Death Spiral: Gov's Inflation-Interest Rate Hike Whipsaw

The US’s Valueless Vortex

One of the very many reasons I evacuated allegedly First World United States - for far friendlier Third World Belize?

It is better to live in a failed state - than a failing state.

Failed state existence - is relatively smooth (and really inexpensive).  You’re bouncing along the bottom - and have a more-than-minimal idea of what to expect going forward.  And there’s pretty much nowhere to go - but up.

Failing state existence - is a rocky, unsettling ride.

But one example of the US’s failing state turbulence?

The inflation-interest rate whipsaw to which the federal government will be subjecting us - until the whole country comes crashing down.

The federal government owes almost $34 trillion.  To cheat their creditors - The Feds inflated the money supply.  Cheapening the value of the dollar - thereby cheapening the price of their debt.

Except we have these pesky US citizens - who don’t like paying a dollar for an egg and four dollars for a gallon of gasoline.

So The Feds smother the economy - with their interest-rate-increase pillow.

Slowing the economy to a crawl, you see, reduces inflation.

Never mind that a far better way would be to reduce government spending, taxes and regulations - thereby growing the economy.

Thereby providing a larger money pool - in which the inflated dollars would be better and more easily diluted.

And thereby employing - rather than un-employing - tens of millions of those pesky US citizens.

But The Feds will never relinquish control of anything - let alone everything.  So we only get massive interest rate hikes.

Except The Feds owe almost $34 trillion - on which they must pay interest.  The rates of which - they have just jacked.

Almost $17 trillion of our debt - must be refinanced in the next three years.  Which means we’ll go from paying 1-3% interest - to 5-8% interest.

The Feds will very soon be paying more than $1 trillion per year - just to service their debt.  And there’s absolutely nowhere to go - but up.

So to cheat their creditors - The Feds will inflate the money supply…..

Lather, rinse, repeat…until the country implodes.

Of course the inflation-induced interest rate hikes are devastating for those pesky US citizens - in many more ways than just the skyrocketing government debt they collectively owe.

To wit: As the economy implodes - credit card debt explodes.  Because even though those pesky US citizens don’t have gigs - they still need to eat and pay rent.  Hunger and landlords are pesky.…

Americans’ Credit Card Debt Hits a Record $1 Trillion - August 8, 2023

On which these indebted Americans - are paying the government-caused skyrocketing interest rates.

But fear not - the government is riding to the rescue.  Except it’s of the Big Banks - that are profiting on the record credit card debt and skyrocketing interest rates.

About the only impediment to the Big Banks’ total domination of the financial sector - are tiny payday lenders.

You know: Those little storefronts in strip malls in the poorest parts of the country.  Where the Big Banks wouldn’t be caught dead - let alone lending money.

Payday lenders loan the poorest of us pesky US citizens small amounts of money - for small amounts of time.

You need new tires for the car you need to get to work - and don’t have the cash?  Payday lenders float you until…payday.  Hence the name.

But Big Government - exists to serve their Big Business cronies.

So the federal Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) - are relentlessly, incessantly hounding payday lenders.

And state governments like New Mexico?  Are - get this, now - capping payday lender interest rates.

So: Big Government can raise interest rates.  And Big Banks can raise them right along with Big Government.

But tiny payday lenders - are getting rate capped.

Because Big Government is looking to murder tiny payday lenders - in further service of the Big Banks.

Aren’t fake free markets fun?

So, you pesky US citizens better buckle up.

It only gets bumpier from here on out….