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The federal reserve being completely divorced from the government is intentional and a good thing. When you give the government the power of controlling the mon
by alexb_ 3y ago
The federal reserve being completely divorced from the government is intentional and a good thing. When you give the government the power of controlling the money, you get populist decisions that work in the short term while crippling the value of the dollar in the long term.
When you have banks that are incentivized to raise interest rates enough to make a ton of money but not enough to crash the economy, you keep the dollar as the strongest currency in the world. That's a good thing - the last thing I would want is for less free countries to expand their influence.
- boppo1 3y ago> populist decisions that work in the short term while crippling the value of the dollar in the long term. Got these anyway. ZIRP priced the middle class out of equity ownership. That historic bull run is from goosing the numbers, not record productivity. The S&P was ~750 in 1990. Things are not 6x better. We should let treasury auctions decide the yield curve, not a committee of 12 people.