The tone of this article suggests that interests rates are abnormally high, when that is certainly not the case historically.
The Fed needs to start that process back gradually to normal, which means gradually reducing interest rates,” said economist Claudia Sahm
I have to do some research on this economist.
Economists tend to have extreme recency bias. She appears to be a fairly young economist. I'm guessing she doesn't even know that the ZIRP she grew up with is an historical aberration.
Guarantee
They might be abnormally high for a 35T debt load. I am not sure we can use historic metrics anymore. It's difficult to compare eras when debt to gdp (even though I am not a fan of this metric) was 30% with an era where it is 120%.
Was watching one of the Bitcoin Conf panels with Dave Smith and he was talking about how very few people are talking about the debt as compared to 10 years ago. Its pretty wild.
Self induced selective amnesia - is that what this is... :-)
Hells yeah!
More like selective news. They want to keep the cat in the bag for as long as they can.
10 years ago, at least they were trying to manage it. I remember Clinton balanced the budget? Can you even imagine them trying to do that now?
Yeah, they mentioned how Clinton and the conservative congress did that. Clinton was smart. He knew he couldn't get all of what he wanted to he worked with the Republicans. Guy still brags about balancing the budget lol.
He wasnt perfect. Balancing the budget was a big thing, no one else has tried. No one can. Not even Trump with all of his star power.
You've got it wrong. No one cares. They aren't even trying. None of them.
Right. Just imagine if one of them said they could do it. Do you know how many people would actually do a double take?
Politics
I wonder how the politicians feel, when they know they are part of the era that lost control of the economy. You think any of them care?
Yes, you're right. But interest rates should be set by the market, not by how many bonds the fed issued to inflate the gdp. Of course that won't happen. It just bugs me that we live in an era when zirp or even negative rates are normalized.
Even if they reduce interest rates, and inflation goes down... Will the companies that are fleecing us bring their prices down, too?
I blame inflation squarely on the debasement of the currency. Sure, there might be some companies taking advantage of the situation, but the government is to blame. Also, even if inflation goes down, that just means prices will go up slower. They won't go down, unless we get deflation. Some people think that's possible, but I don't think so.
Yeah, I am not sure deflation is possible, but making inflation go down should be a priority. Can you imagine what it would be like if we were to deflate our currency? The power the USA would hold?
How would the US pay it's debt then? That's why I don't think they will do everything possible to avoid it. The government needs inflation.
True. But if the government leveraged its strong currency, it could get out of the stupid situation it has put itself in.
You know the cliche. Bitcoin fixes this.
This cliche, it is an interesting conundrum. Can you imagine if every country held bitcoin, what it would do to the currency? When do you think the seizures will start?
Self custody
I think the best explanation is that they are looking for more interest and more taxes.
😉I'm not an expert.
I am not sure we can use historic metrics anymore. It's difficult to compare eras when debt to gdp (even though I am not a fan of this metric) was 30% with an era where it is 120%.