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jdcmedlock.bsky.social • 5 days ago

What??

I don’t understand why no one in congress has proposed amending The Federal Reserve act to include the following addition among the mandates

“Reducing the federal debt-to-GDP ratio to sustainable levels.”

Keep inflation and employment the same , just add to the equation

#econsky

Comments

neoarkadia.ygorganization.com•5 days ago

... Isn't this basically asking the Fed to be given the powers of the IRS by extra steps???

petertanham.bsky.social•5 days ago

Personally I wouldn’t stop until the Fed has a septuple mandate

shredberg.bsky.social•5 days ago

These are the people that have undue control over law and our system of governance, we arent gonna make it

diacriticaz.bsky.social•5 days ago

*I* don't understand no one in congress has proposed amending the Pacific Railway Act to include "also when you go over a bridge you have to hold your breath"

ennui.org•5 days ago

Technically, those words are English.

jdcmedlock.bsky.social•5 days ago

I appreciate Mark for trying to elect dems, but keep this man’s ShowerThoughts away from serious policy. Classic case of assuming your success in one area carries over to everything else

bobisjim.bsky.social•5 days ago

RICH MAN SMART!!

edgarageous.bsky.social•5 days ago

He successfully unloaded a shitco on an overcapitalized industry giant and laundered that into a positive reputation

We deserve him

mistermercury.bsky.social•5 days ago

That amendment would also be completely useless, it so vague. Literally any amount of debt could be considered “sustainable” if you have a crazy president like we do, oh idk, right now

pokupoku.shop•5 days ago

To be fair, he literally said "I don't understand".

aczub.bsky.social•5 days ago

He continues to live up to my label for him of “Oligarch Lite”

johncarltonking.bsky.social•4 days ago

Example number infinity that America just can't function without a working legislature, and the fact that our legislature doesn't work is just making everything else worse

norcalgardenofeden.bsky.social•5 days ago

Dude….it scares me that he is so successful…if he is the best of the lizard brains and should be put in charge; let’s you know how little is going on behind the curtains…

sundiego2015.bsky.social•17 hours ago

So the Fed should allow for really high inflation to allow for a declining Debt-GDP ratio?!?

sikolnam.bsky.social•5 days ago

He’s not that dumb but this is dumb.

kielgookin.com•5 days ago

I’ll be shocked if he even makes it a full election cycle before siding with the fascists.

dustinwing.bsky.social•5 days ago

He also supports DOGE and believes the government should be run like a business.

hindchristopher.bsky.social•5 days ago

The Federal Reserve to set fiscal policy! The Shriners to run immigration! The Amish ATF! The Mormons to keep the FBI.

rvroomie.bsky.social•2 days ago

Yes, I refer to it as, “going emeritus.”

A famous example was physicist Freeman Dyson, going off the ranch about climate change, and being an absolute blithering idiot about it.

malaclypse.bsky.social•5 days ago

This is what happens when we have up the original meaning of “begging the question.”

brosemitesam.bsky.social•5 days ago

Rich = kicked in the head by a horse repeatedly theory remains undefeated

shellativism.bsky.social•5 days ago

Wonder if this is one of the brain dumps from the group chat from hell.

anarchakelly.bsky.social•5 days ago

I think the dual mandate can def be a topic for discussion. I was interested by the NGDP targeting idea. I really don’t like the idea of centrally planned interest rates to begin with.

jdcmedlock.bsky.social•5 days ago

NGDP targeting is a reasonable idea for sure

nylerodgers.bsky.social•5 days ago

The classic "why don't they just make illegal?" school of political thought

cthulhu985.bsky.social•5 days ago

What if instead of the Fed losing its independence to the government, government lost its independence to the Fed?

hurricanexyz.bsky.social•5 days ago

Look no one said he knew things about public policy

figgityfigs.bsky.social•5 days ago

What could be the problem with a theoretically non-removable board of directors using monetary policy to force the federal government into actions they might not otherwise take?

