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Rates can only be kept so low before a real crisis comes and there are no levers to pull to soften the landing. Maybe the crisis isn’t for a while, but eventual
by mym1990 5y ago
Rates can only be kept so low before a real crisis comes and there are no levers to pull to soften the landing. Maybe the crisis isn’t for a while, but eventually the economy will overheat at the current pace, that’s just the business cycle.
- throaway46546 5y agoDigital currency and negative rates?
- klipt 5y agoIsn't that just inflation in a Halloween costume? Inflation: your cash loses real value. Negative rates: your cash loses real value and nominal value.
- diordiderot 5y ago> Rates can only be kept so low before a real crisis comes Ah yes, newton's 4th law.
- 3pt14159 5y agoDepends on the time frame of the debt. If most of it is in multiyear bonds then a bad year or two is not so dire, though I agree that the US has some structural challenges coming over the next two decades. Also, one of the things I don't really understand is why people in the US quote debt to GDP ratios when net debt to GDP is strictly superior.