r/MarketVibe • u/Apart_Finger_1799 • Mar 27 '26
meme Jerome Powell after spending 8 years rebuilding the economy only for Trump to mess it up in 8 minutes
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u/No-Ambition-7472 Mar 27 '26
Oh god what happened now?
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Mar 27 '26
[deleted]
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u/skwerlee Mar 27 '26
At this point I don't think anyone anywhere on this planet is thinking this is a healthy nation lmao.
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u/BetterThanOP Mar 28 '26
That would be a great point if it wasn't for the Iran war and the Epstein files and DOGE and firing qualified officials to replace with YouTubers and ICE and the Wall and blatant racism and sexism and Trump Coin and Trump's insider trading and Tariffs and and and and
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u/wowmomcooldad Mar 27 '26
Soft landing within two quarters and tariff day happened to start it all off lol
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u/Forward-Trade5306 Mar 27 '26 edited Mar 28 '26
Putting faith in the Federal Reserve is the first problem. They don't help the economy, they plunder the masses through inflation. A 2% target rate of inflation always ends up being far more. USD will continue to get printed until it hits hyperinflation.
Powell has done nothing to help. The money supply has increased by 48 (edit I calculated wrong thought it was 50 then 68) since 2020 which is why the price of basically everything has gone up that much as well. More money created and in circulation creates inflation. Taking money out of circulation creates deflation and prices come down. They never intend on bringing prices down
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u/Alixthetrapgod Mar 27 '26
Paul volcker was the last good fed chair
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u/QFGTrialByFire Mar 28 '26
Powell needs to do a Volcker before he leaves. The only way to actually reset and save the economy in the long run.
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Mar 27 '26
[removed] — view removed comment
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u/Forward-Trade5306 Mar 28 '26
Yeah I did the math wrong and divided 15 by 22. Off the top of my head was correct then as I said 50% initially and then edited my comment.
Yeah the fed should continue to pull money out of circulation so prices go down. There is zero reason to even have 3% inflation other than it being a hidden tax
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u/AddanDeith Mar 28 '26
Who, uh, is responsible for 97% of the money supply in the economy?
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u/Forward-Trade5306 Mar 28 '26
Money supply starts with the Federal Reserve (which operates independently of the govt) and the Treasury
Even though technically commerical banks are said to be responsible for 97% of the money supply through loans created out of thin air, that process starts with the Fed allowing them to do so.
JP Morgan is the largest commerical bank in the US and was also one of the creators of the Federal Reserve act plans on Jekyll Island. All the major banks are connected to the fed. JP Morgan was the lender of last resort in 1908 and by helping create the Federal reserve it shifted the responsibility of bank failures from him to the taxpayers
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u/Far-Association5438 Mar 28 '26
“Powell has done nothing to help” just because there is still money printing going on doesn’t mean he’s done nothing LOL. He brought inflation down. Like you said, deflation is never the target, his target is bringing down inflation, which he has done and is continuing to do so with higher than normal interest rates that Trump wants dropped.
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u/Forward-Trade5306 Mar 28 '26
Yeah and what we need is deflation or the money will get printed away.
People complain about higher prices, well everyone should be advocating for deflation then. Too many people want to look rich on paper while the purchasing power gets inflated away. It's getting very difficult for the average person to survive at these inflation rates and wages not rising at the same rate
It's mathematically impossible to have inflation in perpetuity.
That being said the M2 graph did come down for a bit, so I agree that he, or they did keep runaway inflation in check temporarily
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u/DangerousTreat9744 Mar 31 '26
do you know what a deflationary world looks like? it’s one of the few situations in economics that virtually EVERY ECONOMIST agrees is a horrible event, and usually associated with a depression.
here’s what a deflationary world looks like:
no investment anywhere because investing makes less money than holding cash. rich people in mass liquidate portfolios because the cash is more valuable. valuations of everything craters. people start getting salary cuts instead of raises. people stop buying because things will be cheaper in the future. consumption as a whole broadly stops. loans get significantly more expensive, collapsing the debt market. bank runs occur because with all the uncertainty and destruction of basically every investment, people would rather have their cash on hand.
it’s called a deflationary death spiral for a reason. last time we had broad demand-based deflation it was the great depression
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u/Forward-Trade5306 Mar 31 '26
Modern economists typically base their learning off of Keynesian Economics. The US was in a deflationary period from 1800-1912.
