Posted by tradeit007 on 1st of May 2024 at 03:37 pm
IMHO, current rates aren't doing their job fighting inflation
because this inflation is driven by shortages and not interest
rates ot money supply. Plus, I believe their is the myth that the
FED can control long-term interest rates.
Posted by DigiNomad on 1st of May 2024 at 03:43 pm
Shortages without printing would not lead to inflation - it
would lead to substitution. All inflation is ultimately caused by
the Gov (name the famous economist that said this
)
And I agree that the Fed does not control long term interest
rates....until you start with YCC...massive QE. Even then
it's questionable because the numbers get so big. That's why every
bail out is magnitudes larger than the last...because we print to
get out instead of solving the underlying issues....then the next
time we have reset price levels and have to print even more to have
the same effects.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
IMHO, current rates aren't doing
BS ANSWER JP! The current rates are not doing their ...
Posted by tradeit007 on 1st of May 2024 at 03:37 pm
IMHO, current rates aren't doing their job fighting inflation because this inflation is driven by shortages and not interest rates ot money supply. Plus, I believe their is the myth that the FED can control long-term interest rates.
Shortages without printing would not
Posted by DigiNomad on 1st of May 2024 at 03:43 pm
Shortages without printing would not lead to inflation - it would lead to substitution. All inflation is ultimately caused by the Gov (name the famous economist that said this )
And I agree that the Fed does not control long term interest rates....until you start with YCC...massive QE. Even then it's questionable because the numbers get so big. That's why every bail out is magnitudes larger than the last...because we print to get out instead of solving the underlying issues....then the next time we have reset price levels and have to print even more to have the same effects.