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/biz/ - Business & Finance

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50910938 No.50910938 [Reply] [Original]

Let me get this straight..
If the Fed lowers interest rates then they will be able to continue paying off their debt but inflation will spiral out of control.
If the Fed raises interest rates then they will get inflation under control but will begin to default on their debt.
So what happens next?

>> No.50910956
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50910956

>>50910938
The media says higher rates lower inflation but history and ficsherian economists say high inflation is made worse by higher rates

>> No.50910962

most debt is in us treasuries
average treasury maturity is 6 years
raise interest rates for short period
cut before default

simple as

>> No.50910967
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50910967

>>50910938
they do nothing

>> No.50910974

>>50910956
I’m sure journalists are right

>> No.50910986
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50910986

>>50910938
you dont "pay off" your debt when you own to your own central bank. that is just gold bug talk who dont understand anything about economics

>> No.50911156

Modern economics has largely been interwoven with psychology. Most of what these people do is tell you what you're supposed to think and how you're supposed to feel about it. They're not even remotely subtle about it either.

>https://www.minneapolisfed.org/article/2009/blending-psychology-and-economics

>> No.50911180

>>50910974
Yeah no reason to believe the media is ever wrong

>> No.50911183

>If the Fed lowers interest rates then they will be able to continue paying off their debt but inflation will spiral out of control.
No.

If the FED lowers interest rate then bond yields will explode as inflation increases.

This means that they will have to pay x1000 more on new debt to sustain the existing 30 gorillion trillion dollar debt as the fiscal budget is always higher than their income through taxes

>> No.50911370

>>50911156
Interesting
Economists know they’ve been full of shit and now they want to control how people frame their bullshit

>> No.50911406

>>50910956
>economists
>but not austrian economists
well, those are liars. they won't admit what inflation is.

>> No.50911469

>>50911406
>Austrians vs Keynesian
That’s like dems vs republicans
One side is better but both are retarded in comparison to other schools
Give me anarcho-cap or let it burn

>> No.50912344

>>50910962
the US is constantly making new ones, not *every six years*

>> No.50913029

>>50910938
>lower rate will lessen the burden of debt
nah anon, you'll see all countries govs max out their debt instead of paying them off, this is a never ending cycle, there's only growth, up up up, until it stops

>> No.50914796
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50914796

>>50910938

If a politician wants to get re-elected they print money to pay off the government debt and offer HUGE welfare benefits for the citizens, BUT after the election the currency is worthless.

THIS is why you NEVER let politicians have control of the mint, if you do they will destroy your economy.

Career politicians do NOT care about the people, they care about being re-elected.

>> No.50914821

>>50910956
Volcker and Reagan 3-4x'd everyone's portfolios in the '80s, increased interest rates were the necessary start to it.

>> No.50914884

>>50910956
>high inflation is made worse by higher rates
why?

>> No.50914908

>>50910938
you have it wrong
lower interest rates means expansion of money supply
vice versa
just read this guys book (free)
https://twitter.com/savetheworld141