PBS Video: The power of the Fed

[Hoonose]

Originally Posted by redguard57

My feeling is that the stability of the United States polity itself is inextricably tied to its financial markets. This became clear during the pandemic.

So it's my contention that the stock markets will never fall more than 20-30% ever again, and even that much of a drop will not be tolerated for long.. The covid downturn was about 30% and tolerated about 2 months before extraordinary measures were taken.

Both the Fed, and the government of the United States, have their legitimacy as governing bodies tied to the markets. I think if there WERE a crisis that threatened to tank the markets 50% or more, both the Fed, and the U.S. government would just purchase distressed stocks until the prices stabilized. Therefore the stock market today is a kind of 4th branch of government.

Good points. Japan already does this.

The Fed potentially has the power to do the same, or even support a national security related industry like oil. Of course we should all know this from the result of WW2. Where we supported our Allies and helped win the War needing no Gold. China's rapid advances the past few decades has happened because their directors have more control and better understand the power of fiat.

[Sunbiz1]

Originally Posted by Phil P

it's at the beckon of of what these many diverse players are voting for, with their dollars.

Whose dollars?, a debt based economy needs people to borrow money.
So the majority never truly own anything, they simply flip cars and houses in a perpetual cycle.

[NJ Brazen_3133]

It is around one hour long. Please give summary.