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The Current Prime Lending Rate is 3.5%. Volker raised it to 21% in 1981 to beat inflation
Posted on 3/9/22 at 8:29 am
Posted on 3/9/22 at 8:29 am
If we raised it to such heights now, what would happen to our debt service level?
What would the effect be of rolling over 30 years bonds at 12 or 13% at the current debt level?
Is it safe to say that such a strategy is not possible today and that they have settled on a strategy of permanent inflation?
What would the effect be of rolling over 30 years bonds at 12 or 13% at the current debt level?
Is it safe to say that such a strategy is not possible today and that they have settled on a strategy of permanent inflation?
This post was edited on 3/9/22 at 8:30 am
6
Posted on 3/9/22 at 8:32 am to RiverCityTider
BINGO BINGO BINGO
and Peter Schiff warned of this for YEARS.
and Peter Schiff warned of this for YEARS.
Posted on 3/9/22 at 8:34 am to RollTide4Ever
quote:
and Peter Schiff warned of this for YEARS.
The guy who could be a multi-billionaire if he hadn't spend the last decade ardently arguing Gold >>>>>>> Bitcoin every moment he could?
Posted on 3/9/22 at 8:34 am to RiverCityTider
And houses were 30k
Posted on 3/9/22 at 8:36 am to joshnorris14
He's worth about $100 million, impressive considering where he started.
As for Bitcoin, that's a no for me dawg.
As for Bitcoin, that's a no for me dawg.
Posted on 3/9/22 at 8:38 am to RiverCityTider
I have to admit this part of finance is not my forte. But I get the basics I think. Bear with me.
So essentially it would be impossible to raise interest rates to combat inflation as it would make our current debt levels unserviceable? So we either deal with a massive default which wrecks the market permanently or the devaluation of the dollar to the point where it’s worthless and it wrecks our economy permanently?
So essentially it would be impossible to raise interest rates to combat inflation as it would make our current debt levels unserviceable? So we either deal with a massive default which wrecks the market permanently or the devaluation of the dollar to the point where it’s worthless and it wrecks our economy permanently?
Posted on 3/9/22 at 8:41 am to RiverCityTider
quote:
What would the effect be of rolling over 30 years bonds at 12 or 13% at the current debt level?
Our government goes t*ts up. We'd be paying more for interest on the debt than we do for Social security or defense at that point. It would be a largest government expense. So either the government would have to increase tax revenue by 30-40% across the board, or we'd have to cancel Social Security... quote:Absolutely not possible. We have too much debt.
Is it safe to say that such a strategy is not possible today
This post was edited on 3/9/22 at 8:42 am
Posted on 3/9/22 at 8:41 am to RiverCityTider
quote:
If we raised it to such heights now, what would happen to our debt service level?
Does the phrase "hey brother, can you spare a dime" mean anything to you? It would with a rate like that.
quote:
Is it safe to say that such a strategy is not possible today and that they have settled on a strategy of permanent inflation?
Yes. The tl;dr is that there's no way out of this without significant pain for many groups. The eventuality is that the Dollar will crash under its own debt because of Congress continuing to spend without any sense of fiscal responsibility.
Posted on 3/9/22 at 8:42 am to RiverCityTider
And you can get used to not getting any interest back on your “parked” money as long as the rates don’t move.
So you can watch the value of your cash vanish in a savings account or under a mattress, or take your chances in a volatile market.
Posted on 3/9/22 at 8:43 am to elprez00
Permanently is a strong word. America's had hyperinflation before (Civil War, early colonial days).
Schiff's intermediate solution is adapting the gold standard. Ron Paul wants gov't out of money period.
Schiff's intermediate solution is adapting the gold standard. Ron Paul wants gov't out of money period.
Posted on 3/9/22 at 8:57 am to RollTide4Ever
quote:I saw him speak once at Thanksgiving Point in Lehi, UT. Smalll venue and there were only about 20-30 of us. He spoke for about an hour and stayed after and chatted with 5-6 of us for 15 minutes or so. It was like attending a classroom lecture. He spoke about the issues he always speaks about and struck me as a genuinely nice fellow.
Peter Schiff
Reading about his Father's plight with the IRS is interesting as well.
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