/biz/ - Business & Finance

>>1454489
>Unfortunately we're still governed by people who, I'm sorry to say, share your view that government deficits & debt should be avoided.
I don't think debt and government deficits should be avoided. At all. I'm just not deluded enough to think that the USA's policy to seek an increase in inflation is isolated to the USA.

The developed world increasing inflation has stressed the economies of the developing world.
It's literally starting to turn nations away from the dollar as a reserve, albeit just Russia and China right now, but the strain inflation puts on the developing world will drive them to Russia and China all the same.

In fact while the Fed thinks 0 interest rates will be limited to the US, traders and banks (the biggest recipients of those loans) are putting the money into developing markets - driving up prices in those nations and making things worse for the people there, thus turning governments against the US and the declining west.

Japan has put negative interest in an effort to boost spending, and do you know what has happened? People are buying safes (sales of safes went through the roof) and not putting money in banks.
At first the markets reacted to that news with delight at the prospect of more capital in the markets. But then it sunk in that if a developed nation like Japan is having to go negative, things have to be very dire indeed.

The thing is, they're desperately trying to artificially increase growth now, and that just creates bubbles. Bubbles burst, albeit eventually. Its turned economics into a political problem, and one of national security.

I agree governments should be focused on wealth creation, not balancing GDP, as that is proven to help an economy AND the people in it.