So, we're basically in a liquidity trap? What happens after COVID? People are still broke = no inflation. Can someone give me a quick rundown or link to an article that explains what will likely happen to the economy in the next 2-3 years?
Interest Rates Are Low, but Loans Are Harder to Get
Jordan Campbell
Gavin Perry
people will stop buying government bonds. then the shitconomy will crap itself. argentina 2.0
Gavin Edwards
yea i don't really understand what the fed thinks its doing. maybe they don't have a choice
>any kind of interest rate hike will cause credit markets to seize up
>endless QE devalues currency
>countries will start dumping our treasuries
>fed increasingly becomes the only buyer of US debt
>pure debt monetization and accelerating erosion of currency
>coupled with stagnating wages and there will just be an erosion of living standards
what is a liquidity trap btw?
Samuel Jackson
So the US will just monetize its debt via the FED
Thomas Martin
yeah until the jig (or as i like to say nig) is up
Gabriel Rivera
Eli Ortiz
banks shouldn't be giving out loans to any retard who knows how to sign a contract. everyone else has to pay higher interest rates because of subhumans who default on their loans. thus if you want interest rates to remain low, you should support banks being stringent about who their loan money.
David Lopez
youtube.com
these guys think we are basically years behind japan, who have been doing Qe for a while too
Lucas Carter
a liquidity 'trap' is how keynesians describe the obvious results of their interventions. tl;dr its when lowering interest rates no longer does shit because people stopped caring
Michael Brown
7 years*