Posted on 06/14/2022 5:12:07 AM PDT by Browns Ultra Fan
We’ve goin’ down!
The US Treasury 10Y-5Y yield curve has gone into negative territory (which usually occurs before a recession). At the same time, US mortgage rates are climbing like Tom Cruise in “Top Gun: Maverick” to 5.87% as The Fed tightens its choke hold on markets.
(Excerpt) Read more at confoundedinterest.net ...
The reason the NWO types forced inflation upon us is because they need to wipe out the effects of borrowed monies by the governments who printed it and owe interest on it. This is an old trick.
What actaully happens is with 20% inflation, the money borrowed and financed at 1-4% gets paid off in about 5-6 years and the about the time 2028 comes around, we are close to a balanced budget - then the voters under DNC messaging believe they deserve more government freebies.
Everyone will now go with the 5/1-7/1 ARMs then refi down the road.
Wait until the rate hits 15%. That’s where we are heading, Jimmy Carter II.
____________________________________________________________
That’s the problem, they can’t. The USA is $30T in debt, at around 7.5% prime the interest alone would be over $2.5T. That is more than half what .gov takes in every year. The USA would be in default and with the Fed holding $9T of that debt...
The Fed can’t raise interest rates enough to kill the inflation like they did in the early Eighties.
The current craziness in the real estate and used car market is is directly a result of Federal loose money policies. Raising interest rates and putting an end to loose money policies is going to going to do wonders to correct the insane market bubbles we’re seeing.
There will also be a corresponding decrease in property tax revenues for woke Democrat governments. And that will result in a victory for liberty.
That’s the question more people should ask.
So the entire economy is going down the tubes and we have a “commission” in Washington focused on a former President for political gain instead of focusing on really important stuff for Americans. What an EPIC FAIL.
Yet the Democrats either don’t understand that or they do understand that it will entirely break our country and that is what they want.
Many have bought into the modern monetary theory.
Modern Monetary Theory (MMT) is a heterodox macroeconomic framework that says monetarily sovereign countries like the U.S., U.K., Japan, and Canada, which spend, tax, and borrow in a fiat currency that they fully control, are not operationally constrained by revenues when it comes to federal government spending.
Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of a rising national debt.
MMT is used in policy debates to argue for such progressive legislation as universal healthcare and other public programs for which governments claim to not have enough money to fund.
https://www.investopedia.com/modern-monetary-theory-mmt-4588060
That is my leaning.
You know, as some of us get older we understand what we thought we knew and do.
Unrelated, I’m understanding today that a lot of what is done is because folks are selling something.
VIDEO: Biden Yells ‘We’re Changing People’s Lives’ In Response To Criticism For Increasing Inflation
President Brain-Dead Biden responded to criticism for the skyrocketing inflation under his administration by screaming “We are changing people’s lives,” though he did not explain how changing people’s lives by causing inflation was a good thing.
“I don’t want to hear any more of these lies about reckless spending,” Biden yelled during the AFL-CIO convention on Tuesday. “We’re changing people’s lives!”
James Woods
You’re changing lives, that’s for sure.
“The Fed can’t raise interest rates enough to kill the inflation like they did in the early Eighties.”
I think the same thing. The inflation will have to stay way ahead of the interest rate hikes. Paying back a debt with worthless dollars is how it works. Right from the savings and income of citizens.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.