I don’t think it should just be one year or five years, I think it should be permanent. I also think such a cap should apply to profit margins for any kind of necessity like rent and utilities (unless they make it legal to be homeless instead of enforcing nuisance laws). Again, not just for a year or five years. Permanently.
And how about a cap on profit margins for companies that don’t even pay their employees a living wage … requiring 80% of their employees are full-time employees who make a living wage before the company can make above a certain percentage of profit margin (otherwise the profit above that margin must be evenly distributed to their employees)?
If Trump is able to do this thing with credit cards, it pisses me off that it hasn’t been done sooner, and for a lot more things than just credit cards.
Trump is offering a loaf of bread to the Poor and dying Middle Class Americans… because he knows what Davos and world leaders are up to.
Mass, spiraling, out-of-control inflation in the US. Immense Poverty, unlike what we’ve seen since the Great Depression Era. It’s coming, and coming quickly, as America’s enemies attempt to offload their Bonds and Dollar Treasuries. The astronomical rise of Silver and Gold, is only the first indicator of what’s to come: a Trade War.
Putting an artificial cap on credit card interest rates is a virtue signal that trump does to pretend to care about the working class / middle class. Of course if he really cared about them he would not be destroying their purchasing power with deliberately very high inflation.
Once SHTF with inflation, credit rates will skyrocket. If the government prevents that it will simply force banks and lending institutions like credit card companies out of business, further exaggerating the collapse since the real economy runs on credit now. Credit is part of most points of transaction within the system. And credit is already way over-extended, which is why the Fed cannot afford to raise rates as it ought to be doing to really fight inflation.
How much of the money circulating in the US economy was actually created the right way, by creation of new economic growth? I think we can estimate that in various ways. Because whatever portion was not created like that is simply debt, credit, nonsense (really it is theft from the future).
Measure 1:
“In the last 10 years the Federal Reserve has massively increased the money supply, with reports indicating that nearly 80% of all US dollars in circulation were created since January 2020.”
Ask yourself if the real US economy has grown by 80% in the last 5 years… no, it has not. Therefore much of this is not based on real value creation in the economy but is simply more credit/debt issuance.
Measure 2:
Federal spending is around $7 trillion per year, about to increase even more under Trump’s plan. Compare that to taxes collected of about $4.5 trillion per year. So multi-trillion dollar annual deficits (credit/debt) are commonplace now.
Measure 3:
All existing US currency in the world, including credit: $850 trillion. https://www.usdebtclock.org/. Compare that to US GDP of around $31 trillion. That means actual real economic value represents only about 4% of the value of the currency. What is the rest based on? Debt, credit. Nothing but IOU’s that mostly can never be paid back.
The credit ship sinks, real property increases, people stop being assholes to each other to amass fortunes of nothing. Sounds like a great future to me.
Except that the entire economy and every business requires credit to function. Even the dollar itself is a credit instrument. With a total collapse and reset, we could in theory create a better system that doesn’t require credit like this system does, however do you really think the reset is going to be used to build a better system? More likely it will result in something even worse and more oppressive than we have right now.
Credit by itself is not inherently bad, but it is very easy to misuse and then it becomes bad.
If you really want to see something depressing it is looking at interest rates for bank savings after 2007 within the entire United States. Dropping off a cliff as a metaphor.
