For years, while politicians spent money they didn’t have, to make their elite friends and donors happy they kept interest rates low. The result: We now have record high debt per citizen.
Covid struck, politicians spent trillions more they didn’t have, inflation soared, politicians raised interest rates, and a new storm cloud – in addition to inflation – appeared on the horizon.
Inflation erodes banks’ loan portfolios. But, unlike politicians, bankers can’t sit and wait as their assets shrink. When it’s time to renew your loan you end up paying a higher rate. Worse, the bank may decide not to renew your loan. Right now we have a couple of hundred billion dollars in distressed real estate – a sign of another black cloud rolling toward us.
Inflation, soaring prices, high interest rates, spell hard times for working families, family businesses.
We’ve all stared up at clear blue skies on gorgeous summer days but, sometimes, staring up you hear the rumble of thunder – and know it’s time to head for shelter.
We have to stop this storm before it turns into a hurricane. But politicians can’t do that. It takes leaders with common sense – who’ll tell politicians, No. Enough. Stop.