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But what if you can set the CC rates as you please (let's say to 0% because why not and we've been doing that for the better part of last 12 years). And if push
by Aperocky 3y ago
But what if you can set the CC rates as you please (let's say to 0% because why not and we've been doing that for the better part of last 12 years). And if push comes to shove you can just get infinite "loan" from a biggy bank that you happens to have.
- IG_Semmelweiss 3y agoTechnically you are correct that the govt can set the rates. But that's just like you demanding to have a 0% CC from a financial institution. If you are Bezos, you may be able to swing that. But that demand only follows your credit rating. You can demand 0%, but that doesnt mean you will get it. If Bezos is suddenly bankrupt, bet he's not getting the same CC, or even any CC. Making the bet that the USG can set rates as they please forever just because they have for 12 years is just saying "I'm a turkey and life is good, this nice farmer feeds me every day!" Thanksgiving always comes.
- Aperocky 3y agoI don't think this captures the point I was trying to make, the US government have ultimate control over Federal Reserve and its policies. Thanksgiving will always arrive but the government is not going to be the turkey with its debts, in this case, it could be a global stagflation. The US government can always make good on however many debt it has as long as it is denoted in US dollars.