dave on Nostr: my understanding is when the federal debt and interest expense are so large that the ...
my understanding is when the federal debt and interest expense are so large that the federal reserve cannot raise or keep interest rates high to combat inflation. you get into a doom loop where higher rates raise interest cost and thus lead to higher deficits, which require more money printing to fund the treasury debt issuance. if the inflation is driven by this deficit spending, then fed raising rates will only exacerbate the problem.
LynAlden (npub1a2c…w83a) would you clarify or disagree with that ?
Published at
2024-09-08 18:04:42Event JSON
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"content": "my understanding is when the federal debt and interest expense are so large that the federal reserve cannot raise or keep interest rates high to combat inflation. you get into a doom loop where higher rates raise interest cost and thus lead to higher deficits, which require more money printing to fund the treasury debt issuance. if the inflation is driven by this deficit spending, then fed raising rates will only exacerbate the problem.\n\nnostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a would you clarify or disagree with that ? ",
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