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This administration wants lower rates. Also this administration does everything it can to increase inflation such as tariffs and starting another endless war in

This administration wants lower rates. Also this administration does everything it can to increase inflation such as tariffs and starting another endless war in the middle east.

DarkmSparks 29d ago
The administrations choices are fairly binary now. Inflate away the $40Trillion+ debt they can never pay back Or Hard default on the debt, and be the one holding the hot potato as the union breaks up. Fed is trying to thread the needle between the two and keep the music playing as long as possible.
- grey-area 29d ago
  There is one obvious choice here, the policy is inflation and always has been.
  - iririririr 29d ago
    yet many "third world" countries managed to pay their debts just fine. some even more than once in recent history. American exceptionalism even in failure?
    - RussianBot9580 29d ago
      How is it failure? You use your military to force trade to occur using your tokens. You control the supply of said tokens. You leave some other loser holding the bag for your debts. You win.
      - iririririr 29d ago
        Because they cannot force the world to buy their meme token anymore. Either they pay up and joing the world being a good credit-score conscious citizen or they get the boot. And people still think they don't have a political choice because it is impossible to pay it up. You are all alienated and going to the double down disaster.
  - DarkmSparks 29d ago
    From the adminstration Fed independance is about tempering that policy so UST still has buyers.
    - grey-area 29d ago
      Fed policy is explicitly controlled inflation (2% target).
      - pjc50 29d ago
        2% inflation isn't going to inflate away the debt any time soon. It's basically as close to zero as can be realized without going under.
        grey-area 28d ago
        It is not in fact close to zero, it is significant inflation, particularly as they tend to float over the target (3-4%). At 2% over just 25 years money loses 60% of its value. That is not insignificant, and of course with higher rates it loses value quicker.
- jjav 29d ago
  > Fed is trying to thread the needle between the two Not really, inflating it away is the only possible choice.
  - qzw 29d ago
    Can’t inflate it away for the same reason we can’t stop climate change. We would have to stop the behavior that caused the problem in the first place, and we all know that’s not going to happen. Remember during Clinton’s presidency the government ran a surplus and started paying down the debt, and there were news articles worrying about the future disappearance of treasury bonds? The party of “fiscal responsibility” took care of that problem in no time at all.
- pbkompasz 29d ago
  Or just fail for 4 years like every Republican administration since the 80s and wait for a Democrat to fix the economy...
  - upboundspiral 29d ago
    Undoubtedly Republicans have done untold damage to the US. However not all Democrats made the right choices either as it was Clinton who set the stage for further breaking the US economy, opening wide open the gates to complete offshoring (and DMCA, etc). In general its a game between the people who love their own power/money and hate US citizens (most Republicans and many Democrats) vs people who don't hate the people they're supposed to represent (Socialist Democrats and a handful of Republicans).
- vkou 29d ago
  You're missing choice #3 - spend more money on stupid shit, cut taxes some more, pile on more debt, blame Obama Hussein Hunter Biden for the debt as the opening salvo of the third-term run in 2028.
- grim_io 29d ago
  You give the people in charge too much credit regarding any long term thinking or goals in general.
  - gonzalohm 29d ago
    Or thinking
    - DarkmSparks 29d ago
      They definately think. The thinking process is just line their pockets with as much as possible before they lose their position to someone else. Once you understand that everything is rational. If not desirable.
  - webern777 29d ago
    The goal is to win the next election but I think the populace is to blame for this more than anything. The populace is who is too interested in winning politics as a sport that the politicians have really no choice other than to focus entirely on winning the next election. If the voters treat politics as a constant form of sports entertainment, constantly checking the latest news and events, then voters are actually the fundamental problem as to why the politicians can not do anything in terms of long term planning.
    - duskdozer 29d ago
      I always hear this accusation of people treating politics like sports, but what do you want? It's a FPTP system, which favors entrenching two parties. In order to maintain the backing (funding, importantly) of one of those two parties, candidates can't fall too far out of line. If you can't get your outsider preferred candidate above 50%, considering there is also likely another main-party candidate with significant policy overlap, you get nothing. If you want to reduce the spectacle, replace FPTP with a better system that eliminates the need for primaries, and get rid of Citizens United. Good luck.
      - 29d ago
- ptero 29d ago
  Not that I'm a fan of this administration, but inflating away remaining our only option is not related to Trump. It was the only choice for the past administrations since at least the subprime crisis; probably even since the Iraq war. My 2c.
- trescenzi 29d ago
  Or you could, you know, raise taxes. There’s policy solutions to these problems they just happen to be painful in a way that is easier to point to.
  - sh0gg0the 29d ago
    You could also reduce spending on military. The U.S. accounts for 42% of the global military budget. Virtually every empire in history has fallen due to overspending on an excessively large military.
altacc 29d ago
The way this administration works is that anyone in a decision making position has been swapped for a self-serving yes-man who will do whatever Trump wants. Anyone they can't replace who won't deliver is briefed against or investigated until they quit or can be fired. Facts that might influence the decision play no part in the process. The easy acceptance of this authoritarian governing style has been one of the most damaging to the idea of democracy. America's democratic institutions have great marketing but many of us outside the country and not subjected daily to that marketing have long known it is an particularly weak form of democracy and open to corruption, demagoguery and populism. Americans have a susceptibility to authority and hierarchical normalisation, has left them open to this.
soco 29d ago
The purpose of a system is what it does.

