Eat the rich!

Eat the Fed!

I mean if you’re gonna criticize the whole capitalist system sure. Within the confines of the current system and the inflation problem though they did a pretty good job. Not like there’s a good model of “how to deal with rapid inflation as economies reboot after a global pandemic” to follow. In hindsight maybe they should have started to raise interest rates sooner. But we were just starting a huge recovery and still trying to get everyone employed again. Even after inflation was starting the fear was raising interest rates would have to plunge the whole economy into recession and cause mass unemployment before inflation would get under. It’s kind of remarkable that this was avoided. Just look what happened in the 1970s and 1980s, when 30 year mortgages got up to 18%, real wages (your wages considering inflation) plummeted for a decade and didn’t really recover until the 2000s. In our current situation the real wages compensated for inflation have recovered as of this fall already. And we did it all better than the majority of other countries worldwide who were experiencing the same problems as their economies rebooted. Anyways, point is, probably as good of a job on the feds part with this current situation as anyone could have done.

I mean if you’re gonna criticize the whole capitalist system sure.

The Federal Reserve purchases assets and thereby increasing bank reserves.

The banks expand credit and consequently the money supply

All prices are raised, and the rate of interest is artificially lowered.

Misleading signals to businessmen starts to emerge, causing them to make malinvestments

Businesses overinvest in capital goods and underinvest in consumer goods

As the "time preference" of the public have not really got lower, consuming is preferred over saving

There is a lack of enough saving-and-investment to buy all the new capital goods

Then, "depression" originates in order to reestablish the consumer's old time-preference proportions

The banks return to their natural and desired course of credit expansion...

FIAT money is independent of capitalism. Its coercive existence leads to distortions of relative prices and the production system, as government and its central bank will always tend to be inflationary.