There is only one path left to control inflation, now that government debt is so high they can't afford 5% interest payments on it. You have to cut government spending and take the recession. There is no other way. Too much money got spent after all those bribes they paid during covid, to get as many positive test results as possible and get as many needles in arms as they could. Everyone knows doctors are not the millionaire next door, despite their high income and pharma bribes. They buy boats and pour money into the hole in the water, and their trophy wivez
Like an economist, you overthink the problem. For us plebeians, it is simple: Just devalue the US dollar. Debt is paper, like my paper day trading profits.
They have no choice but to print cash or ditch the diversity officers. The system has hit critical mass and is about to melt down if the mommies in charge are not terminated IMMEDIATELY Trump sandbagged it first time.
Another non economist solution: The FED can print enough $ to buy all of the USG's outstanding debts, around the world, so there is no other entity owning any net USG debt. Problem solved. And every month, the interests generated from those debt goes back to the Treasury to be spent.
The real solution is with technolgy. Eventually a Teslabot has a lower cost basis than a laborer slaving away making Nike shoes in some 3rd World Sweatshop. Then the Teslabots won't even be able to keep up with the demand to build more of themselves.
More Trumpy Tariiffs, who also loves bigly, bigly debt are driving the move to the Dollar, so a lower Dollar anytime soon doesn't seem to be on the table.
The chainsaw is getting oiled and fueled up for the coming RIFs..... https://www.zerohedge.com/political/ramaswamy-says-some-government-agencies-will-be-deleted-outright
I feel the same way that Trump policies will be inflationary as the analysts are speculating it and due to these inflationary policies USD will not go low but high.
Relying on China or assuming it will do X instead of Y is a risky proposition because 1) they will try to do what benefits them, not the US or anyone else, and 2) centrally planned economies have a way of backfiring in unexpected ways. --- This (somecompanynotnecesarilyTesla-bots), not GAI, is going to be the world economy's breaking point in the not so distant future, imho.