Article

2022-11-03 Economy

Fed raises Prime by 75 basis points - again

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Posted by Lord Garth 2022-11-03 00:00|| || Front Page|| [3 views ] Top

#1 How does this affect the Federal 'budget'? Don't we pay interest on the National Debt?

Posted by Bobby 2022-11-03 08:33|| 2022-11-03 08:33|| Front Page Top

#2 They'll just print more money for the higher debt payment. Slow Joe says that'll work

Posted by Frank G 2022-11-03 08:36|| 2022-11-03 08:36|| Front Page Top

#3 Britain braces for TWO years of pain: BofE warns 'longest recession in a century' will last until mid-2024 as it raises interest rates to 3% - the largest rise in decades - and Chancellor admits it is 'very tough' news for families with mortgages

Posted by Skidmark 2022-11-03 10:31|| 2022-11-03 10:31|| Front Page Top

#4 From the Epoch Times -

Interest on Government Debt Set to Exceed Total Annual Defense Spending
By Petr Svab November 2, 2022 Updated: November 2, 2022

The United States is on pace to spend more to maintain its debt than on its own military. In the third quarter, the federal government spent over $184 billion on interest payments on its debt. That means an annual cost of over $730 billion. Meanwhile, the Department of Defense 2022 budget was about $720 billion.

Posted by NoMoreBS 2022-11-03 12:17|| 2022-11-03 12:17|| Front Page Top

#5 "a range of 3.75% to 4%, a decidedly "restrictive" level "

This is laughable to anyone over 50. We remember Fed funds rates over 20% (not a typo.) AND inflation is still at 8.2%. These rates aren't even close to being "restrictive."

Posted by Tom 2022-11-03 14:04|| 2022-11-03 14:04|| Front Page Top

#6 Tom

True that current rates are not restrictive enough yet.

That's why another two, or maybe three, rounds of rate increases are very likely.

Posted by Lord Garth 2022-11-03 17:47|| 2022-11-03 17:47|| Front Page Top

#7 The United States is on pace to spend more to maintain its debt than on its own military. In the third quarter, the federal government spent over $184 billion on interest payments on its debt. That means an annual cost of over $730 billion. Meanwhile, the Department of Defense 2022 budget was about $720 billion.

That is the debt trap we are in. Any interest rate above zero is highly inflationary since the only way to pay the interest is to print or borrow money. Printing money means inflation now. Borrowing means even higher inflation (not very far) down the road.

Posted by Angease Peacock5533 2022-11-03 17:55|| 2022-11-03 17:55|| Front Page Top

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