The U.S. House of Representatives on Thursday approved a bill to prevent a government shutdown. The Senate earlier reached a deal that would keep the U.S. government-funded.
The financial crisis announced by Treasury secretaries could thus be postponed for the time being. Now it is up to President Biden to sign off on the proposal.
All just fear-mongering?
It’s probably one of the oldest tricks in the world to scare someone into doing your bidding. The government shutdown scenario has been threatened many times now. Perhaps those responsible should feel the consequences of excessive spending and debt accumulation for once. The consequences are borne in the end again the U.S. citizens who are dependent on their salary and pay taxes. If a normal citizen would operate such a financial policy would be this person long ago in court and would have to bear the consequences. The monopoly position of the government in monetary matters allows those responsible to do everything without consequence.
The signs are on stagflation
The monetary policy wanders in a dangerous way the possibly on Stagflation meets. The unemployment rate is rising and inflation is high. If stagflation comes true, the Biden administration may find itself trapped in the monster of its own making. Measures to reduce inflation could create even more unemployed. Measures to reduce the unemployment rate would further inflate monetary policy. This could be the end game for those in charge.