Damus
Toxic Bitcoiner profile picture
Toxic Bitcoiner
@toxicbitcoiner
The Fed and other central banks never “raise rates” per se, they only ever *suppress* rates. So what is typically seen as “raising the rate” is only a decrease in the amount that they are suppressing the rate. A subtle distinction, but an important one. (Ryan McMaken to thank for this one).

Thank you for your attention to this matter.
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nicodemus · 1d
The issue is what one means by "rates". The fed only controls the Federal Funds Rate, which they absolutely raise or lower. Because they own that rate and market. If one means "bond rates", which supposedly the FFR influences (and seems like it has in the past, but not to the degree everyone thinks...
Ape Mithrandir · 1d
Prior to central banks, it was regular banks engaging in fractional reserve banking who also did this. A fair fully backed bank would ask a higher rate of interest from the public. Then another bank would lend money it didn't have at a lower rate. This bank would eventually get caught out and go ban...