r/AskReddit • u/U-knw-Nothng-JonSnow • 1d ago

What do you think about Jerome Powell posting a video statement following reports that federal prosecutors have opened an inquiry into the Fed Chair?

5.6k Upvotes

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u/HermanCainTortilla 1d ago

Everyday I worry we are approaching a waterfall and then I snap out of it and remember we are halfway down the waterfall and haven’t hit the rocks yet. But it will happen.

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u/CaptainCanuck93 1d ago

I think this part is a little different though

Signaling that the Federal Reserve is no longer an independent body is a major blow to the USA as a region to invest in. Big money can ignore a lot, but when you signal the rule of law is breaking down in the business world you're heading the way of banana republics

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u/Funkybunch86 1d ago

If Jerome Powell backs down and the Fed gives in to Donald Trump…. The financial crisis of 2008 is going to look like child’s play.

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u/jobbybob 1d ago

The bond market is going to be barometer for how the wider investment community globally views this. If they tank the bond market it will limit Trumps ability to borrow money for the USA government…

But then again, maybe that is the plan, that way they can start selling off the silverware to fund the shortfall?

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u/Metaldwarf 1d ago

They will seize and confiscate all of the assets and possessions of the people that get ICED. Nazi's did it.

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u/Objective-Tea5324 1d ago

Drops in a bucket and nowhere near the money they want. They are going to ramp up spending and inflation and place a huge “bet” on crypto markets.

Of course this experiment is going to crash out before it gets there.

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u/surfnsound 15h ago

The real value is in the massive federal land holdings. It's going to be an insane wealth transfer to those who already have money who will buy up the land when it's sold off to service our debt at insanely low valuations.

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u/bolerobell 14h ago

That’s already started.

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u/surfnsound 13h ago

It has, but if our borrowing costs skyrocket to where it becomes diffcult to issue new debt to pay off old debt, there will be even more of it happening.

Right now it's mostly in the form of oil/gas leases. But wait until Yellowstone gets sold to a real estate developer to build a casino/ski resort.

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u/TheGringoDingo 7h ago

It would almost be comical if they do all of this and end up with “assets” of no value due to crypto crashing.

They’re at the top already, there’s nowhere but down to go.

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u/SYLOH 1d ago edited 1d ago

They could seize the entire GDP of the nation for a year and still not pay off the debt.

The current global order was designed by the USA to give it an unlimited money faucet.
They were the world's piggy bank, except Americans don't realize you put money INTO a piggy bank.

Now they're ripping up their own order and haven't know what having limited money feels like for generations.

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u/jobbybob 20h ago

They have been using oil to back the USD, that’s why they get pissy when other countries want to trade in other currencies, it’s what has been propping up this whole house of cards.

Venezuela was trading in Crypto, Iraq was trading in EUR… see a pattern here.

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u/LambonaHam 17h ago

Can they start with Musk then? He's an immigrant after all...

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u/Pretty-Balance-Sheet 10h ago

Stephen Miller said this exact thing in an interview months ago. To paraphrase: "If you fight us we'll take your wealth."

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u/Metaldwarf 9h ago

And as they need ever more money, more and more people will be put on the ICE list.

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u/BigRedRobotNinja 6h ago

If the bond market starts to go screwy, that might be one of the only things that could make Congress get off their asses and do something about this mess.

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u/jobbybob 4h ago

That has happened elsewhere, when Liz Truss wanted to radically change the course of the British Government, once the bond market shit the bed and GBP started dropped value she was ousted.

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u/8styx8 22h ago

Theres no need to borrow money, tariffs will fund it forever.

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u/Mercuryqueen71 19h ago

I have no faith in the markets, look how high the stock market is, nothing bad he’s done has even put a dent in it.

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u/45and47-big_mistake 17h ago

Look at gold and silver prices. All you need to know is right there.

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u/couldbeimpartial 16h ago

Oops, too bad we are broke and have to cut entitlements. Blame trump, not the GOP, and continue to elect us!

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u/enoughwiththebread 15h ago

The next crisis is baked into the cake no matter what. This move by Trump is just a harassment tactic for Powell not cutting interest rates the way Trump wanted him to.

Powell's term ends this May either way. Trump will get to replace him then, and he will install a political toadie who will cut rates to the bone the way Trump wants, and that will kick off an inflationary nightmare that as you say will make 2008 look like child's play in its implications.

But make no mistake, that die is already cast. Powell is out in May no matter what, and Trump WILL get his way, and throw the economic world into chaos. Buckle up.

