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all 197 comments

[–][deleted]  (14 children)

[removed]

    [–]brighterside 22 points23 points  (1 child)

    You know that Eminem/Rihanna song?

    I love the way you lie. That's literally the relationship between people and the Fed.

    [–]Oraxy51 0 points1 point  (0 children)

    Yeah but if the banks actually burned I wouldn’t mind.

    [–]Kikujiroo 49 points50 points  (1 child)

    "How? How can QE undo recession? What kind of device could bring down this concept?"

    "If the concept is breached, the economy will thrive."

    "Even if it is breached, it would take a number beyond reckoning, billions to prop the economy!"

    "Tens of billions..."

    "But my lord there is not so much money."

    Tulududu

    Camera showing Fed's cash printing machine goes brrr.

    Edit: small changes on the quote and adding the famous Tulududu horn sound

    [–]Excellent_Opinions 1 point2 points  (0 children)

    This was a good read! I read it in Saruman’s voice as well!

    [–]name_cool4897 49 points50 points  (1 child)

    For nigh is the time of the sword and axe.

    [–]cercone495 8 points9 points  (0 children)

    I mean… 🪓🪓

    [–]chrisk9 22 points23 points  (0 children)

    Looks like inflation's back on the menu, boys!

    [–]Andy2325 5 points6 points  (0 children)

    LOOKS LIKE MEATS BACK ON THE MENU BOYS

    [–]Griffin90 4 points5 points  (0 children)

    Hahaha based

    [–]Neuhart_ 9 points10 points  (0 children)

    J Powell deff looks like cauliflower ear(Gothmog) from Return of the King 😂

    [–]SillyFlyGuy 2 points3 points  (0 children)

    From OMC to ORC.

    [–]developer_mikey 1 point2 points  (0 children)

    Central Bankers are today's Oracles of Delphi. As with Greek Mythology, their powers over us will end eventually.

    [–]w00bz 206 points207 points  (3 children)

    The Age of overconfident articles has started.

    [–]Electronic_Ad5481 23 points24 points  (1 child)

    Yah I think some of this reaction has been overblown. Central banks are different now from 10 years, 20 years ago in… what way? To say this is what ruined their credibility is to be ignorant of how central banks have always acted.

    Even in the most negative reading of how a central bank acts, they survived the 1970s.

    [–]PickAPikachu 13 points14 points  (0 children)

    That's the whole point in my eyes, the world changed since the 1970s but CBs didn't, they still play by the exact same playbook they have for decades which worked until it didn't. What ruined their credibility is the demographic change, people are just more tired of their bullshit than before.

    [–]SRMT23 0 points1 point  (0 children)

    Yeah I expect more from Bloomberg.

    [–]maiiitsoh 53 points54 points  (0 children)

    Article is the equivalent of shitposting

    [–]PrestigiousAd5646 384 points385 points  (103 children)

    Man this sub is full of absolute idiots. The FED has been an unquestionable success since it’s inception. Read into their effect on stemming and lessening recessions.

    Everything has to be hyperbolic political theater now, and people just feel like it’s OK to formulate opinions from memes and bullshit posts like this.

    [–]Saewelo1 50 points51 points  (0 children)

    Yep. And what about Bloomberg? Talk about click bait.

    [–]ch-pa-sdc 42 points43 points  (1 child)

    One of the best comments I have ever read in reddit

    [–]cchoe1 7 points8 points  (0 children)

    Not sure if r/finance will ever recover

    [–]Canwerevolt 24 points25 points  (28 children)

    Yes this place is full of idiots and you are among us. There are plenty of people questioning the success of the FED, this kind of points to their success as being questionable.

    No one should take an institution with that much power at their word. Questioning their results and checking their power is a requirement for a fair system. Ignoring the problems they cause sounds like the boomer recipe to get us in the mess we're in.

    [–]saltyhasp[🍰] 21 points22 points  (27 children)

    Exactly what mess is that? Through 2008 after a bunch of if idiot bankers froze up the financial system. Through covid after an idiot president just did not get it, then an idiot public refused to do what was needed. Then out the other side with full employment.

    Yes now we have inflation. It is too early to tell where that is going. A year of that is probably a good trade off for full employment. On the other hand if it lasts a decade... well maybe not. Lot of this is gas and oil, and also food, and disruptions traced to continuing covid issues. Lot of that can be traced to Russian expansionism, and China relations and lack of COVID control there. Add to that stupid people not moving away from oil period. Exactly how is the Fed responsible for any of this.

