3 ms·
With all due respect, I'm of the opinion that this idea of maintaining an equilibrium through "easing" and "tightening" is a logical fallacy. In practice, this
by pc_edwin 4y ago
With all due respect, I'm of the opinion that this idea of maintaining an equilibrium through "easing" and "tightening" is a logical fallacy.
In practice, this theory has been shown to be deeply flawed with grave consequence. Each iteration of this easing/tightening cycle seems to make the entire system more fragile at an exponential rate.
In essence, with each iteration, the extent of easing or intervention needed is increasing exponentially. Simultaneously, the system's capacity to withstand tightening or normalization is decreasing exponentially, requiring further interventions sooner and with greater severity.
I believe this is the basis for prognoses such as Balaji's on the US economic hegemony. When examining the exponential increase of these factors, it becomes evident that there is little space left before hyperinflation sets in. While I do not think the collapse will occur in 90 days, it may transpire in 900 or even 3000 days.