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The Federal Reserve can't do much while we are in a Stagflation environment
With the federal debt at about $31 trillion that means an increase in expenses of about $900 billion per year.
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
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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.
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