "destroying capitalism" ? If you want to know where the blind populist rage driving support for burn it all down candidates comes from, it's right here. If you want to know why "young people" are rejecting "late stage capitalism", it's right here. Heads they win, tails you lose.