Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: EBH

They want low rates of inflation to depress debt servicing costs on the national debt. We are now paying $400 billion a year on the $31 trillion national debt. It is expected to rise to a trillion dollars a year by the end of the decade.

Each percent rise of the interest rates that affect the interest paid on US T-bills adds hundreds of billions to debt servicing costs. Government has a vested interest in keeping interest rates artificially low. Inflation must be controlled. And Wall Street sees inflation as a threat as well. With high interest returns on T-bills, people will choose them instead of stocks. Less risky.

The entire global economy has been based on cheap money with low interest rates that are artificially maintained. The dollar is the world’s reserve currency. Higher interest rates on US T-bills sucks money out of the global economy.


5 posted on 12/10/2022 4:54:53 AM PST by kabar
[ Post Reply | Private Reply | To 1 | View Replies ]


To: kabar

Well isn’t that what needs to happen? Suck some of the loose cash out of the system?


6 posted on 12/10/2022 4:59:28 AM PST by EBH
[ Post Reply | Private Reply | To 5 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson