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I'm sorry but most of your comment has nothing to do to what I said, and seems like random rambling. Except:

> 3.2% is absolutely peanuts to what it was some 3-4 decades ago.

But 3-4 decades ago governments, all institutions and economy as as whole were not so much in debt. https://fred.stlouisfed.org/series/GFDEGDQ188S . And this chart doesn't include all the "unfunded liabilities".

You can hike rates to curb the inflation only if it doesn't bankrupt everything and everyone.

And 3-4 decades ago boomers globally were ahead of most productive years of their lives, without the "baggage" of tons of kids and globalization had plenty of room ahead to increase productivity.

I don't want to waste time talking about nonsense like AI and "space exploration". The financial system is screwed. That's all I'm saying.



> You can hike rates to curb the inflation only if it doesn't bankrupt everything and everyone.

They will inevitably inflate away much of the debt. But, that hurts dollar savers more than debtors.

Some cash rich companies today are earning more on their deposits than they're paying on their bonds from a couple years ago.


You can't inflate away government debt, not meaningfully, because it's almost always going to be at a rate higher than inflation by construction.


Yes, but also - they lie about the inflation and force the public to hold the bonds anyway (aka. financial repression, yield curve control).


Exactly. YCC is already happening in Japan; it's inevitable here too. The only alternative is outright default, which never happens when the debt is denominated in currency the debtor can print.




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