And now I am wondering how there's people who cannot pay rent. And people who will default on their mortage loans once rates go up just a little...
And how exactly does a rise of 1-2% help them with that? If we head into a recession then a lot of people will be losing their jobs, and then they will have high inflation plus no job to contend with.
People bought stuff they could not afford. If they have to default, so be it.
You confuse the hell out of me. One minute you say you care about people and then the next you're like "fuck 'em."
What happened to being concerned about peoples jobs and wages? Don't forget that rents would also go up, and so would peoples outstanding credit card debts and loans.So now you agree with me? You are repeating what I've said ad infinitum over the last few pages; that we as a society need to learn to live within our means. The issue is that people won't vote for cuts that will have a direct impact on their lifestyle, and this is what perpetuates the problem. Governments end up borrowing endless amounts of money to fund our first-world lifestyles that are increasingly becoming founded upon the cheap labour of other countries.
Exactly, so why do we continue to give them all of the power? Why does one man get to decide the fate of the value of everyone's money? Why isn't there a democratic vote of some sort? It's so bad now that a meaningful rate hike isn't even possible anymore anyway. At least not one that's big enough to eclipse the rate of inflation like Paul Volcker did; that ship sailed years ago and people have had no choice but to watch all these bad policies being implemented from the sidelines with no say in any of it. There is no recourse or punishment for these committees that constantly fuck everything up, and the working classes are just supposed to suck it up all the time.
Then stop supporting them. You complain but do nothing to help change the situation.
The oil companies did exactly this during the pandemic. They had so much oil that they couldn't store it all, and so it went into negative equity and they couldn't even give the stuff away. They had to start paying people to take it.
It's a result of shitty policies, for sure, but it's also inevitable. Fiat currencies usually have a lifespan of around 100 years before they suffer the same fate. What's happening now is nothing new and is very much predictable based upon our history. The dollar is likely in the final stages of its natural life.
You sound like Noah calling all cash holders onto the Ark. What about the poor in society? Don't they matter? What about those who work two jobs so they can pay their bills, but still can't afford their rent?
This is a moral stance about how things ought to be, without manipulation. People are free to get indebted all they want, but money has a price and central banks are there to set the price of money to keep inflation in check. They have failed to do so, and now it is time to catch up. If there is economic pain, so it be.You confuse the hell out of me. One minute you say you care about people and then the next you're like "fuck 'em."
They gave the stuff away because it was not possible for anyone to take it away, as all tankers, petrol compounds etc were full. And moving petrol from here to there does cost a lot of money.
Let's hope for the Chinese to create a strong reserve currency. The US wants to isolate the Chinese but they do want to invest and trade with the rest of the world. The US is the past and China is the future, so soon the dollar is going to be just a historical anecdote.
You're looking at the wrong metrics, Juan. Crypto is still the fastest adopted technology in recorded history, and the on-chain data is only getting stronger. It's the fiat currencies that are in trouble because the central banks have monumentally fucked everything up (and the cycle continues to repeat itself). Fiat currencies always end the same way because of human tendencies; it's an inherent fault of the system.
Today the ECB defined cryptocurrencies as a "Ponzi Scheme", this is... a scam.
There are loads of scams surrounding crypto; it's like the Wild West out there. I'm only interested in protocols that can bring value to the world and can improve upon the current financial and data infrastructure.
I like the fact that there's competition now, because competition leads to innovation and better market conditions. The fed has always been out of touch and that's not going to change in the immediate future, and I don't think it's a good idea that we as a society hand over so much power to them. They can single-handedly change the lives of millions and we can do nothing about it. Remind me again what's good about the current financial system? When in history has fiat ever been successful?
It's a bit late for a measly 1 point raise now, though. The economy shrank during the last quarter, so we could be heading towards another global recession unless things turn around somehow. This is exactly the conundrum I've been banging on about for months. The Fed, through their own sheer incompetence, has led the US into a dire position through bad monetary practices.
We've already discussed this before. I said in a previous post that lowering taxes is a way to stimulate the economy, but there's no way governments are going to do that now with the huge deficits and spiralling debt repayments. The debt levels around the world are unprecedented, and the US is now over 140% debt-to-GDP.
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