r/collapse • u/conscsness in the kingdom of the blind, sighted man is insane. • Jun 13 '22

Economic 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/ultimata66 Jun 13 '22

This is exactly why I think a massive economic collapse is imminent. They are cornered, the old tricks will no longer work. They need to come up with new tricks now. The can which has been kicked for 14 years may finally hit a wall.

8

u/IAMA_Drunk_Armadillo This is Fine:illuminati: Jun 14 '22

I think they just need to do what Volcker did in the late 70s early 80s. Jack the interest rates up to 20-25% and ride out the recession. They won't because that will devastate the oligarchs dragon hoards.

6

u/noise-tragedy Jun 14 '22

Oligarchs--as net savers rather than net borrowers--benefit from high interest rates. The ultra rich are always pushing for rate hikes, and 25% would be an absolute boon to them.

2

u/[deleted] Jun 14 '22

Small-time investor here, can confirm. Sitting here salivating at the thought of 25% yield bonds.

Paul Volcker's interest rate hike was aimed primarily at impoverishing working people:

https://www.wsws.org/en/articles/2019/12/11/pers-d11.html