Just imagine that your congressman stood on the House floor and proposed spending another $175 BILLION that is not providing any new service to Americans nor enhancing any existing service nor building any infrastructure nor financing any new wars. Would you ever vote for him/her again?
A one percent increase in interest rates on our national debt will cost us an additional $175 BILLION every year, and many analysts estimate the "natural" rate of interest is at least 3 points higher. Will the Chinese continue loaning us money to pay interest back to them?
Now, just imagine you are Janet Yellen and need to raise interest rates to control inflation. Then, imagine your congressman back on the House floor again, but this time he is condemning her for this arbitrary and harmful decision to impose a huge new unfair tax on the American people, suggesting the Fed should be terminated. Frankly, I feel sorry for her. She is damned if she does and damned if she doesn't.
I expect she will start raising interest rates later instead of sooner.
A one percent increase in interest rates on our national debt will cost us an additional $175 BILLION every year, and many analysts estimate the "natural" rate of interest is at least 3 points higher. Will the Chinese continue loaning us money to pay interest back to them?
Now, just imagine you are Janet Yellen and need to raise interest rates to control inflation. Then, imagine your congressman back on the House floor again, but this time he is condemning her for this arbitrary and harmful decision to impose a huge new unfair tax on the American people, suggesting the Fed should be terminated. Frankly, I feel sorry for her. She is damned if she does and damned if she doesn't.
I expect she will start raising interest rates later instead of sooner.