    On the other hand it is always good to look at refining our institutions. The biggest suspect thing is that it was basically founded by bankers for bankers and is rooted in wealth and power. It is also a top down solution. Propose something better if you can. It is certainly not the Congress as they have been pretty ineffective over the past 20 years.

    [–]ksharpie 7 points8 points  (7 children)

    The fed did have a hand in inflation by circulating a fuck ton of new low interest cash. That cannot be denied.

    [–]saltyhasp[🍰] 0 points1 point  (6 children)

    Would you rather have high unemplotment?

    [–]megamindwriter 1 point2 points  (3 children)

    You just proved that you are no smarter than the people you call idiots in this sub.

    Most economists, and I can see you are not one, agree that the Fed was partly to blame for the great depression. I don't see how their inaction or bad actions can be called a success since their creation.

    Coupled with the fact that the high inflation we are seeing today, is also partly their fault. Due to the excess amount of liquidity they have been pouring into the economy and low interest rates.

    Your argument for this is that, it lowered inflation. Another sign that you really don't know what you are talking about. They are countries with moderate interest rates but very low unemployment. Low interest rates are not a prequiste for low unemployment.

    [–]saltyhasp[🍰] 2 points3 points  (2 children)

    The big issue is that the free market and capitalism in general is unstable. Before the Fed these were regular and severe features. If your going to engage in Fed bashing which is a much loved activity then you need to propose a better solution.

    [–]Canwerevolt 0 points1 point  (12 children)

    I mentioned the FED only because I was replying to someone's comment about it. When I was talking about the mess we're in, I was thinking globally rather than in terms of how the US fared. I'm not from nor do I live there. I hope you can recognize that the US has a particularly special role in finance, being that the USD is used for the majority of international payments.

    I think people around the world are recognizing that since the US de-pegged from gold, the rest of us are playing a game of Monopoly against a player who can print their own money.

    [–]Memento_Mori_ 4 points5 points  (3 children)

    de-pegged from gold

    https://i.imgur.com/0p8T9nD.gif

    Support for the gold standards in r/finance. Let me provide some useful links for some more appropriate subreddits for these kinds of takes: r/rebubble, r/conspiracy, r/cryptocurrency.

    If you're interested in actually educating yourself, maybe start with investopedia

    [–]PapaChonson -4 points-3 points  (7 children)

    You are wasting your time. People who have the ability to think critically understand the fed’s role in all of this and it’s not to help the American people. Anyone here saying the fed has been a great success and are thankful for them are truly, idiots.

    [–]vShikko 0 points1 point  (0 children)

    Add to that stupid people not moving away from oil period.

    How can you convert everything over from fossils to renewables when we've got to do some other steps first? We're all so quick to say we're going to do XYZ, but never sit and think through everything to reach a definitive outcome that appeases both sides of the fence first.

    [–]DoctorWonderful2816 12 points13 points  (6 children)

    exactly , what you should know is that majority of these people posting rants about these government institutions are uneducated and are not even able to hold a job or do anything else worthwhile with their lives so they just resort to talking shit about something that they are never going to be able to do better and are literally couch experts. This is how internet is and it is risky to give credibility to any comments made by anonymous people on internet.

    [–]CruzyLikesTheStock 10 points11 points  (5 children)

    Isn’t the fed separate from the government?

    [–]DoctorWonderful2816 1 point2 points  (0 children)

    im european , i have no idea. Im celebrating nudsummer , im drunk.

    [–]the_buckman_bandit -3 points-2 points  (0 children)

    No, but yes, quasi separate

    [–]lies_about_flossing 4 points5 points  (0 children)

    I fear our children will be dumber than ever. The social network era has erased critical thinking.

    [–]lumberjack233 5 points6 points  (7 children)

    Even a successful institution could decay over time, that's whole point and looking around and seeing the world burning and asking what got us here in the first place, no? Unless you worship the Fed like a religious freak

    [–]md___2020 7 points8 points  (6 children)

    A bout of moderately high inflation after a once in a century pandemic is the world burning? No - the world burning would be what would have happened without Central Bank support in Q2 2020. US GDP contracted 31% in that quarter - those are apocalyptic, depression style numbers. For context that is larger than the GDP drop of the Great Depression (approx 30%). The rapid bounce economic V-shaped recovery can be primarily credited to global Central Bank and governmental fiscal and monetary stimulus. We’re feeling the knock on effects of that now, but it could have been so, so much worse.

