fed- interest rates and inflation...

[Solid Gold Butt Plug]

I don't think the dollar is going to survive until the election of 24.
You can rebound from a recession, and even depression, but not a currency collapse.
The only things of value will be hard assets.

just sayin

What’s your next target date for the collapse..?…Will it be on Trumps watch…?

[roller24]

It's hard to say, but yes, certainly on his watch as easily as others.
When interest consumes the bulk of revenues, and hyperinflation occurs, it will likely trigger a collapse.
The present fiat monetary system is one of debt based currency which the banking system is tasked with keeping in balance.
They have to constantly throttle money in and out of circulation, They do this through loans and repayment of those loans.
The fee for them to do this is interest on those loans. The currency which is used for the interest is only created through new loans, so there is always more money due, that actually exists, until a new loan is created. This is why there is always some rate of inflation. The goal is to maintain a low steady inflation rate that will not outpace things of value that borrowers generate with the loans they take.
But that process exists in the private sector for the most part, and government loans although sometimes used for things of value through infrastructure, are just as often used for purposes that do not generate value, like entitlements.
Any mishandling of the system, such as the savings and loan crisis in the Reagan era, or the trillions handed out during covid to alleviate the lack of productivity is when you see spikes occur in the inflation rate. Interest rates are then raised to slow down the volume of money going into the system, until enough debt is either paid or discharged to bring the system back into balance.
The interest obligation of the government is again approaching 20% of revenues, which means either revenues need to be greatly increased, or spending needs to be greatly reduced. To increase revenues, taxes must be raised or production of value must be raised. To decrease spending ideally the non value producing expenditures would be most effective to alleviate the ratio, which is why you hear about entitlements being reduced.
Your seeing similar things happen now that you did during the Reagan era. The Grace Commision was formed then, much like the D.O.G.E is forming now. Volker the Fed Chairman then kept interests high much the same as Powell is doing recently.
Republicans tend to lower the tax rates of corporations in hope that they will grow production faster, and democrats tend to wish for taxing corporations to expediate a rise in revenues.
The sad part is, war seems to be most effective way to revitalize an economy.
With the interest to revenue rate already at record levels, the likely hood of collapse becomes greater. One or more major crisis' could tip the scale and start a chain reaction bringing our monetary system to a point of hyperinflation.

I'm not an economist or expert by any means, but this is my understanding of what's going on.


https://pgpf.org/article/any-way-you-lo ... time-high/

[Solid Gold Butt Plug]

You remind of my friend the day after he watched Zeitgeist.

[roller24]

That tells me only two things.
You have a friend, he has the internet.