They will never be able to get out of this ... the system
is so hook on it now ... that any attempt at small "withdrawal"
will provoke a violent reaction ... mountains of
debts, "free money era" , excessive amount of "printed" cash
flushing through the system etc ... I can't even see a way
to even get back to what it was just a few years ago
...
You're right Mia, I think the only way will be allowing
time to erode a large chunk of this debt away. If they can somehow
manage to get some sideways action going for a few years then maybe
things will reset somewhat. Problem is people are addicted to quick
gains, it seems normal nowadays.
Posted by DigiNomad on 17th of Mar 2023 at 03:39 pm
Inflation is the only stick left left. At least now they
know that there are repercussions to insane fiscal and monetary
policy...at least the monetary side seems to be aware (the fiscal
side is lost).
Saw a forehead slapping interview with Yellen last night
where she refused to concede that deficit spending was a major
contributor to inflation. She already lost her credibility by
saying inflation was transitory, but she clearly didn't learn much
from the experience.
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They will never be able
QT didn't last long with the Fed Balance Sheet Growing ...
Posted by mla127 on 17th of Mar 2023 at 03:32 pm
They will never be able to get out of this ... the system is so hook on it now ... that any attempt at small "withdrawal" will provoke a violent reaction ... mountains of debts, "free money era" , excessive amount of "printed" cash flushing through the system etc ... I can't even see a way to even get back to what it was just a few years ago ...
You're right Mia, I think
Posted by vasiboy on 18th of Mar 2023 at 08:41 pm
You're right Mia, I think the only way will be allowing time to erode a large chunk of this debt away. If they can somehow manage to get some sideways action going for a few years then maybe things will reset somewhat. Problem is people are addicted to quick gains, it seems normal nowadays.
Inflation is the only stick
Posted by DigiNomad on 17th of Mar 2023 at 03:39 pm
Inflation is the only stick left left. At least now they know that there are repercussions to insane fiscal and monetary policy...at least the monetary side seems to be aware (the fiscal side is lost).
Saw a forehead slapping interview with Yellen last night where she refused to concede that deficit spending was a major contributor to inflation. She already lost her credibility by saying inflation was transitory, but she clearly didn't learn much from the experience.