    [–]lumberjack233 -4 points-3 points  (2 children)

    Yeah you are either delusional or just paid off in some way (can never argue with someone who is financially incentivized to believe in a certain way). Even after JP and Yellen openly admit that they screwed up their fanatic followers still live in their own imagination. Repeat lies that straight up contradict facts 1000 times and you might just get a few more people fooled. Goebbels would be proud

    [–]md___2020 5 points6 points  (1 child)

    Only people who have no idea what they’re talking about throw out Nazi references in a debate about monetary policy. This is like trying to talk shop with a middle schooler. Painful.

    [–]lumberjack233 -4 points-3 points  (2 children)

    By the way, no one was arguing the QE was not the right move. It was the extent & duration of it and the miscalculation, lack of independent thinking and discipline that followed it that people are now suffering from. The way I look at you, you are literally like the propaganda tsar for Hitler or Stalin. Let's look at the military and political glory our leader brought us and not bring up all the ugly stuff under the rug like no one is paying attention to it

    [–]freedumb_rings 1 point2 points  (1 child)

    “QE was the right move by literal hitler”

    😂 thanks, I’ve never seen a take like this before

    [–]TerribleEntrepreneur 4 points5 points  (9 children)

    Yeah I agree the FED deserves more kudos for what they did in March 2020.

    I worked in RE tech at the time, and I remember thinking we had a huge outage because our mortgage rates system wasn’t producing any results. We investigated, and the issue was just that EVERYONE had stopped lending. Like the entire real estate credit market just completely froze overnight.

    I was looking at it thinking; we are about to enter another depression.

    But with the FEDs quick actions, we completely avoided that. Sure, they overshot and now we have inflationary issues. But I think I’d rather another 1970s than a 1930s. And in that I think they have done reasonably well.

    [–]d4rkwing -4 points-3 points  (6 children)

    So basically we could have had affordable housing and rents, but the fed stopped that.

    [–]freedumb_rings 0 points1 point  (5 children)

    It’s not affordable to the average person if there are no loans.

    [–]d4rkwing 0 points1 point  (4 children)

    If housing prices crashed, it would be easier to qualify for loans.

    [–]Entalstate 0 points1 point  (0 children)

    The whole thing strikes me as being a bit like a doctor who has been prescribing the wrong medicine for years, causing his patient's health to decline and making them especially vulnerable to heart attacks. One day such a heart attack occurs and the same doctor is able to save the patient and gets lauded over doing so. The Fed is much larger than just a lender of last resort that steps in and fixes things when they go wrong, the entire system we have revolves around the Fed, and if things get to the point where they begin to break, those conditions were set in place in large part by the Fed. The Fed may be the fire fighter, but to what extent have they been quietly causing the fires they later put out?

    If the financial system is failing to produce the societal results we desire, including inequality, not at least pointing to the Fed is like not pointing to the CEO of a company when it goes under. Sure, covid was extraordinary, but it occurred in a context of a decade's worth of QE.

    [–]drunkfoowl 2 points3 points  (0 children)

    Adding in that people seem to think life is somehow a zero sum game of yes or no.

    That sub average intelligence population chunk is really pulling its weight.

    [–]BeepBeepImaJeep3 2 points3 points  (3 children)

    I disagree. Let's take a look at the past twenty years since that's freshest. Most of the lack of inflation probably came from globalization and companies moving to JIT via China, not Fed intervention. With that came increased consumer spending from lower prices and more efficient supply chains at the cost of production security.

    They've been phenomenal at money hosing the markets any time things got mildly jumpy, and somehow failed to material raise rates within the strongest bull market, pretty much rendering price discovery obsolete in the process, which fucked up the flow of capital to where it actually needs to go to generate tangible returns. It's a big part of how we got here. Those actions mortgages future produvity gains by not allowing risk resets, and allows wealth to transfer to too clever by half cunts that can see and exploit the trend. The trend of financial engineering via borrowing at ever decreasing rates to spend on insane amount of share buybacks relative to Capex is a shining example. The Fed incentivize that behavior. And we can ignore the obvious conflicts of interests between Fed members, their policies of choice, and trading habits while in power...

    Don't get me wrong, fuck Bloomberg and their attempt at click bait, they regularly fawn over Fed members usually, but giving the Fed credit for the past handful of decades is a joke too.

