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100 sats \ 0 replies \ @mallardshead 18 Oct 2023 \ on: for the US, what would a “soft landing” look like? meta
Adjusting to higher inflation and higher rates. Technological innovation which is deflationary, and lower energy inputs, preferably both powering each other. We're already on the cusp of an energy transition and ai revolution, with a static population, automation, and massive reshoring of jobs here in the US. And until demand for our debt goes away, and there's a viable replacement for the USD, the game will continue. It's in relative terms, compared to other currencies and bond markets. And it's all a much bigger problem for emerging markets, and countries with aging populations and high debt to GDP. There is no crisis narrative that holds water regarding the US. Our defense budget will need to shrink though (it has been slowly), and medicare will need a big efficiency boost.