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Lesser men make-believe playing Volcker. Sure, he can raise interest rates all he wants. Until the US Treasury implodes, unable to pay interest on their exist
by pjkundert 4y ago
Lesser men make-believe playing Volcker.
Sure, he can raise interest rates all he wants.
Until the US Treasury implodes, unable to pay interest on their existing debts.
Of course, the Fed can monetize new debt directly to allow the US Treasury to fund government liabilities - not neutralizing the created money from creating more inflation.
You can’t pretend that a sick or dead body is living, until you take it off life-support.
No plan from these play-actors even hints at such a test…
- snapcaster 4y agoWhat would you do if you were in their shoes?
- neural_thing 4y agoOoooh I like this one. I would raise 25bp here, openly say that I expect a recession in 2023, and release a dot plot that doesn't have ANY rate cuts through 2025
- neural_thing 4y agoThe reasoning is that cyclically we are entering a recession, but there are structural reasons for inflation now, and that the era of hyper low interest rates is over.
- veidelis 4y agoAllow an audit.
- snapcaster 4y agoWhat do you expect this to accomplish?
- veidelis 4y agoTransparency.
- snapcaster 4y agoWhich problem currently faced by Fed, US economy or US gov would this solve?
- veidelis 4y agoI don't know. But that's the point - we can only guess, but I'm sure there would be plenty of very interesting things found. You know how a lot of prominent people say that FED is a private entity, right?
- pjkundert 4y agoConfront reality. Like an adult. If someone has screwed up so catastrophically that they are confronting destruction, the sane thing isn't to pursue the same course with greater vigor. I'm a programmer. I'm wrong dozens of times a day, 5-6 days a week, over the last 40 years. By admitting it, and not making-believe that I'm some all-knowing genie and that "the computer must be wrong", I quickly humble myself, admit that I'm wrong and search for the root cause of the problem. This will never happen, apparently, at the Federal Reserve, until it is too late for them to avoid massive destruction and death in our society.
- snapcaster 4y agoYou understand that the market/economy isn't an unthinking unfeeling computer right? Admitting you were wrong doesn't change the underlying computer. This is a totally different situation. If you admitting there was a bug in your code made the computer less likely to work in the future or self destruct entirely you would likely have different behaviors