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 ?
dave /
npub12s…yk6jg
2024-09-08 18:04:42
in reply to nevent1q…h0m5
Author Public Key
npub12sjc2yn0h50u0m23w48l4eu0870cfvkwqe4x9fwz2yrwz6ewcxyqkyk6jgPublished 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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