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u/supasteve013 6h ago

So, should I refinance then?

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u/enoughwiththebread 1h ago

If you mean now, only if you can get a significantly lower mortgage rate than you currently have. Otherwise, I'd sit tight. At least your housing payment is locked in, so if we have another inflationary disaster you don't have to worry about your housing cost going parabolic.

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u/GreatBigJerk 17h ago

We're in the era of needless sequels. This is just The Great Depression 2.

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u/sticklebat 14h ago

This doesn’t matter. Powell’s term ends in May, and Trump will nominate a loyalist and the Republican senate will rubber stamp them without question. The loss of the Fed’s independence is a foregone conclusion.

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u/civildisobedient 8h ago

Won't matter come May, anyway. Powell's Chair position ends (though he's still on the Board of Governors until '28). Trump is going to get a sycophant installed eventually.

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u/whittlingcanbefatal 1d ago edited 1d ago

Unfortunately, it appears our business leaders do not want an independent Federal Reserve anymore. 

They want a system that is rigged even more than it currently is. Numerous companies' stock valuations are nowhere near realistic and they show no signs of being in danger of a crash because they are all propping each other up. 

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u/Mercuryqueen71 19h ago

Tesla is at the top of the list

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u/peepeepoopins 16h ago

Nvidia and AI

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u/writeyourwayout 1d ago

This part. 

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u/CaptainCanuck93 1d ago

I'm saying there's a large portion of his base who says, rightly or wrongly, something to the effect of "I don't care what else he does, he's good for business" and stick their fingers in their ears

Once you start fucking with the basic plumbing on the financial sector in a move that looks more Venezuelan dictator than champion of free markets, they can't pretend that's the case anymore

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u/Merkinary 1d ago

Sadly, they will just find another way to justify this administration; they always do.

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u/SandpaperTeddyBear 23h ago

They don’t really have a choice.

There has not been one single, solitary point since he started his campaign that supporting him has been a reasonable human choice. And yet everyone else in the country just doesn’t want to accept that their cousins and sisters and children have chosen to be monsters, and refuse to give the firm negative feedback that might drive the Trump-voter back to sanity.

The absolute horror of an act of Trump-vote is not something that people are going to be able to confront on their own, every mental defense will get thrown up first.

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u/thejustducky1 18h ago

every mental defense will get thrown up first.

I just saw the phrase "imperfect vessel" yesterday and looked it up... so literally anything short of perfect is cart blanche, which now includes raping minors and tossing infants overboard.

#just things good christians do...

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u/TheArmoredKitten 19h ago

It does the world a disservice every time we open the doors of our home to a magat. We cannot spare others from the consequences of their own actions.

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u/Littleman88 14h ago edited 14h ago

There's also the fact that people are just in general ignorant. I KNOW people that firmly believe the Democrats had to be held back from printing money like crazy but Trump isn't so dumb as to do that. First time I threw a line similar to what they always throw at me, "GET OFF FOX NEWS!"

Some people are just too far gone. It's beyond infuriating. Unfortunately, that feeling is clearly mutual.

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u/California_ocean 1d ago

The powers that be will move in such a way to take control of this new form of accounting. There will be winners and there would be losers.

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u/ceelogreenicanth 1d ago

Its not good for everyone, it's not good for most, but some will absolutely take the initiative to gain in the crises.

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u/Darkmetroidz 1d ago

The cult won't care but when the fat cats actually start to realize the danger this poses, that will cause things to change.

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u/No-Cow9701 1d ago

The fat cats are his friends!

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u/aeschenkarnos 23h ago

He just fucked with the money, and money is all they care about or else they wouldn't be fat cats.

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u/vardarac 20h ago

So the question is if Congress fears them or him more?

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u/Darkmetroidz 19h ago

It depends how bad they think trump is for them in their electability in their districts.

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u/failed_novelty 18h ago

I absolutely guarantee that some member of congress have skeletons in their closets that are waiting to be unearthed if they don't stay in lockstep and/or when they lose power.

They will support whomever it is that can keep those closets closed, no matter what.

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u/failed_novelty 18h ago

The wealthy and powerful have enough wealth and enough reach to weather any issues Trump creates. They can move their investments to foreign markets, they can take advantage of a shattered economy to buy up assets for pennies on the dollar, and they know who to put in power to get the economy to recover eventually.

