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where he came out and said there's there's no longer a relationship between increasing the money supply and the value of that money right no longer relationship between increasing the number of dollars and the value of those dollars so just to to jump into it what's he talking about and what's your take on that well he's trying to say that in the past right printing a lot of money uh would have been negative for the value of that money would have been negative for the dollar which is obvious yeah right if he's saying that that's no longer the case i mean that is a ridiculous statement i mean maybe you could say that for the last several years that hasn't been the case but to say that it'll never be the case makes no sense whatsoever because you're basically saying that the law of supply and demand has been suspended that somehow it no longer matters i mean obviously if the u.s government mailed everybody a check for a million dollars you know we wouldn't all be millionaires we couldn't all go out and buy you know expensive sports cars i mean there's just not enough of them to go around the prices would have to go up i mean they can't make everybody a millionaire by giving them a million dollars i mean they can make them a millionaire but you'll have to be a billionaire to buy things at that point because being a millionaire won't matter because everybody will be one so to make a statement like it's unlimited i mean like we could just print as many as much money as we want and we're never going to destroy the value of the money that we're printing the money that you're printing when you're printing paper money you're not mining gold see when you bring gold out of the ground you are introducing a new resource into the economy you're bringing gold which has all sorts of uses right and so the world is wealthier because a resource has been harvested and now is available for use right but when you print money we don't have anything that we didn't have before the money was printed so all money does is enable you to buy the goods and services that have already been produced and if those goods and services aren't there the money means nothing doesn't matter how much you produce if there's nothing to buy and you just can't keep printing money you know prices just have to go up what we need is more goods not more paper to buy the goods and and so his statement is just so asinine and it reveals you know either a complete misunderstanding or lack of understanding of basic economics or he's just lying and just figures that well you know nobody's going to pick up on it right he doesn't really believe it he just doesn't want to admit the problem they're creating by printing all this money or get holders of u.s dollars to start to worry more about the value of all the dollars they're holding on to and not just foreigners but americans who may have dollars and that they're holding on to or saving that they're hoping to use to buy stuff in the future uh if they understood the truth that those dollars may have no value in the future or very little value they wouldn't hold them they'd be getting rid of them right now which is not what the fed wants because that would accelerate the crisis so that's that's i guess where i struggle with this because i have to assume that powell does understand basic economics right like i don't know right i mean you know man that's a he may not i mean you know it's it's possible for sure anything's possible you know and you know but i i i assume he's an intelligent individual probably has his biases and his blind spots and his internal pressures that i'm not privy to but he's got to be a smart guy right that's my assumption i could be wrong there right well he could be smart in intelligence and iq but there are a lot of smart people that believe a lot of dumb things so for sure intelligence is not necessarily something that's going to keep you now you're writing these mistakes you're right and i guess what i therefore wonder is how much of this is just to pacify sentiment it's just to pacify the public passive by the holders of dollars like is that the core do you think that's the core motivation it's to keep everybody calm to avoid the crisis mindset everything's gonna be okay it's just that just that narrative yeah well i think a large part of the fed's job is public relations and spin and to try to create a false sense of confidence in the us economy in the u.s dollar i mean i remember i watched an interview or listened to an interview with ben bernanke and he was being interviewed i think by maybe it was motley fool or some podcast or yahoo finance it was something but he was no longer fed chairman and so the guy that interviewed bernanke played for bernanke clips of ben bernanke talking in 2005 2006 saying everything is great there's nothing to worry about we don't have a housing bubble oh the subprime market is contained we're not going to have a recession right all these assurances that he was making that we shouldn't worry everything was fine right and he plays bernanke these clips and then he says well how does it make you feel right to have been so wrong because clearly you know i mean it wasn't contained there was a bubble we had not only did we not avoid recession like you assured but we had the worst recession since the great depression right so he's basically like look you couldn't have been more wrong and here you were chairman of the federal reserve you had all this information more than anybody else right now he didn't say hey peter schiff was out there saying it's a housing bubble we're gonna have a financial crisis right he didn't bring me up but he's basically saying look you had more information than everybody yet you are so completely wrong like how do you feel like knowing you were so wrong right and instead of saying yeah i really feel kind of dumb now that i look back god i what was i thinking i was so clueless what ben bernanke said to basically save face his answer was well you know i couldn't exactly speak forthrightly or honestly i can't remember said honestly but i couldn't actually say you know what i actually thought because i was part of the administration right and so as i had to kind of toe the the official party line and i'm thinking what this is what he just said because the fed is supposed to be independent but what powell basically said is look you shouldn't believe anything i was saying as fed chairman i mean not i mean bernanke because i'm not going to tell you what i honestly think i have to tell you what the administration wants you to hear that everything is great and so that's basically what he was saying look the reason i got it wrong was because i wasn't trying to get it right i was just trying to reassure everybody that everything was fine and there was nothing to worry about because i was part of the administration so this is what this independent uh central bank and i'm surprised that these admissions didn't get you know any more reaction in the media i mean i'm the only one i've ever heard comment about you know such a statement right but i mean he really you know let that out of the bag and i think yes i think that these fed guys the fed chairman uh they're just like you know people from uh you know propaganda from the government and and also i think the fed they think that confidence is very important right they don't want to do anything to shake confidence in fact they want to try to instill confidence if they think confidence maybe is waning and so they look at it as like oh we gotta talk how great everything is how great everything is and even if they think that there's gonna be a recession or a crisis or the dollar is going to crash they're not going to say gee we think the dollar is going to crash because if they say that well then it's going to crash even sooner even if it wasn't going to crash their their statement warning of a crash could cause one so i think they're very very concerned they don't want to accelerate the onset of the crisis they see by acknowledging that they see it they want to postpone that as long as possible and they think one way to postpone it is just to pretend it's not even a threat and get everybody to not be concerned and then hope that maybe it works out better or that maybe they're wrong or we never we never have a crisis so i just never believe anything that they say at the fed i mean i i don't believe what politicians say either and so i don't believe they're any any different and i don't believe that they're truly independent i think yes they want to pretend they're independent but that's part of the bluff to instill confidence in the dollar right that oh these independent central bankers well they would never allow inflation to get out of hand they're going to raise rates they're going to force the government to cut spending they're going to force companies into bankruptcy they're going to force real estate prices to crash they're going to force stock prices to crash because they don't care about politics they want to you know they want to preserve the dollar no i think they're they're they care as much about politics as the elected representatives who appoint do so you
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