5 ms·

I’m wracking my brain trying to figure out how we’ll ever raise interest rates again due to this issue. Does anyone know? Any tricks I’m not aware of? Was the

I’m wracking my brain trying to figure out how we’ll ever raise interest rates again due to this issue. Does anyone know? Any tricks I’m not aware of? Was there way less gov debt in the early 80s when they massively raised rates?

thoughtstheseus 5y ago
We could have a dual/varied interest rate policy where different rates are set for different policy ”targets”. Tltros - targeted long-term refinancing is one example in Europe. Banks receive extra yields on government debt for lending that money in specified ways.
listenallyall 5y ago
Yes, of course, much less. Regardless, the size of the debt is not an excuse to keep interest rates artificially low. https://images.app.goo.gl/NVYuu3q3rJMVpPRu8 https://images.app.goo.gl/NVYuu3q3rJMVpPRu8
Spooky23 5y ago
Not only less debt, but surplus payroll taxes from Social Security were flowing in and basically landing on the government balance sheet. (Via a special non-marketable bond series) We no longer have a surplus there, and the issues around it were kicked down the road 39 years, when we had a Senate run by adults instead of the current pack of dull knives. The military stuff will just get cut. We separately run 4 of the top ten air forces.
- post_from_work 5y ago
  >>>We separately run 4 of the top ten air forces. One of my favorite quotes about how massive and redundant our military is: "Your Navy possesses its own Army, which possesses its own Air Force....which is larger than the Air Forces of most countries." https://en.wikipedia.org/wiki/United_States_Marine_Corps_Aviation https://en.wikipedia.org/wiki/United_States_Marine_Corps_Avi... ^close to 350 fixed-wing combat aircraft!
droidist2 5y ago
The only way I can think of is to pay down the debt. Of course we're going in the opposite direction.

5 ms·

I’m wracking my brain trying to figure out how we’ll ever raise interest rates again due to this issue. Does anyone know? Any tricks I’m not aware of? Was the

by mrfusion 5y ago

thoughtstheseus 5y ago
We could have a dual/varied interest rate policy where different rates are set for different policy ”targets”. Tltros - targeted long-term refinancing is one example in Europe. Banks receive extra yields on government debt for lending that money in specified ways.
listenallyall 5y ago
Yes, of course, much less. Regardless, the size of the debt is not an excuse to keep interest rates artificially low. https://images.app.goo.gl/NVYuu3q3rJMVpPRu8 https://images.app.goo.gl/NVYuu3q3rJMVpPRu8
Spooky23 5y ago
Not only less debt, but surplus payroll taxes from Social Security were flowing in and basically landing on the government balance sheet. (Via a special non-marketable bond series) We no longer have a surplus there, and the issues around it were kicked down the road 39 years, when we had a Senate run by adults instead of the current pack of dull knives. The military stuff will just get cut. We separately run 4 of the top ten air forces.
- post_from_work 5y ago
  >>>We separately run 4 of the top ten air forces. One of my favorite quotes about how massive and redundant our military is: "Your Navy possesses its own Army, which possesses its own Air Force....which is larger than the Air Forces of most countries." https://en.wikipedia.org/wiki/United_States_Marine_Corps_Aviation https://en.wikipedia.org/wiki/United_States_Marine_Corps_Avi... ^close to 350 fixed-wing combat aircraft!
droidist2 5y ago
The only way I can think of is to pay down the debt. Of course we're going in the opposite direction.