Keep the printing presses cranked up idiots.
I don’t understand all the ins and outs of banking. But can say, that bank CD rates and interest rates on savings are very small nowadays. Do banks have more money than they can loan out to make their profits?
But then how does all of this tie into fears of inflation? Historically, increases in money supply have helped fuel inflation. Can the fed contract the money supply, so it doesn’t have 8 trillion on its balance sheet?
“The Federal Reserve is screwing up markets to enable Biden’s ravenous spending and debt appetite.”
The last balanced budget occurred under Bill Clinton, a Democrat. Under his successor George W. Bush the accumulated national debt doubled thanks to a GOP Congress gorging on earmarks and a president who couldn’t find his veto pen. Under Obama the national debt doubled again. For six of the Obama years (2011-2017) the GOP controlled the House of Representatives, which per the Constitution has the “power of the purse” which it can exercise because all spending and revenue bills must originate in the House. The last two years of Obama’s two terms the GOP controlled the Senate as well as the House. Did the GOP Congress use its power to stop the deficit spending? No, it essentially acquiesced to Obama’s spending plans.
During the Trump years the accumulated national debt increase 38%. The first two years of the Trump presidency the GOP controlled both houses of Congress and the oval office yet the federal government spent like a pack of drunken sailors. Yes the pandemic contributed to the deficit spending in the last year of the Trump term. However, during the first three years of his administration a massive decease in taxes was passed, without any offsetting spending cuts. The GOP (Trump and Congress) made no effort to control spending, much less reduce the rate of spending growth. Trump waited until the end of his term to veto a defense bill and was overridden by Congress. Trump vetoed the defense bill in losing effort to force Congress to pass his plan to send out $2000 stimulus checks. It wasn’t the defense spending he was trying to stop, he was trying to force the spending of even more money.
Yes spending is out of control under Biden. However, you cannot blame the federal deficit on the current administration. Both political parties have given up on any pretense to be fiscally responsible. It matters not if a Republican or Democrat is president. It matters not if Republicans or Democrats control Congress. Both political parties are fully committed to spending freely and neither has any desire to control spending or budget responsibly. There are no deficit innocents inside the beltway.
I do not know how the markets continue up when it looks like we are facing disaster. I have REALLY been trying to be positive, but everything I have seen points to political/financial disaster. Tell me how I’m wrong.