Wrong it's still in Transitory.
American Economics Thread
- Thread starter Bernard
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Because investors get skittish about how sustainable interest payments will be so they refuse to roll over maturing bonds
Inflation is solved. Rate cuts are the talk of Wall Street now.
DXY is the strongest it’s been in decades and the U.S. doesn’t import much as a share of GDP.
Uuhm and the bitcoin halving is also coming maybe I should buy some seems like an easy profit for this year.
Just because cutting taxes will have negligible effect does not mean increasing taxes will have the same effect.
Also taking away TCJA would free up 1 trillion over 10 years, peanuts compared to the current debt levels and that's not including the loss of GDP growth and consumption growth. This would not solve the debt issue
Caping social security for high earners can allow them to remain solvent but will not be able to decrease the national debt, rather it can make the debt go up slower but will still go up.
US needs to dramatically change their expenditures.
You said it would be politically difficult. Well yes but everything is politics. If it's politically difficult, it means it won't be done and the debt will continue to balloon. It is already at a point where if nothing gets done soon, it would be too late to correct.
That's because those higher age bracket are working longer and more to support themselves. Over the years tahat age group has had to continue working so it's no wonder they have more assets since they are working more.
Wait but the article you posted literally indicates that inflation is NOT solved and hence why the fed is in a difficult balancing act.
I believe the answer is a two part answer.
1. Inflation is not solved.
2. Since it is an election year, inflation is solved.
Makes sense.
It worked on that other guy.
Technically correct. The slow decline is temporary, rapid collapse comes next.Wrong it's still in Transitory.
It is not solved in the fact that it’s 3% instead of 2% but regardless, the fact that people are talking about rate cuts means inflation is at acceptable levels. The Fed desires 2% but that doesn’t mean 3% is an apocalypse
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Why wouldn’t it? You’d be restoring the status quo.
It alone would not resolve the debt issue, I agree, which is why I included a list
Yes. The national debt does not need to go down. The government is not a household, it lives forever and can always refinance existing principal book values. So long as interest payments are sustainable, it is fine. In fact, the optimal debt level is certainly not zero because borrowing for capital projects increases future productivity and having a large pool of risk-free assets is good for financial stability
Except no. The data I cited was for median and mean. Since it’s still a super minority of old people that work, their savings don’t feed into those parameters. It’s simply that old people on net are so wealthy that even by doing nothing, they are able to save money