>I argue it’s not the right thing. I agree that stepping in is necessary SOMETIMES and at reasonable scale. The feds job isn’t to prop up the stock market.
Keynes went into depth about this. The temporary government measures are never temporary and the point of the original original post is the fed has literally declared it's not going to be temporary.
This is my point and your point. That in the end it became the wrong thing to do.
>The only explanation I can think of is our insane national debt. It’s such an easy solution to inflate all the debt away. American monetary policy has been straight irresponsible.
Exactly right and without question the intention. The problem is that when the USA does this, the USD will no longer be the reserve currency. Nixon killed the bretton woods agreement and it was only a matter of time before the USD lost its reserve currency status. Afterall, Keynes was the dude who built this design.
Unless some unusual and unexpected thing happens soon. Most countries are going to see the USD inflation and either drop the reserve currency entirely and freefloat against the forex. Or they'll basket some new currencies in. Yuan, Pound, Euro.
Done are the days of the USD as the reserve currency. This will be a disaster for everyone who currently uses the USD.
I expect the IMF to make some huge unexpected swings.
>If any, what is your advice for poor and middle class Americans?
Well first things first. Americans are mostly 'rich'. There's a political ploy about the 'disappearing' middle class but it's because americans became rich. Investment in education killed the 'middle class' by making them rich. Take this for example: https://www.pewresearch.org/fact-tank/2015/07/09/how-america...
Yes there are many americans who have poor as a mindset. 88% of americans were upper middle or high income. The amount of americans with a poor mindset is very low. As Dave Chapelle jokes, "You're not poor, poor is a mentality. The mentality that nobody recovers from. you're broke."
So getting back to the question, say you're poor or low income. These economic problems are not your concern at all. Your concern is breaking the mentality.
You need to learn abundance and confidence. Break the poor thought. The problem or why Dave chapelle says you rarely escape being poor is that the poor mentality is hostile toward this idea.
Keynes went into depth about this. The temporary government measures are never temporary and the point of the original original post is the fed has literally declared it's not going to be temporary.
This is my point and your point. That in the end it became the wrong thing to do.
>The only explanation I can think of is our insane national debt. It’s such an easy solution to inflate all the debt away. American monetary policy has been straight irresponsible.
Exactly right and without question the intention. The problem is that when the USA does this, the USD will no longer be the reserve currency. Nixon killed the bretton woods agreement and it was only a matter of time before the USD lost its reserve currency status. Afterall, Keynes was the dude who built this design.
Unless some unusual and unexpected thing happens soon. Most countries are going to see the USD inflation and either drop the reserve currency entirely and freefloat against the forex. Or they'll basket some new currencies in. Yuan, Pound, Euro.
Done are the days of the USD as the reserve currency. This will be a disaster for everyone who currently uses the USD.
I expect the IMF to make some huge unexpected swings.