re: plan a by goerge bush .. to gaweb + sextoy
G'day G&S ... of HMAS Pinafore fame perchance?
I believe that Sexy's correct.
I understand, in the big picture, inflation is caused by the oversupply of money.
To curb it, interest rates have to rise.
But this accentuates the problems of debt - and the US has massive debt problems, federal, state, industry and personal. For example, California is the 5th/6th biggest economy in the world! And it looks to be going down the gurgler fast! THE USA itself is the largest debtor in the world, with that debt growing by close to $1,450,000,000 every day!
(ps. look again - that's billions, not millions)
Inflation with consequent devaluing of the US$ would help domestic US business, since it would make competition from overseas competitors more expensive.
However, amongst other things,
* it would make the Gov Bond market less attractive to foreigners (who currently hold 43% of it) and they could/would pull out, causing it to tank, and
* overseas competitors could simply devalue their currencies in step with the USA and so retain their lead.
It seems the Fed/US administration have really got themselves into a baaaaaad situation.
JMO of course, formed through much eclectic reading.
