Re:The resource leak bug of our civilization
by AnimalMuppet on Monday December 01, 2014 @03:10PM
(#8683423)
To amplify a bit on EGreg's reply: In 2008, several trillion dollars evaporated. That's why "If all the people dependent on the US-dollar-based economy realized what the Federal Reserve has been doing, there would be hyperinflation" is false. All the people dependent on the US-dollar-based economy realizing what the Fed was doing barely avoided a deflationary collapse.
Now it's true that, if the Fed isn't careful (and lucky?) winding this down, there could be problems. But we are not (yet) at the point where hyperinflation is the rational outcome of the Fed's moves.
> It doesn't "just happen" because the smartest guys in the room are so much smarter than the median that they are effectively fooling all the people, all the time.
By "the smartest guys in the room", I presume you mean the Fed, since you seem to be casting them as the ones who are able to pull the wool over everyone else's eyes. But do you really think that they're enough smarter than the ones at, say, Goldman Sachs, to be able to fool them all the time? I don't.
Now it's true that, if the Fed isn't careful (and lucky?) winding this down, there could be problems. But we are not (yet) at the point where hyperinflation is the rational outcome of the Fed's moves.
> It doesn't "just happen" because the smartest guys in the room are so much smarter than the median that they are effectively fooling all the people, all the time.
By "the smartest guys in the room", I presume you mean the Fed, since you seem to be casting them as the ones who are able to pull the wool over everyone else's eyes. But do you really think that they're enough smarter than the ones at, say, Goldman Sachs, to be able to fool them all the time? I don't.