SK in CV –
Agreed that we’re not seeing bad inflation now. But they’re trying to re-inflate things that should NOT be re-inflated, namely the housing bubble. Yeppers. Good idea. Let’s put housing in acceptable areas out of reach of the 20 and early 30 somethings once again. Remember when it was NORMAL for people to buy homes in their late 20s, often on one income?
Basically, they’re trying to keep middle-class people on the treadmill indefinitely, rather than letting living costs drop to levels where a comfortable life WITHOUT over-exertion is possible.
Also, they’re assuming that systems behave linearly. Keep pumping, pumping, pumping and they may get a sudden response (aka bad inflation) within a very short time. Think of a mechanical system that’s stuck. You keep applying more and more force till it un-sticks, and you can end up with a very exaggerated response in the other direction. Any engineer can see and understand that.
