Inflation today is caused by rising fiscal deficits; raising interest rates will further aggravate inflation as interest payments balloon & deficits widen; but cutting rates isn't an option either.
You pointed it out perfectly. When the government has been operating in deeper levels of debt in the US, every crisis (boom and bust cycles) the follow the next, adds more debt to the economy and increases future risk of inflation even more. Ray Dalio (ex. CEO of Bridgewater Associates) has an amazing book "The Changing World Order", would highly recommend it, if you are interested in learning about the rise and fall of nations.
The Fed will probably not be long before it is forced to pivot. In fact, this is the right timing for the beginning of the recession. The measures to climb out of the hole will be epic and will cause another inflationary wave much worse than the previous one.
I fully agree with your point. As government debt becomes larger with every passing year, the inflationary shocks will be felt regardless of whether the economy is in a recession or not. In the process, real growth is going to be hindered, as the Fed tries to quell bank lending. My outlook for the US dollar is not rosy either (as a result), but that's a separate topic.
It looks like the grass isn't green on either side for the economy.
You pointed it out perfectly. When the government has been operating in deeper levels of debt in the US, every crisis (boom and bust cycles) the follow the next, adds more debt to the economy and increases future risk of inflation even more. Ray Dalio (ex. CEO of Bridgewater Associates) has an amazing book "The Changing World Order", would highly recommend it, if you are interested in learning about the rise and fall of nations.
The Fed will probably not be long before it is forced to pivot. In fact, this is the right timing for the beginning of the recession. The measures to climb out of the hole will be epic and will cause another inflationary wave much worse than the previous one.
I fully agree with your point. As government debt becomes larger with every passing year, the inflationary shocks will be felt regardless of whether the economy is in a recession or not. In the process, real growth is going to be hindered, as the Fed tries to quell bank lending. My outlook for the US dollar is not rosy either (as a result), but that's a separate topic.
The Bible is full of wisdom warning his people against usury.
“You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest.“
Deuteronomy 23:19
🙏🏽🙏🏽