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by 01100011 1438 days ago
Not a recession, but something is definitely wrong with the economy when it is completely dependent upon continued stimulus.

Times like this make me glad to be in the US though. As bad as it gets here, it will be far worse in the developing world and Europe.
1 comments
whimsicalism 1438 days ago
> continued stimulus.

What do you mean by "continued stimulus"? There is no natural rate of interest.

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credit_guy 1438 days ago
The natural rate of interest is the one where supply meets demand. The Fed, with its enormous balance sheet, distorts the supply/demand equation.
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01100011 1438 days ago
Go look up the 'taper tantrum' and see what happened when the fed tried to normalize its policy a few years ago.
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whimsicalism 1438 days ago
"normalize" does not mean anything because there is no base rate of interest. the Fed underpins the whole thing as it provides the reserve balances for our currency.
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