Rx_
Nothing In Moderation
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- Joined
- Oct 22, 2009
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- 2,803
Will Yellen's rate increase affect the budget process to the point of a Government Shutdown? Will the government shutdown be in effect by end of month? THE POLL - we will know the result by month's end. 20 day poll, multiple choice.
The bank cartel, the Federal Reserve, has promised it will raise Interest Rates this month. While this may be the 80+ time it has backed off, some feel it must really happen this time.
Meanwhile, Congress just returned Sept 8 to start on passing a budget. Neither side of the isle has done much of anything until today. Congress has 10 working days to pass a budget and avert a Government Shutdown.
While raising Interest Rates on the Government Debt doesn't sound like a big deal, the government debt isn't a small thing. Measured in dollars, in terms of GDP, and many other terms, it is the highest ever in peacetime.
Meanwhile, the budget has automatic raises, automatic growth and new "must haves". At the same time, so many people are suffering economically, the tax revenues are stressed to say the least.
In theory: a zero interest rate where the government is making "interest only payments" allows for unlimited spending. If the rate is increased just 0.25%, the "interest only" payment on $20 Trillion (20 million x million) could equal a huge part of the total tax revenue.
In other words, an increase for the Federal Reserve means money must be taken from other government income.
We can watch the Debates, however the rubber hits the road in the next three weeks. The Budget is real while a debate is just some promises.
The bank cartel, the Federal Reserve, has promised it will raise Interest Rates this month. While this may be the 80+ time it has backed off, some feel it must really happen this time.
Meanwhile, Congress just returned Sept 8 to start on passing a budget. Neither side of the isle has done much of anything until today. Congress has 10 working days to pass a budget and avert a Government Shutdown.
While raising Interest Rates on the Government Debt doesn't sound like a big deal, the government debt isn't a small thing. Measured in dollars, in terms of GDP, and many other terms, it is the highest ever in peacetime.
Meanwhile, the budget has automatic raises, automatic growth and new "must haves". At the same time, so many people are suffering economically, the tax revenues are stressed to say the least.
In theory: a zero interest rate where the government is making "interest only payments" allows for unlimited spending. If the rate is increased just 0.25%, the "interest only" payment on $20 Trillion (20 million x million) could equal a huge part of the total tax revenue.
In other words, an increase for the Federal Reserve means money must be taken from other government income.
We can watch the Debates, however the rubber hits the road in the next three weeks. The Budget is real while a debate is just some promises.
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