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Thanks for sharing. This is largely why I think we are fooling ourselves with the idea that a few rate rises will be sufficient and this will be short lived wit

by voisin 4y ago

Thanks for sharing. This is largely why I think we are fooling ourselves with the idea that a few rate rises will be sufficient and this will be short lived with a soft landing. I think we are going to need high single digit rates to contain inflation and it will lead to a recession (I think we are already in one). Generally higher levels of indebtedness (public and private) will lead to widespread pain. I am normally an optimistic person but don’t find any reason to be optimistic about getting out of this economic hole we’ve spent decades digging.

throwaway0a5e 4y ago
> we are fooling ourselves with the idea that a few rate rises will be sufficient Oh they will be. But not until the people in charge nut up and raise the rates to the point of them actually being effective. We're beating around the bush with these paltry rate hikes right now and inflation will not abate as long as that continues and the longer it runs the more inertia it picks up as the expectation of inflation gets baked into more and more places in the economy and the tighter we will need to make the supply of money to put the brakes on it.