Elon Musk has drawn an intriguing comparison between the Federal Reserve and the rules of Hasbro‘s HAS game Monopoly, suggesting that the Federal Reserve operates in a similar manner to the game’s bankruptcy rules.
What Happened: On Sunday, Musk took to social media platform X, to share a screenshot of Monopoly’s bankruptcy rules, captioning it “How the Federal Reserve works.”
The rules state that if the bank runs out of money, it does not go bankrupt. Instead, players use slips of paper to keep track of transactions until the bank has enough paper money to operate again. The banker can also issue “new” money on slips of ordinary paper.
What’s Next: Musk’s comparison comes at a time when the Federal Reserve’s monetary policies have been under intense scrutiny. Financial analysts have criticized the Fed’s handling of the national debt, with some warning of a potential debt crisis.
Analyst Gordon Johnson has been particularly vocal, labeling Federal Reserve Chairman Jerome Powell as the “gaslighter-in-chief” for the reckless money printing that has contributed to the ballooning national debt.
Meanwhile, Wharton professor Joao Gomes has warned that without immediate action from Congress, the U.S. could face a debt crisis by 2025.
Moreover, the Federal Reserve’s ongoing struggle to rein in inflation has raised concerns about a potential recession, as highlighted by a recent analysis.
With the national debt reaching unsustainable levels, Musk’s comparison has added fuel to the ongoing debate about the Federal Reserve’s policies and their potential impact on the U.S. economy.
Image Via Flickr
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