And the government spends more of our money on servicing the National debt which is another hit to the tax payer.
I’m certain that this has been mentioned, but it’s going to be much harder, if not impossible, to afford the interest payments on our debt if rates continue to rise…the question for me is, will Wall Street call the Fed’s bluff; knowing they can’t continue to raise rates or face insolvency.
Wait, isn't it the opposite? With inflation people earn more and pay more taxes so there are more dollars in the treasury used to pay off the debt that was originated at a time of fewer, more-valuable dollars? So the debt gets easier to service after more inflation?