"Even though most agree that both parties have been guilty of blowing up the deficit and debt, this current administration is the one who is really taking us for a ride. We have given so much to so many, it is almost impossible to get people to come back to work."
Big news! (Not really). Slo Joe wants Jerome Powell for another four years as Fed Chair. I would not take that job for a million bucks right now. Why not? It is the devil and the deep blue sea thing. Keep the rates low, and lose any chance to curb inflation. With more money chasing fewer goods, all the Fed can do is watch the printing presses go wild. Monetize, monetize, monetize. Biden's approval ratings continue to go south, as the minions need to may more and more every month - for less and less.
Or - Powell can start to raise interest rates. I mean, heck - they have been close to zero for just about forever. When that happens, we can kiss our 3% mortgages goodbye. We will however, start to see a few dollars of interest in our savings accounts - instead of just pennies. But as many of us know, who have taken a lick of business back in our school days, there is another much darker side to interest rates going up. Financing our debt.
Back in the day when our debt was very manageable, a few ticks up in the interest rate didn't bother many folks. It was just noise. Today however, with our national debt approaching $30 trillion (yes, it is that high), the interest to service our debt is expected to eclipse $1 trillion/year by 2030. However, if we pass Build, Back Bankrupt, and/or if the Fed raises interest rates even a smidge, the cost to service our debt will be out of sight - not out of mind.
Even though most agree that both parties have been guilty of blowing up the deficit and debt, this current administration is the one who is really taking us for a ride. We have given so much to so many, it is almost impossible to get people to come back to work. But who cares? I don't mind waiting 15 minutes in line for a $12 Big Mac.
We need an adult in charge right now who will remind us of the facts (economically) of life. This charade has got to end. It is killing our country. Hint: Our almost dementia ridden octogenarian is not the one to do it.
Hang on folks. The ride going forward might be a bit rough.
Simple solution: Cancel all bonds held by the Federal Reserve, and prohibit them buying more. Interest rates will skyrocket on the smaller debt, but deficit spending would stop.
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