03-18-2020, 11:54 AM
(03-18-2020, 11:50 AM)Otter Wrote: I am actually encouraged that we do not appear to be making the same mistakes of 1929. Flooding the private sector with "helicopter money" is a good play when the major risk is 20% unemployment (Mnuchin's comments to Republican Senators yesterday), demand shocks, and a deflationary spiral.We agree, and this is uncharted territory for interest rates. And an election is coming so we need to get the train back on the tracks by summer lol. As financially conservative as I am, this all sounds very insane, but I do think it has to happen and sort out the details later.
Steer the car away from the cliff with no guardrail, and get back to worrying about inflation later once it is even a plausible risk. The liquidity balance can always be shifted through tax policy and bond issuance in the future.