Leveraged not Organic Growth (Borrowing to look rich)
Over the past eight years, the US Government and Federal Reserve stimulated the economy through debt and low-interest rates, not production. Some may claim the US economy is doing good, but that is like saying your neighbor is doing well by taking out a bank loan to buy a Tesla instead of getting a second job or a raise to afford it. Either the US has to dramatically increase production or engage in inflationary measures to deal with the below: paying debts with dollars that don’t buy as much when the loan was taken.
The Obama administration and Federal Reserve, chaired by Janet Yellen, did nothing to fix the economy, in reality, kicking the can down the road instead. Lower interest rates, weaken the dollar, lowering the standard of living for Americans. Currently, US Inflation is around 2% and therefore rates should match. Then our deposits (savings) keep pace with annual price increases.
As the Fed raises rates to combat inflation, the monthly payments on the debt will increase – Sound familiar?
Q1-2009 (start of term) = $11.1 trillion
Q3-2016 (latest Fed official figure) = $19.6 trillion
Difference = $8.0 trillion or 72% increase as of Q3-2016
Interest Rates (Source):
Meanwhile in Chicago
I studied in Chicago. It’s a city very near and dear to me and it pains me to see my own people go through all this while Obama pandered to globalists.
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