There’s no political will to raise taxes and cut government spending. One or the other may happen but not both. Both are required to get us out of this mess. We don’t have politicians that think long term.
As a consequence, the Fed will be forced to lower interest rates as low as possible again so the government can escape crushing interest payments and let inflation inflate away government debt.
Expect long term inflation, asset prices, and commodity prices that keeps rising as a consequence.
As a consequence, the Fed will be forced to lower interest rates as low as possible again so the government can escape crushing interest payments and let inflation inflate away government debt.
Expect long term inflation, asset prices, and commodity prices that keeps rising as a consequence.