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Letter: The perils of inflation

Editor, Gazette-Journal:

Wow. What has happened?

The Deficit Hawks who plagued the previous administration have now added $3 trillion in increasing deficit via tax reduction and spending bills (with lots of pet projects) to the already largest debt in the world. And the U.S. has the world’s eighth highest debt-to-GDP-ratio at 106.1 percent. (Greece in is number one.) That means we, you and I (the U.S.) owe more than what all of U.S. make in a whole year. With the wall, it could get worse. 

A number of economists believe these acts significantly increase the risk of higher interest rates and inflation. 

That’s no big deal, right? 

In order to finance this deficit spending the U.S. will have to issue more debt securities requiring more interest payments … and … if buyers feel the U.S. is taking higher risks they may demand higher interest rates to buy the securities. It all could mean higher costs and less money to use for U.S. programs becau...

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