this post was submitted on 21 May 2024
19 points (100.0% liked)
Collapse
3237 readers
1 users here now
We have moved to https://lemm.ee/c/collapse -- please adjust your subscriptions
This is the place for discussing the potential collapse of modern civilization and the environment.
Collapse, in this context, refers to the significant loss of an established level or complexity towards a much simpler state. It can occur differently within many areas, orderly or chaotically, and be willing or unwilling. It does not necessarily imply human extinction or a singular, global event. Although, the longer the duration, the more it resembles a ‘decline’ instead of collapse.
RULES
1 - Remember the human
2 - Link posts should come from a reputable source
3 - All opinions are allowed but discussion must be in good faith.
4 - No low effort posts.
Related lemmys:
- /c/green
- /c/antreefa
- /c/gardening
- /c/nativeplantgardening@mander.xyz
- /c/eco_socialism@lemmygrad.ml
- c/collapse@sopuli.xyz
- /c/biology
- /c/criseciv
- /c/eco
founded 4 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
People fail to understand we are in fiscal dominance rather than monetary dominance now and interest rate increases wont throttle inflation. Interest rate increases can actually create inflation now because that money is printed and paid to bondholders who then use it in the actual economy therefore creating more money chasing the same amount of goods , therefore inflationary. this is like the 40s not the 70s.
Yep, plus they are talking about INCREASING short term debt issuance versus going back to QE. They have to because of the deficits. But this can create feedback and we'll have the situation of both government spending and bondholder cash contributing to the inflationary dynamic. So for some time to come, the trend will be inflationary, even as the Fed balance sheet winds down. Though, if you look at their balance sheet, it can only go down so far, since Treasury's bank account is at the Fed and I don't see that decreasing soon either.