The bigger the hype, the greater the chance that you overheat the economy in the short run. that for the day job of the Fed, the more promise there is, the more the more temptation, the more tendency to spend today based on the promise of what is to come. And that you got to be careful about because that's just old-fashioned overheating right now.
Interest payments now eat up a record 18.5% of everything the federal government collects. In some almost one in five that you're paying in taxes goes to paying interest on the debt of money we borrowed because we weren't taxing people enough and we were spending too much.
It's not that war causes interest rates to go up. It's war causes energy shortages which causes inflation and inflation bleeds into everything. So pain at the pump turns into I need a raise for this. I need to raise prices on food. I need to raise prices on all sorts of things. Energy is of course a key input into everything.
