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34 sats \ 4 replies \ @freetx 9 Jul 2024 \ on: High inflation is no longer only risk for U.S. economy: Fed chair Powell econ
rate cuts in 3...2...
If he says unemployment will rise then he can cut rates but I think he wants CPI, core or whatever, to get under 3 percent.
It’s a numbers charade
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From a dispassionate perspective, I've supported Powells rate increases, even though they 'hurt' bitcoin, because its the right thing to do.
Rates probably need to go to 8% and let 90% of the fake economy fail....it would be the only way to rebuild correctly. (Not only would that cure the economic problems, but would also wipe out most of the terrible politicians and wokeism since they are all funded by the fake economy).
However, my bet has always been that Powell - no matter his desires - would simply be unable to raise/prolong interest rates hikes because the 'fake economy' probably represents >60% of the real economy now, and its just untenable to allow it to fail. So hyperinflation + hyperbitcoinization is what we get.
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Full reserve banking!
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Joking about full reserve banking made me realise that there is a better way to curb inflation than raising interest rates.
Increase capital reserve requirements for banks. Currently it is zero!
Raise it to 10 percent. Raise it by 5 percent every month that inflation is above your target 🎯, usually 2 percent but definitely under 3 percent.
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