3 ms·
Yes, but not through tax which is the point. Quantative tightening just takes money from the fed/bank loop. It is real yes but it’s like thinking interest ra
by lifeisstillgood 3y ago
Yes, but not through tax which is the point.
Quantative tightening just takes money from the fed/bank loop. It is real yes but it’s like thinking interest rates are a lever in the economy anymore.
Anyway the QT on M4 has only dropped M4 by a trillion which basically means 9T still out there on top of everything else
(#) ie they tried to suck it back out of banks but banks don’t have the wealth - the banks customers do.
In short, ultra wealth taxes will stop the ultra wealthy drawing more value out of the economy like a gravity well, and start a flow of wealth through the economy.
Imagine all the blood in your body accumulating in your ankle. Your ankle feels it’s rich in blood but you need transfusion after transfusion to keep everything else going.
- ForHackernews 3y ago> it’s like thinking interest rates are a lever in the economy anymore. Interest rates are absolutely a lever in the economy. It's not a coincidence that the instant the free-money ZIRP spigot was shut off, suddenly investors cared about profitability again and fat bloated tech firms started having layoffs for the first time in decades.
- lifeisstillgood 3y agoIf all the hydraulic fluid is draining out of the brake system, pulling on the handbrake (going from a decade of zirp to 7% in a week) is going to have an effect but that does not mean I think you can tap on the brake pedal and get the fine control you think you can. I agree Most tech companies have been spewing capital out the door and funding the lucky RSU / optioned employees for a decade. I guess the weird hiring practises and so on have been hiding that reality. I think shareholders are waking up to it, but zirp is only a small part of the story