Will our Fed successfully re-inflate the US economy?
I see 50% chance in 2 years and almost 99% in 5 years, as the world market react possitively on recent US fed and treasury actions. They have been fooled again.
Our Fed finally realized that it was a silly act to fight inflation for last few years. US is debt laden all over, from the federal government, state and city governments, many of its corporations, and consumers.
US is no country with savings, so what is the point to fight inflation?
Now Obama admin is selling more US treasury bonds so US can build more bridges to nowhere and renewable energy which costs more than its savings. Fed is leveraging up by printing more money to buy more T-bonds.
No other country can do this kind of stunt except US because USD is still the major currency of trading and the world is addicted to it.
Will this continue working after US upset the world with toxic assets just a few year ago?
One thing for sure is that for consumers, they are out of luck. Banks are tightening up their credits even though the interest rates are almost 0 now. These criminal bankers know many US consumers are broke and their wages are either cut or gone. Many jobs are going to come back because they are no longer competitive.
So if you own assets, things are looking better from now. For new starters like new colleage grad, no luck for you because lower wages will stay and inflation is coming soon.