I can't wait for the AI bubble to be over so HN can talk about something else
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Arguably if the investment here works out we’ll see deflation through extreme technical advancements.
But raising interest rates and keeping them high in an environment where runaway government deficits and high government debts are causing inflation runs the risk of exacerbating inflation.
You have high interest rates on a large amount of government debt which continues to push _more_ money into the economy.
The Fed doesn’t have any real options at this point but to lower rates.