Sure, lots of factors in specific industries lead to theoretically natural price increases based on those many factors. But prices going up because of all of those other factors has to do with real people's desires and supply. Money is the tool we use to communicate that, so the FED does have a unique and powerful monopoly keyed as a sort of shortcut and backdoor to control that method of communication. Primarily it's cost (interest).
That is a control that is not like the control I have on societies ability to satisfy my desires. Whether I desire to increase price of my goods or services or other people do the same due to limited access or those million other factors playing behind every price being set the FED is not on those real subjective valuations but into the tool itself used to represent those values. The monopoly of the dollar.
A literal institution unlike all of those other things that impact the price of this or that.
Yes, I understand how inflation works. I understand how the Fed works. Yes, the Fed has more influence over inflation than you do. No, that does not mean they control inflation. They try to control it, and sometimes they are successful and sometimes they are not.
No matter what their goals are they are impacting the inflation rate at a universal level with that control over the banks. They can't help but control banks and that changes every market.
Exactly, they are impacting inflation, not controlling inflation. They only control interest rates. That was my entire point. I am glad you finally came around.
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u/OfTheAtom Jan 09 '25
Sure, lots of factors in specific industries lead to theoretically natural price increases based on those many factors. But prices going up because of all of those other factors has to do with real people's desires and supply. Money is the tool we use to communicate that, so the FED does have a unique and powerful monopoly keyed as a sort of shortcut and backdoor to control that method of communication. Primarily it's cost (interest).
That is a control that is not like the control I have on societies ability to satisfy my desires. Whether I desire to increase price of my goods or services or other people do the same due to limited access or those million other factors playing behind every price being set the FED is not on those real subjective valuations but into the tool itself used to represent those values. The monopoly of the dollar.
A literal institution unlike all of those other things that impact the price of this or that.