I suppose adding $5T to the debt due to Trump tax cuts didn't quite have the outcome you all were looking to achieve.
What you do not seem to comprehend is that inflation and interest rates go hand in hand, there is a high positive correlation. When debt is issued then the terms are most of the time fixed unless variable interest components are embedded. That means that the coupon or interest payments are fixed regardless of where interest rates go. When inflation ticks up then money issued/earned makes repayment of fixed debt much easier than in the absent of inflation or deflation. So, your point remains incorrect.
And spending and hence debt issuance is more responsible under Biden? I abhor big tax breaks for the elites and corporations and the misrepresentation of those cuts as being good for the middle class as much as you do. But I do not see the current administration as being an inch more responsible in their financial handling of the country as the Trump admin.
@M.W. is talking about large scale debt (eg: government debt). @MKTrader is talking about consumer credit on floating rates. It's well known that inflation is one way to lessen debt burdens overall and M.W. is correct on this.
Correlation or not, my point was 100% correct and yours was 100% goalpost shifting. Just man-up (or woman-up, or trans-up or whatever) and admit your mistake. Otherwise, I suggest you go back to Walter Mitty tall tales about how much money you make in the markets while you go on exotic fly fishing trips.
He said "Remember, we have a huge debt to service, and low interest rates make that more manageable. As far as what rates "should" be, well the Fed "should" have nothing to do with that, but that's a different discussion" Sounded to me like he talked about government debt that needs to be serviced. Anyway, I just put him on ignore and blocked him because his response is a reflection of an immature and unstable individual. No time for that.
That's not the point. If inflation somehow remained constant and the Fed raised rates to 10%, would it affect the government's ability to make payments on the debt? Bringing in extraneous information is fallacious here. I'm well aware of inflation and how it benefits governments. But that wasn't the point being discussed.
M.W. always lies and refuses to admit when he's wrong M.W. always projects M.W. always doubles down I'd avoid those kinds of people, too!
Sorry, I have to stop you there as I have an IQ prereq for conversation. I'll leave with perhaps you've heard of COVID.
He said Bitcoin still isn’t at a thousand or zero. Therefore there still room for action First leg : 60 to 40 Second leg : 40 to 20 Third leg : 20 to 0