Bonfire1996 said:
Jerome and the FED are insane! They just signaled to the markets that they intend to TRIPLE the debt service on America's national debt. From around $500 billion to over $1.5 trillion.
In scarier terms: from 8% of the federal budget to 25% of the federal budget.
Powell: Rate hikes? Yes, this is going to cost more.
Congress: How much?
Powell: Might want to think about cutting Medicare or cost-sharing.
Congress: Medicare is already cost-shared.
Powell: Okay, then cut funding.
Congress: We can't do that!
Powell: Okay, then raise taxes to bring in more revenue.
Congress: We can't do that! It's an election year.
Powell: Okay. Work with me. We'll have 2 more quick hikes of a 1/2 point each and kill the stock market. You guys get prepared for another QE spending round. Once the stock market is dead, we'll announce to drop rates while you guys are sending checks and I'm printing recovery dollars. You'll look like hero's and get re-elected and I'll be the guy that saved the economy.
Congress: Okay. Got it.