Doesn’t the Fed’s low-interest policy mean that our economy is perceived to be in need of more and more borrowed money?
Our economy must be piling up debt.
How is this supposed to end? How is this a good thing?
The theory must be that once the economy is strong it will pay off the low-interest debt.
Couldn’t the amount of debt will get to a “point of no return”. Maybe not. Maybe we’ll become like a lawn with no fertilizer.
Something rotten is going on and I think Trump is the best guy to straighten things out.
The low rates keep the cost of gov’t debt low. If rates go up, all budgets (such as they are) get thrown out of whack. The cost of debt service will force choices on spending and taxes that politicians don’t want to make.
Check this site out: http://www.financialsense.com/contributors/michael-shedlock/trends-in-interest-rates-on-national
Here is the money quote:
“Currency Crisis Coming
“If you get the idea a crisis of some sort is coming, fueled by out-of-control deficit spending as well as the Fed’s ridiculous “Operation Twist Policy,” then you get the right idea.
“The Fed ought to be selling long-term bonds at these rates, locking in financing at attractive rates, not buying those bonds hoping to drive yields still lower.
“Of course, that latter statement assumes there should be a Fed or deficit spending in the first place, neither of which I believe.”
I agree with the first part, and I think Trump has as good a chance with it as anyone else available. When the castles in the air start to collapse, it's going to be ugly.
How is this supposed to end? How is this a good thing?
Couldn’t the amount of debt will get to a “point of no returnâ€. Maybe not. Maybe we’ll become like a lawn with no fertilizer.
Something rotten is going on and I think Trump is the best guy to straighten things out.
YES,A huge amount. Sub-prime car loans,student loans and Major corporations borrowing massive amounts of cheap money to buy back stocks, That is what is pushing up the stock market.
It going to end very badly for everyone especially for anyone in the stock market. This is a world wide problem not just here.
The amount of debt World wide is PAST the point of return.
Donald Trump may be the ONLY one capable of fixing this.
Which debt? Our ‘known’ $19T+ or the ‘red-headed-step-child’ $100T+ of unfunded liabilities?
Which point would be the ‘point of no return’? Edging over the 50% mark that don’t pay income taxes (if any taxes)? Having the highest corporate tax rate on the planet (while expecting biz to stay to bend over/take-it)? Printing more fiat $$, to prop up Wall/K-St?
Sorry, my FRiend, the U.S. of Fascist America will end like all Socialist systems: BADLY.
Luckily, only the little people will suffer /s