Trump Is Getting Closer to Having an ‘Infinite Money Pit’ | If the president takes over the Federal Reserve, he will have extraordinary power to reward his friends and destroy his enemies.
Trump Is Getting Closer to Having an ‘Infinite Money Pit’
Money has no meaning once it becomes infinite. Trump clearly has no idea what the Great Depression was, nor what lead to Weimer Germany's collapse.
On the plus side, it is a fascist society that will be left holding the bag of shit. The blowback from economic annihilation tends to blow apart old ways of doing things. Provided we assert ourselves, we can recreate the USA to be something that isn't crap.
...at least, I hope that is the silver lining to all of this. 😰
Centrist democrats in 5 years:
"Fascism sounds great on paper but it isn't economically viable"
The blowback from economic annihilation tends to blow apart old ways of doing things. Provided we assert ourselves, we can recreate the USA to be something that isn’t crap.
That only happened the last time (Germany I mean) because they lost a world war.
And then this:
https://en.wikipedia.org/wiki/Marshall_Plan
It didn't just happen.
I really don't think Trump is creating an infinite money glitch, I think he is using the fed to crash the economy, and make a hefty sum on the side. Money isn't a commodity like diamonds, where there is a limit to how much diamonds you can mine. Money supply is pinned to the productive capacity of a national economy.
Money is a social relation. It takes the form of a commodity but oversupply and undersupply isn't determined by the number of dollars in circulation, its a relation between what can be produced and what is actually produced
Congress could end this now. Call your local republican congressman and hold their feet to the fire.
The one that isn't running for reelction, is extremely rich, and has never listened to me or even called/emailed me back.
Ted Cruz for me
Schumer is going to write a sternly worded op ed for the Times, and talk about it on The View.
The op ed will feature liberal use of the hash tag "resist".
For all of two seconds before the shit collapses.
Money, no matter how much of it you have or believe you have is only as valuable as everyone believes it to be.
It's a modern day religion.
As soon as enough people lose faith in it, money becomes absolutely worthless.
You could get to the point of saying you own all the money ..... but if no one believes the money had any value any more, all that money no longer matters.
Wealth exists because we all believe in this world wide system of money and finance. If enough people stop believing or investing in it, all that wealth instantly disappears.
Money, no matter how much of it you have or believe you have is only as valuable as everyone believes it to be.
It’s a modern day religion.
the thing that causes the dollar to have value is the fact that the US government demands that the people pay a certain amount of taxes in USdollars. if you can't pay that, you go to jail.
so, the dollar is an extension of military power. they're forcing you to do something, but instead of sending the military to your door directly and abducting you, they instead require that you either have a certain amount of dollars or they will send the military/police to your door. it's a placeholder for military power.
Well that's why the people who have all the "money" stamp their name on all the property instead of holding it as cash.
And any paper money has to have faith, even if its tied to gold you must have faith the government will actually keep their bargain. I personally would find it a blast to use gold and silver coins for everything just for the novelty of it. It wouldn't be hard to do because very little costs less than a dollar anyway.
How the fuck did we get here so fast...??? This is fucking disgusting.
We are about to the place where the military is going to have to take a long hard look at who's side their on--- the American people or Shitler's because eventually the orange cancer is going to tell them to either full out bomb our own fucking cities, or our once-allies.
I want to believe the military would side with the people rather than blindly obey orders, but their track record hasn't been great so far.
It'll be messy. The best chance is if the rank and file corps break away from the higher level officers who are too ideologically or bureaucratically compromised to act against fascism.
But I don't see the conditions existing for that right now, although I'm far from a military expert. I know that a lot of soldiers are becoming pretty radical, at least when they leave the military they turn around and become socialists
If your economy crashes you're welcome to start using the Canadian dollar #11th Province
I could see it becoming a thing in the Northeast assuming they don't shut down the border.
assuming they don't shut down the border.
All that does is drive up the exchange rate.
i fucking warned about this
Most of the experts who have worked within the Fed or studied it closely have never contemplated what could happen if an institution with so much unchecked power came under the control of one man.
I literally talked about this 4 months ago.
