I don't see it as arguing. I'm interested in your opinions. It seems we both have deep knowledge in the area. So it's good to see someone who knows something about it to debate with! :) BTW, if you don't want me to debate these things on this thread, just let me know. I understand this is the Trump thread, not the economy thread. Money and economics has been something I have a passion for and have been involved with all my life. So it's a good topic for me.
BTW, I am more worried about deflation in the short run as well. Inflation has been coming down recently, which is what I posted to rxbond. Highly indebted economies can sink into low growth, deflation scenarios pretty easily. It's what we saw with Japan and we're making all the same mistakes Japan made. QE is not the solution. It is a borrow from the future path, just like low interest rates, and massive deficit spending. It all is basically borrowing from the future in many different ways. The best long term thing we could do for our economy is balance the budget, let interest rates float, and narrow the Fed's mandate to two things only: lender of last resort and dollar value stability. The Fed is the biggest monetary heroin dealer in the world and the US is addicted to it. That won't end well. They create the problems, don't see the problems coming, and then engage in monetary gymnastics to paper over the problems they created. We'd all be much better off letting the economy manage itself and let the free markets set the price of the dollar, which is the interest rate. In that way, it would act as a much needed braking mechanism for Congressional profligacy on our deficit. I know Cheney said deficits don't matter, but he was wrong. They don't matter, until they do, and when they do, it destroys the standard of living for everyone in the country. So best to be long term good stewards of our government fiscal and monetary policies, but no politician has ever been a good steward of these things. Just goes with the territory. |
