Quote:
Originally Posted by pocketkangaroo
Deflation. Once the Fed drops rates to 0%, there isn't much that can be done to stop it. At least with inflation the Fed can raise interest rates to whatever they need to in order to hedge it. I feel like you have more control over inflation than deflation though both are bad.
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The Fed was created to stop the boom bust cycle, to stop recessions and to stop depressions. Historically the fed has done nothing to stop any of that. They have only redistributed wealth through their manipulation of the money supply. Mainly by creating inflation to destroy poor peoples wealth and transfer it to the rich.
Quote:
Originally Posted by u-Bob
the only thing people should fear is the fact that a small group of people control the money supply and can cause inflation and deflation 'at will'.
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