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The goal is to destroy money where it is safe to do so. Aka: the "soft landing". I think we can agree that destroying depositor money is going too far. That be
by dragontamer 4y ago
The goal is to destroy money where it is safe to do so. Aka: the "soft landing".
I think we can agree that destroying depositor money is going too far. That being said, we still have a long way to go, inflation is still 6%+, so more rate increases are needed... which will only cause further monetary destruction and other issues similar to SVB.
- simple-thoughts 4y agoDestroying money means a lot of people have to become poorer. So isn’t destroying money where it’s safe to do so just another way of saying the politically connected get bailouts while the rest don’t? It seems that this would be an optimal strategy from a cynical political authority I suppose. Still it makes me wonder if the transmission mechanism for interest rate hikes will work, since the politically connected are where most of the money is already.