Hope everyone understand that Fed is forced to increase the interest rates because the buyers demand higher interest .. a direct implication of printing more .. In the process Fed loses money .. in billions ..
So printer is not without cost - even to US ..
Most people think Fed is fighting the inflation - that is just an aftereffect !
Interest rates are supposed to freely float, not be set by some clowns pretending to be protectors of the economy.
But why? They intervene for our benefit, with professionalism. Don’t you feel the benefit of inflation? The benefit of increased taxation?
Rates are determined by investors - not the Fed ... If Fed wants to give a negetive yeild - do you think anyone would buy T Bills today ? Its like selling a home - you can list a price but auction will determine weather you can sell or not ... isn't that free -float ?
The point being , the way a securtites investor watches Apple price and make a call - similiarly soverign investors (and banks ) watch the fed .. They watch the money supply , wasteful spending and available opportuniities in the international market .. even retail investors can participate ..
So the idea that Govs can simply print money is bogus .. there are checks and balances ... saying it any other way is misguiding the naive public ..
I mean - if that was true - Venezuela would buy all the real estate in America :-)
Love your satire. Well done 👍😃
