An inflationary currency requires an ever-expanding monetary and credit supply for the underlying economy to survive over the long-term.
Deflationary pressures are the primary adversaries to such a system and, if and when they occur, they must be quickly resolved or removed.
In light of this, the Federal Reserve (and other central banks) attempting ongoing quantitative tightening in an inflationary system is akin to driving 70 mph down the highway and shifting the car into reverse.
The engine will eventually reject this paradox...
And quantitative easing will be forcibly resumed.
Dr. Jeff / Dr. Jeff Ross
npub1k7…3c04l
2023-04-21 16:18:07
Author Public Key
npub1k7vkcxp7qdkly7qzj3dcpw7u3v9lt9cmvcs6s6ln26wrxggh7p7su3c04lPublished at
2023-04-21 16:18:07Event JSON
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"content": "An inflationary currency requires an ever-expanding monetary and credit supply for the underlying economy to survive over the long-term.\n\nDeflationary pressures are the primary adversaries to such a system and, if and when they occur, they must be quickly resolved or removed.\n\nIn light of this, the Federal Reserve (and other central banks) attempting ongoing quantitative tightening in an inflationary system is akin to driving 70 mph down the highway and shifting the car into reverse.\n\nThe engine will eventually reject this paradox...\n\nAnd quantitative easing will be forcibly resumed.",
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