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1. Sick Burn, Bro (sickburnbro@poa.st)'s status on Thursday, 15-Jun-2023 00:44:08 JST Sick Burn, Bro

   in reply to

   • sj_zero
   • Santa Noodle ☦️
   @BowsacNoodle @sj_zero the important thing here is that the draining of the SPR is causing oil prices to be depressed, which is in turn depressing the CPI, which is a factor which the Fed uses to determine economic policy ( and a factor that people who want the Fed to stop raising rates point to in order to apply pressure to get them to stop )
   
   But since that is a temporary intervention that will stop, it will amply the result of when the fed stops their hiking cycle.
   • Woggy's Zeonic Frolicks likes this.
   • Santa Noodle ☦️ (bowsacnoodle@poa.st)'s status on Thursday, 15-Jun-2023 00:44:09 JST Santa Noodle ☦️

     in reply to

     • sj_zero
     @sj_zero @sickburnbro The economic equivalent would be non-intervention I think. We have the silliest parts of free market economics but refuse to let natural boom and bust cycles finish because it hurts. It's sort of like not properly setting a bone that broke then waiting for it to halfway heal and then going full steam and it rebreaks worse. The scar tissue gets worse and the process keeps repeating. Meanwhile the proper thing to do would've been a short term pain (break) and proper healing (cast, sling) one time to prevent any damage in the long-term. At this point we're depending on painkillers.
   • Sick Burn, Bro (sickburnbro@poa.st)'s status on Thursday, 15-Jun-2023 00:44:10 JST Sick Burn, Bro

     in reply to
     it's kind of like how it is easy to oversteer a car that is out of control
   • sj_zero (sj_zero@social.fbxl.net)'s status on Thursday, 15-Jun-2023 00:44:10 JST sj_zero

     in reply to
     The first time that their vehicle is out of control, most people make the mistake of trying to slam the steering wheel in the opposite direction to correct things. Doing so only makes the loss of control worse. What you end up wanting to do is straighten up your wheels relative to the road so at the very least your front wheels regain traction.
     
     I'll be the first to admit that I'm not 100% sure how that analogy applies to economics and Central banking. It certainly seems like it warns us against taking extreme measures just because something bad is happening in the moment.
   • Sick Burn, Bro (sickburnbro@poa.st)'s status on Thursday, 15-Jun-2023 00:44:11 JST Sick Burn, Bro
     more potential whiplash.
     
     Note that when an economy because seriously unstable and extreme measures are taken, they don't effect everything equally, and so tend to distort markets, which then can make other things go wrong, which then can cause additional extreme measures ..