Fed going backwards from "Tightening" Expect "Inflation"

TwoIfByTea » 29 Oct 2025, 12:24 pm » wrote: ↑
29 Oct 2025, 12:24 pm
The Federal Resrve is "Down-Shifting" policy nowadays..

Quantatative Tightening being "Wrapped Up" currently..

Through those "Polices" only eliminated 2.5 "Trillon" off their books..

Next step it lower "Interest Rates" unleash a "Flood" of "Cheap Credit" keep the Economy Going another afew cycles before they are "Forced" 2 "Admit" we offically in a "Recession"

Unemployment , Layoffs , even the "Food Stamps" worried about "Riots" too..

Best way "Solve" this "Train-wreck" let a "Recession" ensure for a year or two "We" always comback better and "Stronger" too..

https://www.zerohedge.com/markets/feds- ... torm-ahead

Here your AI response:

Understanding Inflation as an Invisible TaxInflation is often referred to as an "invisible tax" because it reduces the purchasing power of money without a direct tax being levied. Here’s how it works:Mechanism of Inflation

Decreased Value of Currency: As inflation rises, the value of each dollar decreases. This means that consumers can buy fewer goods and services with the same amount of money.
Increased Prices: Inflation leads to a general increase in prices across the economy. This affects everyday expenses, making necessities like food, gas, and healthcare more expensive.

Impact on Consumers

Erosion of Wealth: Over time, even low levels of inflation can significantly erode wealth. For example, $1.00 in 1960 is worth only about $0.09 today, indicating a substantial loss in purchasing power.
Regressive Nature: Inflation disproportionately affects lower-income individuals, as they spend a larger portion of their income on essential goods. This makes it feel like a tax that hits the most vulnerable hardest.

Government Financing

Indirect Revenue: Governments may use inflation to finance spending without raising taxes directly. By increasing the money supply, they can fund deficits, effectively taxing citizens through reduced purchasing power.

ConclusionInflation acts like a hidden tax by diminishing the value of money, increasing costs, and impacting consumers' financial well-being without a formal tax structure. This subtle yet pervasive effect makes it a significant concern for economic stability and personal finance.

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My family elders told me a looong time ago that this is how the gubmint plans to take away retirement savings.
Quantitative Easing helped that scam along nicely.

Please seat yourself.

I like the very things you hate.

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Fed going backwards from "Tightening" Expect "Inflation"

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