You said, “The trick will be winding it down.”

There is a tsunami of refinancing now. Most are getting ‘historic low’ fixed rate products.

The Fed has lowered the discount rate to zero.

What happens at some point in the future when the Fed raises the rate to choke inflation?

I see the cycle repeating itself. Only next time it will be worse.

Unless the Fed doesn’t raise rates for at least 15 years.

Interesting observation. Despite an expansionist monetary policy, now to be followed by massive fiscal stimulus, inflation isn’t a problem. My guess is that it won’t be a problem anytime soon. Most folks with short memories may even begin looking forward to the good old days when inflation finally arrives.

We can probably count on big deficits over the next few years. The question then will be whether we can grow our economy enough to begin paying for it.

Dan