4 ms·

Absolutely nothing compared to how much the federal government is "earning" because inflation is running hotter than the average rate of interest on Treasury bo

Absolutely nothing compared to how much the federal government is "earning" because inflation is running hotter than the average rate of interest on Treasury bonds. At a 7% rate of inflation and a 2% average interest rate, it amounts to over a trillion dollars a year discharged in terms of real debt owed to the public.

throw123123123 4y ago
This is true, and yet, deficit is still growing. Welcome the united states of Argentina.
- JumpCrisscross 4y ago
  > yet, deficit is still growing The deficit always grows in nominal terms because of inflation. Scaled properly [1], the deficit isn't great, but it's improving and far from unprecedented. [1] https://fred.stlouisfed.org/series/FYFSGDA188S https://fred.stlouisfed.org/series/FYFSGDA188S
- PaulDavisThe1st 4y ago
  Kevin Drum has a chart or two for that: https://jabberwocking.com/yes-of-course-big-deficits-are-due-to-tax-cuts/ https://jabberwocking.com/yes-of-course-big-deficits-are-due...
- quickthrower2 4y ago
  Almost all money is debt. The system only works this way.