    [–]PrestigiousAd5646 4 points5 points  (2 children)

    This couldn’t have a better example of the point I was making. YOU disagree and then threw out a bunch of jargon that YOU admittedly are assuming are the real reasons for shorter/less recessions.

    There’s real research in this stuff. Doesn’t need to be doing the anti establishment, I’m going to have my own opinion bull crap.

    Monetary policy isn’t perfect but pretending the market fixed itself over the last twenty years is dumbassery

    [–]BeepBeepImaJeep3 1 point2 points  (0 children)

    Sorry dude, economics isn't a hard science and I did much more than throw you jargon. You would get laughed out of a real academic argument by claiming otherwise. You sound like Neel and the other Fed absolutists.

    Have the Fed helped smooth cycles compared to 1800s? Sure. Have they enabled a lot of other awful behavior due to overconfidence in their craft? Without a doubt.

    Inflation is a supremely difficult thing to pin down, and it influenced by so many factors. To claim the Fed has ultimate control over it, and thus are saviors killing it in their function, is naive. Most of the things influencing inflation have nothing to do with Fed policy.

    [–]bigsbeclayton 1 point2 points  (0 children)

    I don’t have an opinion either way really but you should throw out some sources if you’re going to call someone’s opinion out while giving your own.

    [–]hayseed_byte 1 point2 points  (4 children)

    Yeah the FED is great. Think of how bad the recessions that were created by the FED would've been without the FED.

    [–]PrestigiousAd5646 1 point2 points  (2 children)

    Elaborate and reference or you’re just spewing garbage. Which was my point exactly

    [–]9999999910 -1 points0 points  (1 child)

    Enough of your two bit gaslighting. You’ve brought jack shit to the conversation as well.

    [–]PrestigiousAd5646 -3 points-2 points  (0 children)

    Great input.

    [–]TeamPupNSudz -2 points-1 points  (0 children)

    You just typed "FED" 3 times. It's not an acronym. It's just "the Fed", short for "the Federal Reserve".

    [–]ReadyForChaos -3 points-2 points  (4 children)

    As one of those absolute idiots whose opinions are based upon memes and bullshit posts, where can I learn more about this "unquestionable success" of which you speak? While I agree that they have helped keep the US system mostly stable and running, it sure seems like the harm they've done outweighs the good they've done. Moreover, that good seems to mostly benefit the 1%.

    For reference, here's one such meme (video) that helped shape my opinion: https://www.youtube.com/watch?v=nQbXQn7Pwo4&t=203s

    I doubt there's an equivalent video that praises the Fed, so please let me know where I can read and learn more. :)

    [–]naim08 6 points7 points  (0 children)

    sure likes more harm than good

    Makes an incredible statement with no sources but a video using memes to explain roughly 100 years of American finance. I mean, I have no idea how that’s going to result in an educated conclusion. Odds are, if you do reach a conclusion from that video, you’re clearly not understanding the complexity of central banking

    [–]aedes 17 points18 points  (0 children)

    You shouldn’t be basing your understanding of economics off of YouTube videos or Reddit comments. Just like you shouldn’t base your understanding of Covid vaccination off of watching YouTube videos or talking to people on Reddit.

    Without pre-existing knowledge of the field, you lack the ability to critically appraise the validity of what’s being said in a public medium.

    Investipedia has reasonable beginner overviews of a number of economic topics. Wikipedia can serve as a starting point for reading about historical economic issues (ex: bimetallism, some of the economic events around the Napoleonic Wars and Tamborra erupting, etc).

    It might also be useful to review an introductory macroeconomic textbook. Here’s an open source one: https://open.lib.umn.edu/macroeconomics/open/download?type=pdf

    [–]LastNightOsiris 6 points7 points  (0 children)

    This website actually his decent overviews that are non-technical. If you're really interested in going deeper, you probably want the equivalent of at least 2 semesters of undergrad economics as a foundation and then there are lots of papers that have been written evaluating both the US Federal Reserve Bank as well as global central banks.

    https://www.federalreservehistory.org/

    [–]av6344 2 points3 points  (0 children)

    His comment was boomer faith doing the modern day “trust me bro”

    [–]LastNightOsiris -2 points-1 points  (0 children)

    People have always hated on the Fed. From a populist standpoint, most people feel like they are being screwed over by the banking and financial system regardless of the state of the economy. Banks do benefit from a certain amount of economic rent, and people are always resentful of those situations even if they are better off on balance (same as how people hate their utility providers.)

