Yes, a recession may result from higher interest rates. But that's not the purpose.
Powell might not say he's trying to force a recession. But he explicitly said the goal of rate hikes is to drive down wages.
U.S. Federal Reserve chairman Jerome Powell said his goal is “to get wages down,” complaining workers have too much power in the labor market. Economist Michael Hudson says this is “junk economics,” and corporate monopolies are driving inflation, not wages.
mronline.org
The only way to slow the devaluation of our worth is to slow the free access to money at near zero interest.
The only way to slow the devaluation of our worth is to slow the free access to money at near zero interest. And end the massive treasury purchases after the pandemic began, which finally ended this spring.
None of this will cause the small handful of corporations who produce the majority of our consumer products to stop price gouging though. They are taking a higher
rate of profit than they did pre-pandemmy. Most of them will straight up admit to this on investor calls. The value of the dollar going up wouldn't change that dynamic.
We're literally rewarding the people driving "inflation" by forcing a recession so they can pay their workers less, now and in the future. Arresting wage growth will pay them dividends for years. We're also rewarding the people who built a global supply chain on thin ice, another major driving force behind the higher prices we've been paying.
The benefits don't stop there. After you get laid off and are forced to accept a job at lower pay, you won't be able to afford your own home. So you get to rent from Blackrock. They're already on their way to owning every single family home in the country, and a wave of foreclosures will only grow their portfolio.
Higher interest rates will cool spending. We may have a recession, but doing nothing will only continue to fuel inflation and impoverish all of us.
I know this is the Econ 101 answer. It just seems so odd to me. People don't like "inflation" because it makes it harder to make ends meet at the end of the month. The solution? Force a recession. Which will also make it much harder for you to make ends meet at the end of the month. Assuming the Fed fuckery works as intended and your wages drop.
Maybe that's the only way to handle it in this economy. But then, IMO, this economy is a fucking scam where "
A I win,
B you lose
".
Back to Random Thoughts.... honestly Kanye should've been going after The Catholics.