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© 2020 Relevant Protocols Inc.
A focused study group for the discussion of economics and economic policy.
32036 Members
We'll be adding more communities soon!
© 2020 Relevant Protocols Inc.
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"The Federal Reserve is keeping its ultra-low interest rate policies in place, a sign that it wants to see more evidence of a strengthening economic recovery before it would consider easing its support."
"The Federal Reserve is keeping its ultra-low interest rate policies in place, a sign that it wants to see more evidence of a strengthening economic recovery before it would consider easing its support."
ZIRP has created the mother of all asset price bubbles. Yet goods and services inflation has remained low because of that (liquidity largely remaining in the financial system to bid up stocks and houses rather than flowing to the real economy and chasing goods and services). Eventually inflation will tick up to 3-4 percent and the Fed will no longer be able to continue ZIRP. The instant that happens, the market will crash. Then the economy will follow, and the Fed's hands will be tied. Surprised that more people don't see this endgame.
ZIRP has created the mother of all asset price bubbles. Yet goods and services inflation has remained low because of that (liquidity largely remaining in the financial system to bid up stocks and houses rather than flowing to the real economy and chasing goods and services). Eventually inflation will tick up to 3-4 percent and the Fed will no longer be able to continue ZIRP. The instant that happens, the market will crash. Then the economy will follow, and the Fed's hands will be tied. Surprised that more people don't see this endgame.
Unfortunately inflation will make the poor porer and the rich richer and that is why they want to make it look like it’s not a problem at all.
Unfortunately inflation will make the poor porer and the rich richer and that is why they want to make it look like it’s not a problem at all.
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