Phat writes:
Agreed. But I think the Federal Reserve has no firm grip on solutions. They are basically experimenting.
The economic principles are well understood. The problem is that the Fed is ultimately a political institution which means it is influenced more by how their actions will affect votes than it will affect the economy. We would be much better of letting recession happen while mitigating the how bad the recession gets. However, no administration wants a recession during their term, so they may enact policies that make a future recession even worse.
Excessive QT (Quantitative tightening) will overcorrect and plunge us into a recession.
Indeed it will. It's a fine balance.
It is ignorant to assume that only one political party is truthful and has our best interests at heart while the other guys are spawns of satan.
I fully agree that there are no angels in government. I just happen to lean towards the party that demonstrates a little bit of sanity instead of the party that is occupied by insane conspiracy theories.