dirtywick
Penultimate Amazing
- Joined
- Sep 12, 2006
- Messages
- 12,597
Reading between the lines, Warsh is trying to slow down AI investment.
i think warsh is trying to slow inflation. the only tool he has is raising rates, balancing unemployment against inflation by controlling rates
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from what i’ve been reading the most comparable period in recent history to now economically is the stagflation of the 70s, when rates were in the double digits for significant lengths of time. it was a period of high unemployment (which we are not experiencing now) high inflation and low growth (both of which we are experiencing)
they tried cutting rates early but it didn’t help (which we also we running low rates for years) and the only fix was a really painful number of years of extremely high interest rates
of course there’s a number of differences between then and now too, one of which is our massive and looming debt crisis, and the state of our international relations with other nations, which are both very bad.
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