The Fatal Flaw in the Fed’s Plans to Socialize Markets

[Bitcoin Enhanced]

There is one fatal flaw in the Fed’s plan to socialize the financial markets.  The answer may surprise you.

https://www.zerohedge.com/news/2020-05-01/fatal-flaw-feds-plans-socialize-markets

[1714818772]

1714818772

[1714818772]

1714818772

[1714818772]

1714818772

[abhiseshakana]

Why all happened because of the fact that this time the winner is already there and the winner takes all, the winners only share a little to other countries and they want to perpetuate their dominance.

As a winner in the second world war, America arranged several things
- The world must have a currency and the currency is the dollar, although France had refused, finally agreed also after France was attacked again by Germany
- All systems must be regulated by an institution called world bank
- To control funds there must be an IMF

America emphasizes these three points by spreading fears of a third world war and the war being used as a pressure tool by America so that European countries agree to the conditions proposed by America. After they agreed, an operational paper clip was implemented in Germany by the Americans. After the paperclip was finished, Germany was attacked by Russia and the world war ended.

Many deviant practices initiated by the Fed as Kennan once said "we want to keep it forever" American population is small compared to world population, but America controls half the world's wealth. What the FED did started from removing gold as collateral in printing dollars so that fiat money appeared. Banks with debt and interest and the opening of money and commodity markets. All are illusions.

But unfortunately many countries have many economics professors, many officials and many statesmen who do not protest this system. They never asked why if we print money must use gold or dollar collateral. Many countries believe in the Keynesian theory of inflation which in fact failed to bring the world to prosperity.

America is superpower not great power like China why because America is hegemonic and its influence is clear in the economic, political and world military. Even Japan and Germany as bad boys until now remain closely watched by the United States. You can imagine the number of countries in the world is only around 200, but there are about 700 US military bases around the world.
America dominates currencies, America dominates the military, America dominates technology, America dominates politics. The dominance of trade and finance has been usurped by China.

[Hydrogen]

There is one fatal flaw in the Fed’s plan to socialize the financial markets.  The answer may surprise you.

https://www.zerohedge.com/news/2020-05-01/fatal-flaw-feds-plans-socialize-markets

Surprisingly soft piece for zerohedge. Even more surprising was Alex Jones echoing sentiments of the government needing to nationalise and takeover hollywood.

The fed's plan to nationalize markets is prone towards common criticisms made on centralization as a design paradigm. Single point of failure. Lack of free market competition. Leading towards industry wide stagnation and government sanctioned monopolies. The opposite of benefits consumers have enjoyed from Intel vs AMD free market competition.

I think most support mixed economies. Knowing how circumstances are prone to deteriorate when either public or private sectors become a sole entity of power and authority. Enabling exploitation, abuse and other negative precedents.

[DoublerHunter]

^ Socialize market is quite similar to socialism for there will be no capitalist nor businessmen and the opportunity to grow will be deprived. A monopoly has no good reputation for prices are being controlled only by one. Probably if this will happen the cost of living will be high since competition will be removed and options will not be available and this might cause a coup. Indeed, Fed's plan may have their reason, not already being discussed in public but rest assure they are preparing their arguments about this plan.

[davis196]

There is one fatal flaw in the Fed’s plan to socialize the financial markets.  The answer may surprise you.

https://www.zerohedge.com/news/2020-05-01/fatal-flaw-feds-plans-socialize-markets

The only weapon that FED has is money printing and they will use it to the full extend.
The article says nothing new.I somehow disagree with the $ value=belief=fear equation.The US dollar is still backed by the power of the US economy,by all the goods and services that are produced in the US.
I don't agree with the inflation=withdrawal of belief equation posted by the author.Inflation is just the lack of balance between money supply and the supply of products/services.The money supply growth is just bigger than the production growth,thus the value of the money decreases.

[abhiseshakana]

The only weapon that FED has is money printing and they will use it to the full extend.
The article says nothing new.I somehow disagree with the $ value=belief=fear equation.The US dollar is still backed by the power of the US economy,by all the goods and services that are produced in the US.
I don't agree with the inflation=withdrawal of belief equation posted by the author.Inflation is just the lack of balance between money supply and the supply of products/services.The money supply growth is just bigger than the production growth,thus the value of the money decreases.

Since the trade war occurred between America and China there has been a shift in the poles of the two economies. Trump becomes socialist and Xi becomes capitalist.

In the Trump administration, the strengthening of state intervention in the democratic system occurred. Trump's policy related to political nationalism and economic protectionism as the foundation of the American political economy is a sign of the threat of a free market economy between countries which has been the main foundation of the world system since the end of the cold war in the decade of the 90s.

On the other hand, the strengthening of state capitalism as the basis of market ideology adopted by China also increasingly causes the discourse of economic nationalism to strengthen. In China, economic activities for profit are carried out by the state. Whereas the means of production are organized and managed by state-owned enterprises, including the process of capital accumulation, labor costs, and centralized management.

For the FED, it is possible that at present state capitalism is the most reasonable theory because this system can guarantee long-term stability and economic growth in a way that liberal democracy cannot. But totalitarianism is a logical consequence of the basic principle of socialism. Because the basic principle of socialism is the nationalization of the means of production, so it needs central planning (central planning) and the active role of government in economic activity.