Arrival of High Inflation Sets Up Stagflationary Debt Crisis

Source: Future of Freedom Foundation
by Craig Eyermann

“Americans are experiencing the worst inflation they have in over four decades. The Federal Reserve is gearing up for a series of big interest rate hikes to try to slow it. Those rate hikes mean big trouble lies ahead for the fiscal health of the U.S. government. Through June 9, 2022, Uncle Sam has racked up nearly $30.4 trillion worth of debt. That’s over $230,278 of national debt for each of the U.S. estimated 132 million households. The U.S. government borrowed most of that money by issuing short term Treasury bills and bonds. It could afford to do that with the Fed holding interest rates near zero percent. It could also afford to roll over any debt it didn’t pay off at that very low interest rate. For both politicians and bureaucrats, it was like getting a free lunch. But that’s about to change because the free lunch is over.” (06/13/22)