/biz/ - Business & Finance

>>55276150
Yeah it’s called the greatest rugpull ever conceived fuck off retard

>let the free market deal with it
It is.

Because they quadrupled the money supply for covid (also known as a stealth liquidity crisis). How else do you think they're going to suck up all that money?

>>55276150
>Maybe there is a perfect valid reason for inflation, like shortages of labour or goods or whatever?
there are perfectly good reasons for inflation they're called government deficits and supply shocks
>nothing that justifies destroying the economy over, which the FED could do, if it continues to raise rates.
it won't
>Why they don't let the free market deal with it?
because governments caused inflation not the free market
>The free market is supposed to fix everything
only austrians would say something so stupid
>But somehow inflation requires draconian measures outside of the free market
the government has a monopoly on money
inflation is a monetary phenomenon
therefore the government needs to fix inflation
it's not that hard to understand
everyone needs dollars to buy stuff and pay taxes
dollars are issued by the central bank and ONLY the central bank
the rate at which the central bank decides to loan out dollars to the private banking system has far reaching consequences into the economy
therefore, the central bank HAS to act. the free market can't solve the issue because the free market can't set the central bank's interest rate

>>55276204
The only way raising rates lowers inflation is by destroying the economy. Which is fucking retarded. The living and breathing market will deal with inflation when and if it wants to. Literally no intervention required.

>>55276150
>Let the free market deal with it
>All the while a main central bank controls the monetary base

>>55276224
t. ZIRP heroin addict

>>55276150
Look through the catalog nigger.
>>55276142
This anon is spot on. Cant let the frog's notice theyre getting boiled alive.

>>55276150
Got priced out of a home, a car, and their tendies are $23.

>>55276226
I see no reason why rates should not be low forever. Its the perfect environment to let creativity flourish instead of crusihing it with a heavy hand.

>>55276242
"Free" money makes things expensive. See: housing, secondary education, medical care.

>>55276218
Austrians like Peter Schiff cry for higher interest rates, like the hand rubbing Jews they are

>>55276224
>The living and breathing market will deal with inflation when and if it wants to
the market will deal with inflation by creating bubbles which will then burst and create an even worse recession
or the economy will just spiral into hyperinflation and wipe out the savings of the low and middle class, increasing wealth inequality exponentially

>>55276242
>I see no reason why rate should not be low forever
see the above

>>55276248
The reason things go up in price, is because there is demand for it.
Currently commercial real estate is going down, because there is a lack of demand that noone could foresee.
The free market works in that regard and brings prices down just as much as it makes them go up.

>>55276254
ehh he's not really an austrians
most austrian economists are too busy calling for the abolition of the fed to even ask for rate hikes

>>55276261
>the market will deal with inflation by creating bubbles
Cry me a river.
Is this a free market captalism or isnt it?
Suddenly supply and demand dont work anymore, when you see a justfication for crushing the economy?

>>55276273
>that noone could foresee.
Regardless, the way our money works makes it easy for a central bank (i.e. the Fed) to create a large disconnect in nominal and real value by giving people who would otherwise be unable to service high interest debt access to credit.

>>55276273
>The reason things go up in price, is because there is demand for it.
yes that's why we call it demand-pull inflation
the government makes money too cheap or just outright hands it out to the people, these people all try to spend that excess money and firms raise prices because when demand goes up so do prices
higher prices means your wage is worth less so now you have to negotiate for higher wages
higher wages mean higher costs for firms so now they have to raise prices again
as long as the government keeps making money easily available this process will keep happening

>>55276287
i just said the money market is not a free market.
money is a commodity and the State is its only supplier. its a monopoly.

>>55276296
There is always competition in a free market economy.
No intervention required.
Retarded argument,
>by giving people who would otherwise be unable to service high interest debt access to credit.
People get money from a bank, whos job it is to make sure they get their money back. Its not the job of the FED to make a judgement on who gets credit and whod oesnt.
It certainly isnt there job to crush businesses

>>55276310
Holy shit you people are evil
You pull this shit out of your arse to find a justification to crush the economy
Nothing else

>>55276326
>There is always competition in a free market economy.
not all markets are free markets

>People get money from a bank
and where does the bank get money from, genius?

>>55276310
>>55276336
Also, interest rates were low for more than 10 years and no inflation happened, even though all these doomsayers were saying it would be happening any day.
it only happneed after Corona and the market had to correct itself. Also currently with the tensions with Russia and with China.
These are all perfectly normal reasons for a little bit higher inflation.

>>55276402
>interest rates were low for more than 10 years and no inflation happened
yep and we need more studies to understand why money was tight after 2008 even with very low interest rates, but the fact is that the money supply did expand a lot in the last 3 years and is responsible for a lot of the inflation we're seeing today

>>55276402
>>55276474
forgot the pic

>>55276336
No anon, you are the evil. Remember that MOST of the public debt is from social spending, and that social spending acts as a supply-side labor supply, suppressing the market rate of labor (labor in the broadest sense, "wages and salaries") by reducing the cost of substance (driving down wages and salaries well up the chain). Debt that is printed into existence, the rank debasement of fiat in the last half century! Gee why are the rich getting richer? They've rigged a system where inflation doesn't inflate wages! Look at the wage/productivity divergence since the end of hard money, look at the 10,000 years of lockstep wage/productivity growth before fake money. "Gee gosh wilikers it's a mystery why wages have diverged from productivity!" He says while while pumping trillions of counterfeit dollars into supply side labor subsidizes. The entire fiat grift rests on debasement outpacing wage growth, such that real wages fall while assets inflate, enriching the oligarchs by suppressing the market price of labor while at the same time pumping asset prices. Without central banking the grift falls apart.

>>55276517
>social spending acts as a supply-side labor supply,
>driving down wages
if labor is the supply
and social spending is a supply-side policy
then it should drive wages up not down

wages have stagnated in the last 40 years mostly because of jobs being outsourced to asian countries
why would apple pay $60,000/year to an american when it can pay $6,000/year to a chinaman, for whom those 6k are basically a fortune?

>>55276402
>interest rates were low for more than 10 years and no inflation happened
Kek. Houses went 2x in a decade while wages were flat. Manipulating stats doesn't change reality, statist pigdog.

>>55276150
they ?

>>55276541
Literally retarded. Supply-side subsidy you dumbfuck. You can't sell corn for less than it costs to produce, unless you pay people to grow corn. This is a supply-side subsidy, as opposed to a demand-side subsidy, i. e. paying people to buy a given thing. Social spending acts as a supply-side subsidy for labor, if a worker needs $1k/m to exist they CAN'T sell their labor for less than $1k/m, but what happens if we give them food stamps, subsided housing, Medicare etc etc etc? Well now they can sell their labor for less than it costs to produce! Oligarchs benefit, no one else, certainly not the workers.

>>55276562
I never get this. I tip $0, i don't feel anything about it. I assume its just software supporting tips would always ask.

>>55276224
>a healthy economy is supposed to be a toasty warm shoulder
>current economy is an inferno and destroying itself
>pour water on it and douse it
>let the residual heat catch back up and shoulder again

>>55276336
Go move to Bolivia or something