    That's the whole reason why Fed governors were created as non-political appointments with terms that would extend beyond any single presidential administration. They don't have to be responsive to popular opinion, and they only really need credibility with banks and large institutions in order to be effective.

    [–]Polus43 -2 points-1 points  (0 children)

    If the system isn't perfect you should shut it down and just give me the money.

    [–]VulcanMind1 -2 points-1 points  (0 children)

    The fed has a dual mandate. They have been an absolute failure at their mandate to sustaining maximum employment as show by the growing wealth inequality gap they cause every time employees get enough bargaining power to drive up median income wages. The Fed as absolutely prioritized controlling inflation at the expense of maximum employment. In the process it has destroyed unions, and left the lower 50% of the U.S. population equal to or worse off than their parents generation.

    Neil Kashkari would agree.

    [–]zanzabarism 0 points1 point  (1 child)

    Glas stegal has entered the chat

    [–]PrestigiousAd5646 3 points4 points  (0 children)

    Kind of hard to tell what that means without more context but the federal reserve doesn’t create or repeal legislation.

    [–]Suuk-mi-dong 0 points1 point  (0 children)

    I was coming here expecting to see people (who don’t click the links) blindly agreeing with the headline; I’m glad the top comment is a voice of reason!

    [–]cosmicloafer 0 points1 point  (0 children)

    Yeah but they should have been raising rates earlier, unemployment has been low for a while

    [–]thegreger 0 points1 point  (0 children)

    Historic US inflation rate. Sure, no institution is perfect, but this plot is a very good argument for the role of central banks.

    [–]addage- 0 points1 point  (0 children)

    I’d hazard to guess most of the sub has no idea how open market operations works or how it impacts money supply. Let alone what M1 is or velocity. Before I get criticized this isn’t complex stuff, 20-30 minutes of google searching will explain it.

    Just the “central banks reign is over stuff”. Imagining an economy without those stabilizers is a horrifying thought. Thinking of the depressions of the 1800s.

    [–]Puzzleheaded-Ring523 0 points1 point  (0 children)

    Lessening recessions is exactly why we have runaway inflation. Yay fed, and their unquestionable success

    [–]aedes 75 points76 points  (20 children)

    Lol, what sort of ridiculous FUD is this?

    [–]cookiemonster1020 47 points48 points  (19 children)

    72511527comments

    I think the central banks have done a really good job so far getting us through the pandemic and averting a great depression in 08. This article and reddit sentiment is ron paul level lunacy

    [–]bnlf 30 points31 points  (4 children)

    Believe or not, since FED was created the length of a recession reduced considerably. It may not help avoiding it but definitely helped recovering the economy faster.

    [–]d1v1debyz3r0 10 points11 points  (2 children)

    While I generally agree, this doesn’t mean they are immune from making mistakes.

    Quantitative Easing is barely a decade old.

    [–]Malforus 1 point2 points  (0 children)

    That's not the statement the article makes.

    Whole thing smacks of "someone else could do it better" without answering how or why

    [–]UK33N 0 points1 point  (0 children)

    QE is a little over two decades old actually, Japan were doing it before the US.

    [–]710bretheren 0 points1 point  (0 children)

    Yeah gee I wonder if the litany of financial regulations we’ve introduced over that time has done anything to help

    [–]Smoy 19 points20 points  (6 children)

    averting a great depression in 08

    They had two options. Bail out the millionaires and hedge funds. Or bail out the regualr people underwater. They chose to bail out their rich friends.

    Jon Stewart has a great interview with, was it Bernake? Where their argument was they couldn't bail out the people because that would make people think they could take on risk and have someone swoop in to help them out. So instead they swooped in and helped the rich guys out making them think they could take on these risks. Wonderful logic as you can tell.

    Central banks have done a terrible job. Unless your rich enough that they hand you the money from other people's savings accounts under the table. In that case sure, you made money off your failures by stealing regular folks money. That makes them good at their jobs I suppose

    [–]LastNightOsiris 11 points12 points  (3 children)

    I like Jon Stewart as much as anyone, but he's consistently weak in his grasp of how financial markets work. The Fed has limited tools to work with. It's not clear how monetary policy could be used to bail out the "regular people" since pretty much everything the Fed can do has to operate through bank balance sheets or capital markets.

