Replying to Avatar Dr. Bitcoin, MD

It’s not clear to me that raising interest rates actually decreases inflation…think about it. High rates causes people to deposit money to get paid more money to spend later. Sure they spend less at the moment, but eventually all the interest enters circulation and, in the end, all we have is more money chasing goods and services.

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nobody 2y ago

Interest paid to the fed removes fiat from circulation.

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