OK, barnaby. A good start. As I said, it is slow to sink in.
You said “lowering (is) an inflationary tactic if the money has nowhere priductive to go”
Don’t you mean, lowering is an inflationary tactic if the money has SOMEWHERE to go?
So, the idea is that the money supply is shrinking, not growing because the money that was created by new debt (as opposed to actual printing) has gone bye-bye ?
And the fed is lowering but not necessarily lending because the banks don’t want to borrow from the fed to lend out.
