How is it not obvious to everyone that this is the end game? Increasing rates will rapidly increase debt, which increases inflation, which pushes increasing rates ...
Now, what about alternatives? If you don't like US numbers, can you get anyplace better on Earth? I'll wait. Meanwhile, there are forward-positive questions and topics - USA is about to jump in 2, count 'em, two very consequential areas, which are AI and space exploration, within this decade. Are you sure your better bets are against USA? Did you take the history lessons into account, or it's business as usual?
Did we take the same history lessons? Lots of what led to the fall of the Roman Empire has been happening in USA the past few decades. And then we have China literally opium-warring us with fentanyl and killing tens of thousands of US citizens each year. But yeah, count on the cool shiny AI and space exploration to save the US.
> 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.
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.