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US: FED in Zugzwang
  • Inflation in the United States is already reaching 7%, and industrial inflation in fact is already about 25%. According to the rules of economic science, in order to extinguish such inflation and protect savings from depreciating, it is necessary to raise the rate to a level close to the level of inflation. But do you know what happens then? The US national debt is approaching $30 trillion. dollars.

    If the Fed raises the rate by 0.5%, then this will increase the servicing of external debt by $150 billion, but if it will be increased to 7%, then this is an additional $2.1 trillions dollars a year just for the interest on the debt. And if, properly, they will increase rate to 25%, then this will amount to 7.5 trillion. dollars a year. BUT! And that's not all. There is total US debt. Today it is about 86 trillions dollars. 7% of this amount will amount to 6 trillion. dollars, and 25% - scary to say: 21.5 trillion. dollars would have to be spent only on interest. That's more than the US GDP.

    Do you understand the tragedy of their situation?