Impact of Fiscal deficit reduction policies over economic sectors

Ideas and data for congressmen and senators:

How do you fight inflation if you cannot raise interest rates? (06/19/11):

With a $14 trillion debt the Federal Reserve keeps the interest rates at 2.5 percent.

With a $6 trillion debt the average cost of borrowing was 5.7 percent.

With more debt less interest rate in U.S.

But there is a limit: 0.0 percent.

Who is going to lend money at 0.0 percent?

How do you fight inflation if you cannot raise interest rate because the added interests would break the Treasury?


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