The U.S. and the world have literally tried to fix an excessive amount of debt by causing exponentially more debt (Figure 1). For the better part of the last 40 years the Fed has been worried about a potential inflation-driven rise in rates because the sheer size of the debt would make it less affordable and lead to economic catastrophe. This generational fear was born out of the stubbornly higher level of inflation from the late 1960s to mid-1980s (Figure 2) and had the following impact on their thinking:
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