Today's interest rates are 2.1% (interest costs/total debt).
But if you take the current market rate, 1.37, and add in the Fed taxes (1.0%), then as debt rolls over this cycle, we will pay 2.4%.
Rates are not low, they never were and our favorite economists are in a delusion.
Who pays the Fed taxes? AOC and her constituents, the poor left; and Trump and his crowd, the poor right. Is it any wonder we have tax rebellions? Is it any wonder California lost three tax hike referendum in a row? Is it any wonder why the left and right extremes are in violent rebellion?
This is why Yellen says tax hikes are needed for infrastructure, so you can forget infrastructure, the poor is not paying for it, they do not use it.
Is it any wonder tht bank branches used by urban poor and rural poor are closing? No, the Fed taxes are collected via bank fees, points and rates.
Is it any wonder why global finance has us permanently on the petrodollar monetary standard?
We have lost sovereignty on our monetary system, given is to Japanese banks. That is the best we can do, our economists are pathetic.
No comments:
Post a Comment