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.
Discussion
the problem is you're thinking about it. pls just accept what the govt says. 😂🫂💜
It’s an interesting insight and I don’t think you’re wrong. It helps to read history, though, and ask oneself if we really want to return to the pre-federal reserve world. I don’t think I do. It was one of great booms, busts and bank panics, which the Fed and its toolkit have, in fact, ironed out. I say this as a Bitcoiner owner with a 5% allocation, so we’re on the same team.
I don’t think we can ever go back to a non-fiat system. Psychopaths won’t allow it.
I view the long arc of history as one of progressing from murdering rivals en masse to conventional slavery to fake money slavery. The whole story is one of preservation of ever less oppressive slavery.
Plus, you never pay taxes on appreciated assets if you cash out via loans using the asset as collateral. Rich people won’t let that go.
All that said, the larger the fraction of society that can custody their own bitcoin (and transact affordably), the harder it will be to avoid conflict between bitcoin and the conventional financial system.
The pre-fiat banking system was full of fraud and undisclosed risks too…certainly going back to that isn’t kosher.