It is called having tools to work with to help when times get rough…
MOSCOW, December 17. /TASS/. The Bank of Russia raised its key rate for the seventh time in a row, this time by 1 percentage point to 8.5% per annum, the regulator reported following a meeting of the Board of Directors.
And in the USA it is? (Below)
The current federal reserve interest rate, or federal funds rate, is 0% to 0.25% as of March 16, 2020. The federal reserve ordered two emergency decreases to the benchmark interest rate in March 2020 in response to the economic impact of the coronavirus (COVID-19) pandemic. On March 3, it was cut to 1.00% to 1.25%, and then again to 0% to 0.25% on March 16.
Source: Current Federal Reserve Interest Rates | The Ascent
The interest payment alone on the debt would critically crush & finish the USA, all by itself…
Source: Government – Interest Expense on the Debt Outstanding
Could you even imagine the implosion in the USA if rates were as high as Russia’s? Yet they should be at least this high as in Russia….interest rates are the way that countries cheat the system for a short time at least…but the increase in debt interest is exponentially destructive to the system….and thus, we have cheating going on to kick the can down the road…
Ouch!
WtR
