The gov’t doesn’t pay 10% interest, IOW, I’ll sleep just fine.
“The gov’t doesn’t pay 10% interest, IOW, I’ll sleep just fine.”
The head in the sand approach will only work for a while!!!
Those of us who were in business in 1981 when Reagan got us out of Carter’s mess know what it is like to have the gov’t pay over 10%.... The only reason the gov’t is getting low interest rates is due to two things, both will burn them in the end:
1. They are manipulating the cost of living index computation by using substitutes for any high index items. Have since 1992.
2. The gov’t is printing so much money that they are creating hyper inflation, but hiding it. Anyone with any sense who reads the fed letter knows what they are doing.
The reason banks are going out of business is that they can’t loan 15 or 30 years at the artificial low rates now. Virtually all banks are agents for Fannie & Freddie loans right now. they are not lending their own money as they would be nuts to do so.
I was handling bankruptcy cases for car dealers and building contractors in the early 80’s when interest rate increases killed the economy almost overnight. Reagan inherited a mess from Carter.. High unemployment, high inflation, and high interest rates and he still turned the economy around. O’Bummer got it with low inflation, low interest, and low unemployment and still screwed up the economy and made it worse.