When Reagan’s policy went into effect the national debt had just hit 1 trillion. The Volker medicine is pretty much off the table due to the unfortunate reality of the $35 trillion hole we’re in.
Yup.
Basically four choices:
1) Raise interest rates to 21% on our $35T debt. This is madness and cannot be done.
2) Payoff our $35T debt through confiscatory taxes. This is madness and cannot be done.
3) Downsize government drastically, abandoning all social spending, including Social Security. This is madness and cannot be done.
4) Default on the debt and start over. This is madness and cannot be done.
One of these impossible choices will be made.
None of the choices are good. Each will result in pain for some people who do not deserve pain. I say screw the Central Banks. Of all of the crazy impossible choices, it seems like it hits the people who most deserve to get hit.