The Fed's Dilemma: How Interest Rates Impact Debt, Inflation, and Budget Deficits

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Even though the Fed has raised interest rates, borrowing and spending continue to soar. Household debt, credit card debt, and government deficits are at record highs. The Fed's rate hikes haven't slowed credit growth, fueling inflation instead. Higher interest rates increase government budget deficits, as it costs more to refinance debt and dampens the economy, reducing tax revenue and increasing spending. The Fed's actions ultimately drive inflation higher.

Peter Schiff and Steve Hanke debate inflation, debt crisis, dedollarisation on The David Lin Report. @TheDavidLinReport Recorded 5/7/2024

#economy #inflation #debt #crisis #budget #deficits #fed
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Stop spending stop spending stop spending get rid of your credit cards. Get rid of your credit cards. Get rid of your credit cards.

janetcross
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Just following the governments example borrow and spend.

Berkeleystangs
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Isn't the whole point of raising rates to help the government borrow more money? If the government is serious about lowering debt it should push rate down to $0
Forget the consumers it's the government behavior that need to change

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