Fed.gov can’t afford 5% interest rates.
Interest payments on existing debt alone next year will likely be a record 5% of GDP (over $1.4 Trillion)
The only way Fed.gov gets out of debt is to INFLATE its way out
The Fed may get away with a little bit lower rates for a short period of time—but the medium and long term trend will be for higher interest rates and higher inflation.
The stock market is on borrowed time imho—stocks are way overpriced by any historical metric.
> The only way Fed.gov gets out of debt is to INFLATE its way out
Or provoke some kind of crisis that will require a digital currency that is in effect a reset of existing dollars. Though I don’t think the infrastructure is in place for that yet. So, inflation it will be.
Does the Fred real government borrow money wit a variable interest rate? Or a fixed rate. For ten years, the interest rates were super low and that’s the majority of our debt.