You're referring to interest owed on debt. I'm talking about the expansion of money supply through borrowing which is really just printing money based on bonds, or as Greenspan used to spin it, "quantitative easing." Expansion of the money supply devalues the dollar, and higher interest rates stave inflation by deterring this kind of borrowing.
Higher interest rates are generally a policy response to rising inflation.
And yet, the higher the interest rate, the more money the guv owes to service that debt - which in turn, raises guv spending - causing more inflation. 35 trillion and counting. Raising the interest rates has never slowed government deficit (borrowed money) spending.
You're referring to interest owed on debt. I'm talking about the expansion of money supply through borrowing which is really just printing money based on bonds, or as Greenspan used to spin it, "quantitative easing." Expansion of the money supply devalues the dollar, and higher interest rates stave inflation by deterring this kind of borrowing.
https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp
And yet, the higher the interest rate, the more money the guv owes to service that debt - which in turn, raises guv spending - causing more inflation. 35 trillion and counting. Raising the interest rates has never slowed government deficit (borrowed money) spending.