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DYTTIGAF t1_jdf96t0 wrote

The Federal Reserve has no discipline. One reaction regardless of the problem: just throw money at it.

Doesn't matter if it's a banking crises, or a virus, or unemployment, or fraud, or economic downturn, etc.

They are a one trick pony that backs up the truck and fills it with cash. Next takes it to the helicopter to dump it on whatever problem that requires a thoughtful solution.

It will work (until it doesn't). No free lunches...and the check is now on the table.

Who's gonna pick it up? Taxpayers.

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Waterfish3333 t1_jdh14ty wrote

I think there was a country in South America that tried this too? Can’t remember, think it starts with a V? Their currency now is literally worth less than monopoly money.

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groupfox t1_jdhszdo wrote

Except half of the world keeps their assets in dollars, not V-dollars. So we can have printers go brrrr for a long, long time. Until we can’t.

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Waterfish3333 t1_jdhvahh wrote

Yea… it’s that last sentence that scares the hell out of me.

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groupfox t1_jdhvq1n wrote

Go get yourself second citizenship. Just in case, you know.

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the_shalashaska t1_jdkby4v wrote

Ok, got it. You’re vouching for the same “let ‘em die” policies that led to the Great Depression and GFC.

You don’t understand the entire concept of fractional reserve banking is built on simple trust…trust that you will get paid back. When that trust goes away, everything falls apart.

The only way to maintain that trust is to print print print. There is no other way this system survives. Once you realize that, you just ride the waves.

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DYTTIGAF t1_jdklkcg wrote

No. You don't get it. Accepting fraud and poor management of customers capital is not something that should be accepted as good behavior.

"Riding the waves" of incompetence is something I just need to accept? Please explain to me where did you come up with such brilliant insight? A child thinks this way.

You logic suggests the underlying currency (the US Dollar) can withstand a perpetual train of corruption without investors every questioning its value and stability. We should just ignore common sense because things will just magically fix themselves? Good luck with your thesis.

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BlahblahOMG60 t1_jdks0aa wrote

Excellent point. I wonder if this is the beginning of the end of the dollar as a world reserve currency 🫣

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