May 20, 2025
Party's Over and No Mops
Timothy Birdnow
It's BAAACCCKKK...Qualitative Easing is quietly returning to America for an encore production.
Yes, the Fed is once again buying up our own debt and paying for it with monopoly money. And yet strangely they refuse to cut interest rates to jumpstart economoic growth.
They clearly are planning on inflating the currency and want to pay back the denbt with less valuable money - then they will blame the tariffs for the problem.
Financing debt with debt is when you are in a death-spiral - your economy is cannibalizing itself. It is, in fact, generational theft as we are stealing money from future generations to cover our current expenses.
Despite being Keynsians I have little doubt Powell and company know all this and plan to do it anyway. In fact I think Powell is pulling a Biddle (the head of the Bank of the United States who tried to wreck the economy to screw over Andrew Jackson) to kill MAGA and bring back the "natural order".
Sadly this is what happens when you have no limits on what politicians can spend and a public educated by government bureaucrats; the one and ONLY thing the political class wants is to have a time-lag between policy initiatives and pain so the public blames boogiemen (like "price gouging companies") rather than the politicians who bought their votes with other people's money. There had to be pain, and pain obviously caused by overspending, to enforce fiscal discipline. It hasn't happened for generations now and so even the GOP in Congress is still spending at a rate that makes drunken sailors envious. Nobody has to pay the price (at least not immediately) and so it's one big party. Sadly at some point all parties end and the bill and the cleanup inevitably follow. We have had a West Coast party, full of cocaine and lasting a long time. Sadly only Elon Musk has had a mop...
This is a very bad sign.
[f#^_^sfleeb#f.stats]
It's BAAACCCKKK...Qualitative Easing is quietly returning to America for an encore production.
Yes, the Fed is once again buying up our own debt and paying for it with monopoly money. And yet strangely they refuse to cut interest rates to jumpstart economoic growth.
They clearly are planning on inflating the currency and want to pay back the denbt with less valuable money - then they will blame the tariffs for the problem.
Financing debt with debt is when you are in a death-spiral - your economy is cannibalizing itself. It is, in fact, generational theft as we are stealing money from future generations to cover our current expenses.
Despite being Keynsians I have little doubt Powell and company know all this and plan to do it anyway. In fact I think Powell is pulling a Biddle (the head of the Bank of the United States who tried to wreck the economy to screw over Andrew Jackson) to kill MAGA and bring back the "natural order".
Sadly this is what happens when you have no limits on what politicians can spend and a public educated by government bureaucrats; the one and ONLY thing the political class wants is to have a time-lag between policy initiatives and pain so the public blames boogiemen (like "price gouging companies") rather than the politicians who bought their votes with other people's money. There had to be pain, and pain obviously caused by overspending, to enforce fiscal discipline. It hasn't happened for generations now and so even the GOP in Congress is still spending at a rate that makes drunken sailors envious. Nobody has to pay the price (at least not immediately) and so it's one big party. Sadly at some point all parties end and the bill and the cleanup inevitably follow. We have had a West Coast party, full of cocaine and lasting a long time. Sadly only Elon Musk has had a mop...
This is a very bad sign.
Posted by: Timothy Birdnow at
08:45 AM
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