r/wallstreetbets 23h ago

Discussion 5 rate cuts 😮

Post image
2.2k Upvotes

676 comments sorted by

View all comments

Show parent comments

49

u/clapsandfaps 21h ago

Honestly do they have a choice?

Not to be a doomsayer, but with rising inflation (again) due to tariffs, probable layoffs due to reduced demand on american goods due to tariffs and combine that with high interest to fight the self-induced inflation, people will default, a lot. Even domesctically produced goods will be hit with inflation due to potash tariffs.

I’m seeing in my unqualified crystal ball, a depression happening.

89

u/Massive-Opposite-705 21h ago

What the end goal if you print more money for a bail out just continue kicking the can down the road. It’s like we’re building a dam that gets weaker each renovation and gets more water behind it. The longer you keep repairing it with tape and sticks the bigger the flood will be when it collapses. Let pain hit when it is supposed to hit rather than pushing it to the next generation double

116

u/Syab_of_Caltrops Dirty HODLer 21h ago

The US is a world champ can kicker. You underestimate this country's can kicking skills.

6

u/onpg 18h ago

That worked because we were the world reserve currency. Something our Dear Leader is working very hard to end.

0

u/Syab_of_Caltrops Dirty HODLer 17h ago

What's going to replace it, a BRICS currency? The Euro?

I'm not denying there's pressure on the Petro Dollar and there are strong efforts to create an alternative, but all those alternatives are laughable, even conaidering the upheaval at the moment.

Humans love creaming doom and gloom, but it almost never come to pass.

4

u/onpg 15h ago edited 14h ago

How old are you? Curious. They were laughable. Until this week.

Edit: well, until Trump won re-election actually. Because after that all of this was kind of inevitable.

1

u/Syab_of_Caltrops Dirty HODLer 13h ago

Well out of college.

But seriously, in what word do middle eastern countries trade crude in Euros, or Western countries trade crude in a currency backed by China or Russia?

Even if they were open to it, it would take much longer than any of Trump's emergency provisions will last.

Dude's gone completely off the rails, but you're catastrophizing if you think that transition will happen any time soon. The long view on this is still fine. That can change, but right now we have no clue how things will shape up.

EDIT: If Inwas a betting man (and I am, this is WSB), I'd say a lot of this will be challeneged and over turned by courts. And, at that point, I think the Trump admin will see it as a relief and a way to get out of a very bad position they've put themselves in.

2

u/onpg 12h ago

The problem is we've become a pariah on the world stage. You'd be surprised what people are capable of when pushed hard enough.

1

u/highroller_rob 42m ago

Hot Take: Trump is working to replace the USD with bitcoin.