31 Aug 2022 10:15 pm
Interesting topic although your analysis is flawed and completely wanting.walkingstick » 31 Aug 2022, 3:19 am » wrote: ↑ causing gold to drop below $600. your in for massive changes. usa only has monopolies. no competition, means raise prices until people stop buying. then drop prices by one cent. the 73 jews in congress have screwed you!!!!!
The fed cannot raise interest rates to 12%. This can't happen and it is in fact the problem in a nutshell. Here's why.
If I told you I want to borrow $1000 and I am willing to pay you 2.5% interest on the loan over 5 years would you be well-advised to provide the loan? Examining the current inflation rate and the anticipated inflation rate well above that the answer would clearly be, "NO!!!!". After repayment you would have LESS buying power. US Treasuries are basically government IOU's. Selling Treasury bonds to the public is the preferred method of raising funds to cover government overspending. Why? Because it doesn't increase the money supply for the term of the loan. Why? Because for every dollar the government borrows and spends there is one less dollar in circulation because dollars got removed from my account to purchase the bonds. It isn't until a later Congress has to pay me back (with interest) that the money supply is impacted in any way.