We used to issue 30 year bonds to service our debt.
Under Clinton, these got shorter and shorter duration in order to save interest costs.
Fine if rates are falling or static, but that does not stay that way forever.
We have such a mountatin of debt now we are toast when rates go up.
That’s been my main concern for the last twenty years and every politician I have talked to have always pooh-poohed my concerns.
Declare a year of Jubilee, reset all national, business and personnel debts to ZERO, and get things working again.
it worked in the Bible.
How deep into the Earth would one have to dig to bury a single stack of 100 dollar bills whose total value was 17 trillion dollars?
Clue: the thickness of all denominations of paper/rag US money is identical.
I’ve feared this for years.
The markets seem content to swallow Ben & Janet’s fake money because there are no better alternatives.
But depreciated currency eventually wins out.
The real problem for an investor is timing the blowout.
I read it wrongly.
I thought it meant ‘public’ interest. As in what if people started tuning in and paying attention to this?
The response is: ANY republican who wants the WH in 2016, will focus on this, make it an issue. And will have economic experts on it now, and have a viable answer and then follow through
Anyone who does not do this is not serious about the WH
It would gain the youth vote and anyone interested in providing for the youth, which, given the prevalence of anti family and sex without commitment is not as popular as natural law would call for, but it is a winner. And beyond dem cheating range
They need to issue seven-minute bonds then.
.... Well the solution is quite simple ..... just sweep it under the rug and pass it on to the next administration.
Even if the interest on our debt went to 5%, it could ruin us. Isn’t around 5% the historic average?
The cost to rent (borrow) money is virtually zero. Think about that for a minute.
The cost to rent an item, like a house or a car is directly related to the value of that item. If the market cost to rent a house was zero, what would the value of the underlying real estate be?
So, what is the underlying value of money that can be rented for practically nothing? How long can this relationship continue and what will be the ramifacations when the true value of fiat currency is recognized?