Posted on 02/04/2015 8:49:55 AM PST by SeekAndFind
The U.S. has gotten something of a free ride over the last 7 years as interest rates have hovered near zero. This has meant that the cost of servicing the debt – paying off some bonds and rolling others over – has been relatively low. This coming fiscal year, it's expected that the government will spend around $200 billion to keep the U.S. afloat.
But the free ride is about to end. The Federal Reserve announced an end to their bond-buying program known as quantitative easing, and the resulting rise in interest rates will mean rising costs to service the debt.
By 2025, those costs are expected to be $800 billion – more than we spend on defense and non-defense discretionary spending put together. And if interest rates rise more than expected, the costs could be close to a trillion dollars a year just to keep our heads above water.
(Excerpt) Read more at americanthinker.com ...
Cloward-Piven is about to go geometric.
Obama won’t be in office once the bills start coming due.
Its not my problem.
His just announced budget proposes to borrow and spend on our national credit card now and worry about repayment later.
Politicians always think about what what’s best for them today not about tomorrow.
Question: Where did this private outfit get the money to loan the Govt.?
I hope they just didn't print it!
And could the Govt. print the money to pay it back, and cause widespread inflation.?-Tom
How can the Fed ever raise interest rates — ever again?
RE: I hope they just didn’t print it!
You’re being sarcastic I gather....
As soon as I see title like this then I know that the entire article is a bunch of BS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
There is no way that anyone can predict the interest rate or the national debt in 2025. There are too many variables. But if the interest on the debt right now goes to a mere 9-10% then all the money taken in by the government would be needed to pay the interest on the debt. The interest would be in the multi trillions.
The Federal Reserve will take public land in exchange for writing down the dept. The Federal Reserve will own most of the US and land tenure rights will be a thing of the past. Get ready to be serfs in your own kingdom.
Hmm. The Fed (i.e. the Banks) will repo the country. Sounds crazy, but it is believable.
They can’t. They’ve painted themselves (and us) into a corner.
There are only two possibilities now, massive inflation to devalue the debt (which destroys all of our savings) or default on the debt.
The only way out that will preserve the value of anyone’s savings and not turn our children into perpetual debt-slaves is to default on the debt. Of course the Feds will never be able to borrow again as they have in the past, but is that a bad thing? If you believe in limited government, the answer, of course, is Hell No!
So congress creates a BANK to borrow unlimited amounts of money from, with INTEREST attached, payable by the CITIZENS. Then congress continually spends more than it takes in, in TAXES, SO the debt is required to go up annually, and exponentially, and the value of said money is diminished by dilution on a continued basis. Then the BANK congress created BAILS out all it’s member banks for FRAUD they committed, all at the expense of the CITIZEN.
Maybe we should all open a bank?
You have got to be creative -- think negative interest rates ! The borrower pays the government to hold the debt. Problem solved ! Brilliant ! (sarcasm of course)
Interest rates will not be allowed to rise...
From http://www.abc.net.au/news/2014-06-12/kohler-controlling-derivatives/5515666:
“Banks are able to use interest rate swaps to hedge their exposure to a certain movement interest rates, but for example JP Morgan’s total assets are US$1.5 trillion while its exposure to derivatives is US$70 trillion, or 47 times the assets, so you’d have to think there is rather more gambling going on than hedging.”
If anyone can explain this, please do.
>>Cloward-Piven is about to go geometric.<<
Not sure what geometric means, but I think you’re right in your premise.
Run up the debt, add millions to already taxed social programs.....then raise interest rates. Boom!
>>Sounds crazy, but it is believable.<<
Wonder if they feel it’s believable folks will hunt them down and tar/feather them?
That I find more believable.
If man is still alive. If woman can survive.
I’ve been learned. Tanx a hundred, lol.
Everything you think, do and say, is in the pill you took today. :)
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