Basarav
Basarav t1_jdrbj7h wrote
Reply to Honest question from a layman: by [deleted]
More money out there to buy the same number of products, causes the purchasing power of the currency to go down, therefore prices to go up because now you need more of that currency to buy the same product.
An amazing book that explains all of this is “A primer on money, banking and gold” by Bernstein
Basarav t1_ja9e1v1 wrote
Reply to Just finished Fairy Tale by Stephen King - And i have a complete opposite opinion than the majority by Sinsai33
I agree with you. I stopped reading it about three quarters of the way in.
Basarav t1_iue42lp wrote
Reply to comment by sSadCactus in Which book would you choose if you could only read one for the rest of your life? by NubbyNob
Same here
Basarav t1_jdrey4k wrote
Reply to comment by mindless-bottleman in Honest question from a layman: by [deleted]
Technicalities…. The treasury creates money, the FED with interest rates makes it available/cheaper to borrow so it hits the open markets which is us consumers…..
Low interest rates makes people borrow/buy shit, which makes the economy hot which creates inflation…. Raising interest rates os the break on that heat and inflation should slow…… but all these decisions take time to hit the consumers, sometimes months and even years….. depends on too many variables to nail down when/how/how much they will affect