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To: Miami Rebel

While MTG’s outrage is credible and informed, it appears our creditors have spoken. Unless she wants to pay more for bonds to tide us over until we can get the spending under control, she’d better accept that we must come to terms with the lenders. At this point, there is nothing more inflationary than interest rates.


3 posted on 05/04/2025 7:14:13 AM PDT by Carry_Okie (The tree of liberty needs a rope.)
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To: Carry_Okie

Rising interest rates counter inflation. Volcker raised rates to double digits in the 1980s to defeat inflation.

Friedman’s adage “inflation is everywhere and always a monetary phenomenon” makes the same point. Rising rates slow down growth of the money supply.


44 posted on 05/04/2025 8:31:30 AM PDT by Pelham (President Eisenhower. Operation Wetback 1953-54)
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