Post by Ozarks Tom on Oct 19, 2015 0:54:09 GMT
Quite an article, but really caught my eye was the amount of interest we'd be on the hook for if/when interest rates go up.
If we assume that nothing has magically transformed the nature of debt and finance in the past decade or so and that interest rates will, eventually, move back toward normalcy, we might want to run some numbers. For the sake of simplicity and terror-avoidance, let’s say that the debt doesn’t grow, that it just sits there at $18 trillion. If interest rates on the federal debt should return to their level in 1995 — not some weird exotic point in the past but back in the Clinton years — then we’re going to be paying $1.4 trillion a year just in interest on the existing debt; which is to say, interest payments alone will account for 45 percent of all federal taxes that will be collected in 2015.
Read more at: www.nationalreview.com/article/425658/debt-crisis-approaches-kevin-d-williamson
If we assume that nothing has magically transformed the nature of debt and finance in the past decade or so and that interest rates will, eventually, move back toward normalcy, we might want to run some numbers. For the sake of simplicity and terror-avoidance, let’s say that the debt doesn’t grow, that it just sits there at $18 trillion. If interest rates on the federal debt should return to their level in 1995 — not some weird exotic point in the past but back in the Clinton years — then we’re going to be paying $1.4 trillion a year just in interest on the existing debt; which is to say, interest payments alone will account for 45 percent of all federal taxes that will be collected in 2015.
Read more at: www.nationalreview.com/article/425658/debt-crisis-approaches-kevin-d-williamson
