Been to a bank lately? Saw the vault? Probably made by Diebold. But that's not all they make.
...they are one of the principal manufacturers of ATM Machines, and point-of-sales terminals, those bar code readers seen in most grocery stores. Most recently, Diebold has become notorious for making the vote tallying equipment that created such controversy during the last Presidential Election.
This 164-year-old company employs 23,000 workers in 130 countries worldwide....
They're filing for Chapter 15 bankruptcy. They owe about $1.5BN that they cannot pay.
Why?
... One expense item has doubled from last year to this year: interest expenses. Interest expense nearly doubled from last year to this year. In the first quarter of 2023, Diebold interest expense reached $81.9 million. And it’s not just this year. All of the projected interest lies in front of Diebold. That was enough for management to put the company into Bankruptcy....
The linked article posits that the Fed's major rate-hike (from 0.25% to 5.0%) is to blame. Looking forward, the Company saw its interest payments were going to consume too much of its cash--so they're looking for a "re-structure."
So what?
So here's what: the same thing will happen to the US as rates rise. Interest-on-debt for the United States will eat more and more of the country's revenues; this leaves only two options: default on the debt, OR pump out more paper money from the Fed to monetize the debt.
That is, "create even more inflation."
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