← Back to context Comment by WalterBright 8 months ago > just about to end its fight with inflationInflation will decline only when the deficit declines. 4 comments WalterBright Reply oezi 8 months ago If there is a deficit at all. Looking at the monetary flows it seems most of the deficit outflows where just flowing back into the US through the stock market. WalterBright 8 months ago Interest is paid on the deficit, and once the interest gets large enough, there's a runaway doom loop. oezi 8 months ago It depends on who is spending. If American consumers or the American government borrow to consume, what you say is right.But it was US monetary policy for decades now that the deficit doesn't really matter, because the world trusts the US and loans the money back. 1 reply →
oezi 8 months ago If there is a deficit at all. Looking at the monetary flows it seems most of the deficit outflows where just flowing back into the US through the stock market. WalterBright 8 months ago Interest is paid on the deficit, and once the interest gets large enough, there's a runaway doom loop. oezi 8 months ago It depends on who is spending. If American consumers or the American government borrow to consume, what you say is right.But it was US monetary policy for decades now that the deficit doesn't really matter, because the world trusts the US and loans the money back. 1 reply →
WalterBright 8 months ago Interest is paid on the deficit, and once the interest gets large enough, there's a runaway doom loop. oezi 8 months ago It depends on who is spending. If American consumers or the American government borrow to consume, what you say is right.But it was US monetary policy for decades now that the deficit doesn't really matter, because the world trusts the US and loans the money back. 1 reply →
oezi 8 months ago It depends on who is spending. If American consumers or the American government borrow to consume, what you say is right.But it was US monetary policy for decades now that the deficit doesn't really matter, because the world trusts the US and loans the money back. 1 reply →
If there is a deficit at all. Looking at the monetary flows it seems most of the deficit outflows where just flowing back into the US through the stock market.
Interest is paid on the deficit, and once the interest gets large enough, there's a runaway doom loop.
It depends on who is spending. If American consumers or the American government borrow to consume, what you say is right.
But it was US monetary policy for decades now that the deficit doesn't really matter, because the world trusts the US and loans the money back.
1 reply →