cross-posted from: https://lemmygrad.ml/post/5429645
The Federal Reserve is implementing a 'soft landing' strategy that prioritizes big businesses and financial interests over the working majority, in contrast to 2008 when the market crashed and bailouts favored large corporations at the expense of taxpayers. The current approach involves protecting these interests upfront, ensuring their stability during this economic downturn.
Fed “losses” are banks “gains” in terms of revenues, that ultimately become net income and turn into capital. The fed bought up overpriced bonds from financial institutions like Goldman Sachs, which wasn't a significant issue when interest rates were under their control between 2008 and 2022. However, the loss of credibility on inflation led to rate hikes, causing accumulated losses.
The Fed chairman has stated that small businesses will suffer while big businesses remain strong due to their cash reserves. This strategy comes at a significant cost for average individuals who may face unemployment and potential loss of homes as they bear the brunt of the economic fallout.
Rate hikes and macro-management of money markets are designed to make borrowing expensive, protect big banks, and reduce demand by pushing small and mid-cap stocks into bankruptcy. This approach seems poised to result in further consolidation and monopolization of capital.
They refuse to understand, it's willing ignorance
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I disagree, I think Americans are actually brainwashed. The amount that they think people in the DPRK are brainwashed that Kim Jong Un doesn't have an asshole because he doesn't need to shit, that's how much they're brainwashed that capitalism doesn't have an asshole because it doesn't need to shit. The ideology is ever present and all consuming.
I agree, most americans are brainwashed, however this mostly by directed ignorance and keeping working people too tired and desperate to care, the people who have the time and energy to fail to "understand how capitalist competition directly leads to formation of monopolies" are willfully ignorant, most people don't think about this and if they do they know it's bullshit, is what I mean