(C) Daily Kos
This story was originally published by Daily Kos and is unaltered.
. . . . . . . . . .
Jerome Powell is driving the economy into recession at the worst time in US history [1]
['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.', 'Backgroundurl Avatar_Large', 'Nickname', 'Joined', 'Created_At', 'Story Count', 'N_Stories', 'Comment Count', 'N_Comments', 'Popular Tags']
Date: 2022-12-15
“But he needs to stop inflation — now!”, you’ll hear Fed supporters scream. Therefore, Powell and the Fed have to keep raising interest rates. To hear Powell supporters say it, that’s the only tool Powell has at his fingertips, nothing else.
The official theory behind the Fed’s actions: higher interest rates will make money more expensive, thereby making money more expensive, thus, making borrowing (to buy things) more expensive. This, in turn, will reduce consumer demand, and, finally, incentivizing producers (eg. corporations) to lower prices on their goods.
The real goal, everyone knows: the higher interest rates will reduce consumer demand by deliberately harming the economy, enough to (purposefully) cause millions of people to lose their jobs, which will incentivize producers to lower prices on their goods because everyone else left behind (those still with jobs) will tighten their spending belts, not knowing if they’ll wake up to find themselves at the unemployment line.
Powell has pretty much already admitted this, but you’ll never hear him or his supporters state it openly. You’ll never hear them say, “We have to have as many people thrown out of their jobs and lose their homes to keep inflation in check.” They’re never honest about this.
The Fed, with Powell in charge, is deliberately hurtling us towards recession at the exact moment in US history when right wing extremism is at an all-time high. There are Republican politicians who openly talk about overthrowing our elected government. There is a former President who actually tried to overthrow our elected government, and now is yelling about destroying the Constitution.
What happened when Germany experienced a depression at the same time right wing extremism and messianic RW leaders materialized?
Once people begin to lose their livelihoods at as result of the rate hikes, what’s Powell’s brilliant plan in mind to stem the magnitude of that?
p.s. In the 1970’s, high interest rates coincided with high inflation, did not do a thing to reduce the inflation.
[END]
---
[1] Url:
https://www.dailykos.com/stories/2022/12/15/2142037/-Jerome-Powell-is-driving-the-economy-into-recession-at-the-worst-time-in-US-history
Published and (C) by Daily Kos
Content appears here under this condition or license: Site content may be used for any purpose without permission unless otherwise specified.
via Magical.Fish Gopher News Feeds:
gopher://magical.fish/1/feeds/news/dailykos/