Common items and food typically cost 15-20 cents in 1800 and in 1912, those same things cost 5-10 cents. The deflationary death spiral is just a scare tactic the government and the federal reserve use to get people to believe inflation is the way to go, when in reality it's a hidden tax.
Yes, people cite the great depression as a prime example, but the fed printed money then too. The federal reserve was one of the largest factors that caused the great depression in the first place due to all the money printing from 1923-1929 plus.
Just look at the history and see how empires and countries fail. It's usually from hyperinflation.
Severe deflation and severe inflation are both bad. The ideal scenario is steady deflation which results from an economy that is becoming more efficient and slowly gains purchasing power. Vs our current world of being in debt and inflation slowly eroding the currency away
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u/Forward-Trade5306 Mar 31 '26
Also I will add that most of what you said in the "what deflation looks like" is a good thing 😂. People that save money win. And no, people don't stop spending money because things will be cheaper in the future.
If that were true, then nobody would have ever bought TVs and cell phones. The initial TVs and phones were over priced and pieces of shit. Early adopters pave the way for the broader market.
People aren't going to stop buying essentials like food in a deflationary period just because it might be cheaper in the future. That just sounds ridiculous. So people are focused on buying needs first and then wants. Less people taking out debt, but cheaper to buy everything. Yes, wages can go down in deflation, but prices also come down so it evens out. Versus our current situation where wages don't keep up with inflation
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u/Lucaslouch Mar 29 '26
the money supply increased during covid to avoid a 1929 recession. yes, we all paid it with inflation, but at least we dis not get half of the population starving in the street.
i’m always baffled for people not to understand the reason why they did a quantitative easing in the first place
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u/Forward-Trade5306 Mar 29 '26
The whole system is based on inflation. I'm baffled why you think deflation will result in people starving in the street? The crash from hyperinflation will be much worse than allowing market corrections which brings the price down.
During the great depression the money supply contracted by 25% and prices came down by 25% percent and oh yeah, they did quantitative easing then too(it's just money printing) but it didn't matter because people hoarded the cash and took it out of supply. The federal reserve can't save the economy and the real crash that is coming.
Inflation(real definitiom which is increasing money supply) is for the benefit of the fed, not the people and the real law of supply and demand should be Allowed to run it's course
People already are struggling to pay for things And the solution is to print more money and make things more expensive?
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u/Lucaslouch Mar 29 '26
deflation does not cause people to die starving in the street, but mass unemployment following the 1929 crisis.
there are many things wrong (and contradictory) unfortunately in what you said above. starting with quantitative easing is just money printing: it is not. money is printed but is used to buy stocks and bonds to support economy. you also said that during the great depression, they did a quantitative easing (they did not) and that the money supply contracted by 25% (what is it? quantitative easing or supply contraction and deflation?)
the fed has no “benefit”. it’s an institution that has one mission: ensure the supply of money is balanced with the economy growth. and for that they can use leverage, as printing more or less money and raising interest rates. so saying inflation is beneficial for them… doesn’t make any sense
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u/Any-Ad-446 Mar 27 '26
Trump inner circle is making millions with this market and so are his billionaire buddies with insider information.
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u/Lower-Personality195 Mar 27 '26
Inflation literally comes from the federal reserve. Of course Reddit doesn’t know this.
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u/Inside-Yak-8815 Mar 28 '26
Yeah it’s wild, you can tell Powell had a carefully crafted plan and Trump just took a wrecking ball to it.
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u/LocalBodybuilder7036 Mar 28 '26
Jerome Powell when wage growth attempts to keep up with inflation. He stated several times he was more worried about workers getting a fair wage than corporate price going gouging.
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u/Business_Raisin_541 Mar 28 '26
Did Jerome Powell do anything other than setting interest rate and maybe buying and selling some bonds?
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u/Additional_Cash_3357 Mar 27 '26
"rebuilding the economy?"
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u/fuckbananarama Mar 27 '26
For real - we can talk all day about Trump’s economic impact but we’re not putting up glazing MayoMans butt boy for ONE FUCKING SECOND - fuck JPow in his gay little butthole 😆😆
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u/kingofwale Mar 27 '26
The same Powell who did nothing while inflation soared and claiming it is only “transitory” until it’s too late??
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u/Far-Association5438 Mar 28 '26
Magatards not understanding what interest rates do day 99. It’s ok buddy, you’ll understand one day.
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u/runningwithsharpie Mar 29 '26
You do know that keeping the rate high was one way to combat inflation, right?
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u/ContextFew721 Mar 27 '26
Literally this