Given the ongoing exponential rise in debt levels, this should not come as a surprise to anyone. Expect things to get worse as the marginal debtor has to roll more and more debt at higher rates.
Canadians are feeling the pinch. The MNP Consumer Debt Index out this morning found that more than half of Canadians surveyed say they are already feeling the effects of higher interest rates. Almost 40% say that rising rates could drive them closer to bankruptcy, up four percentage points from December.
Thirty-one per cent say they already don’t make enough to cover their bills and debt payments.
It has become common, partially driven by Modern Monetary Theory, to claim that government debt doesn’t matter, so it may as well spend money like mad.
But high government spending leads to high debt, high interest rates, and a massive increase in the money supply, and that leads to inflation and possibly even fiscal crisis.
We’ve become complacent. We need a swift kick in the nuts, figuratively speaking, to bring us back to reality.
MMT is bad enough – but increasing interest rates is not going to solve the broken supply chains (planned) that governments created – nor will it get any more oil to market.
Golly, you got something right, as in correct.
On top of it, our politicians have stolen my right to survive.
They deem it they’re job to be our babysitters which they are really piss poor job at they’re promises.
Oh, you lied?
And yet I’m still bound by the laws and restrictions imposed.
We are bound by nothing except cowardice. You sir should know that. I have no idea why “they” continue to let me live, and that is not paranoia. I guess my voice is not loud enough or big enough. I used to wonder why I was not stopped at the US border on my way to Florida, as I crap on both sides of the border.
I predicted that the NATO’s brazen theft of foreign assets, because “reasons” was eventually going to have a cumulative impact in foreign Central Bank decisions.
If you are Brazil, or even Argentina, and you don’t see yourself being able to remain viable as just another colony in the NATO Empire, why would you leave assets in USD accounts? Maybe you leave some. And a bunch go elsewhere. Because Western elites, drunk with illegitimate power after two years of Covid, really do now believe they have a right to run the world.
How long before some US Congress decisively falls for Greta Thunberg’s bullshit, and threatens end to end sanctions on Brazil unless they cease all commercial operations in the Amazon Basin?
Sure, Americans claim that this Russia thing is an exception, and Congress will go GOP in Fall, and there won’t be any danger.
But why take the risk? By engaging in up and down the line defaults on obligations to Russia, the West has shown a stunning lack of understanding that the international financial system is not built on the iron will of the NATO neocons, but rather on trust and confidence.
“the full faith and credit of the US government” just no longer has the same ring to it nowadays.
Interest rates are decided outside of Canada’s boundaries. A globally concerted effort by central banks to depress market interest rates the last 15 years has come to an end, and rates are reflecting the subsiding effort.
If Canadian banks conspire to keep rates down, which isn’t likely, people shall sell Canadian dollars, driving down exchange rates.
The free or heavily subsidized ride is over.
And if you should own bonds, I would start selling. The rising rates shall kill bond prices.
my successful-so-far strategies and measures?
signed on to one of those handy dandy and available repayment plans with mastercard.
keeping present bills covered.
dont own a motor vehicle since retiring 2007. (GM license still good standing)
writing off 98% of rental income with an extensive number of deductions, all documented.
e-v-e-r-y-t-h-i-n-g l can think of from a prop tax bill to treats for the guard dogs.
& whatever the f else works.
l am REDUCING my debt.
Whatever.
Canadians voted for it.
Let them live in poverty.