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The Federal Reserve can't do much while we are in a Stagflation environment


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2022 Aug 10, 11:46pm   732 views  7 comments

by AD   ➕follow (1)   💰tip   ignore  

Right now the Fed Funds rate is 2.5%. It was 0.25% from 2009 to 2016, and peaked before at 2.75% in 2018.

They can raise it to 3.25% next month but it does not seem to help in the current stagflation environment.

The Fed is in a trap. Please read what Nouriel Roubini has been saying. MarketWatch . com has stated the same.

https://markets.businessinsider.com/news/stocks/nouriel-roubini-inflation-economy-stagflation-great-moderation-central-bank-debt-2022-8

https://www.marketwatch.com/story/with-the-global-economy-squeezed-from-all-sides-the-great-stagflation-has-arrived-11660068424

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6   richwicks   2022 Aug 12, 1:26am  

ad says

Debt to GDP ratio is now 123%. It peaked back around 2020 at 135%. Granted it was around 100% from 2012 to 2020, and it bottomed about 53% in 2000.

I think they are trying to inflate themselves out of this debt crisis. They should put more emphasis on economic growth to grow out of this crisis. Also hold spending steady for a few years at least so as to not force major spending cuts in the future.

https://www.usdebtclock.org/index.html

,


Have you ever considered that our "leaders" are intentionally trying to destroy this nation?

They are just criminals stealing what they can, for selling out the nation. That's all it is. They don't represent us.
7   Misc   2022 Aug 12, 4:23pm  

HunterTits says

Misc says


With the federal debt at about $31 trillion that means an increase in expenses of about $900 billion per year.


Interest earned by T-Bills held by the Fed get remitted to Congress. So, only the interest paid on debt not held by the Fed need to be funded.


The Fed also pays interest now on reserves held by the banks. It is sorta a wash there.

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