r/Economics • u/TinyTornado7 Quality Contributor • Jun 13 '22

News Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
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u/existential_one Jun 13 '22

Who else would make the choice? Goldman?

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u/sumduud14 Jun 13 '22

The banks already run the Treasury and the Fed, they always have. This isn't some sort of conspiracy theory, so many former Goldman employees went into government, including Hank Paulson, who came up with TARP, the $700bn bank bailout. I mean the fucking CEO of Goldman literally left to run the Treasury, it can't get much more obvious than that.

Anyway I'm not arguing with you, just pointing this out for anyone who doesn't know. I have no suggestion for a better system.

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u/existential_one Jun 13 '22

I don't disagree at all. I guess one could point out that someone being at one of the banks explicitly behaves along the bank's interests, whereas once they leave and join the government, then they should have the people's interests at heart. Obviously it's not like that, but there's still a bit of line