I suspect it could happen again as oil prices and other commodity prices rise.
US oil companies are dead and Biden is only going to hurt them more. US will have to import oil again.
US will keep printing money and the stagflation cycle begins.
American Economics Thread
- Thread starter Bernard
- Start date
I suspect it could happen again as oil prices and other commodity prices rise.
US oil companies are dead and Biden is only going to hurt them more. US will have to import oil again.
US will keep printing money and the stagflation cycle begins.
Well. Good luck with that!
Pete Buttigieg: I want the United States to be leading the world in high speed rail
Secretary of Transportation Pete Buttigieg joins The ReidOut to talk about the future of high speed rail in the United States and having racially equitable transportation policy.Feb. 5, 2021
Here's the link.
Pete Buttigieg: I want the United States to be leading the world in high speed rail
Secretary of Transportation Pete Buttigieg joins The ReidOut to talk about the future of high speed rail in the United States and having racially equitable transportation policy.Feb. 5, 2021
Here's the link.
In4ser
Junior Member
Pete Buttigieg is an atypical two-faced politician that will say anything to get votes without actually believing the words coming out of his mouth. Here's a link of him getting chased out by protestors when he was trying to exploit their struggle for a photo-op.
He and half of the Democratic primary candidates were co-opted for the appearance of unity within the Democratic Party by Biden. This is nothing more than a resume builder for him.
As for Biden, he's currently trying to talk down expectations of a $15/hr minimum wage as if he actually cares (though I do think it's a stupid idea). Even among Blacks and Hispanics, they are wising up to false promises and empty gestures of the so-called 'Social Justice' Party. People like Biden are the reason why people got desperate and chose an outsider like Trump in the first place.
He and half of the Democratic primary candidates were co-opted for the appearance of unity within the Democratic Party by Biden. This is nothing more than a resume builder for him.
As for Biden, he's currently trying to talk down expectations of a $15/hr minimum wage as if he actually cares (though I do think it's a stupid idea). Even among Blacks and Hispanics, they are wising up to false promises and empty gestures of the so-called 'Social Justice' Party. People like Biden are the reason why people got desperate and chose an outsider like Trump in the first place.
the lifeline for the recovery is QE and negative interest rate. if inflation starts to rise, then fed got to start tightening, that will be very painful.
Made in China has been THE driver that keeping prices down across the world in the past decades. China can simply tell the world that the time for cheap Chinese goods is over.
US debt burden makes raising interest rates literally impossible without collapsing the government.
Imagine 3% interest on $30+ trillion in debt. That’s 5% GDP going to interest payments. America’s real productivity improvement per year is around 0.5% I believe, rest of the “growth” has all been money printing.
They have no choice but to suffer inflation and China has no choice but to increase prices for the US
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I believe that the interest rate is effectively 0 at the moment?
Damn 5% GDP goes to interest, that's almost double of military spending.
inflation is a wild beast, once get loose, it's very hard to tame. a runaway inflation may destroy everything on its way. the only way is: cut spending and raise interest rate, a very bitter medicine the IMF often orders third world countries to take.
Effective treasury rate is around 2.6%. The rate is a weighted average of all the treasury of varying maturity times that were purchased long before and recently.
Most are short term though.
Fed will buy treasuries to keep average interest rate <2-2.5% so that debt payments overwhelm things.
The more they do that, the more private and institutional buyers will stay away from US treasuries.
This will all translate to inflation in the long run.
I don't have much knowledge of economics but I've heard people saying America's government can just print cash because people want USD. Is there really no consequence to the insane amounts of QE the US govt pumps out? Or can we expect some form of implosion?
antiterror13
Brigadier
In theory yes as the US govt debt is in its currency (USD), unlike most other countries (i.e Mexico debt is in USD currency, not in its currency). So YES, just print USD to pay its debt in USD ... thats the theory, in reality, thats would be the last resort as once the US govt start doing it, basically nobody would trust the USD/US Govt anymore