Basically, if trump gets a hold of the central bank, it's over. The only way stopping arbitrary trumpian outcomes then is to completely de-dollarize the world (!!!). Imagine what that means.
to be honest, i have been a fan of a (slow) de-dollarization for many years now. it's just rapidly becoming way more urgent all of a sudden. we're not even remotely there yet. there is still way too much dependency on the dollar for so many things. we need to change that. but changing that would require change in so many things, including a broad overhaul of worldwide neoliberal agenda.
neoliberalism is already on the decline worldwide, but there's still a long way to go.
Hopefully it doesn't get replaced by something worse.
Pretty sure it will just be blatant oligarchy with a side of dystopian neo feudalism brought to you by the Tech Bro... errr I mean Tech Lords!
Besides setting interest rates:
In 1932, Congress gave the Federal Reserve the power to lend money to “any individual, partnership, or corporation” during “unusual or exigent circumstances.” The Fed used the emergency-lending provision to make a few modest loans during the Great Depression. The power then lay dormant until the 2008 financial crisis, when the central bank issued hundreds of billions of dollars in loans in an effort to rescue major financial institutions on the brink of collapse. During the height of the coronavirus pandemic, the Fed went even further, offering trillions of dollars in loans not just to big banks but to corporations, small businesses, nonprofits, and even city governments
And:
Perhaps even more alarming, control of the Fed would give the president a powerful weapon for punishing his enemies. The Fed is the central node of the U.S. financial system. Every major bank in the country holds a master checking account at the Fed, which they depend on to make and receive payments, manage their reserves, and access credit. The central bank, in turn, operates as the country’s main financial regulator: It determines whether banks are in compliance with existing laws on financial risk management and illicit transactions, for example, and has various ways to enforce that compliance, ultimately backed by the threat of cutting off access to the financial system altogether.
The tools Trump has used so far to bend institutions to his will, such as withholding federal funding, are powerful, but they pale in comparison to the power of debanking.
The downsides are basically unlimited. Skew energy markets to kill green energy, make the market look strong while hiding inflation data, scaring the world off the USD as a reserve currency.
Looking forward to the (worthless) hundred trillion dollar bill!
Just wait until the American 1 quadrillion dollar bill!
The whole point of the federal reserve is so that no special interest can seize control and crash the US economy on purpose. It sets up a political entity with vast but very particular powers, that is accountable to the president, so that it is almost always in the best interest of big finance not to crash the economy. The US government pays the federal reserve system, which is just a bunch of banks who buy into it, about 7-8% roi, to manage the money supply. Sometimes more money can still be made by crashing the US economy, for example the subprime mortgage crisis of 2008, and technically recessions are pretty good for the ruling class predators, but for the most part it provides concrete financial incentives for major institutions to keep the whole thing on the rails. It protects the economy from rogue bankers who already wield an incredible about of undemocratic power, from doing something selfish that would harm the country.
No one considered the possibility of a rogue president who selfishly wants to crash the US economy because he thinks it will help him become king. In that case, if he gets the approval of fed reserve bank executives, then there's nothing stopping him.
All these rules rooted to the notion of "well we can always count on the president to be a morally good and reasonable person" are incredibly naive. Are many governments like this?
Besides this, everyone seems to forget that the plan is to make Trump's crypto company World Liberty Financial the (only) company to spread the mandated official US stable coin.
Something he will fully have power over as a private citizen because it is arranged to be outside of government control ... so every transaction will put money directly in trump's pockets.
And by controlling the stable coin he can deny his enemies transactions (payouts) at will.
And his biggest enemy ar the United States. Because he will absolutely destroy the economy if he gets his hand on the money machine.
It's not an infinite money pit and everyone in power who thinks thats what they have winds up with them and their country broke
I say let him have it. I wanna watch it all burn to the ground.
Surely this will not have any kinda of repercussions whatsoever…
Correction: reward a few friends, possibly protect some others, and destroy literally everyone else
The US is increasingly resembling the 1986 comedy The Money Pit starring Tom Hanks and Shelly Long.
Didn't they already get something like a trillion dollar tax break in the first term? Once again the language used stuck on brinksmanship. The bad things are going to happen but never do. Until they do happen. The language never changes. It's the goal posts that move. The bad things that happened are memory holed. The next set of bad things are on the brink of happenning.
I'm pretty sure this is the primary mechanism that has enabled the slide into fascism. The population is reactive. Not proactive. If the perception is that something will happen, not has happened then you successfully subdued resistance all together. There's nothing to resist if perceptually nothing ever happens. We will never actually eat the rich.
