4 ms·
Rates are impossible to normalize. I calculated the interest on our debt of 28.6 Trillion [1] at a rate of 1.5% to be 429 Billion of interest. This is Approxim
by justinzollars 5y ago
Rates are impossible to normalize.
I calculated the interest on our debt of 28.6 Trillion [1] at a rate of 1.5% to be 429 Billion of interest. This is Approximately what we are paying today [1]. If we normalize to say 5%, which is the historic average [2], paying only the interest on our debt, we would be paying 1.5 trillion each year. Or 50% of the federal budget on interest. We have 3.42 trillion in revenue.
I don't see how we can raise rates, so housing prices could keep going up.
1. https://www.usdebtclock.org
2. http://www.freddiemac.com/pmms/pmms30.html
- landemva 5y agoIf rates don't raise, pension funds will need to be bailed out / nationalized.