RE: A Simple Question…28 Jan 2022 14:57
I dont know who you are refering to over that 9 trillion of debt they may not want to raise intertest rates but whats the alternative others will start selling the currency and the outstanding debt. The markets will decide. We saw this in 1992 when the Major government couldn't bring itself to leave the forerunner to the euro, the Exchange Rate Mechanism. Major threw money at the markets and pushed interest raters to 15% and threatened 18%.. Top no avail and they had no choice but to give in. Left the ERM and reduced interest rates! If you cant sell your IOUs, and no one will accept your money..then what?
the USA is 'fortunate or maybe not, that the USD is the reserve currency and they can get away with printing money as it is still accepted globally.. well not totally,.. but look over the last 40 years. Every time the economy slows down they pump it up. The reduction in interest rates, on the pretence of low inflation an illusion of imp[orting cheap foreign goods. Americans refinance their homes, buy everything on tick. The money sloshes around the economy before leaving the country and heading east! And here we are interest rates rock bottom home refinancing not so easy.. They needed another scam.... the housing bubble, then sell the housing debt to foreigners. The world economy didn't recover from that and then we had the covid money printing. My friends in Florida tell me they have been partying for 15 months now...Wheres the next cash cow/excuse coming from?... Or is it crunch time?
I listen to Peter Schiff and I can't fault his logic!