Saturday, February 15, 2020

Is the Federal Reserve the main problem?

If only we could stop the Federal Reserve printing money and get back to real economy, things will be better. Is that true?

Cheap oil is over, and what is left in the ground is leveraged and re-hypothecated. The real economy is overwhelmed. It will contract one way or another.

Official world debt is over $250 Trillion. But that amount is trivial compared to the debt we owe the biosphere, a debt that cannot be paid in money.

The purpose of the money printing is to try to push the suffering onto the weak.

Right now, not on cable news, but in real life, wars for energy mean poor people are being tortured, murdered, bombed, and herded into refugee camps, and then the camps are bombed. Local economies are being drained by high interest rates. Ethnic tensions are being stoked, and massacres allowed.

Meanwhile, energy is subsidized and wasted on cars and sprawl.

The best way to reduce the pain is to undo sprawl as rapidly as possible.