4 ms·

There's no downside risk. The USG and Fed will do everything in their power to keep us in a continuous state of "numbers go up." Borrowed billions of dollars

• monocasa 7y ago
  They're on the edge of what they can do with that and not kick off an inflationary spiral.
  • nradov 7y ago
    No one knows where the edge is. Deflation might be a bigger concern right now due to accelerating loan defaults.
  • mindslight 7y ago
    "Inflationary spiral" is the explicit policy. The assertions seem to be that stocks must always go up, and housing must always go up. That's inflation. Manufactured goods don't go up as much because they continually cost less to make and distribute, usually through offshoring and consolidation, hollowing out local economies.
    • monocasa 7y ago
      There's a difference between a couple percent a year to convince people to invest rather than hoard, and becoming Zimbabwe or post war Germany where we're printing new larger denominations of dollar bills like a real inflationary spiral causes.
      • mindslight 7y ago
        You say "invest rather than hoard", I say "waste rather than save". With how the rent treadmill is presently binding up, it certainly looks like we could have used more saving by all players, large and small. These moves by the Fed have essentially been necessitated by most everyone having to put their savings in the Wall St casino ("the Line always goes up"), a circular causality that will be harder and harder to repudiate - ie a "spiral". It's just a slow-starting spiral due to being the world reserve currency.