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> If I'm remembering long-ago reading on the topic, 5% is near the point at which interest service on debts exceeds all government revenue A key thing to note
by ghastmaster 3y ago
> If I'm remembering long-ago reading on the topic, 5% is near the point at which interest service on debts exceeds all government revenue
A key thing to note here is that the US government typically holds shorter term notes which have much lower yields than their 10y counterpart.
- username332211 3y agoThat's not true. Short term bonds currently carry higher interest than longer term ones, that's what "inverted yield curve" is all about.[1] [1] https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202310 https://home.treasury.gov/resource-center/data-chart-center/...
- thunky 3y agoAn inverted yield curve is not typical.