12 sats \ 9 replies \ @OT 8 Nov \ on: MONEY CLASS OF THE DAY: Fed Independence and Can Trump Really Fire Powell? econ
Who's really in charge here?
Not sure. What's your best hypothesis?
The rentseeking bankers who own the FED.
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It isn't. #745581
This is a hill i will freakin die on
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So the member banks of the Fed restricting membership is not the member banks protecting their exclusive fiat debt issuance privilege?-
They have refused banks who have provided banking to 'crypto' businesses Fed membership - protecting their monopoly.
Ownership and control may be different but controlling who is allowed into the club is a powerful tool for the banks who are members- it enables them to protect and maintain their fiat debt slavery issuance monopoly...
https://www.federalreserve.gov/newsevents/pressreleases/orders20230127a.htm
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To the extent this is right (a very small extent) that yields oligopolistic rents -- so I guess "cartel" is allowed -- but it's not the reason for "fiat debt slavery issuance"
That's on a much bigger, government cabal level.
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The vast majority of fiat debt issuance is done by private banks, not governments.
As most 'money' today is in the form of bank private bank deposits, which are created via fiat debt issuance/fractional reserve banking.
It is a long time since a majority of the money in circulation was in physical form without debt.
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While "true", also beside the point.
Banks create private L2 money on top of government L1 money. They're pretty constrained/dependent on overall monetary conditions
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The banks enjoy the vast majority of fiat issuance and the debt slavery it delivers...and the profits that flow from it.
It is the most profitable government backed rigged market in existence.
They in practice operate, control and profit from the fiat debt based monetary system that government imposes.
Through the Fed they enjoy this...and can exclude other from it.
The only constraint is imposed by themselves via the Fed which gives them their privilege and maintains their extraordinary privilege.
They literally control and direct the core function of capitalism- the issuance and allocation of capital via fiat debt issuance.
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