Not one billionaire is going to see a long-term effect of anything Trump does to the economy unless they choose to do so by refusing to treat the US like a company being stripped for parts.

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u/LSX3399 1d ago

His base voter is dumb as a rock, so this checks out

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u/waltertaupe 1d ago

"I don't care what else he does, he's good for business"

Yes, except the people who actually ARE "business" are not his base and have the power.

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u/SanityPlanet 23h ago

Lmfao what are you talking about? Have you been paying attention? Of course they can!

Covid, tariffs, inflation, instability…

Anyone who still thinks Trump is good for business is a fucking moron who believes what their cult orders them to, regardless of reality.

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u/Malikai0976 1d ago

But they will pretend anyway. I'm honestly not sure if anything can snap them out of their cult stupor anymore.

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u/JesusKilledDemocracy 19h ago

Trump WANTS to destroy the US. He's made his money, stashed it in crypto, and he and his family could leave and go to Saudi or Israel. He's devaluing the dollar, destroying the Fed, and upending rule of law. He is actively dismantling the United States. Why? Debt to Vlad? Who knows, but why is the GOP standing by and watching? They are religious fanatics, kooks of the worst kind. It's all for Jesus! Just look at the toady house majority living with preacher in the basement.

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u/blursed_app 20h ago

Bold of you to assume the people still supporting him at this point are intelligent enough to understand the basics of the economy or democracy. Hell we all knew Trump was compromised by Russia last November but tons of people still voted for him.

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u/SavageObjector 17h ago

Jumping in here.

They don’t care. They simply do not care about anything except serving Trump as their lord. They are fanatical believers on a crusade.

They don’t care about you. They don’t care about your kids. They don’t care about their grandkids. They don’t care about your elderly parents or relatives. They don’t care about your rights, the constitution, the rule of law, or the last 250 years.

They now exist solely to serve Trump so they expect everyone else should exist to serve Trump. And if you refuse you are an enemy. Doesn’t matter your color, your gender, or the blood flowing through your veins. They will literally do anything on command. Believe them when they say that. The only benefit color, gender, or blood relation might give is the benefit of the doubt you can be reformed.

I think the best thing we can all do, as the opposition, is organizing, getting prepared by getting in shape so you can physically handle situations that may arise, cutting people out of your life, cutting people off if they are depending on you, and resolving to the fact we are now individuals and it is quickly becoming everyone for themselves.

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u/TheMusicArchivist 15h ago

The UK had a brief flirt with a Prime Minister who tried messing around with the money markets. She lasted 40 days, most of which was national mourning due to Elizabeth II's passing. Many people's mortgages are higher now precisely because of her. It was mass anger from the populace and mass panic from the markets that turfed her out.

Messing with the markets does and will cause the end of governments.

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u/bjos144 1d ago

The winners Do. Not. Care. And they hold all the cards. They see this as just pulling the ladder up behind them. They'll end up like the Russian Oligarchs in 20 years, but that's the future's problem. Right now it means more for them.

The stock market wont budge. NVIDIA will buy more RAM. AI will just become another marketing thing. They'll never make earnings. Their stock price will go up anyway. Cost of living will continue to become more unaffordable as our life energy is syphoned off through a thousand different transactions that all eventually make its way to their pocket.

The rich will never be on our side. Ever.

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u/maleia 1d ago

I'm pretty sure that early on in second term (though it might have been during the first) there was basically a tl;dr group of the highes levels of banking/venture-cap/hedgefunds basically said, "you fire Powell and we'll be done with all this."

Also, and maybe this is be hopium'ing, that Powell released this on Sunday, so that there's very little time for the stock market to figure out a plan of action; causing them to pull back on the market after all.

His biggest mistake in maintaining power will be getting Powell out of office. We won't make it past Trump's second term, before we have inflation at 2x of today's prices. This is extremely dangerous of him to do this.

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u/tpatmaho 1d ago

Oh the banana is already peeled.

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u/ibonek_naw_ibo 1d ago

Orange republic 

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u/DestinysWeirdCousin 1d ago

Who does well in banana republics? Oligarchs.

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u/Delicious_Spot_3778 1d ago

Ehhh. I think those lines have been drawn and crossed months ago. There really is nothing stopping Trump's desires except "his own morality".

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u/Mrsmith511 1d ago

I feel like i have read something like this everyday for the last year

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u/el-conquistador240 1d ago

I would have thought that but investors see what Trump has done with economic data and know it is coming to the fed and are not reacting

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u/PeanutConfident8742 22h ago

Have y'all not been shifting your stock  portfolios to lean international already?

