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bucolic_frolic

(55,894 posts)

1. The inflation caused by lowering interest rates is a tax. It eats your savings and paycheck.

Reply to misanthrope (Original post)

Wed May 13, 2026, 04:10 PM

May 13

The price of everything goes up because the currency is worth so much less. That may be what's happening to the stock market. Assets are being repriced with cheaper dollars.

In 1972 an average house was $20,000. After Nixon took the dollar off the gold standard and ran deficits to pay for the Vietnam War and the Fed loosened money to keep the economy from imploding in the 1973-75 recession, stagflation set in. By 1980 the house was $60,000. Similar results with food, gas, shoes, everything.

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Economics majors, I have a question [View all] misanthrope May 13 OP

The inflation caused by lowering interest rates is a tax. It eats your savings and paycheck. bucolic_frolic May 13 #1

This is a very interesting take. A HERETIC I AM May 13 #4

I think with the debt out of control and a reckless president spending our money like it grows on trees GoodRaisin May 13 #2

He is one of 12 votes. He cant single handedly Johonny May 13 #3

Spot On ProfessorGAC May 13 #5

Something else to consider. The FOMC and Fed Chair were created to be independent of political influence. It is okaawhatever May 13 #6

I worked Economics when I was in Army intelligence... jmowreader May 13 #7