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They’re on their way up, way higher than 7%. If we’re headed into stagflation, which it looks like we are, they’ll probably be above 17% we had last time becaus
by ein0p 2y ago
They’re on their way up, way higher than 7%. If we’re headed into stagflation, which it looks like we are, they’ll probably be above 17% we had last time because back then we didn’t have $35T in debt, did not pay $1.7T in interest (which is what it’ll be next year) and did not add $2.5T in debt per year.
- chii 2y ago> above 17% we had last time but last time the world didnt have the new sources of oil that exists today, and the technology level back then was also lower - leading to lower productivity. Long term interest is related to growth, and higher interest is indicative of growth.
- ein0p 2y agoHigh interest is related to high prime rate. High prime rate is related to reduced demand for US debt, which it must issue because it can’t pay its bills. You offer debt with a higher rate of return to sweeten the pot or go bankrupt.