This administration wants lower rates. Also this administration does everything it can to increase inflation such as tariffs and starting another endless war in the middle east.

DarkmSparks 29d ago

The administrations choices are fairly binary now. Inflate away the $40Trillion+ debt they can never pay back Or Hard default on the debt, and be the one holding the hot potato as the union breaks up. Fed is trying to thread the needle between the two and keep the music playing as long as possible.

grey-area 29d ago
There is one obvious choice here, the policy is inflation and always has been.
- iririririr 29d ago
  yet many "third world" countries managed to pay their debts just fine. some even more than once in recent history. American exceptionalism even in failure?
  - RussianBot9580 29d ago
    How is it failure? You use your military to force trade to occur using your tokens. You control the supply of said tokens. You leave some other loser holding the bag for your debts. You win.
    - iririririr 29d ago
      Because they cannot force the world to buy their meme token anymore. Either they pay up and joing the world being a good credit-score conscious citizen or they get the boot. And people still think they don't have a political choice because it is impossible to pay it up. You are all alienated and going to the double down disaster.
- DarkmSparks 29d ago
  From the adminstration Fed independance is about tempering that policy so UST still has buyers.
  - grey-area 29d ago
    Fed policy is explicitly controlled inflation (2% target).
    - pjc50 29d ago
      2% inflation isn't going to inflate away the debt any time soon. It's basically as close to zero as can be realized without going under.
      - grey-area 28d ago
        It is not in fact close to zero, it is significant inflation, particularly as they tend to float over the target (3-4%). At 2% over just 25 years money loses 60% of its value. That is not insignificant, and of course with higher rates it loses value quicker.
jjav 29d ago
> Fed is trying to thread the needle between the two Not really, inflating it away is the only possible choice.
- qzw 29d ago
  Can’t inflate it away for the same reason we can’t stop climate change. We would have to stop the behavior that caused the problem in the first place, and we all know that’s not going to happen. Remember during Clinton’s presidency the government ran a surplus and started paying down the debt, and there were news articles worrying about the future disappearance of treasury bonds? The party of “fiscal responsibility” took care of that problem in no time at all.
pbkompasz 29d ago
Or just fail for 4 years like every Republican administration since the 80s and wait for a Democrat to fix the economy...
- upboundspiral 29d ago
  Undoubtedly Republicans have done untold damage to the US. However not all Democrats made the right choices either as it was Clinton who set the stage for further breaking the US economy, opening wide open the gates to complete offshoring (and DMCA, etc). In general its a game between the people who love their own power/money and hate US citizens (most Republicans and many Democrats) vs people who don't hate the people they're supposed to represent (Socialist Democrats and a handful of Republicans).
vkou 29d ago
You're missing choice #3 - spend more money on stupid shit, cut taxes some more, pile on more debt, blame Obama Hussein Hunter Biden for the debt as the opening salvo of the third-term run in 2028.
grim_io 29d ago
You give the people in charge too much credit regarding any long term thinking or goals in general.
- gonzalohm 29d ago
  Or thinking
  - DarkmSparks 29d ago
    They definately think. The thinking process is just line their pockets with as much as possible before they lose their position to someone else. Once you understand that everything is rational. If not desirable.
- webern777 29d ago
  The goal is to win the next election but I think the populace is to blame for this more than anything. The populace is who is too interested in winning politics as a sport that the politicians have really no choice other than to focus entirely on winning the next election. If the voters treat politics as a constant form of sports entertainment, constantly checking the latest news and events, then voters are actually the fundamental problem as to why the politicians can not do anything in terms of long term planning.
  - duskdozer 29d ago
    I always hear this accusation of people treating politics like sports, but what do you want? It's a FPTP system, which favors entrenching two parties. In order to maintain the backing (funding, importantly) of one of those two parties, candidates can't fall too far out of line. If you can't get your outsider preferred candidate above 50%, considering there is also likely another main-party candidate with significant policy overlap, you get nothing. If you want to reduce the spectacle, replace FPTP with a better system that eliminates the need for primaries, and get rid of Citizens United. Good luck.
    - 29d ago
ptero 29d ago
Not that I'm a fan of this administration, but inflating away remaining our only option is not related to Trump. It was the only choice for the past administrations since at least the subprime crisis; probably even since the Iraq war. My 2c.
trescenzi 29d ago
Or you could, you know, raise taxes. There’s policy solutions to these problems they just happen to be painful in a way that is easier to point to.
- sh0gg0the 29d ago
  You could also reduce spending on military. The U.S. accounts for 42% of the global military budget. Virtually every empire in history has fallen due to overspending on an excessively large military.

altacc 29d ago

The way this administration works is that anyone in a decision making position has been swapped for a self-serving yes-man who will do whatever Trump wants. Anyone they can't replace who won't deliver is briefed against or investigated until they quit or can be fired. Facts that might influence the decision play no part in the process. The easy acceptance of this authoritarian governing style has been one of the most damaging to the idea of democracy. America's democratic institutions have great marketing but many of us outside the country and not subjected daily to that marketing have long known it is an particularly weak form of democracy and open to corruption, demagoguery and populism. Americans have a susceptibility to authority and hierarchical normalisation, has left them open to this.

soco 29d ago

The purpose of a system is what it does.