Seems like there are two bad options: either the fed raises interest rates enough to slow inflation, and debt service consumes a huge amount of national budget, or inflation really runs. It doesn't seem right that current inflation is very transitory.

Oct 23, 2021 · 6:23 PM UTC

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But I don't think the status quo can go on too much longer, and we have simultaneously forgotten what it's like to not have this much liquidity injected all the time and haven't yet come to grips with the size of the US debt.
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Replying to @sama
Raising interest rates is actually driving inflation @wbmosler
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Replying to @sama
Current inflation is due mostly to production & shipping issues due to covid. Raising interest rates makes this even worse and could lead to stagflation. Only option is better treatments & continue vaccination until production catches up.
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Replying to @sama
Such a Bitcoin bullrun tweet , wish to see tweets like this in bear market but won't happen cuz inflattiok doesn't exist in Bitcoin bear markets right aM I RIGHT?!!!!??
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Replying to @sama
There is a 3rd option. Fed hikes rates, keeps buying assets and the profit from the assets it remits to the Treasury, which in effect cancels about 50% of the interest owed (if kept at current level). Everyone else gets higher interest rate.
Replying to @sama
If the inflation is driven by bidding wars caused by too much currency in the system, you can also just tax some of the money back out
Replying to @sama
Longer the wait the harder to raise. We should eat it now.
Replying to @sama
Why does it not seem right?
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Replying to @sama
We have had both deflation & inflation in the economy for a decade. 1st caused by innovation & 2nd caused by policy makers printing to counter deflation. Believe both will continue, leading to larger asset bubbles/inflation (covid accelerated it).
Replying to @sama
Inflation is already falling tho
Replying to @sama
Man, I remember a few months ago every single left leaning person I listened to seemed to think that the deficit was not really a problem and wanted to spend a lot more money.
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