The Michael Berry Show

The only way you can fight inflation is you can't print more money because that causes more inflation

So what do you do you restrict the flow of money? How do you restrict the flow of money? You raise interest rates.

Uh-oh. What happens when you raise interest rates? Well, that young couple that got their job and were hoping to buy their

first home and they had their eyes sat on a hundred twenty five thousand dollar home and here's what it's going to cost per month

And here are all the details and they can it turns out they can afford the monthly payment

at a 2.5% interest rate.

And then they go to apply and the guy says you can't afford this loan.

This is what it will cost per month.

And she says, but my big sister bought a house four years ago when Trump was president and and this is a hundred twenty five thousand our house. They make exactly what we make. they made the exact same down payment and

here was her now here was her monthly payment and you're telling me the monthly

payment is gonna be this much yeah because the interest rate has more than tripled.

And so now that in order to cool off the inflation and restrict the money supply,

because that's what you're doing when you raise interest rates,

you're trying to take money out of

the economy.

So what you're basically saying is we don't want people to have the money to buy houses.

We want fewer people to have the money to buy houses. That's what an interest rate increase is.

So you increase the cost of borrowing which restricts the number of people who can borrow,

and when people can can borrow, they can't buy. Well here's the problem. Home builders

had to go out and buy that land before all this crap started.

So they went out and bought the land,

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