every fiscal year... which is scary enough to me, but I suspect it is actually higher than that with the most recent spending spree of Trump and the continued spending spree of Biden and the reduction of the requirement to keep 10% reserve in every bank down to 0% really freaks me out.

The whole concept of Keynesian econ relies on reserve banking, meaning that there must be reserves for the theory to work. @freemo - 2/2

@herag the thing about a changing a metric like inflation is that you can only compare it to the same metric.

Under the current metric for inflation a 1% - 2% is healthy and desirable, an 8% inflation rate is not. But under a different metric/calculation (such as pre-regan era) an 8% inflation rate might be perfectly acceptable. Its an apples to oranges kind of thing.

that said the US dollars inflation rate has been reasonably acceptable though the last few months it is unacceptably high. Not a big deal if its temporary but if it can turn into a problem if this carries on.

@freemo
True. I have to admit... it has been years since I studied economics in depth. But what you say is reasonable to me.

I think what freaks me out is how much money compared to GDP that the US govt has been spending over the last 6 years. It has escalated so much that I simply cannot see it being sustainable.

@herag The US generally bleeds money and with Biden in charge it is worse than usual in terms of spending. Trump didnt do our economy any favors either but in his case the issue was more his policy on QE than his spending. Either way the economy in the US is a trainwreck to say the least.

@freemo
That is true. I really need to read more... though that may just lead to depression. Haha

@herag At this point simply existing is a premordity to depression. If your going to be depressed no matter what you do you might as well be informed and depressed.