Re:Upside-Down World of Negative Rates Is Coming for U.S. Sa...
by gerikson on Tuesday March 17, 2020 @12:02PM
(#22606236)
If we’re looking at a situation like the Great Depression, we might have deflation. In that case your dollars will buy more and more as prices fall.
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Re:Upside-Down World of Negative Rates Is Coming for U.S. Sa...
by thorwasdfasdf on Tuesday March 17, 2020 @12:05PM
(#22606284)
With the immense amount of deficit the gov is currently under and will be under in the future, and the monetary policy of printing money, I'd say high inflation is much more likely. Even in the last several years, we've been having near 2%, or even over 2% inflation.
Re:Upside-Down World of Negative Rates Is Coming for U.S. Sa...
by jhayward on Tuesday March 17, 2020 @12:48PM
(#22606889)
2% is historically low, and is in fact below what the Federal Reserve has been trying mightily to achieve. Inflation has been below target since the 2008 crash, more or less.
There is a massive deflationary force acting on the economy. Anyone bringing up inflation fears, except to dismiss them, is not tracking any known factual reality.
Re:Upside-Down World of Negative Rates Is Coming for U.S. Sa...
by vikramkr on Tuesday March 17, 2020 @12:10PM
(#22606345)
That's not high. We've been desperately trying to get inflation up and have taken extraordinary measures to try and raise inflation, but we're actually in a historic low inflation regime that's quite concerning - the fed would be thrilled if we'd be at 2-3 percent inflation consistently and easily. It's the reason we haven't been able to raise rates as high as they used to be, making government borrowing cheap, and why we've kept printing money. We're trying to get inflation up, its just not working that well.