-
Welcome to Baptist Board, a friendly forum to discuss the Baptist Faith in a friendly surrounding.
Your voice is missing! You will need to register to get access to all the features that our community has to offer.
We hope to see you as a part of our community soon and God Bless!
Bidens Rescue Plan
- Thread starter Salty
- Start date
KenH
Well-Known Member
Any federal government spending that increases the national debt is going to be inflationary, whatever the purpose may be, when the Federal Reserve monetizes the federal government's profligacy. Either inflation will be higher if the Federal Reserve monetizes it or interest rates will be higher if instead the Federal Government is crowding out other borrowers. Of course, then having to fight inflation will ultimately result in the Federal Reserve raising interest rates, so interest rates will go up, one way or the other.
If you make inflation worse, you make the economy worse. Problem is that the economic reaction to inflation is delayed. Financial numbers that came out this week confirmed "stagflation". Stagflation, by any economic metric, is NOT good.
The Fed needs to raise interest rates, stop Q.E. and let the painful correction commence.
I see what they are attempting.
By flooding the market with money the increased spending lead to more purchasing and more jobs. But, the increased spending also lead to supply chain problems and shortages, which pushed inflation. The early result, was a quick boost to the economy, but now the long-term result is a recession due to the flow of money coming to a grinding halt
