Re: Financial topics
Posted: Mon Jul 19, 2021 10:25 pm
When interest rates and inflation rates were going down to near zero they could make more and more money without causing inflation because the velocity of money goes down when interest rates and inflation rates go down. But now that inflation is picking up, the velocity of money is picking up. There is so much money, and people will be getting out of bonds causing more Fed printing/buying, so this an unstoppable positive feedback loop. It won't break. The genie is out of the bottle. Even modest attempts at raising interest rates would not stop this. Modest interest rate increases will increase the velocity of money more. They would need like 8+% interest rate and that would kill the economy and the government, so they won't do that. So the dollar will die and the world gets a generational crisis.Cool Breeze wrote: Mon Jul 19, 2021 7:22 pm As I've predicted, inflation will give way to deflation (that is what breaks it).