You have read the title. Government and Interest Rates. What is the connection? The connection is made through the Federal Reserve. The government borrows money from the Fed and uses it (normally) to fund wars and structural purposes, along with salaries to government agents, etc. (Our president uses them for senseless-badly-timed-too-many vacations, but that’s a different matter.) By doing this the government gets hopelessly into debt, to our detriment.
Meanwhile, the Fed has been printing money (a right which should never have been given to them) with no gold backing. So the money that has been printed has less value than the previous batch. And so it goes on and on and on. This causes a process called inflation, whereby the money devalues more and more, until a loaf of bread costs a thousand dollars and the economy collapses.
Along with the currency, of course, interest rates devalue. So the interest rates grow higher as items in your local store go up in price. So, indirectly, the government has been raising the interest rates at the same time that they are devaluing the currency. It is vicious circle.
The solution is to get rid of the Fed. But…millions of people will thus be bankrupted. We can’t do that. What we have to do is give the right to print money back to Congress, re-establish the gold-backing principle and slowly cut the ties from the Fed. Once we have done this we can destroy it. The key presidential candidate who can do this is…Donald Trump. Vote today and…I sound like an advertising machine. But seriously, we have to watch our country. We have to be less concerned with the new version of an I-phone and more concerned with what our politicians are doing. If America falls, there will be no more liberty anywhere in the world.