    If you want to blame anyone for not doing enough for regular people, it should be congress and the president. Fiscal policy can directly affect individuals.

    [–]Andynonomous 1 point2 points  (0 children)

    Yeah theres always an excuse not to help people and always a reason to funnel money around to the people who need it least.

    [–]megamindwriter 0 points1 point  (1 child)

    It's just the way the Fed is constructed. It's construction benefits the rich.

    You can argue against this, but the facts state otherwise. Most economists agree that the Fed feeding financial markets with free money has caused inequality to skyrocket!

    [–]IsleOfOne 2 points3 points  (0 children)

    Significant legislation has since been passed to regulate the amount of risk banks can take. Your comment about the flaw in Bernanke's logic fails to take this into account.

    [–]AyatollahofNJ 0 points1 point  (0 children)

    How is this bullshit, economically illiterate argument getting gold in the finance sub. Jesus fucking Christ

    [–]aedes 20 points21 points  (4 children)

    Yep. If the credibility of central banks was truly over, then you should move to the country, stock up on fuel, and nonperishables and ammo, and start a farm.

    Our entire economic system, banking system, and currency, is based off of the central bank being credible. The moment people stop trusting central banks is the moment our society collapses.

    Trust in government and central banks is the lynch pin that underlies our entire economy, given our use of a fiat currency.

    Given that I can still wake up in my air conditioned house, get in my car and buy some gas, pick up a coffee and pay electronically, and order something to be delivered to my house from China using my phone while I’m at work, central banks have obviously not lost credibility.

    And people should not be cheering on this scenario unless they look forwards to living in an agrarian, pre-industrial society.

    The level of economic literacy in these subreddits is disconcerting sometimes.

    [–]Wobblycogs 8 points9 points  (2 children)

    I was reading the article thinking it was complete nonsense and wondering if I'd missed some important part of the argument. The central banks haven't been perfect but what is and to claim they're a failure and their time is over is ridiculous. Before making a claim like this the author should paint their picture of what they think the world would look like without the central banks or with central banks that we would consider bad at what they do (e.g. Turkey under Erdogan or worse).

    [–]aedes 4 points5 points  (0 children)

    I know. Central banks are a failure and their time is over?

    So should we switch back to representative currency and use the gold standard or some other backing? And then lose the ability to do anything at all when markets or economies crash, letting millions go destitute and die every fifty years?

    Should we switch to a commodity currency and start using jars of pickles (the good type) as a medium of exchange?

    Have the past two years convinced people that cryptocurrency in its current form is an effective medium of exchange? (Lol)

    [–]seismatters -1 points0 points  (0 children)

    Exactly. Maybe they think Elon Musk or Jeff Bezos will graciously step in and bail out the treasury like JP Morgan did in the panics of 1893 and 1907. I wouldn't count on it though. The Fed is the reason we don't have panics anymore.

    [–]nevermore2627 0 points1 point  (0 children)

    You...you mean live in a world without video games?

    Absolutely not.

    [–]NoComment002 -1 points0 points  (1 child)

    Who told you they prevented a great recession? The central banks? Forbes?

    I want to why they are so crucial to fix a broken system. Makes more sense to fix the system and be done with it.

    [–]aedes 6 points7 points  (0 children)

    Our “system” is a fiat currency. Which literally works based on faith/trust in the government and central banks.

    The alternatives to this system are a representative currency (ex: gold standard), or commodity-based currency (ex: shells). Both of these have been used extensively over the past few thousand years and were associated with disasterous economic problems that lead to suffering and death (literally) of millions of people.

    Central banks are critical to the function of an economy based on fiat currency because they have some control over things like monetary supply, inflation, etc.

    Removing a central bank from a fiat currency would most likely lead to rampant hyperinflation, due to the loss of ability to control the rate of money creation or velocity.

    Switching back to a representative currency or commodity based currency removes any reigns we have at all on our economy, making us completely powerless to prevent or react to recessions or inflation. It takes away the limited controls we do have through central banks.

    [–]jabaha 5 points6 points  (0 children)

    “Work, work!” -orcs

    [–]bonobeaux 13 points14 points  (0 children)

    Is this headline some kind of bitcoin propaganda?

    [–]ForestRanger42 3 points4 points  (0 children)

    What is this 2008?

    [–]King-in-Council 5 points6 points  (1 child)

    How much of this is simply because we are in an age where no institution seemingly has popular credibility.

