Fed Day
- Thread starter cawacko
- Start date
Interest goes up under Biden administration and goes down under Trump administration. Coincidence? I think not.
Tbird19482
Verified User
And the fed has to step in and save Trump from a crumbling economy he created.
The feds job is to try to keep the economy running and not have it go into a recession.
The Federal Reserve: A Legalized Ponzi Scheme Shielded from Accountability
by Jamie Vincent Thornberry Apr 5, 2025
The Federal Reserve controls the money supply through tools like interest rate adjustments, reserve requirements, and most notably, quantitative easing—a process that allows the Fed to create money out of thin air. Here's how it works: the Fed buys government bonds from banks, giving them instant cash. Those banks then have more reserves, which allows them to lend more money. This inflates the money supply, creating artificial economic activity.
But this isn’t harmless. It leads to inflation, which devalues the currency and erodes the purchasing power of ordinary Americans. While the wealthy and financial institutions benefit from early access to this new money, the middle and working classes suffer from higher prices and stagnant wages. In this way, the system acts like a legalized Ponzi scheme—borrowing from the future to pay for today, enriching the few at the expense of the many.
https://www.linkedin.com/pulse/federal-reserve-legalized-ponzi-scheme-shielded-from-thornberry-ya5ec
by Jamie Vincent Thornberry Apr 5, 2025
The Federal Reserve controls the money supply through tools like interest rate adjustments, reserve requirements, and most notably, quantitative easing—a process that allows the Fed to create money out of thin air. Here's how it works: the Fed buys government bonds from banks, giving them instant cash. Those banks then have more reserves, which allows them to lend more money. This inflates the money supply, creating artificial economic activity.
But this isn’t harmless. It leads to inflation, which devalues the currency and erodes the purchasing power of ordinary Americans. While the wealthy and financial institutions benefit from early access to this new money, the middle and working classes suffer from higher prices and stagnant wages. In this way, the system acts like a legalized Ponzi scheme—borrowing from the future to pay for today, enriching the few at the expense of the many.
https://www.linkedin.com/pulse/federal-reserve-legalized-ponzi-scheme-shielded-from-thornberry-ya5ec
Whew, one ^ that doesn’t understand the Fed nor monetarism
A lot of that is going to depend upon when the tariffs hit home, and, if Trump owns the Fed
cawacko
Well-known member
The Fed decisions are made by the full FOMC, not one or two people. Ultimately it will be data driven but if inflation heats up, it remains to be seen if they move forward with the projected cuts.
So Is the SCOTUS and Congress, and their decisions lately have been heavily weighed by one person
If I had to predict, which is only a guess, I’d say another quarter cut and then reality will hit and the breaks applied. Kinda like my prediction on your Trojans, after this week, they’ll enter the UCLA game with three if not four loses, hardly playoff resume
cawacko
Well-known member
Stephan Miran isn’t going to dictate rates. If he could, they would’ve cut 50 bps yesterday instead of 25.
We are very much a TBD. Yes we're 3-0, but we haven't played anyone. I don't think we're a playoff team. We have the #1 recruiting class for 2026 and we need to play well enough this season so those kids don't bail.
UCLA is a dumpster fire. Their athletic department had serious financial issues, which is why they paid half price for a coach who had never even been a coordinator.
For now until he replaces Powell
cawacko
Well-known member
Replacing Powell doesn’t flip a switch. The Fed is a committee, and every move still goes through a full FOMC vote. If one person really called the shots we wouldn’t have seen 25 bps yesterday, we’d have seen 50.
There’s seven Governors, when Miran replaces Powell, Trump will own two, with a third position opening in 2026, certainly an effective influence, and that doesn’t include Trump’s Congress’s control over the Fed
The Fed's Prime Rate is used as monetary stimulus for when the economy is bad, so no coincidence that it is being used to stimulate the economy when trump is president.
The issue here is that inflation has not been vanquished. trump is pushing to have the Fed bail him out of a recession, but at the cost of higher inflation.
Trump has been in office less than a year. Inflation is decreasing and the interest rate is going down.
cawacko
Well-known member
So by your definition the economy was in bad shape at the end of last year because the Fed dropped rates 100 bps.
Inflation is about where it was when he entered office. It is almost good, but not quite there, just like when he entered office. But you are right about the second half. Interest rates are going down, because the Fed has stopped fighting inflation. That is not boding well for the future of inflation.
Into the Night
Verified User
No, Wally. The economic depression caused by Democrats caused a devaluation of 37%. That depression has finally ended.
The Fed CAUSES inflation, Wally. Interest rates have NOTHING to do with inflation.
cawacko
Well-known member
Yes, President's can shape the Fed by filling seats. That is influence but that is not control. Rates require a majority, no single person or President 'owns' the Fed.
Powell is a perfect example. A Trump appointee and pretty hard argument to claim he's simply doing Trump's bidding.