GDP: US Economy grows at fastest pace in nearly two years. God Bless Bidenomics.
- Thread starter Joe Capitalist
- Start date
Most of the money creation and destruction is done by the private sector. The Fed does organized money creation and destruction, so it has the heaviest influence. It is semi-autonomous, so is not controlled by Congress. It is controlled by the Board of Governors, who are nominated by the President, and confirmed by the Senate. The House gets almost no say. trump put the most pressure on the Fed of any modern president to increase money supply.
After the Pandemic, there was going to be inflation, the only question is whether trump would have had the guts to put in the hard work to fight the inflation. Simply put, trump has never done hard work, and would never try now.
Into the Night
Verified User
Into the Night
Verified User
Into the Night
Verified User
None. It is all strictly owned by the Federal Reserve.
WRONG. They are directly responsible for the money supply.
It is the ONLY influence.
It is controlled by Congress.
The Senate is part of Congress, dumbass.
They certainly do. They DID create the Fed after all.
Illiteracy. Proper nouns are capitalized. The President does not control the Fed. CONGRESS does.
Created by DEMOCRATS, along with the current economic depression.
There is ALWAYS inflation.
Trump does not control the Fed.
Trump does not control the Fed.
Trump wasn't even elected before the crash of 2007-2008 caused by the Fed!
In the real world, the money supply has decreased by nearly 10% for the first time since the Great Depression. In the real world, the Fed is destroying money at a rate higher than it is creating money, thereby reducing the money supply. In the real world, the Fed is always destroying money, but now it is net destroying money.
The Fed destroys money by increasing rates, thereby decreasing private creation of money. When the money is repaid, without being reloaned, that destroys it. These days the Fed is also doing quantitative tightening where it sells bonds, receives money, and destroys the money.
Deposits are loans made to the bank. Their repayment is based on loans the bank makes to others.
Funny, I see the people who are not saving for retirement, and think they are delusional, or at least taking a huge risk.
This is boring. Money is mostly created by banks. It mostly does not exist in physical form. It is created under the influence of the Fed, but not by the Fed. It is not under the sole control of the Fed.
We try our best to avoid deflation, because it is far more destructive than inflation, but deflation definitely exists. There is not "always inflation."
The problem in 2008 was deflation. Now the problem is inflation. trump contributed nothing to the deflation of 2008, but did contribute to the current problems with inflation. trump is very pro-inflation.
No they weren't. Raised to control workers wages. That's what it's always about.
It Could Be Harder to Find a Job and Get a Pay Raise if the Fed Gets Its Way
The Fed’s long-standing belief is that a job market with strong hiring and increased wages typically fuels higher inflation.
https://time.com/6253699/federal-reserve-inflation-interest-rates-workers/
We speak of NINJA (no income, no job, no assets) loans, but you were always required to have income. They were actually "self reported" income loans. Often the loan brokers would tell the borrowers to leave the income part of the form blank, and then the brokers would fill in whatever income number was needed.
THAT WAS FRAUD!!! No different than trump claiming he had land use rights that he simply does not have. trump cannot sell mar-a-lardo for condos, and he claimed he could to get a loan.
The hope was there was no such thing as systemic danger. Sure some homeowners would default, and even some of those loans would be underwater, but nationally houses would on average be worth more than loans. If there is no systemic danger, then bundling loans means there is no danger.
Banks caused none of this. Almost all the loans went through mortgage brokers. By definition, the government did little to back subprime loans, and discouraged banks from giving them.
Irony from someone who is the definition of "WRONG".
There has never been a successful Conservative policy because the ideology is trash and the people who buy it are incredibly fucking stupid.
T. A. Gardner
Serial Thread Killer
And, in any case, you are delusional.
There is literally a chart right there that you ignored because you're a piece of shit Conservative moron with brain damage from long Covid.
No, I'm actually correct because Fed belief is that a tight job market and raising wages causes inflation:
It Could Be Harder to Find a Job and Get a Pay Raise if the Fed Gets Its Way
The Fed’s long-standing belief is that a job market with strong hiring and increased wages typically fuels higher inflation.
https://time.com/6253699/federal-reserve-inflation-interest-rates-workers/
Ergo, the need to control it.
See what I did there? I used a source that supported my argument and I didn't have to lie about it, post a fake link, or pretend I never saw it.
Into the Night
Verified User
Deposits are NOT loans. Redefinition fallacy.
Into the Night
Verified User
Money is NOT created by the banks. Money is created by the Federal Reserve.
It is under the sole control of the Fed.
There has never been deflation under the Fed.
There has never been deflation under the Fed.
It has always been the problem.
Trump does not control the Fed. There has never been deflation under the Fed.
Trump does not control the Fed.
Trump does not control the Fed.
Illiteracy. Proper names are capitalized.
Into the Night
Verified User
Interest rates are not price controls. Redefinition fallacy.
The Fed just LITERALLY SAID THAT THEY WERE.
It is the actual Fed's policy that they are.
This is not complex. The depositor loans their money to the bank, and is paid interest for the loan. The bank then reloans out the money.