I was just watching "The Problem With Jon Stewart", which dedicates half an hour of prime time television to the inflation problem. He interviews former treasury secretary Larry Summers. Neither of them mention the USA national debt, which is weird, because this debt, the inflation and interest rates are obviously connected.
During the interview the audience is laughing at Summers, because he argues that workers should bear the cost of this inflation, which Jon doesn't think is fair.
But they don't go into the other issue underpinning this inflation and the interest rates. Currently interest rates are so low, and their debt is so high, that they would not be able to afford a bump in interest rates, because they are already borrowing money to pay for the interest on their debt.
The USA have this yearly ritual where they ask themselves "should we reraise the debt ceiling?'. It's a quiet ritual, with very little media attention. The answer is always, oh yes, we should.
And they can, but at some point they will lose their triple A status and when borrowing becomes too expensive to pay for the interest on this debt, couldn't the system simply collapse?
Why are Jon Stewart and Larry Summers not mentioning this obvious elephant in the room?
en.wikipedia.org/wiki/National_debt_of_the_United_States
During the interview the audience is laughing at Summers, because he argues that workers should bear the cost of this inflation, which Jon doesn't think is fair.
But they don't go into the other issue underpinning this inflation and the interest rates. Currently interest rates are so low, and their debt is so high, that they would not be able to afford a bump in interest rates, because they are already borrowing money to pay for the interest on their debt.
The USA have this yearly ritual where they ask themselves "should we reraise the debt ceiling?'. It's a quiet ritual, with very little media attention. The answer is always, oh yes, we should.
And they can, but at some point they will lose their triple A status and when borrowing becomes too expensive to pay for the interest on this debt, couldn't the system simply collapse?
Why are Jon Stewart and Larry Summers not mentioning this obvious elephant in the room?
en.wikipedia.org/wiki/National_debt_of_the_United_States