In the past few days I've heard a lot of people talking about how Powell is running our economy into the ground and causing needles pain. My take is that he should have raised rates much faster and much more. Inflation is almost double digits. Most Americans have seen mid-teens annual increases in living costs over the past few years. And the government underreports the shit out of CPI. The average American is getting crushed and it's the Fed's fault for flooding trillions in the system for years for absolutely no justifiable reason. 90% of financial assets are owned by the top 10% of Americans by wealth. QE is basically printing money and handing it to the wealthy. Even though I and many of you all have greatly benefited, QE is a crime if you ask me and has inflicted massive wealth inequality on our populace over the last decade.
It's true that SVB has facilitated great innovation in technology, but they also took inordinate risk during the zero-interest rate anarchy perpetrated by the Fed and starting lending to ventures at rates no where near commensurate with the level of risk they should've warranted. They made mistakes and should suffer - it's the natural order of things.
I think that over the next few years we as Americans should viscerally attack and dismantle the logic that perpetuated this mess - the absurd notion of flooding money into financial assets to maintain 2% inflation at all costs. Firstly, this 2% CPI notion is a completely arbitrary figure and should not be static over time. Over the past two decades we've experienced massive globalization and technological advances, which along with an aging population are deflationary pressures that ARE NOT inherently bad. This is the real question I want to pose to this forum: if a new microchip engineering process and free-trade-induced, lower-cost materials makes medical equipment and electronic appliances cheaper, should we really be cutting interest rates, let alone be buying financial assets with printed money? In my opinion, absolutely not. I fear there is a serious fallacy in conventional economic theory surrounding inflation. Keen to hear what this forum thinks, as I know there are many interesting disparate opinions out there
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