Quote:
Originally Posted by Dondilion
Samm, could you defend the Jimmy Carter stagflation claim...please expand.
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When the government tries to deal with a stagnate business economy and unemployment with inflation and more government spending by forcing people into spending now thinking they will never see a current price again they produce a continuous increase in interest rates. When interest rates climb they also climb on the interest paid on Treasury bonds (debt)
Can you imagine having to pay a 16% interest rate on the 17 trillion we have now? We would have no money left for anything but interest. One good thing that might come out of it is that we wouldn't be able to continue mettling in every countries business across the globe though. These politicians are like the fat kid in Willy Wanka that wouldn't quit eating the candy till he was forced to.
Google "Carter stagflation" Im sure there are much better explanations for what was happening then the one I have given you.