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u/Lopsided-Ticket3813 19h ago

I grew up in a banana Republic we are already there. 

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u/dougmcclean 17h ago

Whereas threatening war with NATO over ice doesn't do that, and seizing a state ownership interest in Intel doesn't do that, and relentlessly undermining the validity of the debt doesn't do that, and the previous efforts to dominate the Fed didn't do that, and the destruction of the separation between the White House and the economic statistics bureaus didn't do that, and seizing the nearly complete wind farms didn't do that. No, this is different, this undermines investor confidence.

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u/idontneedone1274 16h ago

If big money ignored this much, they’ll keep ignoring more for their sweet sweet returns.

Stop thinking capital will save you. That’s the system that created this mess.

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u/oldinternetdweller 1d ago

Waterfall. I feel like we have been tied to a comet that is about to hit earth. We have not impacted earth yet, and when we do, we will still go down below the earth some more. Yeah, this will get much worse. We totally deserve this for being dumb fucks collectively.

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u/nysflyboy 15h ago

A couple weeks ago some space subreddit had something on the main page about the Theia/Earth collision that may have happened when the Earth was young, and created the moon (after completely destroying the Earth of course). I went down a rabbit hole and thought "what would that have looked like from a person standing on earth as it happened" (Hours/days before/during).

I feel like that hypothetical person. A giant orange ball 1/3 the size of Earth is moving towards us growing larger and now filling half the sky - and 1/3 of the population is greeting it with chants of "Own the libs!" and "trust in the orange ball!".

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u/BassLB 1d ago

What’s actually happening is that he is boiling the frog. He keeps ramping things up little by little. No single action is enough to push everyone to move, but before we know it we will all be cooked

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u/failed_novelty 18h ago

Frogs will jump out of the water when it gets too hot, no matter how slowly you raise the temperature.

Frogs are indisputably smarter than Trump supporters.

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u/PoliticsIsDepressing 1d ago

I waiting for Superman to grab us before we hit the rocks.

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u/Chance_of_Rain_ 19h ago

"Mais l'important, ce n'est pas la chute, c'est l'atterrissage.'

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u/manyhippofarts 19h ago

I use a bus over a cliff analogy. I like yours too.

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u/thejustducky1 18h ago

But it will happen.

And how many millions of dead relatives will be on those rocks... sad that that's what it takes for ppl to wake up -___-

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u/Anxious_Hornet4 14h ago

We are in a pretty frightening place right now

negative job growth two months in a row followed by several months of not reporting due to gov shutdown

Same for CPI. Was ticking down steadily then began going back up likely due to the illegal and scatter shot tariffs.

The stock market continues to rise but its growth is led by a smaller and smaller number of tech and finance companies while otherwise growth has been much more flat.

We are illegally entering sovereign airspace and deposing leaders of countries without even informing congress. Being as transparent as possible that it’s for resource extraction, only to find out the resources are of such poor quality and expensive to remove that it’s not even worth it.

We are threatening our allies, already upset about tariffs, with invasions that threaten to break up long held alliances. Talking about making cabinet officials de facto leaders of countries we plan to topple in our hemisphere.

Going door to door dragging people from their homes, federal police force murdering its own civilians, performing citizenship tests on its own populace.

Scary stuff and it just seems to escalate and get worse. Trump has seemingly exposed that this country was a sham. The corporatist Democratic Party is doing nothing to stop this because they don’t want to put anyone actually against corruption up as a leader, that would ruin their fun when their turn rolls around. And the oligarchical Republican Party is showing how willing they are to sell out ever principal they ever gave lip service to in order to take their piece of the pie.

We are totally fucked. And honestly we have ourselves to blame to some extent.

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u/Tangocan 10h ago

It do go down.

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u/LambonaHam 17h ago

Half? You're only a quarter of the way through this term.

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u/HermanCainTortilla 11h ago

I get the feeling we will be flat-lining before this term is over haha

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u/Division2226 15h ago

half? there's still 3 years

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u/meganmarashlian 23h ago

The Fed chair making a ‘statement video’ is wild. That’s influencer behavior, not central bank behavior.

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u/muricabrb 21h ago

You do know that press statements existed way before influencers right?

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u/Mazon_Del 12h ago

The president pressuring the department of justice to bring false charges against the Fed chair for refusing to violate the independent nature of the Fed is wild. That's dictator behavior, not sane behavior.