AlexSpencer

Hi Mish, I'm trying to think through the latest tax bill implications. As I see it, passage of the bill proves there will be no attempts to cut the debt or the continuing deficits over Trump's time in office. Debt goes from $20 T to $30 T. If interest rates end up around 3% debt service alone will be around $1 T which will double the rate of debt increase from recent years. No one seems upset about debt increasing at current rates will they care when the rate increase doubles.? At what point would we have a hyperinflation event ?

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Mike Mish Shedlock
Mike Mish Shedlock

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Hyperinflation a long ways off - especially if other countries do the same - which they will - only worse - hyperinflation more likely in Japan. Remember, hyperinflation requires the dollar to essentially be worthless - and against everything. - I expect at least 1 more deflationary crash - as the value of credit implodes. Think of eurozone debts if Italy leaves the eurozone. Lots of reasons hyperinflation in the US is a fantasy for a long time. It will take a political trigger of somekind - A US Maduro in which Congress goes along

AlexSpencer
AlexSpencer

Interesting, Thanks Mish . I thought starting occupation of Iraq with a tax cut would cause inflation. Almost missed considering the massive pile of bad debt ready to burn up equalizing creation and destruction of money at that time. Debts not-honored around the world could balance a great deal of govt. deficits dumping more cash into the system. Its just the amounts are so large it's hard to imagine things just running along as they have been.


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