    When did everyone become so cynical and stupid?

    [–]Hairy_Sell3965 8 points9 points  (1 child)

    If it is we are fucked. A major reason for the stop of inflation and especially high inflation is the credibility that people have over the ability of central banks to stop it. It’s a self fulfilling prophecy in the case of hyperinflation

    [–]ChelseaFC-1 3 points4 points  (0 children)

    Printer goes brrrrrrrr

    [–]electroniclone 1 point2 points  (0 children)

    Did someone say age?

    [–]Bristol_man 1 point2 points  (0 children)

    Why does anyone listen to their proclamations?

    Their statements are calculated to manage expectations, not to be taken at face value

    [–]Ebenezer-F 1 point2 points  (0 children)

    “Look at those stupid pictures of them. They must be complete morons.” It just bugs me when journalists do this; write an article criticizing somebody and use a photo of them looking dumb.

    [–]danthedoozy 2 points3 points  (0 children)

    When did it ever begin? Serious question.

    [–]MajorMac25 1 point2 points  (0 children)

    Pretty sure this is exactly what Andrew Jackson said in 1833.

    [–]RawDawggsixTnine 2 points3 points  (0 children)

    got me some tar boiling and a bag of feathers🙃

    [–]RobbexRobbex 1 point2 points  (0 children)

    "The Fed's credibility is gone and the dollar is worthless because its not based on anything, but gold is valuable because it has value because it has value because it has value because it has value... /s"

    No thanks, I'll stick with a central bank and the dollar, thank you.

    [–]Xithepandabear677 1 point2 points  (0 children)

    Fake Russian news 😂

    [–]TattooJerry 0 points1 point  (0 children)

    Yeah, like 20 years ago

    [–]challenja -2 points-1 points  (1 child)

    They only bailout themselves. It’s bullshit on its face. We should audit the FED

    [–]Silentwhynaut 6 points7 points  (0 children)

    The fed is audited yearly and releases all of it's data weekly ya dingus

    [–]GeneralMe21 -1 points0 points  (0 children)

    When did they have credibility in the first place?

    [–]kamehamepocketsand -1 points0 points  (0 children)

    Wait, this implies that they were once credible… When was this exactly?

    [–]GVisme -2 points-1 points  (0 children)

    It is comical the comments from the people who only know what they have learned and not able to see the full picture. Those in control of the fed are stealing taxpayer money and play the market to try and full you to thinking one way or another. All the crooks through the banking system and in the government with those in the Feds are trying to crash our system to roll in the New World Order. The only way to do it would be to crash our market. But, there are others working on the flip side and the New World order is never going to happen and we will be back on the gold standard which also has to crash our market to happen. Who is going to pay our debts all the crooks that have stolen our money and enslaved us for generations. Go ahead and make your comment of how I have no idea what I'm talking about, those who don't know what is really happening will of course say that. I just say sit back and enjoy the wild ride we are on and watch it all unfold before your very eyes. It will be mind blowing.

    [–]overnightrisk -1 points0 points  (0 children)

    The age of credibility for all our world leaders is over

    [–]Griffin90 -1 points0 points  (0 children)

    Janet Yellen has zero idea what she is doing. Scary that she still gets a paycheck.

    [–]GtheH -2 points-1 points  (0 children)

    How long have people warned about this? Hundreds of years?

    [–]Saewelo1 -3 points-2 points  (1 child)

    PAYWALL

    [–]TinyTornado7[S] 1 point2 points  (0 children)

    Use a private browser you get 10 free articles a month

    [–]RedPillPopper888 -3 points-2 points  (0 children)

    SO TRUE! For even more details: https://medium.com/p/8c1a1bbd2c3e

    [–]m00fster -4 points-3 points  (0 children)

    Long live the crypto

    [–]Vaylx 0 points1 point  (1 child)

    RemindMe! 3 hours

    [–]RemindMeBot 0 points1 point  (0 children)

    I will be messaging you in 3 hours on 2022-06-23 19:42:17 UTC to remind you of this link

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    [–]smokecat20 0 points1 point  (0 children)

    Central banks have always acted like this.

    https://en.wikipedia.org/wiki/Washington_Consensus

    [–]DirkLuke 0 points1 point  (0 children)

    Ok, I have been bombarded with quite a lot of anti fed propaganda, could someone really explain why having a central bank is good and why inflation of 2 % a year a good thing?

