you are viewing a single comment's thread.

view the rest of the comments →

[–][deleted] 6 insightful - 1 fun6 insightful - 0 fun7 insightful - 1 fun -  (2 children)

I studied a lot of economics and cannot thank you enough for this! Really top quality post! It might comfort you to know that modern economics classes in colleges usually don't teach that it is hard science or concrete principles.

The Fed and other central bankers don’t really know what they’re doing

After seeing injection after injection into the economy for COVID relief, I'm starting to think we should lean towards Occam's razor here: they know exactly what they are doing, just smoke and mirrors. The entire system is a house of cards and the only thing that matters is that the fed controls the fiat. So long as they can establish baseline value to all transaction, they are happy. Everything else just seeds some illusion of representing scarcity and "true value" when in reality, it does absolutely nothing and all value and economics are directly controlled by the Federal Reserve.

[–]Nombre27 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

The modern business model is lobbying and acquiring as much tax dollars as possible. The more upstream you are to the creation of money, the more value it has, even though the USD seems to be unchanged by inflation (if I understand that concept correctly).

[–][deleted] 6 insightful - 1 fun6 insightful - 0 fun7 insightful - 1 fun -  (0 children)

even though the USD seems to be unchanged by inflation (if I understand that concept correctly).

This utterly baffled economists in 2008/2009+. They were sure quantitative easing would destroy the dollar. Obviously it didn't and here's why- the USD is an absolute benchmark for value and commodity is fluid. Scarcity doesn't determines values, the fed does. Scary stuff.