The fed controls interest rates. That controls how cheap or expensive it is to borrow money.
Lower interest rates are a great tool if you’ve got people sitting on capital. You lower the interest rates, borrowing becomes cheaper, and capital takes advantage of this to start more enterprises and the economy heats up.
Higher interest rates help fight inflation, there’s too much money in the system, higher rates make getting more money to pump into the system more expensive cooling it down.
Now what a keen observer might notice is that there no direction to move the interest rates which counteract nonsense trade policies.
You can cut rates to 0, flood the market with cheap credit, and if your inputs are tariffed and you can’t turn a profit… it doesn’t change shit.
This is where stagflation thrives. The cheap money floods the economy to try to spur economic growth, but the thing holding back growth isn't access to borrowing, it’s the nonsense trade policies. So the market flooded with cheap money just becomes inflationary.
You get little economic development, high inflation, this is a classic stagflation trap. And trump and his advisors are going to apply maximum pressure to cut rates to “save the economy” from their terrible trade policies and all that will do is sink us deeper into this hole.
Yea he has built an entire persona off of going “this thing I can’t deliver is a year or two around the corner”
Self driving has been 12-18 months away for a decade plus now.
They get four years in office (if democracy holds up) and so his shtick is already not going to fly. Seems like he bet heavily on AI + a bunch of 20 year olds that didn’t understand their own limits. Sure yea, use AI to sift through a million emails explaining what people did last week to see who to fire… great plan.
A bunch of 20 year olds don’t know cobol and can’t figure anything out and their brilliant idea, let’s rewrite it all in Java real quick, should be able to knock that out in a sprint or two.
Normally his bullshit claims only need to be swallowed by his adoring fanbois. But when you start fucking with social security people aren’t satisfied with “trust me bro”
I hope Elon dies sad and alone. I hope from now until then he can’t take enough ketamine to push back the encroaching feeling that he’s a fraud and a loser and no one likes him. He and trump are perfect, two people have never had more and been more miserable because of it. Fuck them both.