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[–] 104 points 2 weeks ago (11 children)

Remember, this will cause the stock market to go up because we're ruled by psychos.

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  • [+] 37 points 2 weeks ago (4 children)
  • [–] 5 points 2 weeks ago* (last edited 2 weeks ago) (1 child)

    You can barely even disagree with non-voters on most of the main .world communities or you’ll be banned.

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  • [–] 12 points 2 weeks ago (3 children)

    No, it will cause it to go up because of the Federal Reserve mandate. The Fed has to weigh inflation against employment. If employment numbers are bad, the Fed cuts rates which makes it:

    1. More cheap for companies to borrow
    2. Less attractive for investors to hold bonds
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  • [–] 1 point 2 weeks ago* (last edited 2 weeks ago) (2 children)

    Maybe in 2010 but I could argue that's now how it works today.

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  • [–] 1 point 2 weeks ago (1 child)
  • [–] 1 point 1 week ago* (last edited 1 week ago)

    You're right about the dual mandate, that's the traditional mechanism: weak jobs, rate cuts, stocks up. And that plays right into what Trump wants anyway. Bad job numbers give the Fed cover to cut, which is exactly what he's been demanding. But I think the mandate is being overpowered now. Trump wants rates at 1% or lower. He's a real estate guy who built his career on cheap debt, and he's openly said the oil industry is "making a freaking fortune" off high gas prices and "I don't give a damn." That tells you whose interests come first. Cheap money flows into assets, and the hottest asset right now is AI, controlled by a handful of tech billionaires who lined up behind this administration. When jobs disappear, their investors read it as proof AI is working, and stocks climb. The market isn't following the Fed's mandate anymore, it's following capital's story.... So in my view, the people outwardly pulling the strings are the asset owners: oil, tech, real estate, and the administration serving them. Bad news for workers is good news for them. That's what I mean by psychos. Okay, get your tinfoil hat? This next part is pure speculation, but what if... What if pressuring the Fed isn't just about donors, but part of something bigger? Trump calls Canada the 51st state, wants Greenland, and talks about owning the Western Hemisphere. His envoys are real estate and investment guys holding repeated meetings with Putin about joint business deals, while he waives Russian sanctions. My theory... there's been a kind of modern Yalta, where the big strongmen quietly carve the world into spheres. The Fed is one of the last independent institutions standing in the way, so it has to be bent. Cheap money pumps up the assets the ruling circle owns. The Iran war drives up oil, which enriches Russia and US oil, hurts Europe, and squeezes ordinary Americans. A squeezed, destabilized population is easier to push around. Every piece of the pattern is there for this... and the people winning is pretty clear.

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  • [–] 2 points 2 weeks ago

    Unless a rate hike is deemed necessary despite a weak job market due to the bond yields... JPow always mentioned the dual mandate, but I wonder which of them is more important right now.

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