so let me get this straight, the FED can't raise rates because the government's debt is too high therefore they have to find convoluted ways to do QE to stimulate the economy?
Sort of. They’re balancing on a knifes edge. The current rates are putting a lot of stress on the financial system and they are ready to restart the moneyprinter at the first sign of trouble. When SVB and all those other regional banks collapsed a year ago, central banks showed their hands and the market realized that the hawkishness was a bluff, so everyone ran straight back to risk assets. Central banks would much rather deal with high inflation for the next 10-15 years than allow the very brittle banking system to collapse. If they print money to save banks, that will be good for bitcoin and gold. If they dont print money and allow contagion from defaulting banks to spread, that will also be good for bitcoin and gold.
>>58447308what books should i read to learn about this stuff?
>>58447314inevstopedia helped me a lot. Start by understanding the bond market, how debt is created, how currency is issued and circulated. These topics are the backbone of all macro econ worldwide.
>>58447314Pretty much all the modern textbooks peddling the ponzi system as a good alternative to currencies that are backed by gold is the reason we are in this inescapable mess. The global reserve currency being unbacked by gold was meant to be temporary but it was probably too tempting to be able to print endless amounts of money and export inflation to the rest of the world. Fiat currencies have been tried a few times before a few hundred years ago by some european countries and it failed every time. If you want to understand the basics, you can read on investopedia or alternatively go on youtube and search for Ray Dalio videos that explain how the financial system works. He dumbs it down so even dumb teenagers can develop basic understanding. He is a turbo autist who’s obsessed with studying monetary history going back thousands of years, so his views are grounded in reality
>>58447300They don’t care about the government deficit or the stock market or the election or whatever you low iq retards think they care about. He literally says it at least 10 times every FOMC, they have a dual inflation and unemployment mandate and that’s what guides their decisions.
>>58447365And yet they will end up doing neither to fix any of those problems and we will get stagflation>b-but daddy powell dismissed concerns of stagflationCope
>>58447300Interest rates follow nominal growth. Therefore, if economic growth is low, they naturally go down.https://www.youtube.com/watch?v=qfX_rNOeTXwhttps://www.youtube.com/watch?v=dortdhx9WFs
>>58447338>turbo autists>grounded in realitypick one and only one, those people are rarely rational, let alone logical. to boot, dalio also is convinced china is still ascendant after almost a decade of dogshit growth
>>58447387Autists usually stick to facts and aren’t easily swayed by emotions like normgroids are. And China postioning itself to become the new economic top dog within 20 years has been steadily moving forward just like he has been saying. While the US were busy in the mideast for 20 years, China took full advantage and expanded their soft power by creating vassal states, mainly through predatory loans, but also through old fashioned bribery. Half of South America, almost all of Africa, almost all of Asia, Gulf states like Saudi Arabia who always go with the winner, and now even Russia were forced to become a Chinese vassal to gain entry into the Chinese-built financial system that is dominant through most of Asia, after they were kicked out of the western financial system. The US is not perfect but they have abused their power far less than all the previous economic top dogs, so I am hoping that advancements in AI will let them remain at the top. But considering the financial positions that the US and China are currently in, it’s not looking too good. The housing bubble bursting is bad, but being on the brink of losing reserve currency status is worse
>>58447300bond market gubmint facade is a dead meme. this basically means these boomer politician fucks need to squeeze more sound money out of us so they can continue living in their McMansions and floating on their McYachts, so prepare for higher state and federal taxes next year. sure they'll ease off raising rates until Christmas time, they'll jack it up again because they know we're all brainwashed into consoooooming junk that time of year every year, maxing out our credit cards. rinse and repeat. instead of the surprise fire lit up our asses back in 2008, they're trying to ease us as slow as they can into another recession so we won't even realize it's happening. and maybe biden or trump whoever's the next prez will toss out at $100 stimulus check once or twice next year LOL fuck this country
>>58447446The chinese economic system is stalled out and will not recover because they lack the population to maintain it. To cover this up, the Chinese system is becoming increasingly financialized and repressed all at once; China will be forced to commit to harsh capital controls before the decade is out, sealing off China's economy from the rest of the world
If you want to understand monetary policy then realize QE = lowering rates. QT = raising rates. The ONLY thing the fed does is interest rates. Everything else is just an illusion from the underlying complexity and arcane rules that make up the system. If you think the fed is QT but lowering rates, then you are seeing an illusion, and liquidity is being provided in other ways.
>>58447308>restart the moneyprinter at the first sign of trouble.Wouldn't this be the confirmation that there is a hard landing and thus sp500 will crash?The question is, will BTC crash too?
>>58447728the US and China are so mired in debt and broke af that we're literally fighting over ownership of fucking Tik Tok. man, clown world just keeps getting better and better
>>58447799The only two reasons tiktok is problematic are:>(1) The American conservatives (in this case, sensible people) don't like it because of the total and utter degeneracy children have access to.>(2) The American jews don't like it because their pro-jewish content wasn't artificially pushed through like it is on youtube, snapchat, twitter, etc.It is getting banned because of (2)https://www.aa.com.tr/en/world/major-us-jewish-group-welcomes-proposed-ban-of-china-s-antisemitic-tiktok/3164516
somewhere in here... we are doing treasury buybacks...
>>58447300https://www.youtube.com/watch?v=d0nERTFo-Sk
>>58447308>so everyone ran straight back to risk assets
>>58447300Brrrrrrrr.
