I see all the comments on supply and demand, but there is even more to this go round than that. It won't be popular I know, but it is not China that holds the majority of our debt, it's us. Normally when you borrow, you are borrowing money that someone else has and made available to you. This kind of borrowing keeps the amount of dollars in circulation the same though, contrary to our debt.

Now it is actually illegal for our Federal Reserve to monetize (or buy) our own debt directly, they have more and more over the years, sold the bonds to hedge funds, then the fed has bought from them as an indirect sale creating a loophole in the law. But where does the Federal Reserve get that money to buy up all that debt? If you guessed they print more, go to the head of the class!

So as we sit, the way to cure inflationary pressure normally would be to reduce the money supply and raise interest rates to slow borrowing and spending. However due to the stimulus payments, and reckless spending most of it is not available to retract, but even what is, the Federal Reserve seems reluctant to either retract the supply, or raise interest rates. I don't get the retraction, but I think we all know what would happen if they raised interest to even a too 10% would push the interest on our national debt into the unmanageable range and a meaningful 15% would add 4.5 trillion in debt, just to cover interest. So they literally can't raise interest rates or we would almost immediately go bust.

Sorry for the long winded post, we all just need to understand there is more to it than just supply and demand and we have dug ourselves a really deep hole edited for bad math

I see all the comments on supply and demand, but there is even more to this go round than that. It won't be popular I know, but it is not China that holds the majority of our debt, it's us. Normally when you borrow, you are borrowing money that someone else has and made available to you. This kind of borrowing keeps the amount of dollars in circulation the same though, contrary to our debt.

Now it is actually illegal for our Federal Reserve to monetize (or buy) our own debt directly, they have more and more over the years, sold the bonds to hedge funds, then the fed has bought from them as an indirect sale creating a loophole in the law. But where does the Federal Reserve get that money to buy up all that debt? If you guessed they print more, go to the head of the class!

So as we sit, the way to cure inflationary pressure normally would be to reduce the money supply and raise interest rates to slow borrowing and spending. However due to the stimulus payments, and reckless spending most of it is not available to retract, but even what is, the Federal Reserve seems reluctant to either retract the supply, or raise interest rates. I don't get the retraction, but I think we all know what would happen if they raised interest to even a too 10% would push the interest on our national debt into the unmanageable range and a meaningful 15% would add 4.5 trillion in debt, just to cover interest. So they literally can't raise interest rates or we would almost immediately go bust.

Sorry for the long winded post, we all just need to understand there is more to it than just supply and demand and we have dug ourselves a really deep hole

I see all the comments on supply and demand, but there is even more to this go round than that. It won't be popular I know, but it is not China that holds the majority of our debt, it's us. Normally when you borrow, you are borrowing money that someone else has and made available to you. This kind of borrowing keeps the amount of dollars in circulation the same though, contrary to our debt.

Now it is actually illegal for our Federal Reserve to monetize (or buy) our own debt directly, they have more and more over the years, sold the bonds to hedge funds, then the fed has bought from them as an indirect sale creating a loophole in the law. But where does the Federal Reserve get that money to buy up all that debt? If you guessed they print more, go to the head of the class!

So as we sit, the way to cure inflationary pressure normally would be to reduce the money supply and raise interest rates to slow borrowing and spending. However due to the stimulus payments, and reckless spending most of it is not available to retract, but even what is, the Federal Reserve seems reluctant to either retract the supply, or raise interest rates. I don't get the retraction, but I think we all know what would happen if they raised interest to even a too 10% would push the interest on our national debt into the unmanageable range and a meaningful 15% would add 450 billion in debt, just to cover interest.

Sorry for the long winded post, we all just need to understand there is more to it than just supply and demand.