Central Banker can´t explain why 2% inflation is the target

Central Bankers have been unable to provide a clear rationale for why they have set a 2% inflation target.

#Central #Banker #explain #inflation #target

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“what you’ve just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul. “


“Come with me and you’ll be

In a world of pure imagination…”


He does not want to say that they need some form of inflation to incentivize spending due to our money being worth less every year.


So let’s all expect deflation and it will happen?


damn, always thought inflation comes from printing money.
i better stop thinking and start believing.


Fk is he talking about, id like to know more, not just magic tricks, “look over here, believe what you see, while over here i I pull 2% out of a hat.”


He’s just talking words. 😂😂


So the answer is “because”?


“Well obviously… I mean not obviously, but…”


What the actual fuck.


In times past, I thought this guy sounded somewhat intelligent. That is, until I heard this clip.


“If enough people believe 2+2=17 then it will happen” – Jerome Powell ( ͡° ͜ʖ ͡°)


if they are stealing 2% percent at year, maybe you won’t notice…..


That was a wiggle worthy of a worm


I’m sorry, is the head of the Federal Reserve suggesting we ✨manifest✨ lower inflation? Lmfao


Oh come on JP, just say inflation is a hidden tax and that 2% is the sweet spot where the average person doesn’t realize they’re being taxed extra so that their money can go towards paying off the debts of reckless government spending.


This is painful to watch!


Jpow: it’s fucking magic, bitches!


They want to 2% inflation because it encourages spending instead of saving which is good for the overall economy and 2% is low enough to where it won’t destroy your purchasing power too noticeably… not perfect for sure.

Also the thing where he’s talking about if people believe it’ll happen makes sense if you understand behavioral economics it’s called inflation expectations.

Inflation expectations are simply the rate at which people—consumers, businesses, investors—expect prices to rise in the future. They matter because actual inflation depends, in part, on what we expect it to be. If everyone expects prices to rise, say, 3 percent over the next year, businesses will want to raise prices by (at least) 3 percent, and workers and their unions will want similar-sized raises. All else equal, if inflation expectations rise by one percentage point, actual inflation will tend to rise by one percentage point as well.

That is why the fed is always trying to temper the public by saying not to worry (some would say just downplaying inflation) because if they just straight up say yea inflation is going to wreck to us it’d be a lot worse.

For those wanting an opposing view and not just an echo chamber here it is.

Edit: if you disagree don’t ask me to dumb it down more. Refute my points instead of pouting cause you don’t agree


2% is the highest amount they can steal without people noticing it each year.


So gigantic amounts of gov debt is inflated away, to punish saving, to incentivise more debt.


Wow! What incompetence!


the fiat monetary system is probably the biggest scam perpetrated on humanity ever


It’s how they steal our money, indirectly, by creating new money out of thin air and reducing our buying power. 2% is just their targeted amount to steal from us each year.


We don’t need inflation; technology makes things cheaper and cheaper each year. Essentially $100 from years ago should actually get you more now as everything has been optimized.


I’ll tell you how it does. It’s not obvious how that is.

Basically, if we believe inflation will go up, it will go up. If we believe inflation will go down, it will go down. It has nothing to do with my [infinite money printer](https://np.reddit.com/r/Bitcoin/comments/11rtheu/theres_an_infinite_amount_of_cash_at_the_weimar/).


“The modern belief is that people’s expectation about inflation actually have an effect on inflation. If you expect inflation to go up 5%, then it will”.

So if me and my friends expect inflation to go down to zero, it will go to zero?

What kind of drugs is he on?


The 2% inflation target comes from New Zealand from the 80s, from a rather unscientific remark.



These rat bastards can’t even properly lie anymore.


I think the 2% target began with the kiwis.


The actual answer can’t be discussed openly. Inflation is the tax that everyone pays. Two percent is the magic number. It’s the maximum amount that can be stolen without people stopping it.

We are the frog. If the water gets too hot too quickly we jump out. If the water rises in temperature 2% p/a we sit in the pot until we boil and die.


lol all the buttcoiners downvoting XD


The system needs to inflate the money supply so that we don’t go into a debt spiral. The current high interest rates are making governement debts way more expensive to pay back, and making older bonds that banks purchased during the low interest rate period more expensive for them to liquidate. At some point in the near future the central banks will have to pivot and start reducing rates back to zero otherwise the current government debt spiral and global bank liquidity crisis will get out of control. But the lower future rates will at some point make it easier for people to take out larger loans which is where real inflation comes from. It isn’t central banks that inflate the money supply directly, it is commercial banks making new loans out of thin air. Central banks just give permission to the commercial banks by issuing them new bank reserves which is not really the same thing as printing money. The commercial banks don’t have to make new loans with newly issued bank reserves done through QE. In fact, in the short term we are heading into a deflationary period where banks will be ultra conservative with making loans, the real source of monetary inflation, since the house of cards is beginning to fall and no bank wants to be left without safe and liquid assets.

The problem with all of this though is that CPI has not really come down all that much which is why central banks have been raising rates in the first place, to quell inflation. If they have to pivot to prevent, or at least soften, a global financial and banking crisis while inflation is higher than their target 2%, that is a really bad situation as it means that the only way inflation will stop is for the real economy to crash from not being able to take out loans and a lot of companies going out of business. QE will start again, rates will be back around zero, and the whold charade will resume.

So we either face a global debt and financial system crisis, or we live with high inflation to mask the problem. Why on earth do people support the continuation of this unstable system? We need Bitcoin to save us.


“If you expect inflation to go up 5%, then it will”

The central bank doesn’t control monetary inflation, or understand it at all.


Once my property tax increase was to the penny as my 2% raise at work. Interesting! My supervisor didn’t want me to get my raise because I would not do what he wanted me to do. A foreman said I had to get my raise. Interesting!


The guy talks shit


Thank you, Bitcoin, for pulling the wool away from my eyes and helping me see this travesty for what it is: theft. The government/Fed basically steals your money annually and pretends it’s normal and necessary. Powell should be absolutely reviled by society yet he lords over it.

Viva la revolución.


Is this the guy who is in charge of the FED?
No wonder why we are in such a big mess


Is that part of Ronnie’s Voodoo Economics?

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