Lefties trying to understand Smaug - Kotaku In Action 2

Lefties trying to understand Smaug (media.kotakuinaction2.win)

posted 1 year ago by AlfredicEnglishRules 1 year ago by AlfredicEnglishRules +29 / -1

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– dekachin 1 point 1 year ago +1 / -0

Ah, well, as much as I like to call you a GOP partisan, you dissent from the GOP elite on some important points - for the better.

GOP is going to need to be a hybrid populist party in order to win. Trump changed that. The Democrats are now a very elitist party, so their populist flank is very open to attack. DeSantis knows this & has been exploiting that in Florida.

I'm not an 'End the Fed' kind of guy, but I was very shocked when I discovered that the Fed buys stocks. How much of the current economy is just a bubble?

This is what "quantitative easing" has always been. The Fed just prints money then uses that money to buy securities like stocks & bonds.

"In response to the COVID pandemic, the Federal Reserve used quantitative easing (QE) – that is, large-scale purchases of Treasury securities and agency mortgage-backed securities – both to support market functioning and to ease financial conditions and strengthen the economic recovery. Its securities portfolio grew from less than $4 trillion to $8.5 trillion between March 2020 and March 2022." https://www.brookings.edu/blog/up-front/2022/06/01/what-if-the-federal-reserve-books-losses-because-of-its-quantitative-easing/

This is one of the main drivers of inflation. The other being just raw government spending of additional trillions.

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– AntonioOfVenice 2 points 1 year ago +2 / -0

GOP is going to need to be a hybrid populist party in order to win. Trump changed that. The Democrats are now a very elitist party, so their populist flank is very open to attack. DeSantis knows this & has been exploiting that in Florida.

I agree, though I think the power of campaign contributions (i.e., bribes) will prevent the GOP from doing what it has to do to be a viable party.

This is what "quantitative easing" has always been. The Fed just prints money then uses that money to buy securities like stocks & bonds.

Amazing how it took 11 years for me to figure out what QE is precisely. I knew it was pumping money into the economy, but I thought it worked through interest rates - by lowering them and allowing the creation of more money.

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