Collapse of the SVB, inflation is “the result” of public spending

On Friday’s show of HBO’s “Real Time,” host Bill Maher said the collapse of Silicon Valley Bank (SVB) is “linked” and “the result” of the massive US deficit. spending during the coronavirus pandemic, because the fact that “uncle sugar was very generous during COVID” is “a big part of what caused the inflation”. Because “you can’t put 6 trillion dollars that you don’t have in people’s pockets and not expecting some inflation”. And that inflation caused the Federal Reserve to raise interest rates, which then led to the fall of SVB .

Former presidential candidate Andrew Yang said recent interest rate hikes had caused SVB to collapse due to the amount of money the bank had invested in buying treasury bills and that rate hikes made Treasuries risky.

Maher then said, “And interest rates went up because of inflation, that’s why they had to – okay, so when uncle sugar was very generous during COVID, that was the result of that. That’s what caused the inflation — a lot of what caused the inflation. You can’t put $6 trillion that you don’t have in people’s pockets and not expect some inflation. This is what caused this rate [hike] and so everything is connected.

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