OceanSlim on Nostr: Yes, I knew fed has been decreasing it's balance sheet because they were trying to ...
Yes, I knew fed has been decreasing it's balance sheet because they were trying to tame inflation. But we have a debt based economy. Less money in the system means less liquidity. Which should help inflation but that's not really going to help inflation until 2nd and 3rd order effects. But less liquidity also greatly heightens the chances a bank can't cover it's debts. People go diliquent on loans and someone blows up. Triggering more printing to pump liquidity and save the banks.
Published at
2025-01-16 11:27:33Event JSON
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