nextdoorsv.bsky.social•5 days ago

I'm surprise he's not asking the Federal Reserve to also buy crypto to keep America's young men happy

skc703.bsky.social•5 days ago

i barely passed ap econ almost two decades ago but i know this isn't how anything works

jordanlowrance.bsky.social•5 days ago

Give power of the purse to the Fed and let Congress excel at their narrow interests: renaming stuff on a map and deciding who should use which bathroom

realchrispeterson.bsky.social•5 days ago

Needs more "put it on the blockchain"

deriamis.net•5 days ago

How many times does it need to be demonstrated through abject failure that the government is not a business?

kavi.bsky.social•5 days ago

As someone who strongly supports inflation, I think this makes sense as a good policy

kavi.bsky.social•5 days ago

The fed should keep rates low to permanently run the economy hot and target a higher inflation, in order to deal with the debt

kavi.bsky.social•5 days ago

I can only imagine this is what he's proposing, right? Otherwise like how would the Fed have any control over the debt?

azax.bsky.social•5 days ago

My read is they should make GDP go up (and care more about it when borrowing is high)

azax.bsky.social•5 days ago

(but their other mandate to keep inflation low means they can't cheat)

davidjorgonson.bsky.social•5 days ago

The Fed could print money and give it to the Treasury to cover deficits and avoid borrowing. Some people probably think this already happens.
Mark Cuban must really love inflation to propose this.

uncleporkdaddy.bsky.social•5 days ago

I mean doesn’t it already happen in normal Fed operations? They create money to buy treasuries in order to keep the overnight rate where they want it. And in crises, they have created money to buy other things that also affected the rate structure.

davidjorgonson.bsky.social•5 days ago

As a side effect, yes. Though when they buy treasuries that debt still exists.
Seems to me that Cuban's proposal would involve a lot more money printing.

dakota.bsky.social•5 days ago

Seems like a conflict with him specifically saying the mandate on inflation stays

kavi.bsky.social•5 days ago

I mean the mandates for inflation and unemployment are also already contradictory, the idea is to balance them. Adding an additional element that suggests lower rates would adjust the balance presumably

problemfellow.bsky.social•5 days ago

I thought this guy was supposed to be smart

erync.bsky.social•5 days ago

You didn’t know that the Fed sets the budget?

lindsayb7707.bsky.social•5 days ago

To be fair it would probably be better than Trump and Big Balls setting the budget.

victork1862.bsky.social•5 days ago

All our billionaires are stupid and the smart ones are trying not to be billionaires anymore.

philbel.bsky.social•5 days ago

I mean, it is very easy for a central bank to reduce the debt/GDP ratio. If that's what you want, it won't be a problem.

bencates.bsky.social•5 days ago

The IRS SWAT teams answer only to the dictates of Chairman Powell.

newcartographer.bsky.social•5 days ago

It's so weird that billionaires take to social media to show everyone how dumb they are. I would just not do that!

yourhcklbryfriend.bsky.social•5 days ago

Fiscal policy is not monetary policy

dzord.bsky.social•5 days ago

Christ, we'll never be free of Ken Rogoff's inability to proofread Excel sheets before publishing, will we?

https://www.marketplace.org/story/2013/04/17/excel-mistake-heard-round-world

williameasley.bsky.social•5 days ago

Cuban has the brain worms

johnhobbitson.bsky.social•5 days ago

If the US lowered federal debt levels by $1 and raised private debt levels by $1, then that’s a better world Mark?

bluepencap.bsky.social•5 days ago

on my knees begging Business Guys to understand the difference between monetary and fiscal policy

fischer.bsky.social•5 days ago

guy who looks at EU monetary and fiscal policy and says I want that

nicksb.bsky.social•5 days ago

All you would have to do is get rid of the inflation mandate. 🤷‍♂️

feliciahaymaker.bsky.social•5 days ago

#econsky

vadskr.bsky.social•5 days ago

Stupidity is bipartisan sometimes

luckyleckie.bsky.social•5 days ago

Who needs Congress, I guess?

joshpheterson.bsky.social•5 days ago

Did Nico Harrison come up with that proposal?

sigmanerd.bsky.social•5 days ago

Okay so, I sort of get intuitively why this as dumb, but as a non-econ fellow, I'd love a run-down on why it is dumb.

Mark Cuban is cool, but no one said a billionaire can't have half-baked economic schemes.

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