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They'll always "fix" it, until they can fix it no more. We are addicted to easy money. $35 trillion of national debt. $1 trillion in annual interest payments

They'll always "fix" it, until they can fix it no more. We are addicted to easy money. $35 trillion of national debt. $1 trillion in annual interest payments alone to service that debt. Cumulative inflation of 66.3% over the last 20 years (based on CPI, it's probably actually worse). Highest "Home Price to Median Household Income" ratio in the last 70 years, currently higher than the last housing bubble.

burgrchf 2y ago
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Izkata 2y ago
> Cumulative inflation of 66.3% over the last 20 years (based on CPI, it's probably actually worse). For context they target 2% per year, so cumulative over 20 years should have been around 48.6%
- scottiebarnes 2y ago
  And recently, the firmness of the 2% target has changed. Flexible Average Inflation Targeting (FAIT) allows for the Fed to let inflation to run above 2%, with the hopeful expectation of bringing it down below it at some point. https://www.brookings.edu/articles/assessing-the-federal-reserves-new-monetary-policy-framework/ https://www.brookings.edu/articles/assessing-the-federal-res...
wrenky 2y ago
The Fed will always fix it as _thats what the fed does_. Debt, spending, interest payments are all treasury- The stability of the system is the fed. They often work together but I'm willing to bet the fed is very unhappy with the level of debt and unable to do anything about it. Fed just controls the money supply and interest rates in an extremely technocratic way, divorced from the government or policy making. > Cumulative inflation of 66.3% over the last 20 years (based on CPI, it's probably actually worse). While this is bad, if you check the cumulative inflation from 1999-2019 where inflation had essentially been "missing" in the 1-2% range the cumulative inflation is 55%. Regardless though looking at inflation numbers is only half the picture, if you look wage growth in the same period, comes out to several percentage points above inflation/price growth. Even with all the big numbers we are doing pretty well!

burgrchf 2y ago

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Izkata 2y ago

> Cumulative inflation of 66.3% over the last 20 years (based on CPI, it's probably actually worse). For context they target 2% per year, so cumulative over 20 years should have been around 48.6%

scottiebarnes 2y ago
And recently, the firmness of the 2% target has changed. Flexible Average Inflation Targeting (FAIT) allows for the Fed to let inflation to run above 2%, with the hopeful expectation of bringing it down below it at some point. https://www.brookings.edu/articles/assessing-the-federal-reserves-new-monetary-policy-framework/ https://www.brookings.edu/articles/assessing-the-federal-res...

wrenky 2y ago

The Fed will always fix it as _thats what the fed does_. Debt, spending, interest payments are all treasury- The stability of the system is the fed. They often work together but I'm willing to bet the fed is very unhappy with the level of debt and unable to do anything about it. Fed just controls the money supply and interest rates in an extremely technocratic way, divorced from the government or policy making. > Cumulative inflation of 66.3% over the last 20 years (based on CPI, it's probably actually worse). While this is bad, if you check the cumulative inflation from 1999-2019 where inflation had essentially been "missing" in the 1-2% range the cumulative inflation is 55%. Regardless though looking at inflation numbers is only half the picture, if you look wage growth in the same period, comes out to several percentage points above inflation/price growth. Even with all the big numbers we are doing pretty well!