3 ms·

While not particularly tech focused this will probably be a global issue soon as the Fed/Gov will act to try to crush inflation (or possibly more likely, a mass

While not particularly tech focused this will probably be a global issue soon as the Fed/Gov will act to try to crush inflation (or possibly more likely, a massive fight about whether inflation is good, bad, or still transitory will take place) and markets will be in flux because of these actions. Given how interconnected the world is, this'll probably have ramifications globally and given how big tech stocks are right now in the U.S. at least, they might be impacted as well. I'll let someone smarter than me prognosticate on the impacts of non publicly traded companies and the VC market but I'd guess there'll be some second order effects there too.

cft 5y ago
Ultimately, the government attempts to crush inflation will amount to feeding excess dollars to the foreign markets. What happens when the capacity of these markets to absorb the newly created dollars is saturated, will play out quite soon.
michaelt 5y ago
> a global issue soon as the Fed/Gov will act to try to crush inflation The main tools in their toolbox to do that are "raise interest rates" and "cut government spending" neither of which sound like fun given all the economic damage the pandemic has done. I'm glad I'm not the person who has to decide....
- throwaway6734 5y ago
  The Volckering 2
  - FooBarBizBazz 5y ago
    If they do that, the economy will crash leading into an election year, with an actual risk of Fascism.
    - FooBarBizBazz 5y ago
      ...which is why rates will stay low. The bulls have no choice but to keep running.
Der_Einzige 5y ago
Wait, why? Inflation is happening quickly all across the world, not just in the USA. Inflation is popular with debt holders (home owners!). We can literally just accept modest inflation. Maybe it's politically bad for the party in power, but I just don't see Trump in 2024 calling for interest rate hikes unless he wants a mutiny from his own party on his hands. As such, I don't see why we have to actually fight modest inflation at all.
- michaelt 5y ago
  > I just don't see Trump in 2024 calling for interest rate hikes You don't need a feasible solution to call out the failings of your political opponents. Trump can just say "the economy under Biden is very bad, a lot of people are saying food is much more expensive, and they're poorer under Biden. America needs a smart leader who is good at business to make america great again"

cft 5y ago

Ultimately, the government attempts to crush inflation will amount to feeding excess dollars to the foreign markets. What happens when the capacity of these markets to absorb the newly created dollars is saturated, will play out quite soon.

michaelt 5y ago

> a global issue soon as the Fed/Gov will act to try to crush inflation The main tools in their toolbox to do that are "raise interest rates" and "cut government spending" neither of which sound like fun given all the economic damage the pandemic has done. I'm glad I'm not the person who has to decide....

throwaway6734 5y ago
The Volckering 2
- FooBarBizBazz 5y ago
  If they do that, the economy will crash leading into an election year, with an actual risk of Fascism.
  - FooBarBizBazz 5y ago
    ...which is why rates will stay low. The bulls have no choice but to keep running.

Der_Einzige 5y ago

Wait, why? Inflation is happening quickly all across the world, not just in the USA. Inflation is popular with debt holders (home owners!). We can literally just accept modest inflation. Maybe it's politically bad for the party in power, but I just don't see Trump in 2024 calling for interest rate hikes unless he wants a mutiny from his own party on his hands. As such, I don't see why we have to actually fight modest inflation at all.

michaelt 5y ago
> I just don't see Trump in 2024 calling for interest rate hikes You don't need a feasible solution to call out the failings of your political opponents. Trump can just say "the economy under Biden is very bad, a lot of people are saying food is much more expensive, and they're poorer under Biden. America needs a smart leader who is good at business to make america great again"