Current Events-Economy

https://br.yahoo.com/finance/news/georgieva-fmi-diz-que-aumentar-151028038.html

And Georgina Kristalina is right. Stopping inflation with higher interest rates would work effectively if there weren't outstanding debt but because of COVID everybody had some sort of "relief package" (except China) which pumped exorbitant amounts of cash into the system. 

Consider the fact that the US borrows money to pay for borrowed money and it does so because it can. It holds the world's reserve currency so other nations (China & Japan especially) were willing to buy bonds and other dollar derivatives because it held some credibility. 

Things are different now because the US debt is far different from what it was in the 80's when the Fed last rose interest rates to combat inflation per Pedro Shiff.

Consider the following figures and try not to do a double-take:

https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-major-events-3306287

That's right. In 1980, the US debt was 908 billion dollars.

In 2021, the US debt is 27.748 billion dollars (which is a weird way of saying 27 trillion dollars).

Raise the interest rate and see what happens on the back end. Are people going to be buying bonds from an issuer that's 27trillion+ in the hole?? Not China, I guarantee you. 

And dont forget that the same Fed that prints dollars is the same institution that owns a third of all us mortgages. 

https://www.bloomberg.com/news/articles/2021-07-01/the-real-lender-on-your-mortgage-could-be-the-federal-reserve#:~:text=Back%20of%20the%20napkin%2C%20though,financed%20by%20the%20Federal%20Reserve.

I must admit, im not sure if a central bank buying up assets, in this case mortgages, (it already bought securities), https://www.pgpf.org/blog/2021/07/the-federal-reserve-holds-more-treasury-notes-and-bonds-than-ever-before is a good idea if it's done for the sake of evening out the imbalance up-top. Doesn't that amount to a bailout? ANOTHER ONE?

So the Federal Reserve Bank owns stocks and mortgages of the country that has $27 trillion in debt? It sounds like if someone wants their money now (China, Japan, UK Top 3) they are gonna get their money from the Fed. 

In conclusion, raising rates to fight off inflation may backfire. Badly. But then again, maybe it's all part of the plan...for the greater good. I dont know.

Maybe the UN knows. Maybe the World Bank knows. Possibly the IMF. Who knows?

Maybe BO knows. No, not this Bo.

This BO.

WATABO!😅😇😁😄😃😉