Quote:
Originally Posted by smadsen
The U.S. economy might have been able to "absorb" a Trillion+ of pandemic debt to keep the economy from crashing. But $8 Trillion is going to have an effect that won't be swept under the carpet. And the morons we elect to make monetary decision are clueless. Janet Yellen on
TV the other day shilling for the additional $3.0 Trill infrastructure package was saying more debt would be good for the economy. Meanwhile, last month the U.S. added 200,000 jobs, but 4 million people left the workforce, most to await their infrastructure dividend check.
The Cliff's Note's version for LWJ is there's too much cash floating (think an explosion in Scrooge McDuck's basement vault) around the system, chasing too few goods & services (see empty shelves).
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Your rendition reminds of the Ant and the Grasshopper....the ant put his money away preparing for a rainy day.. Americans like the Grasshopper has spent every dime they could get their hands on living large. Now much of America is going to look like TJ with cardboard shacks... There is no way out, the day of reckoning has arrived.
In the fall of 2020 Powell told Trump the US govt had to spend big to jump start the economy...Trump didn't listen..The reason why Powell told Trump to spend big was the FED was reaching the end of the Monetary Policy rope . The FED balance sheet is now approaching 9T...up from 4.3T in early 20. I have estimated that they could go to around 9.5T before things get dicey...
Yellen is no fool...she is inside the WH to coordinate FED and Treasury policy..she wouldn't be there if the situation wasn't critical.