Janet Yellen, the Treasury Secretary, recently gave an interview with Bloomberg where she tried to argue that the rising cost of debt in the US is not due to the large deficit, but because the economy is just so darn strong! According to Yellen, the increase in Treasury yields, which means it costs more for the government to borrow money, is actually a good thing because it shows that the US economy is resilient and not in a recession. Yellen also claimed that consumer spending and demand are still strong and the economy is showing “tremendous robustness.” Well, isn’t that just peachy?
But let’s break this down for a second. Yellen is basically saying that because the US economy is doing well, it justifies the government borrowing more money and driving up interest rates. That doesn’t make a whole lot of sense if you ask me. It’s like saying, “Hey, I’m making a lot of money right now, so I’m just going to go ahead and max out all my credit cards!” That kind of thinking might work in Washington, but it’s definitely not the responsible way to manage our country’s finances.
She's wrong ya' know. Another clueless Biden appointee.
— PatriotSons (@Patriot_Sons) October 27, 2023
And Yellen’s argument that higher interest rates are actually a good thing because they show a strong economy is just plain silly. Higher interest rates mean it costs more for businesses and individuals to borrow money, which can lead to slower economic growth. But I guess Yellen thinks that’s a small price to pay for the illusion of a strong economy. It’s like putting a fresh coat of paint on a crumbling building and pretending it’s in great shape.
The truth is, the rising cost of debt in the US is a direct result of the massive deficit we have been racking up. It’s simple math – if you spend more than you take in, you have to borrow money to make up the difference. And when you borrow more money, it drives up interest rates. It’s not rocket science, folks. The only way to bring down the cost of debt is to get our spending under control and start living within our means. But I guess that’s too much to ask from our government these days.