This time next year he will be enjoying daily dives into a literal pool of gold coins, à la Scrooge McDuck, and his craven creatures in red hats will still be marveling how he is for the common man.
Money isn't real.
This is only true in the abstract. Yes, you are technically correct. Money only has value because a large enough group of people agree that it does.
But money is a shared token that describes the value of someone's time and effort which can be exchanged for goods and services. It's a common thing that can be bartered that everyone will accept. It's an incredibly useful thing for a society to have.
Don't almost all financial people agree that there needs to be some bottom level distribution to work? Cause it would seem the people hoarding all the wealth don't understand if they have enough of it it's actually worthless?
Money only has value because a large enough group of people agree that it does.
I want to stop reading this mindless refrain chirped out. Money isn't fucking Tinkerbell. The US government collects taxes in USD. If you don't want the feds showing up at your door and then dragging you to jail, you have to have money to pay taxes.
The bank that holds my mortgage sure seems to think it is.
Fall of Rome
If Trump takes over the FED, the US economy will go into an absolute tailspin and depression. The only reason inflation has been sort of brought back under control is the FED. Trump has no fucking clue what he's doing on a monetary level and neither does any of his ghouls and cronies.
they know what they're doing. they're lining all the right pockets. it's just that they don't give a fuck about anything else when it comes to 'money'
They know what they're doing when it comes to funneling money into their own pockets, I agree here. But they'll do it in such a hamfisted way, that it will bring down the entire house of cards, because they don't understand or bother to understand the systems they're pilfering. Though, this might very well be part of what they want to accomplish anyway.
There is a reason that gold is at an all-time high (~$3735). Even adjusting for inflation, it is higher than the 1980 peak following stagflation from the 1970s. Moreover, central bank purchases have been the backbone of the current gold market, with central banks now holding more gold than U.S. treasuries, something that hasn't been the case since 1996. We're witnessing the demise of the dollar as the world's reserve currency in real time.
Yeah, loose monetary plus goldbug speculation. The spread between gold and silver, for instance, has been widening while gold and platinum contract.
We're witnessing the reemergence of a multi-polar world. The dollar will take a hit. It's not the end of dollarization.
I think he knows what he's doing, since all he's really doing is stuffing his pockets. Doesn't take a genius to cartoonishly sell out the entire planet's economy for personal gain. I'm sure if he manages to crash the dollar he'll be thrilled to roll out Trumpcoin as the alternative and then rugpull the world a second time.
for a currency to have actual value, some government with real (military) power must demand that currency via taxation. otherwise, at least theoretically, the paper currency has no actual value.
I think you're completely underestimating what Trump taking over the FED could do. he could literally print arbitrary amounts of money and spend them however he wants. it would basically make money meaningless, and we'd probably go back to trading goods-for-goods after a while, but short-term, it would give trump unlimited economic power and that is a very very very frightening thing.
The barter system wasn't ever a thing, Adam Smith was full of shit, and as long as the US government taxes us in USD, it'll always be relevant to us.
I should go exchange all of my savings for a different country's currency before the shit hits the fan, but I'm not even sure which country's currency would make sense.
I don't think we'd revert to barter, we'd just informally adopt another currency like the euro.
We're already 900k jobs off the beginning of the year estimate. Add in the tech sector investment in AI failing to pay out 2-3 years later, and Trump's been kicking the shit out of a wheezing horse since he took office.
Lowing interest rates on the eve of a recession has traditionally been a smart move. Much better than the Bush/Greenspan '06 decision to raise interest rates as the housing crisis began to spiral.
But he's plowing all this free money into a jobless crypto/tech bubble. Inviting enormous inflation in tech hardware and electricity, while these companies hemorrhage a bunch of jobs they have decided they don't need anymore.
This isn't just Trump. It's an economy wide death spiral that Trump's being bribed into fueling.
Yeah this is essentially the end of neoliberal capitalism. We discovered that removing market regulations just males companies invest in unsustainable, short term schemes. What we are witnessing is the end of the ouroboros.
Interest free money for the rich while the supply side of the house is incredibly fucked up, especially in key areas such as fucking food and shelter. What could go wrong?!
I, for one, look forward to the arrested development $15 banana costs after the hyperinflation kicks in!
/s if that ain't obvious
What does FED stand for?
https://en.m.wikipedia.org/wiki/Federal_Reserve