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and that is with a very low unemployment rate & an inflation
Posted on: April 22, 2024 at 12:41:21 CT
JeffB MU
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rate that is already too high and growing.
Both of those are pressures on the Fed to raise interest rates even more, putting the squeeze on more businesses, individuals, financial institutions and the economy in general.
Then one needs to add in to the mix that out debt to GDP ratio is at dangerous levels and out government is still spending like drunken sailors. I think we have added something like another $1.4 Trillion in debt so far this year and we are only in April.
Our status as the world's reserve currency has been sustaining us, since we have been able to just keep "printing" more and more money, but the BRICS countries have been laying the foundation for an alternative to the US dollar and much of the world would be willing to consider moving to an alternative given the instability the Fed has inflicted on their own economies and the fact that they are in effect helping to subsidize the US by holding our bonds and our devaluing currency.
It is no small sidenote that we are also heavily involved in conflicts with Russia, China & their allies, among others in Europe, Asia & the Middle East, any of which could escalate into major wars, even nuclear ones.
Edited by JeffB at 12:41:44 on 04/22/24
Both of those are pressures on the Fed to raise interest rates even more, putting the squeeze on more businesses, individuals, financial institutions and the economy in general.
Then one needs to add in to the mix that out debt to GDP ratio is at dangerous levels and out government is still spending like drunken sailors. I think we have added something like another $1.4 Trillion in debt so far this year and we are only in April.
Our status as the world's reserve currency has been sustaining us, since we have been able to just keep "printing" more and more money, but the BRICS countries have been laying the foundation for an alternative to the US dollar and much of the world would be willing to consider moving to an alternative given the instability the Fed has inflicted on their own economies and the fact that they are in effect helping to subsidize the US by holding our bonds and our devaluing currency.
It is no small sidenote that we are also heavily involved in conflicts with Russia, China & their allies, among others in Europe, Asia & the Middle East, any of which could escalate into major wars, even nuclear ones.
Edited by JeffB at 12:41:44 on 04/22/24
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and that is with a very low unemployment rate & an inflation - JeffB MU - 4/22 12:41:21