Assessment: Chairman Powell will speak at 2 PM today on the Fed’s plan for raising interest rates, in what will be one of the most watched Fed decisions since the 2018 stock market crashed 20% over … raising interest rates. In that decision, the Fed capitulated and the money printing not only continued, it more than doubled …
The Federal Reserve is talking about raising interest rates. But the US economy is buried under piles of debt. I’ve been asking how this is going to work for months. Apparently, the question has finally occurred to the mainstream.
A CNBC article declared, “Fed rate hikes will intensify a global debt crisis, research warns.”
Well, yeah. Duh.
“And do not harm the oil and wine” Revelation 6:6
According to the study came from a UK non-profit the Jubilee Debt Campaign, debt payments rose in developing countries by 120% between 2010 and 2021. They are currently at their highest levels since 2001.
The sharp increase in debt payments is hindering countries’ economic recovery from the pandemic, the report suggested, and rising US and global interest rates in 2022 could exacerbate the problem for many lower income countries.”
The study and the CNBC article are really a pitch for debt cancellation, but their narrative swerves into an unpleasant truth for US policymakers. Raising interest rates in a world awash in red ink is going to be a problem. And not just for “developing countries.”
In December alone, the federal government spent $508 billion. The was the highest December spending level ever. Through the first three months of fiscal 2022, the federal government has already spent $1.43 trillion. That’s a record for the first quarter of any fiscal year.
Raising interest rates will drastically increase the cost of servicing all of that debt. And it will increase the cost of borrowing more money for the Biden spending coming down the pike.
Read More @ Zero Hedge HERE
Mainstream Suddenly Realizes Raising Interest Rates In A World Buried In Debt Might Be A Problem https://amos37.com/mainstream-suddenly-realizes-raising-interest-rates-in-a-world-buried-in-debt-might-be-a-problem/