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People have been saying that for ten years now. If inflation ticks up, the Fed will raise rates, which will dampen inflation but increase the interest on new t
by mdemare 9y ago
People have been saying that for ten years now.
If inflation ticks up, the Fed will raise rates, which will dampen inflation but increase the interest on new treasuries, which will presumably compel the administration to cut spending and raise taxes, and borrow less.
- grenoire 9y ago...which in turn would yield an incredible risk of deflation. Monetary and fiscal policy is not as easy as turning a dial on the economics machine. The consequences of deflation in the US would be very dire.
- monob 9y agoTen years? People have been saying that since before Clinton got in office. Catastrophic inflation from government spending has been just around the corner for 40 years now. The 1970s were an odd time for many reasons, and they won't repeat again. But for some reason too many people base their predictions of the future from what happened between 1974 to 1984.
- wavefunction 9y agoI don't see how such an ideologically driven administration would raise taxes. Instead they will definitely attempt to cut domestic transfer payments and assistance to the needy. The money for the outrageous tax cuts for the wealthy 'needs to come from some where' after all. When you look at the numerous members of the administration that have already racked up 20million plus taxpayer-funded tabs for private flights on personal business there is nothing to point to as far as fiscal discipline with this administration.