Quote from: jaberwock on May 08, 2025, 09:06:00 PM

"Hyper" part seems a bit like we are making this bigger than it should be. At the very very worst case, I would assume 20% would be the key here, nothing more. I know that we are going to make some bigger changes eventually, like the whole nation will have to increase the rates again and live on a very "help me" state from the government, like ask for handouts again, printed money, non-recoverable damages etc etc. But it still wouldn't be 100% or more.

And to call it hyper inflation, we need to have something large like that, otherwise it makes no sense to call it hyper. If inflation is even 20% that is terrible and that is of course bad for USA because they are not used to those and when that does happen, their entire infrastructure is not ready for it and takes time to recover. But that still isn't hyperinflation.

Either way, the FED's proposed 2% inflation target would be far from becoming a reality anytime soon. Not with "Reciprocal Tariffs" in play. Especially the 145% tariff on goods imported from China. At this point, having such low inflation is impossible. The US will be in a much worse economic situation than the EU. Just wait and see.

Why do you think the ECB continues to cut rates? Because it wants to stimulate the economy. The FED will have no choice but to keep rates as is (possible stagflation) or raise them. There will be no economic stimulus of any kind under such circumstances. But I could be wrong. The clock is ticking for the US, so it better put the economy back on its feet or else. Who knows? Maybe China, the EU, or BRICS will take over the world soon. These are uncertain times, so anything's possible.