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The US debt-to-GDP ratio has risen to levels last seen in the 1940s.
The Treasury wants to lower this even at the cost of higher inflation.
But the Federal Reserve is still trying to bring inflation under control.
This Financial Civil War will reshape the entire US financial system.
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The US debt-to-GDP ratio has risen to levels last seen in the 1940s.
The Treasury wants to lower this even at the cost of higher inflation.
But the Federal Reserve is still trying to bring inflation under control.
This Financial Civil War will reshape the entire US financial
23/ At first increase liquidity could look +ve as it could support spending, asset prices, and economic activity.
But it could also mean that the inflation crisis might persist for longer, potentially until the US debt-to-GDP ratio falls.
Until then, the cost of keeping inflation low may be greater for the US government than the cost of allowing it to remain elevated.
And ordinary people ultimately bear much of that cost through higher prices.
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