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In reply to the discussion: Please prepare... I give it 6 months [View all]bhikkhu
(10,785 posts)21. Given the rampant spending and the alienation of buyers for US treasuries...
the most likely way for things to go, I think, is for the Fed to support the bond market heavily, which they've already been doing to to some extent. That's also known as "running the presses" as far as the money supply goes, and will likely cause the same kind of inflation (or probably much worse inflation) than we had as a result of Trump's first term. It's also typically what governments do when they want to spend money they don't have and when their credit's shot. This administration may well spice it up with some equally lousy crypto plays, but one way or another it all winds up rotten. Sitting on cash is the worst thing to be doing in an inflationary environment.
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I was "downsized" shortly before 9/11. The entire job market clenched after that.
BlueSpot
Sunday
#44
Economic downturns lead to deflation, not inflation. What we have now is stagflation due to double supply shock
Bernardo de La Paz
Monday
#47
SCOTUS could save the US economy and help Trump if they upheld the appeals court decision
Bev54
Friday
#14
Global shipping would decline AND would represent an economic decline. Stupid tRump doing it the stupid way
Bernardo de La Paz
Monday
#46