Re:Electrical engineers on the brink of extinction threaten ...
by boppo1 on Thursday July 21, 2022 @09:02AM
(#32178795)
Greenspan is interesting to me because although he seems to have started this whole low-interest paradigm, he was once an ardent supporter of a gold standard in 1967. It's a short paper, worth looking up.
So I wonder, how did he go from "fiat schemes exist only as a means for welfare statists to infringe on property rights" to being in charge of interest rate intervention?
Re:Electrical engineers on the brink of extinction threaten ...
by imtringued on Tuesday July 19, 2022 @04:41AM
(#32149008)
>significant pain because everything has been built up around the interest rate environment that we've had post-2009
Permanent money is always in disequilibrium. It doesn't build up anything. It is always broken which forces constant interventions to reach equilibrium.
All of the goldbug quantity-theory-of-money folks were screaming about Greenspan holding rates artifically low for so long -- both before the tech bubble in 2001 and up until they started to delicately raise rates after 2003.
Once the real crash starts to unfold it may get bad for awhile, but once the Billionaires start getting worried about it they'll hit the monetary gas pedal again. SWEs will mostly weather the storm, and even if it gets bad enough that a lot of them lose their jobs (particularly at the margins), it'll still all come back.
Which is to stay that the Fed will definitely not stick to their guns once something significant pops.
(And your analysis kind of shows that there will be significant pain because everything has been built up around the interest rate environment that we've had post-2009 and trying to create any kind of structural change there will definitely cause a crash -- And the Fed works for the Billionaires so once they start to feel the pain then policy will reverse)