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We'll see what happens. The Fed always says they have everything under control, until they don't. But it's never their fault by stopping and starting the money spigot at the wrong time.
- don't understand that we live in a global economy, just not an isolated US economy and every major central bank printed money including US. If US does roll back fed balance sheet in isolation, it will not end up well because US export will hurt.
- have been sitting on cash hoping for a crash in asset prices and just bitter that it didn't happen.
Either way, I'm happy that you are not in charge of Fed.
Who cares about a global economy. Have you been listening to our president recently? America first!!! I don't understand how so many people think that inflating the global markets is the job of the FED, even as it destroys the Dollar, which is the foundation of our civilization.
Powell's UNWIND is killing China, which we want, right? He needs to keep UNWINDING the FED balance sheet, which strengthens the Dollar. This will unwind the global debt bubble. The FED fixed the whole world's problem from 2001-2016. Now it needs to FIX America's problem, which was created by the FED's 2001-2016 FIX.
Who cares about a global economy. Have you been listening to our president recently? America first!!! I don't understand how so many people think that inflating the global markets is the job of the FED, even as it destroys the Dollar, which is the foundation of our civilization.
Powell's UNWIND is killing China, which we want, right? He needs to keep UNWINDING the FED balance sheet, which strengthens the Dollar. This will unwind the global debt bubble. The FED fixed the whole world's problem from 2001-2016. Now it needs to FIX America's problem, which was created by the FED's 2001-2016 FIX.
Good Luck!!!
So my assumption #1 is correct. You don't get it. Good luck.
So my assumption #1 is correct. You don't get it. Good luck.
I don't get it, but you do . Tell me then, is it possible to Grow our way out of the largest debt in the history of the world???? As we grow, interest rates will rise, and this will choke off fuel for more growth. Could we lower rates instead? And generate more debt? We could. But that will lead to the death of the economy. ZIRP might be the best thing for preserving the status quo today, but it would lead to the eventual death of the system.
All organisms breathe. We don't think of the economy as an organism, but we should. It needs to breathe also.
I don't get it, but you do . Tell me then, is it possible to Grow our way out of the largest debt in the history of the world???? As we grow, interest rates will rise, and this will choke off fuel for more growth. Could we lower rates instead? And generate more debt? We could. But that will lead to the death of the economy. ZIRP might be the best thing for preserving the status quo today, but it would lead to the eventual death of the system.
All organisms breathe. We don't think of the economy as an organism, but we should. It needs to breathe also.
If debt is the largest ever, that means assets are also at their highest.
I don't get it, but you do . Tell me then, is it possible to Grow our way out of the largest debt in the history of the world???? As we grow, interest rates will rise, and this will choke off fuel for more growth. Could we lower rates instead? And generate more debt? We could. But that will lead to the death of the economy. ZIRP might be the best thing for preserving the status quo today, but it would lead to the eventual death of the system.
All organisms breathe. We don't think of the economy as an organism, but we should. It needs to breathe also.
The discussion was about printing money. US printed 3 times the money it had before. All other central banks printed 3 times the money they had before. Let's assume all assets are now 3 times more expensive now (not exactly true but close). Nothing really changed relatively speaking, and as a whole other than for people sitting on cash this whole time. Their dollars are 1/3rd the value now.
Say I did not sit on cash and invested in stock or housing assets. I have 3 times the dollars each having 1/3rd the purchasing power of pre-runup value. Nothing changed for me.
For people involved in foreign trade, nothing changed because the relative value of dollar with respect to other foreign currency is the same as before.
There is a reason for other central banks to print money when US started this. Their currency was becoming expensive w.r.t. USD and that was hurting their exports. They had to dilute their currency by the same amount, if not more.
Now Fed starts shrinking balance sheet (destroy money) and if other central banks do not follow, USD will get more expensive compared to other currencies. US treasury will have to pay back debts with expensive dollars, even for previous debt with lower interest rates. Tell me how this will be helping us grow out of debt.
In one sentence you say that you don't care about global economy and then in the next sentence you talk about growing out of global debt. You and your genius president may not care about global anything but the world does not run based on your theories.
It's always easier to pay back debt with inflated money, like it or not.
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. Tell me then, is it possible to Grow our way out of the largest debt in the history of the world???? As we grow, interest rates will rise, and this will choke off fuel for more growth. Could we lower rates instead? And generate more debt? We could. But that will lead to the death of the economy. ZIRP might be the best thing for preserving the status quo today, but it would lead to the eventual death of the system.