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They can't stay this high for long without a federal debt crisis, which is a key reason the Fed is hoping to get interest rates back down. If we weren't so ind
by nostromo 3y ago
They can't stay this high for long without a federal debt crisis, which is a key reason the Fed is hoping to get interest rates back down.
If we weren't so indebted, interest rates could indeed stay high for a long time without much concern. But there's a point in the not-so-distant future where our government will need to print even more money to pay the debt (which will spark more inflation) or we'll need to cut all spending that isn't interest on the debt.
- orwin 3y agoIf so, there is a way to destroy inflation, its raising taxes. Put taxes on wealth and on secondary homes and non-commercial renting, destroy the money, less inflation. Easy.
- jajko 3y agoNo politician is ever going to do that, not with that reasoning, not so much it would actually matter. Way too many people's wealth would be burned to the ground. We talk avout tens of percents of every populatiin in literally every country. It may be a reasonable advice when isolated from complexity of reality, but at the end its a bit like saying for example: solve all evil by separating / killing all evil people.