# Have we hit peak Federal interest rates?

**URL:** <https://forum.leasehackr.com/t/have-we-hit-peak-federal-interest-rates/434636>\
**Category:** Off-Ramp\
**Created:** [October 13, 2022, 12:41am UTC](https://forum.leasehackr.com/t/have-we-hit-peak-federal-interest-rates/434636 "2022-10-13T00:41:39Z")\
**Posts on this page:** 1\
**Showing post:** 502

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**Author:** ![Greggo](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/greggo/32/115672_2.png) [@Greggo](https://forum.leasehackr.com/u/Greggo)\
**Post date:** [March 18, 2023, 8:53pm UTC](https://forum.leasehackr.com/t/have-we-hit-peak-federal-interest-rates/434636/502 "2023-03-18T20:53:48Z")

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> [@Where do you invest your money?](https://forum.leasehackr.com/t/where-do-you-invest-your-money/68760/2317):
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> I am little worried about the all this debt that’s in the system. The US simply does not have enough money to even pay off the interest on its debt. The outstanding US debt is $30T

Massive liquidity is being injected back in the system greater than the crisis in ‘08 and ‘20. The debt burden will expand, they need to refinance their loan at a greater cost, and inflation will run hot. Let them continue to raise rates and see what happens to the even bigger banks.

> [@Where do you invest your money?](https://forum.leasehackr.com/t/where-do-you-invest-your-money/68760/2320):
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> The crux of my post above: QE infinity.

QE infinity: what’s the other option? QT? Sucking the liquidity of the system at such high rates that the bank’s business model doesn’t work because they borrow short (volatile deposits) and lend long (loans and buying morgage backed securities). Now I also want to differentiate between demand deposits and time deposits. Time deposits are CDs or savings accounts. If you read the fine print, banks have the right to prevent you from withdrawing your deposits because those are NOT demand deposits. You have agreed to lend that money to the bank. That’s legally what a bank deposit is. It’s even more acute when it’s a time deposit and the bank can simply say “No”.

> [@Where do you invest your money?](https://forum.leasehackr.com/t/where-do-you-invest-your-money/68760/2324):
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> Keynesian Economics support credit and leverage and the Austrian Economics support equity or productivity back 1:1 ratio or debt backed by real savings.

If there was a bank that took on deposits with 100% reserve then technically there would be no “bank run” because the bank would be able to give back everyone’s deposits. There is no bank like that today because the Fed has denied every attempt. People need to very careful where they deposit their money. If you deposit money at an exchange or intermediary and there’s no fee? They have costs, capital requirements, technology costs, staffing costs, right? What are they doing with your securities to be able to offer you free trading with no commission? They’re taking on a risk.

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