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The world’s central banks have chosen ‘class war over financial stability’

credit_guy 4y ago
Most likely they mean "class war over social stability". Financial stability cannot be achieved if you have high inflation.
- blurbleblurble 4y ago
  Well, another way of dealing with inflation could be tax reform, but it'd require finding people and organizations with excess capital and reeling some of it in.
  - Kalium 4y ago
    More to the point, tax reform is generally not an option central banks are permitted to choose.
    - CharlieDigital 4y ago
      Often overlooked is that central banks are quite limited in their toolsets. Our elected politicians are mostly letting us down by not having the spine to raise taxes to pull excess money supply out of the system without shifting more of the burden of inflation onto the majority.
      - slowmovintarget 4y ago
        Taxes can do that, and were used this way after WWII to slow down a red-hot economy. The trouble is in the timing, because there's a point where you have to to take the brakes off, and the political will to stop collecting "all that money?!?!" often fails.
    - jgeada 4y ago
      With the amount of absolute financial power they wield and the privileged access to levers of government that they do have, I remain skeptical that they'd be unable to cause taxes to be raised if that's what they really wanted. But they don't want that, the powers they serve never want that, so it won't happen. As a way of example, look at all the pre-conditions imposed on weaker economies in the name of "austerity" by central banks of larger nations. Taxes for you good, taxes for me bad.
- boringg 4y ago
  Another article inflaming the rhetoric and trying to tear our social classes apart without understanding the content & mechanisms that they are discussing.
lapcat 4y ago
Dupe: https://news.ycombinator.com/item?id=35260210 https://news.ycombinator.com/item?id=35260210 (144 comments) Original article: https://annpettifor.substack.com/p/banks-as-collateral-damage-in-a-class https://annpettifor.substack.com/p/banks-as-collateral-damag...

Most likely they mean "class war over social stability". Financial stability cannot be achieved if you have high inflation.

blurbleblurble 4y ago
Well, another way of dealing with inflation could be tax reform, but it'd require finding people and organizations with excess capital and reeling some of it in.
- Kalium 4y ago
  More to the point, tax reform is generally not an option central banks are permitted to choose.
  - CharlieDigital 4y ago
    Often overlooked is that central banks are quite limited in their toolsets. Our elected politicians are mostly letting us down by not having the spine to raise taxes to pull excess money supply out of the system without shifting more of the burden of inflation onto the majority.
    - slowmovintarget 4y ago
      Taxes can do that, and were used this way after WWII to slow down a red-hot economy. The trouble is in the timing, because there's a point where you have to to take the brakes off, and the political will to stop collecting "all that money?!?!" often fails.
  - jgeada 4y ago
    With the amount of absolute financial power they wield and the privileged access to levers of government that they do have, I remain skeptical that they'd be unable to cause taxes to be raised if that's what they really wanted. But they don't want that, the powers they serve never want that, so it won't happen. As a way of example, look at all the pre-conditions imposed on weaker economies in the name of "austerity" by central banks of larger nations. Taxes for you good, taxes for me bad.
boringg 4y ago
Another article inflaming the rhetoric and trying to tear our social classes apart without understanding the content & mechanisms that they are discussing.

lapcat 4y ago

Dupe: https://news.ycombinator.com/item?id=35260210 https://news.ycombinator.com/item?id=35260210 (144 comments) Original article: https://annpettifor.substack.com/p/banks-as-collateral-damage-in-a-class https://annpettifor.substack.com/p/banks-as-collateral-damag...