Federal deficits and trade imbalances cause inflation?
You know they do. You have to fund the deficits, no matter how high the interest rate you have to provide to encourage some one to purchase the securities. And the trade imbalances, money sucked right out of your economy that isn’t coming back. How do you make up the difference, make more money.
Federal deficits and trade imbalances cause inflation?
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Yes. Deficit funding creates “money” out of thin air. Wealth on paper. Then people spend the wealth. We pay the interest on the “wealth.” When it becomes unsustainable to pay the interest, and people require more interest to take the risk of buying our paper, we take a hit on our wealth, and the game is over with us as the loser.