Codependent Economics

So, the stock market rose 1300 points on Monday, 3/2/2020. I guess that means the economy has been saved from collapse. Capitalism saved itself plus all of us and all is right with the world.

Right. Not what happened.

What happened on Monday was that the Federal Reserve announced that they will be increasing the amount of fiat currency created from thin air to bail out failing banks. Then very soon they are lowering the core interest rate so that same newly created fantasy money can be loaned out to large businesses at much lower interest rates.

So, the Fed is expected to decrease the core interest rate by 0.5% in March. With the current core rate being 1.5–1.75%, that effectively means an interest rate of 1%. With another possible decrease later in the year.

The sole reason the Fed is taking these steps is to save the stock market. Not the economy, the stock market.

However, the conditions which led to the stock market decline last week still exist. Other markets in other countries around the world today have not recovered at all. The Corona virus quarantine in China is still ongoing with a related disruption in the supply chain. Deutsche Bank is still on the verge of collapse. Corporations are still laying people off in numerous countries and across different industries with more soon to follow.

Camouflage. What this means for the steps taken by the Fed comes down to camouflage. They have applied a band-aid, a mask, a veil, a curtain to hide…