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Politics : Formerly About Advanced Micro Devices

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To: SilentZ who wrote (749766)10/28/2013 2:51:20 PM
From: Tenchusatsu   of 1575649
 
Z,
He said that if these policies really were monetizing federal debt, we would have very high inflation and high bond rates right now, and they're not.

That would be true in a vacuum, but right now that inflation is being counteracted by the deflation due to unemployment that is still higher than "normal."

Letting the deflation occur by itself is bad, of course, but forever countering that by monetizing debt isn't practical. Worse part about that is it fuels the reluctance to fix the core problems that is depressing economic growth.

The Fed, of course, doesn't have the tools to fix those core problems, and the current geniuses in Washington don't know how to fix them, either.

Tenchusatsu
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