Post
Topic
Board Economics
Re: The Fatal Flaw in the Fed’s Plans to Socialize Markets
by
davis196
on 03/05/2020, 04:31:08 UTC
There is one fatal flaw in the Fed’s plan to socialize the financial markets.  The answer may surprise you.

https://www.zerohedge.com/news/2020-05-01/fatal-flaw-feds-plans-socialize-markets


The only weapon that FED has is money printing and they will use it to the full extend.
The article says nothing new.I somehow disagree with the $ value=belief=fear equation.The US dollar is still backed by the power of the US economy,by all the goods and services that are produced in the US.
I don't agree with the inflation=withdrawal of belief equation posted by the author.Inflation is just the lack of balance between money supply and the supply of products/services.The money supply growth is just bigger than the production growth,thus the value of the money decreases.