Then how did Jimmy Carter manage to have both skyrocketing inflation and skyrocketing interest rates? I lived through those times. I remember.
Good Question. When the “people” stop borrowing for whatever reason, the Government MUST BORROW or PRINT to keep the Credit Bubble going, or immediate Depression Kicks in. Wall Street Banks collapse, Stock Market collapses. Which is why we need all those stimulus plans as well the gift to Wall Street known as quantitative easing. THEY CREATE MONEY OUT OF THIN AIR, which spends exactly the same as existing money, but dilutes the existing supply.(COUNTERFEITING) instead of Commercial Banks doing it. The result is the same. We have had about 8% inflation annually since Obama assumed the position, mathematically.