Pundit Bill Bonner’s article about our growing government debt grabbed my attention. “…. When it comes to government debt, the borrower never pays; the feds have no money. The lenders – big banks, investment funds, well-heeled insiders – don’t want to pay. Generally, they collude with the feds to make sure the real cost is put on innocent third parties […]
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When Is Capital Preservation Not Enough?
Pundit Bill Bonner's article about our growing government debt grabbed my attention.
"…. When it comes to government debt, the borrower never pays; the feds have no money. The lenders – big banks, investment funds, well-heeled insiders – don't want to pay.
Generally, they collude with the feds to make sure the real cost is put on innocent third parties – taxpayers and consumers."
Governments pass the real cost to taxpayers and consumers by creating high inflation. Mr. Bonner lives in Argentina. At the end of February, the official annual inflation rate jumped to 51.3% per year. He estimates it is over 100%.
The next article I picked up quoted Fed Chairman Powell:
"Powell called out the need for the Fed and other central banks to find better ways to deal with pervasive low inflation, and said…it ought to pay serious attention to strategies that would drive inflation higher…." (my emphasis)
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