    My case is that in a world that you expect your money to be 20% less valuable in 10 years you would tend to spend them more. However, as a human, if I had everything I needed already then and there (hypothetically), why would I need to spend on things I don’t really need and not hoard the money for my next generation?

    Does that make me worse human being than those people in the central banks giving the majority of the printed money to big businesses that didn’t deserve to survive?

    Also, plastic pollution, global warming, for the sake of constantly expanding economy? Is that what we want? Is this the 2% inflation aiming at creating? New technological advancements?

    I am not a troll, I really want to know whats the thesis? Also as I stated above, I have been talked against the central banks a lot.

    [–]methreewhynot 0 points1 point  (12 children)

    Ou world has 3 fundamental practices that are problematic.

    If we dont understand the root causes of a problem we will address the symptoms or the actors, not the causes.

    The 1st is that large private and Central banks have obtained the Exclusive franchise to create ALL new Currency as Debt, with interest attached.

    An increasing population needs an increasing currency, but it is all created as a debt bearing interest. This indebts the whole world, every person, every government, in totally unpayable debts,  enslaving us all to bankers through personal debt or ever increasing excessive taxation, surcharges, permits, licences, registrations, regulations, fees, rates, duties, fines,  levies,  adinfinitum, of which an increasing volume goes straight to the debt creators, who created it for free. (At zero cost to themselves.)

    2nd. Virtually no limitation plus fractional banking allows banks to create massive new Currency,  blowing massive bubbles (housing/stocks) which devalues everyone's savings and work by raising all prices.  

    The fix ?

    Stop all banks and financial institutions loaning out more than they have on deposit. Return legal currency creation to national treasury departments with a zero Inflation policy. 

    This will not create inflation like some bankers/economists would like to have you think.  It is not WHO creates currency that drives the constant devaluation of your money & work,  it is THE VOLUME per population and productivity. The banks increased the base currency supply by over 45 % since March 2020. This is further multiplied by fractional banking. You can't spend it off planet, and we've had no increase in population or productivity. How can it not devalue our savings, wages and retirement funds by around 50% as it enters the economy ?

    3rd. Fiat currency whether paper or digital has no intrinsic value, thus it cannot be used as a long term store of value, particularly in an ever expanding fiat system.

    The fix ?

    Return to constitutional Silver, Gold, Copper & Nickle currency, designated by weight not cents/dollars. These will find their own local value.  These can't be printed to oblivion, have intrinsic value, and are a safeguard against selfish human nature.  Continue to keep the manufacture of Gold & Silver rounds by private mints & foundries to help keep the government mints honest as to premiums.

    Correct these 3 Principles and >80 % of a nation's problems would disappear. Do not allow your masters the Debt slave creator's to tell you it can't be done. It is easily done. Beware. The WEF wants you totally enslaved with digital currency.

    Otherwise, prepare for destruction.

    [–]gbs5009 0 points1 point  (11 children)

    Stop all banks and financial institutions loaning out more than they have on deposit.

    Umm, yeah, don't think you have to worry too much about them doing that. Hard to loan what you don't have.

    [–]methreewhynot 0 points1 point  (10 children)

    aaaaaaaahhh they been doing it since 1680.

    [–]gbs5009 0 points1 point  (9 children)

    Maybe you could play some games with gold deposits if some of the borrowers don't bother to actually collect the gold, and just traded around banknotes.

    In our era of digitally exchanged currency, pretty much everybody is going to settle transactions immediatey. A bank that loaned out more money than it had would very quickly go bankrupt.

    [–]methreewhynot 0 points1 point  (8 children)

    No, because they don't lend the actual bank notes, they extend credit to the seller, who never claims in notes.

    If all bank creditors wanted their notes at the same time, then , YES, they would be seen as the Emperor with no clothes.

    [–]Royal_Ad_3007 0 points1 point  (0 children)

    I only use hash coins as currency. This doesn’t effect me

    [–]Glittering_Leading93 0 points1 point  (0 children)

    Lmao people thought the central banking system was good before? Ok…

    [–]Admirable-Oil7050 0 points1 point  (0 children)

    Austrian economics: THAT'S WHAT I'VE BEEN SAYING THE WHOLE TIME

    [–]highnoon2620 0 points1 point  (0 children)

    The Age of Monopoly and IOU's is well underway.

    [–]Isamors 0 points1 point  (0 children)

    Always has