[Wayne Maybury]

The big problem with raising interest rates is that it will have a huge negative effect on the average American. The US economy has been built on credit spending so the average American has a large amount of debt that is being managed due to low interst rates. Increasing the interst rate will drastically reduce the amount of money that can be spent on consuming goods and services as more must be spent on the interest on loans. There will be more housing foreclosures, more unemployment, and less spending.

The US Federal Government is also deep in debt. It would cost an additional $100 billion annually to service the debt for every 1% increase in the interest rate.


Wayne