The country has turned into a giant mess under Joe Biden.
One of the first disasters of his Presidency is spiraling out of control.
And Joe Biden turned red with rage after this mistake from his past came back to haunt him.
President Joe Biden spent his first two years in office going on a multi trillion-dollar spending spree that unleashed the worst inflation in 40 years.
The Federal Reserve raised interest rates to their highest level in decades to tame inflation.
The Biden inflation crisis is creating another huge problem that could tank the entire economy.
Elevated interest rates are sending the cost of borrowing money skyrocketing.
The economy is facing a “reckoning” with the surging cost of loans for businesses.
High interest rates are increasing the cost of commercial and industrial loans, making it more difficult for medium-sized businesses to expand and cover their expenses.
The RSM Middle Market Business Index survey found that 77% of executives thought that more interest rate hikes were coming from the Fed.
82% of executives thought that rising interest rates posed a negative risk to their businesses.
“The result is a risk to economic growth across the real economy and, potentially, a recession,” RSM chief economist Joe Brusuelas said.
Small businesses are suffering the worst from rising interest that have sent the cost of borrowing for them to the highest levels in 20 years.
The worst hasn’t kicked in yet for many businesses that will have to borrow at significantly higher rates as low interest loans roll over this year.
Businesses are having to adjust to a new era of high interest rates after they were at near zero levels for over a decade.
Brusuelas said that the sudden surge in interest rates would lead to a 1% to 3% decrease in spending on research and development while venture capital investments could decline by 25% over the next couple of years.
More interest rate hikes are being projected this year from the Fed with inflation proving to be sticker than they expected.
Whole sectors of the economy like housing and manufacturing will face a “significant adjustment” to the new normal of high interest rates.
“The zero interest rate era has ended. A new era with higher nominal and real interest rates is upon us,” Brusuelas wrote. “Middle market firms report paying, in some cases, double-digit rates to finance payroll and business expansions – far higher than in the past 20 years. Adding to the risk is the large volume of loans made during the previous era that need to be rolled over at significantly higher rates.”
More turbulence is ahead in the Biden economy as high interest rates grind business activity to a halt.
The bill is beginning to come due for Joe Biden’s reckless spending spree and the rest of the country will pay the price for his mistake.
