environment, wouldn t spending more and the president s plan make inflation worse? it boggles the mind. economics 101 and 201 says if you keep priming the pump, inflation keeps going higher. we are not at the point where it s completely out of control. but if they keep going this route, we are may end up that way. and all this talk about interest ratings staying down at 1% or 2%, we may see them at 5%. and then all heck breaks loose in the economy. i have to add the other component. to think businesses in the consumer, ordinary americans that had to deal with two years of a pandemic that is still going on right now, and hopefully gets better, to them them we will take a few trillion dollars out of the economy now and put it into our hands is just absolute insanity. it s a sin. and the fact that those auto companies are agreeing it s not
powerplant of the communications portal and, obviously, the water filtration station. one of the things you said before you said in the old days you thought that pointing out problems and arguing about solutions was useful. and you came to think it sunt anymore. explain that. the intention to be useful and kind a and loving is the most important thing, period. but what frustrated me about my work in the media was the movement away from facts. that s gotten worse. the thing nice about covering sports or wall street is there are certain facts you can t deny. interest rates are interest ratings. google stock prices. nix won or lost. when you leave sports and finance and come to where we are in the political universe where
if we are so stupipped or the way we say things that stound stupid, fine. why is the market doing so well take interest rate to zero and reduce bond yields to almost nothing anyone with hamp a brain and dollar bias. wall street must have a hamp a brain and more than a few dollars. i can t believe i am say investors are buying stockings. you are buying a stake in the american company. commodities, gasoline. low interest ratings. commodities, when we come back. you must be doing something right when you tick off the stars and the sheiks. this is the facts . his current, bob will retire when he s 153, which would be fine if bob were a vampire. but he s not.
this point? because of the crazy way the federal reserve has distorted our credit markets with zero percent interest ratings. it will not have much impact at all. what you will see happen. it is it a straw on the camel sagging back on hurting the economy next year. with the tax increases that are coming in . remember, the pay roll tax will go up substantially and you will have a hurt first quarter and small businesses gradually losing more and more confidence and they are the drivers of the economy . that confidence index is going down and it will be roof sledding. it will be worse than this year. i think that many people will be surprised when they look at their paychecks with the pay roll tax increase that is going forward. it is it affecting the middle class and not just top two percent as everyone said in
if we really go nuts and default for a sustained period, interest ratings would go up significantly. and there could be panic in markets. another economist challenged the idea that america s credit standing would be damaged because while other payments would suffer, medicare and social security for example, payments on uncle sam s debt would not. whereas we expect to get $2.2 trillion in tax revenue this year, interest expense is a tenth of that. if they don t raise the debt limit it s simple, they will use the tax re-knew to pay interest on the debt that will become the first priority of the federal government to maintain the full faith and credit of the government. most republicans want to couple any increase in the debt creeling with the dramatic cuts in federal spending. congressman ron paul seen by many as the godfather of the seahawks movement opposes raising the ceiling period and calls secretary and treasury fear mongerrers.