|
|
|
|
|
by somenameforme
21 hours ago
|
|
The reason Federal Reserve banks are independent in most/all countries is precisely to avoid this sort of scenario where the government just relies on their ability to print money to finance infinite deficit spending. Governments want to do this because it's politically beneficial in the short-run (e.g. before an election) but it's catastrophic in the longer term due to inflation, economic instability, and other consequent issues. And QE drives up inflation in a scenario where the US is already having relatively high rates and high inflation. QE in this scenario would be like throwing fuel on a fire. Maybe you can argue that if the alternative was complete insolvency then the Fed would feel obligated to comply, but you find yourself in a scenario where you're choosing between immediate economic collapse and rapid economic collapse. |
|