USA GDP @ ~20 trillion
USA government sector revenue (tax take) @ ~ 6.5 trillion
USA government interest payment (if at low rate of 5%) would be at 1 trillion, compounding
Officially recognising inflation for the true rate would send cost of money up to the teens, and that way is also off limits.
... etc etc ... parabolic, hyperbolic, exponential, and asymptotic
So, when the Fed talks normalisation of cost of money, it is talking cratering, as trump correctly pointed out.
But should the Fed rate not go up, the pensions are done, and would require a bail out, that which would add to the inflation / printing / borrowing binge, and ...
there are a lot of ways to get to the destination, but none ideal.
Believe to have half a chance, requires serious international cooperation, that which is in short supply. |
