4 ms·
At interest rate of ~1.5%. Is that what a credit card interest rate looks like? Interest on debt looks like ~450B / yr, like 2.1% of our GDP to maintain the d
by notch656a 5y ago
At interest rate of ~1.5%. Is that what a credit card interest rate looks like?
Interest on debt looks like ~450B / yr, like 2.1% of our GDP to maintain the debt. Would you say someone who spends 2% of their income to maintain debt as someone in danger of collapse?
I agree we have way too much debt and need to consolidate it and practice fiscal responsibility. But fortunately the debt is insanely far within manageable status. Were that money used wisely (it isn't) on investing in infrastructure and research, the yield would be much higher than the interest.
- simonblack 5y agoIncrease that interest rate just 1% to 2.5%. Then the interest payments are the same number as the over-bloated defense budget: 750 billion a year. So, the old question: Guns? Or butter? An aside: In my lifetime, the highest interest rate was roughly 20%. That would cause monetary collapse in the US today with an interest load of 6 trillion bucks a year.
- notch656a 5y agoI'm with you that debt could become a liability and it would be wise to balance the budget. On the other hand, ye old money printer can always just buy it out :/
- simonblack 5y agoOn the other hand, ye old money printer can always just buy it out :/ Tell that to the folks in Zimbabwe. :D