don't say I didn't warn youhttps://www.cnbc.com/2026/03/06/february-2026-jobs-report.html
>>61944170That's a good start on government bureaucrats getting sacked. I voted for this.
>>61944185>muh gubbermintthat only accounts for 10k
>>61944202And the deported illegals account for the rest. Good job Trump!
>>61944170I am an unlearned simpleton who wants to understand what is going on with the Fed and interest rates in light of the jobs report. Perhaps the economists here can help me out.1. Why is the interest rate used to combat inflation, when the interest rate itself is inflationary because it eats into profit margins?2. Why are interest rates used to moderate consumption, when supply and demand is a self moderating system?3. In circumstances where inflation is caused by energy prices, why should the Fed try to tame it? How can they possibly tame it? They can't affect production.4. Interest rates are typically lowered to boost a sagging jobs market, which is an acknowledgement that high interest rates costs jobs. Is there any circumstance where the fear of inflation should be weighed more heavily against job loss?Please and thank you.
>>61944361Money is not the same as goods, it is the medium of exchange, I know it sounds basic but this needs to be well understood. I'd recommend readind Adam Smith's "The wealth of nations", the first half of it should be enough. Then try Cantillon's essays.For inflation caused by excessive money printing, raising the rates forces people to tie up their money into bonds rather than goods, forcing the prices of goods down. Think houses and crypto.Higher rates also decrease the money that are being spent on business ventures, since you can get higher returns through bonds. This results in lower consumption due to less businesses and less hiring.Don't listen to the justifications given by the Fed, they are complete fabrications.
>>61944361>Is there any circumstance where the fear of inflation should be weighed more heavily against job loss?When it is runaway inflation from money printing that is causing the problems in the real economy, rather than production inefficiencies.
>>61944170Keep in mind: THAT IS YET STILL UNREVISED NUMBERS
>>61944361well you see goy, the bankers print money into their pockets but now the money is worth less, so you have to lose your job. Okay?
>>61944170>jobs melting left and right>increasingly aging population> affordability in an all time low>start a fucking energy war because kikes have blackmail on pedophile president >only thing holding the economy up is AI>which is incredibly energy dependent what the fuck are these faggots doing
bullish
>>61944446>>61944458Thank you for the thoughtful responses, although I should have prefaced some questions with "excluding inflation through money printing."Actually, that leads me to another question. Is money printing (or money destruction) the mechanism through which the Fed controls interest rates? Or is it the other way around? Are the two even necessarily linked? Do they have to print money in order to lower interest rates?
>>61944361Money is the gasoline in the economic engine. Taking out a loan generates money. When you’re paying more money as interest, the engine is starved of gasoline and can’t run as fast.
>>61944648While withdrawing money takes time, increasing rates is immediate. Printing money can be done in a targetted manner, such as giving it to Musk to put it in a specific industry or pumping real estate through mortgages, lowering rates applies to everybody.Forgot to mention that a major asset whose returns are directly competing with bonds interest rates are stocks. And that is why lowering rates pumps the market while raising them dumps it.
>>61944170Jobless people will just line up to sign up to fight for Israel in Iran. I see this as a total win.
>>61944648Printing/withdrawing money and changing rates affect each other but it's not necessary for both to happen for inflation to change. Fed can do either or both.
>>61944703>>61946135Thank you.I suppose it is a bit of a moot point, since I assume they have to print money right now because of the war. But they could have dropped interest rates more and sooner without inflating the money supply, right?This may be confirmation bias, but it does seem to me like the Fed was simply vindictive throughout last year.
>>61944170A meal of cooked books, with fudged numbers for dessert.
>>61944170Bullish for rate cuts
Let me know when AI can create jobs rather than destroy them.
>>61946336Why? Unemployment and war are good things.
>>61946336you can get a job as a prompt engineer. every job 'eliminated' by technology yields a new job to service that technology. my jewish economics professors told me so -- it must be true!
>>61946313>print money right now because of the war.Yeah, because they want to give that money specifically to their friends at the MIC>could have dropped interest rates more and sooner without inflating the money supply, right?They could have IF they hadn't been printing non stop since 2008. The real economy never really recovered after the GFC. Covid printing was the cherry on top. They can't easily lower the rates because it will cause very high inflation.
>>61946336Why. AI is simply fixing the excess fat/useless jobs from the past years (even decades). Too many 'free' jobs were given out for tasks that a monkey can do. We don't need millions of desk jockeys or email pushers. A team of 20 can probably reduced to 10 and still get their things done reasonably. There's still plenty of other excess fat to trim, particularly with people who use the 'human interaction' excuse, even though you see everyone with either a phone or computer screen in front of them 90% of the time.
