Back in June, I wondered Could our epic deficits drive inflation no matter how high the Fed raises rates? and this question was followed up Economist answers my question about high interest rates and high deficits. Here’s the NYT front page, September 22:
The government has been shoveling out cash to people who don’t do anything to earn it while at the same time trying to stanch the inflation bleeding with high interest rates charged to those who might have a productive purchase for money. Our best and brightest can’t figure out why inflation persists.
- Our government pays out $250 million to cafeterias without ever doing a drive-by (not a lot of money, but it is a sample from only a single state and a single agency within that state; presumably there are stories like this all over the U.S., most of which will never be told)