Powell’s a piece of shit, but anyone trump replaces him with would be 100x worse.
That doesn’t mean if we actually pull some FDR shit we should keep Powell, or any of his buddies tho.
What makes powell a POS?
…
You’re asking why an average American thinks the chair of the chief reserve is a piece of shit?
Like, do you want some specific examples, or are you asking for broad strokes on why capitalism has been a wealth transfer to oligarchs for decades?
Super general so it applies to all the Fed tho:
The only reason inflation exists, is so that people are forced to invest. There will always be inflation because our economic system needs it to get regular Americans to invest, then the oligarchs can get it.
If $100 was worth $100 a decade from now, people would be stashing it under mattresses like a century ago. And overtime people would earn more, no more pay cuts disguised as aub-inflation raises.
Like…
I’m not trying to come off as a dick here, but I know it’s probably going to happen. It’s just honestly stunning to get that question about why someone could think even the best chair of the Federal Reserve we’ve had in the last century was still a giant piece of shit.
They’re not independent of the president to save us, the fed chair is independent to protect the oligarchs from unpredictable change while the rest of us get distracted by all the other changes that show up from alternating between neoliberals and Republicans
Deflation is bad. Then people stop spending, postpone all purchases, economy grinds to a halt, people lose jobs and companies go bankrupt.
Hyperinflation is bad. Then people spend money like toilet paper: money becomes worthless. No one has anything left to invest or to save for pension or a big plan or dream.
The general goal of aiming for about 2% inflation is basically just there to try to prevent those two worst case scenarios from happening. It’s the least bad of all evils: money sort of keeps it’s value, evolution of product prices are rather predictable, people know what they will be able to buy with their wages. Inflation is not inherently tied to capitalism only. Socialist/communist economic experiments experience very similar phenomena.
The 2% inflation (together with property taxes) also forces the wealthy to keep their assets producing wealth for people other than themselves.
If they could just hoard money for generations without it deflating to worthlessness, then the level of investment and jobs would be dramatically less.
This is how the landed gentry of medieval Europe could keep all the land tied up for hunting while not having to give a shit that the serfs were starving.
Currently you have to keep your assets earning to pay for themselves which generally leads to employment and broad increases in living standards.
The general goal of aiming for about 2% inflation is basically just there
To guarantee on a long timeline the rich make steady money…
Even this short term volitility is how they make the giant leaps in wealth.
And buddy…
Socialism still has it, because socialism is just ethical capitalism. It not “not capitalism”, it’s just not a complete free fall. I thought you knew what you were saying till that bit.
The fed chair is not the cause of inflation. So I don’t see why “inflation is bad” is evidence to why JPow is a POS.
If I said Bobby got a glass of milk from the fridge, and now there’s broken glass on the floor and milk everywhere…
Some people would understand Bobby dropped a glass of milk, others can’t see any connection because no one explicitly told them.
You were upfront about not seeing a connection, just instead of asking if anyone had time to fill in the gaps so you’d understand…
You just fucking said:
I don’t understand
Jeez, this is why the Weimar Republic failed. The great ‘Liberal’ champion, a central banker.
He is literally a Trump appointee. I don’t expect him to be a liberal champion, but he does substantially represent big business. Fed independence is about whether any of the classic Republican constituencies will have any level of power outside of Trump’s whim.
Great pushback from this guy, love to see it.
Fascinating (and chilling) article about the Reichsbank, thanks for including that.